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Central Eurasia

FBIS-SOV-94-232
Friday

2 December 1994 This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

Daily Report

Central Eurasia

FBIS-SOV-94-232 CONTENTS 2 December 1994
INTERREGIONAL AFFAIRS
Defense Ministers’ Meeting: Grachev Fires Spokesman /Moscow TV] ..........ssssssssssesesssssesssssesenssnsnssnssesens 1
Grachev on CIS Peacekeeping iii Tajikistan, Abkhazia /Radio ROSSit] ...........ccccccsccccssscsesseeessseessseesseceeees |
Council Discusses Promotion of Economic Cooperation /ITAR-TASS]  ......:.ssccssssssssssssseessessesscessecsceeeeeees 1
ITAR-TASS Carries Press Review for 1 Dec .00.........cccccccseeeeees seiehelieeninlitienieaciitieamnbinntonnindnantiinie 1
2  ppsctieeesovenaspeninsewetnsilicnivinioneennvnnnsgpeatenianertensismnbilionnesbelianiamannineansinliods 2
RUSSIA INTERNATIONAL AFFAIRS
Kozyrev Leaves France for Brussels NATO 3 | FS AEE cceseensvititinliesneuiisimncipaatingaiciicnmnnnisedionapinies 4
eS CNS UDA E AGREE secncesseesvicsnectncserenetenesnvorctncnisebvbetusentvesniantnasesoatunees 4
Kozyrev: Russia To Delay Partnership Program With NATO /ITAR-TASS] .......:c.scssccsssessesseesseeeceeceeneees 5
Extra Security Measures Possible If NATO Expands oe SENT saiiciesnictsitinapsinsiciedienicnaiicioamsenctsitibinaeaiatinii 5
Kozyrev Hopes Georgia-Abkhazia Talks Continue /INTERFAX] ...........scsscsscssscssssssssssesscessesecesceenceaceessees 5
Kozyrev: West Should Finance Russia’s Peacekeepers [INTERFAX]  ..........scssccssscssssesscesescesseecsseseneesseesees 5
State Duma Official on Peace Plan for Bosnian Conflict /YOMIURI SHIMBUN I Dec] ..........:...:-00000+ 6
Cooperation With WEU Seen as Way to European Peace /ITAR-TASS]  .........ssssssssssesssesesesencnsneseseneeenenees 6
Lukin: Moscow Faces ‘Dual’ Task in —— a Re eee 7
Foreign Ministry Views Forthcoming CSCE Meeting /1TAR-TASS] ........scssssessssssessssssessseseseesesenceseneneenens 7
Minister Saltykov, Iranian Envoy Discuss Cooperation [IRNA] _..........s.ssssessssesesssessersnsenesessenensenenenseseneecees 8
Lukoil Official Denies Failure of Lukoil-Mitsui Accord /ITAR-TASS] .........csscssssssssssssessesesssssscessseseesasens 8
Grachev on ‘Productive’ CIS Defense Ministers’ Meeting i ae cetiliinainaiinnnnanaiainnineitinaiinitapal 8
Latvian Ratification of Army Withdrawal To ‘Normalize’ Ties /I1TAR-TASS] .........c.ssssscssssssssssssesescesenees 8
Two Turkmen Said Planning Anti-Nizyazov ‘Terrorism’ Kt aL Bp 2 eae en 9
Moscow Not To Extradite Arrested Turkmen Reporters /ITAR-TASS] .........:ccsssccssssssesssecessscesscceesssesnees 9
Chernomyrdin, Turkmen Leader Discuss Gas Transit Issue [Radio ROSSI} .........sccsssssssssesseesssssseeseesesenees 9
Tatarstan, Ukraine Form Joint Oil Company /ITAR-TASS]  .........ssscsssssssssssssssssssssssscsscssssesssesssesseessensenens 9
RUSSIA NATIONAL AFFAIRS
Politicai Issues
‘Third Force’ Union Favors USSR’s Return /ITAR-TASS] ...........-c.sssssescsssssccsseccssscssssssssssnssseeceesees 11
RCWP on Early Elections, Anpilov’s Candidacy /MOSKOVSKIY KOMSOMOLETS I Dec] ......... 11
Prosecutor on Removal of Zhirinovskiv ge | I TDIETIET \cnssitsvcsisngnenusecnmenveshinasenianialtnnninslentiis 11
Yeltsin Establishes Chechen Cossack Council /I1TAR-TASS]  .........cssscssccssscssccssscsssccessee: sosessceseseeseees 11
Grachev Prepares To Resolve Chechen Conflict /Moscow TV] .... ie « tt
Grachev, Dudayev Agree on ‘Hostages’ hg PO Ee 0 OE chininnrienevetenniciaintcindntimiminimenniinn 12
Dudayev Warns Kremlin of ‘World War III’ /Rome LA REPUBBLICA 2 DOC] .......sc.ssssssesseesseseees 13
Economic Issues
Military Industry Looks To Civilian Applications /Moscow TV] ceshdanicieiiaitaaninalansnniciininiienaniintin 13
I SEED DUIU TAREE IOAED <cuncrreteansressctievtsetorermecnestinisteevencinencceenettetoouuneienmnanttett 14
Central Bank Sets Cash Transaction Limit /ITAR-TASS, 14
Yeltsin Aide Makes Draft Budget ‘Conclusions’ /IZVESTIYA 30 Nov] .... oa 15
Chubays Notes Increase in Personal Savings’ [INTERFAX] .........:cssssessssessessseeeeees 17
Unemployment Remains an ‘Acute’ Problem RUD 30 Nov) ..... 17
EBRD Finances Various Industrial Projects /INTERFA4X] .............. 18
Recent Data Shows High, Slower Inflation /ROSSIYSKAYA GAZETA 30 Nov] 18
Crops Grow ite Early Winter /SELSKAYA ZHIZN I Dec] 19
Moscow Limits Crop Land To Ensure Harvests /INTERFAX] 20
Military & Nuclear Issues
Grachev Indends Staff Reduction, Reorganization ye SEITE ‘icncasipbiinincosinetnedioulmenignrgeamnneni 20
Prosecutor Clears Grachev of Corruption Charge Hee by | actweenowenne 21
Military Commanders’ ‘Conspiracy’ Unfounded //TAR-TASS] ove
Funding Shortages Idle Pacific Fleet Ships /Moscow T a 21
Reactors End et ha Plutonium Production INTERFAX] ..............ccsscscscssscessccsssecsesesees 22
WO PUREED TRSENTICNY CRG 2O0G TAR TASS | .ccesisccscissevesnvscevecrsesscncsessconsnsstncsconnesarvseovensses 22
Media Issues
Press Committee Calls To Stop ‘Fascist’ Papers {i TI . centscnensinnsiaittiierntentinneimeninliaabinnieaii 22
Closes Palestinian Newspaper /INTERFAX] ...... 22

FBIS-SOV-94-232

2 December 1994 2 Central Eurasia
Chernomyrdin Creates Chechen ‘Information Center’? /ITAR-TASS]  ..........cccccccscseeescessesssscecesersnceees 23
TV ‘Corporating’ Seen To Hold Uncertain Future /NEZAVISIMAYA GAZETA I Dec] ............++++- 23
Federal Assembly
Duma Puts Forward 7 Principles for Peace in omega = PEED wemcvermsninccntinns wesaieencnmeninens 24
Yavlinskiy Criticized on Minimum Wage Increase [SEGODNYA I DOC] ........sccsscesessesseeseseereeseenee 24
Regional Affairs
Yeltsin ‘Ready for Talks’ With Chechnya’s Dudayev [Moscow TV] ..........:ccccscesscsssscessessecseseceesceeeees 25
Duma Team Arrives in Nazran; To Meet Chechen Delegation /[TAR-TASS] ...........csccssecsesesseeesees 25
Chechen Opposition Insists on Bringing in Russian Troops /1TAR-TASS] .0........ccccssscssseseseseesseeeees 25
‘Official Text’ of Yeltsin Appeal on Chechnya Released /ITAR-TASS)] ..........:cc-sccsssessesssesseeseeessenees 25
ee TOI COs SII PIII ccinsnsnssnnsneseensenabeeiiisonentabaneennncdinieniintamensies 26
Gives Deadline for Arms Surrender [ITAR-TASS]  ....0..0:.sscscssssssssesecsscseesessesssscecssesescessonccesees 26
a RS | TE 26
Official Views ‘Soft Variant’ of Chechen State of Emergency /INTERFAX] ............:csccsccssesseeseeseees 27
Presidential Official: No State of Emergency on Chechnya /ITAR-TASS]  ..........c.cccsccesseeseeeseeeeeesees 27
Commander Says No Troops Ordered Into Chechnya /INTERFAX] .........:cccccsccsssesscesseessesseeecesees 27
Dudayev: Russia Waging ‘Undeclared War’ inst Chechnya /ITAR-TASS] ..........::cccsccssseseeeeeeees 27
ST “CPONIIED SUR INS = FUE csieerernsnnectrenecsvenscesevewnietincnvecsesvensetconesecnserceeones 28
Shakhray Calls For Talks on Settlement in Chechnya /INTERFAX] ...........cccccssccsssessceeseeeessessceesees 28
be ek Rk RN eC 28
Yushenkov, Dudayev Discuss Russian Prisoners /1TAR-TASS]  ...........csccssccsssesseeseeescessecseenees 28
Duma Team May Secure Release of Some Soldiers in Groznyy [Radio ROSSii] ...........cc.cccescesseeseees 29
Yushenkov, Chechnya’s Yandarbiyev End First Round of Talks /Moscow Radio] ...........:.:css0000 29
Premier Stops Newsmen Covering Yushenkov’s Chechnya Visit /Moscow Radio] ...........:.:s.s000+ 29
Sixty Russian APC’s Heading Toward Chechnya [Moscow Radio]  ..........:cccscccsscssssesssecssceesesessceseees 29
Chechen Opposition Leader Confident of Russian Intervention /Moscow Radio] .............:.s000+0 29
SNIP TINS OUI OT OO, oan aeleserb ounianeinmieabiebtsnnebnehaninsnindiieenbinahdidinnetian 30
Around 50 Reportedly in Killed Air Attack on Groznyy [Moscow TV] .0....ccc.ccccsscsccescesseescesseeesensees 30
a Duma Delegation Protests Shelling of Groznyy /ITAR-TASS]  ........:cccsssccsssessceseesseesceeee 30
Yushenkov Confirms Aircraft Buzzed Groznyy /ITAR-TASS] _ .........:c.sccsssssseesseesesseessceseeseesseeseessees 30
Yushenkov Calls For ‘Immediate’ End to Bombing Raids /INTERFAX] ............:csccsscsssseeeeseeereeeeees 30
Officers Said Assigned To Impose Emergency Rule in Chechnya oes i224 sens 31
Russian Assault Troops Moved Up to Chechen Border Zone V9. see Ss ae 31
Moscow Security Stepped Up To Guard Against Terrorism SNAYA ZVEZDA 2 Dec] .......... 31
Chechen Aide Claims Yeltsin Assassination Bid Being Planned /TRUD 2 Dec] ............:c.cccssseeseeeees 32
‘Dangerous’ Radiation Recorded at War Memorial Near Moscow /IZVESTIYA 2 Dec]  ..............+. 32
Minister: Only 8% of Oil-Polluted Komi Area Cleansed /I1TAR-TASS] ..........ccsccsscsssessesceseesseeeneenees 33
UKRAINE
International Affairs
Tatars Condemn Russian ‘Interference’ in Chechnya [UNIAN] .........cc.ccccssccesseesescesseeeseessseesesenceeness 34
Crimea Wants Russia’s Duma To Act as Guarantor STII "isis henichietetiaaeissiiiituteestiogeecioainis 34
Official on Residents Obtaining Russian Citizenship /INTERFAX] .........:.ccccscssccssseescessescesseeseeesees 34
Supreme Council Discusses Citizenship [UNIAR]  ............sccsccsscssssssssssssesssesecsseccsessencsscsessonsees 34
Peacekeepers Held Hostage in Bosnia Unharmed /[TAK-TASS]  ..........:cssccsscessessseessesecessessceeesseeneees 35
Debris of Ukrainian Plane Found in Bihac /ITAR-TASS]  .........cc.scccssessssssesscessesscesscsscesnceeenseesseeneees 35
Kuchma Pledges To Engage U.S. Companies in Oil Extraction ad International]  ...........c0000000 35
Navy Rejects Statements, Favors Single Black Sea Fleet [UNIAN]  .........ccc-sccsscsssesseesseeseesseeseeseeseees 35
National Affairs
Poll Finds Kuchma ‘Most Popular’ Ukrainian /I/TAR-TASS]  ..........:ccscccsccsssessesssesscesseescessceseeeeeeseess 35
Kuchma Backs Tartar Business Initiative fi IIIT. incaeaiindiehadedinitinitatesieidaieiasmiansdeibilisiihdlabnaedidinniniinl 35
Nuclear Official Criticizes Lack of U.S. Aid /[UKRAYINA MOLODA 29 Nov] 0......cccscscscssesseseeseeees 36
WESTERN REGION
Belarus
President Visits Homel, Views ‘Vertical Chain of Power’ /Minsk Radio] ...........:.scsscseee00e 38
President’s Spokesman Briefs on Security Council Meeting /ZVYAZDA 30 Nov] 38
Government Members Brief on Pricing Policy, Belgian Visit /ZVYAZDA 30 Nov] 39
Retired Generals Accuse Lukashenka of Favoritism /SEGODNYA 1 Dec]  ........:c.scsscsssessseeseesseeeeees 40
Moldova
Snegur Meets Leaders in Brussels /BASAPRESS] ............scsscsssssssssssssessseceseeeeee
Discusses NATO Cooperation [INTERFAX]  .0.......scsssccsssssesssessreseceseeees

Russia Reaffirms Peacekeeper Commitment /BASAPRESS]

FBIS-SOV-94-232

2 December 1994 3 Central Eurasia
Andronic Sees Force as ‘Complication’ /I[TAR-TASS]  .......:.:csscsssesssessessessseeseesseeneesseesceseeeeees 41
Duma Delegation Visits Dniester, ‘Familiarizes’ /BASAPRESS] ..........ccsccsccssssscesssssseescessesecenseenseees 42
CENTRAL ASIA
Kazakhstan
Paper Views Problems of Defense Industry Conversion /KHALYK KENESI 23 Nov] .........:.:0s00000 43
Karaganda Electricity for Solvent Enterprizes Only [Almaty Radio] ..........cccccccsscsssesssesseescesscenceeseres 43
Trade Targets With Russian Company Approved for 1995
Te ee TET UE GP EINE schincicscnsiennntasinssnechinescerinsopenntiotinsnainighinnctineeninapiatehditingesintintiian 43
Kyrgyzstan
Delegation Discusses Political, Economic Ties in Tokyo [Bishkek Radio] ............ccccsccssessseeseeseeeeees 44
Broadcasters Sign Agreements With Russians [Bishkek Radio]  ..........:ccccccccsccssseesssessseseseesscsesseceseeees 44
Statistics on Food Costs in Four Republics (SLOVO KYRGYZSTANA 26 Nov] ......cc.cccsccsssesseesseees ad
Tajikistan
CIS Peacekeeping Forces Commander Opposes Withdrawal

Rakhmanov Addresses New Session of Tajik Parliament
Parliament Adopts Documents on Reforms //TAR-

Eboctions Set for 26 Feb 1995 [UGMDS RAMI oecccccccorcesecsrsnsicecesesersnsevesnencsanteossrecreccscssunecoees
Turkmenistan
Niyazov Unlikely To Attend CSCE Summit in Budapest /INTERFAX] ........c.scscsssscssssssesssseeesceseees 48
lg ed i Eee 49
Turkmen-Kyrgyz Meeting Resolves Trade, Debt Issues [Bishkek R@di0] ........:.:sssscssssssesesesssseseesseees 49
Gas Supply Agreement Signed With Georgia, Armenia /I1TAR-TASS] ..........::csccssscsssssssseesseseeeeseeees at
Uzbekistan
Karimov Issues Decree To Reform Tax System /NARODNOYE SLOVO 1 Dec] ........scsssssssseeseseees 50
CAUCASUS
Armenia
Government Appeals to People on 1 Dec Price Increases af Yerevan International] ..............0c0.000000 52
Raises Bread Prices, Electricity Tariffs INTERFAX] ......scccccccsscsssssscosssssssscsscsssssssscssscscerecseess 52
Stavropol To Send Gas Until Turkmen Supply Resumes [Yerevan Radio] ........:..cccscccsecsesseeeeeseeees 53
Georgia
Parliament Discusses Harsh Statement on Abkhazia [INTERFAX]  ........:.sscsscssccesssssssssesssessscssesenes 53
State May Use ‘Any Means’ To Restore Order —_— deceit cic dactanilanbatssaaapiuattena a3
UN Meeting on Abkhaz Constitution Urged //TAR-TASS] .............- piidliidaliensiaieniaviabinnneetimdaa’ 53
Shevardnadze Fires Head of Energy Department /IPRINDA] ..........c.ccsssscsscssssssescssssssscssessssessescseess 53
Shevardnadze Blames Mafia for Economic Corruption /SAKINFORM] ........:.:csssssssssssscsesseesesensees 54
Shevardnadze To Settle Gas Issue in Ashgabat /Moscow Radio] ...........sssssssssssssssssssssssscsssssssssesseeees 54
BALTIC STATES
Estonia
Prime Minister Threatens To Resign Over Ownership Law (Tallinn Radio] ............:.ss.sscssssssesseees 55
Tarand: Government Not To Resign Over Differences With Meri [Moscow Radio] ..........0s:ssss00 55
Cooperation Accord Signed With Finland, Russia —— NEES SREY oh, Ow SCONE ED Se Oe 55
Development of Relations With Belarus To Be Improved [BNS] ........::.csssssssssssssesceessessesses a
Bank KRefutes Kroon Devaluation Rumors [ETA]  ......sccccsccscccrsssssserssesssscesscessecsscescensestoccesseecssosseceees 56
Latvia
Government Approves 1995 State Budget Plan od cialis dlimiiietaniaiadiieciainialdiiieaabainiiaiieiistabendineaaiiiit 57
Pastinment Demperts 12 Peewr Teme RG TI eieccccacsisecedveseceessecescersnssssnceseatenssnsenetonssinheusseneenes 57
Debts to Russian Gas Concern Obstruct Talks on Contract /[BNS] .........sccsssssscssssscssseressessssssensenees 58
Lithuania
Individual Partnership Program With NATO Signed on IE, secctemensntintinnteniingeenicninaiias 58
Jursenas Praises Signed Agreement With Poland [BN S]  ...........scssesssssssssssesssssessnseecseeenseenseessseeseeensens 58
President Claims Problems With Russia Can Be Settled /ITAR-TASS] _...........0:ss0000 » 39
Deputy Chairman: All New Officials in Office by New Year d, PENT TIE diccrnansdenarvinbetainatinasies 59
Brazauskas on Military Transit Talks, Kaliningrad /Vilnius Radio] mn . ae
Both Ignalina Nuclear Reactors in Operation [Vilnius RAdiO] .......:..ssssssssssessenssserereeseesnenenesnenenenees 60
Opposition Fails To Discuss Chechen in Seimas [INTERFAX] .......:csscccsssssssssrssessessssersesnssssesenseesnss 61

Russian Community Says Cultural Needs ‘Disregarded’ /BNS) ....... wil 61

FBIS-SOV-94-232
2 December 1994

Defense Ministers’ Meeting: Grachev Fires
Spokesman

LDO0112133594 Moscow Russian Television Network in
Russian 1100 GMT I Dec 94

[From the “Vesti” newscast]

[FBIS Translated Text] Today’s session of the Council of
CIS Defense Ministers began with insistent calls by
many heads of war departments to defend them from
incompetent attacks in the press.

At the session [Russian Defense Minister] Pavel
Grachev announced the removal of (Serafim Yushkov),
head of the press center of the Staff for Coordination of
Military Cooperation of CIS Member States, from his
post and his transferral to the Administration for Infor-
mation of the Defense Ministry. Yushkov was removed
for exceeding his official powers. It is implied evidently
that he has been punished for his open letter to Boris
Yeltsin in NEZAVISIMAYA GAZETA of 22 October.

In general, the session discussed questions of a military-
political nature, namely, the planned widening of the
powers of the commander of the Collective Peace-
keeping Forces in Tajikistan, material-technical and
financial back up for maintaining peace in the Abkhaz-
Georgian conflict zone, and also reorganization of the
structure of the Staff for Coordinating Military Cooper-
ation.

Grachev on CIS Peacekeeping in Tajikistan,
Abkhazia

LDO112231994 Moscow Radio Rossii Network in
Russian 1900 GMT 1 Dec 94

[FBIS Translated Text] A meeting of the Council of CIS
Defence Ministers took place on Thursday {1 December]
in the Moscow headquarters for coordinating military
cooperation. In an interview the Russian minister Pavel
Grachev who chaired the meeting told journalists what
he thought were the most important issues which had
been discussed. They include increasing the powers of
the commander of the CIS collective peacekeeping forces
in the republic of Tajikistan. At present these duties are
performed by Lieutenant-General Valeriy Patrikeyev.

[Begin Grachev recording] The main point of the addi-
tional powers is that if an emergency situation arises on
a particular section in Tajikistan Lieutenant-General
Patrikeyev has the right to take the decision autono-
mously to use peacekeeping forces and then, subse-
quently, to inform and submit a report to the defense
ministers of the states whose peacekeeping forces are
used. The second aspect is to introduce structural or
organizational and manning level changes to the struc-
ture of the management apparatus of the peacekeeping
forces and to allow him to recommend the appointment
or dismissal of those officers and generals whom he
considers it necessary to dismiss. [end recording]

INTERREGIONAL AFFAIRS 1

Grachev said that a solution has also been found to the
question of financing the CIS collective peacekeeping
forces’ operation in Abkhazia. The minister expressed
satisfaction that at present there is considerably less
dispute about this question. He also noted that Ukraine
which did not sign the Collective Security Treaty also
expressed the wish to make a contribution, within its
means, to restoring peace in this hot spot.

Council Discusses Promotion of Economic
Cooperation

LD0112195794 Moscow ITAR-TASS in English 1719
GMT I Dec 94

[By BELINFORM correspondent Viktor Sakhankov for
TASS]

[FBIS Transcribed Text] Minsk December 1—The CIS
Intergovernmental Council has set up an operating
council on agroindustrial secter and an intergovern-
mental science and technology centre as a move to
promote economic cooperation between the CIS states.

The Intergovernmental Council met in Minsk today.
Two items on the agenda were the agrarian policy and
agricultural economic reforms, and cooperation in con-
trol of animal and plant parasites and diseases.

These challenges are urgent, with the CIS’ agricultural
sectors plagued by decline in production and monetary
systems and by climbing energy prices.

ITAR-TASS Carries Press Review for 1 Dec

LDO112124294 Moscow ITAR-TASS in Russian 2315
GMT 30 Nov 94

(“Press Review”—ITAR-TASS headline]

{FBIS Translated Text] Moscow, 1 December— The
situation in Chechnya is the main topic of today’s
Russian newspapers. “The Situation in Chechnya Is
Russia’s Domestic Problem”, KRASNAYA ZVEZDA
stresses, “‘and nobody but Russia can solve it.” The
newspaper notes that the time limits set by Russian
President Boris Yeltsin in his address to participants in
the armed conflict in Chechnya “do not bind the presi-
dent himself to undertake reply measures exactly on the
morning of 1 December.” At the same time, in the view
of KRASNAYA ZVEZDA, the head of state’s appeal is 4
reminder: He will not procrastinate with solving the
conflict.

At the same time, IZVESTIYA describes the 48-hour
time limit mentioned in the Russian president’s appeal
as the time limit of “an ultimatum which Moscow has
announced to Chechnya” and recalls that it would expire
by the time today’s edition had reached its readers. The
newspaper noted that “reports on the concentration and
movement of Russian armed formations are coming
from regions adjacent to Chechnya,” while reportage
from Groznyy stresses that “Dudayev’s supporters are

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

2 INTERREGIONAL AFFAIRS

showing their resoluteness to fight for independence to
the end” and “the republican authorities are trying to use
the 48 hours that the Russian president has allocated for
laying down arms as much as possible in order to repel
Russian aggression.” “‘Russian troops may enter
Groznyy if there is non-compliance with the ultimatum,
provocations, or procrastination,” IZVESTIYA con-
cludes.

In its turn NEZAVISIMAYA GAZETA claims that the
Russian forces amassed around Chechnya are such that
they are “capable of completing their task in 72 hours
and presenting the Federation Council with the fact of
‘constitutional legality’ having being restored in Chech-
nya.” According to the newspaper, the main load will be
put on a grouping of Russian Interior Ministry’s internal
troops and units of the North Caucasus military district,
and when Groznyy is stormed it is expected also that
“special sub-units of the Main Guard directorate will be
used whose principal task will be to capture General
Dudayev and his close entourage.” NEZAVISIMAYA
GAZETA adds that “Russian ambassadors in North
African and Middle Eastern Muslim countries received
coded messages from the Russian Foreign Ministry
instructing them to meet local political leaders and to
warn them about the impermissibility of giving any kind
of help to Dzhokhar Dudayev.”

KOMSOMOLSKAYA PRAVDA reports that the Rus-
sian Federation Committee of Soldiers’ Mothers has sent
messages to the Russian president and the Federal
Assembly, urging them to “explain to the citizens of
Russia openly which troops are being used in Chechnya,
who personally and in accordance with whose decision
sent Russian servicemen and placed them at the disposal
of the Chechen opposition”.

PRAVDA runs a statement by the Presidium of the
Central Executive Committee of the Communist Party
of the Russian Federation that solutions to problems that
have piled up in Chechnya should be sought “along the
lines of reaching mutual understanding through dialogue
and reconciliation, not through ultimatum-like demands
which have the nature of an overt threat of a military
intervention”.

The Communist Party Iradership urged the official
authorities in Chechnya to release Russian servicemen
who were taken prisoner.

The press comments on the Russian president’s decree
on the establishment of a “Russian public television” on
the basis of the Ostankino Television and Radio Net-
work.

ROSSIYSKIYE VESTI is of the opinion that “the spon-
taneous ‘corporatization’ of Ostankino, which has been
going on for a long time, will become corporatization
proper without any quotation marks as an organized and
reasonably managed process.”

At the same time the newspaper believes that
“Ostankino, upon becoming independent from the state,

FBIS-SOV-94-232
2 December 1994

would turn into an object of political longing as the
election date draws nearer”’.

KOMSOMOLSKAYA PRAVDA writes that “the pre-
vious concern over pressure from financial entities is
suddenly giving way to awareness of the outstanding role
of the Menatem, Inkombank as well as the Stolichny
bank, the Autovaz, etc. Forty-nine percent of the shares
of *Russian public television“ are to be turned over to
these financial organizations.”

KOMSOMOLSKAYA PRAVDA carries an article
dealing with a decree, which is being prepared by the
Russian president, about a 30 percent Defense Ministry
staff cut.

“The announcement about the decree was not unex-
pected to the ministry staff, just as the assumption that,
as a result of the purge, three out of eight deputy defense
ministers—Boris Gromov, Valeriy Mironov and
Vladimir Toporov—may lose ‘their’ ministry subdivi-
sions which are currently under their authority.”

At the same time the newspaper points out that, in the
opinion of sources in the Defense Ministry and the
general staff, it is hardly worthwhile to present these
generals “as a certain opposition to Defense Minister
Pavel Grachev.”

SOVETSKAYA ROSSIYA analyzes the results of elec-
tions to representative power bodies in Krasnodar terri-
tory:

“This time the electorate finally rejected the democrats.
The voters believe the executive authorities little now
and give absolute preference to the opposition.”

TRUD points out that not a single member of the
Russian Liberal Democratic Party was elected to local
government bodies in Nizhniy Novgorod city and the
region, although at one time almost a third of the
electorate voted for the Vladimir Zhirinovskiy-headed
party.

SOVETSKAYA ROSSIYA carries an interview with
Gennadiy Zyuganov who dwelled on the first world
meeting of solidarity with Cuba. The Russian Commu-
nist Party leader said the international forum, held in
Havana at the end of November, was attended by more
than 3,000 people from over 100 countries, among them
120 members of parliaments.

ITAR-TASS Carries Press Review for 2 Dec
LD0212072194 Moscow ITAR-TASS in English 0636
GMT 2 Dec 94

(“Press Review”—ITAR-TASS headline]

[FBIS Transcribed Text] Moscow December 2 TASS—
The situation concerning Chechnya is the principal topic
in today’s press.

ROSSIYSKAYA GAZETA runs the text of a presiden-
tial decree on the appointment of Nikolay Yegorov,

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

minister for ethnic affairs and regional policy, to be the
Russian president’s plenipotentiary representative in the
Chechen Republic.

IZVESTIYA writes in this connection that Yegorov is a
native of the northern Caucasus and knows well the
specifics of the region. ““However, Yegorov is only repre-
sentative of the m#litary-and-political headquarters at the
forward edge while the headquarters itself is in Moscow”

IZVESTIYA points out that the pause, which developed
upon the expiry of the ultimatum to the warring Chechen
leaders, does not mean Moscow’s bewilderment over the
lack of further plans of action.

It has become known from informed sources in the
Kremlin that such plans were worked out mainly before
the Russian president’s message was sent out and that
the necessary resources and forces are being built up
according to an approved scheme ir the event of the
imposition of a state of emergency.

KRASNAYA ZVEZDA (Red Star) carries an article
about the situation concerning Chechnya under the
headline “the Chechen ‘knot’: the president of Russia
acts in full conformity with the Constitution”.

The newspaper states that the anxious situation taking
shape there “gives rise to serious concern throughout the
Caucasian region...

“The explosive events taking place in Chechnya may
become a detonator of an aggravation of the socio-
political situation throughout southern Russia and
threaten with the Chechen Republic’s break-up into
separate feuding clan entities”.

According to IZVESTIYA, on November 30 Dzhokhar
Dudayev on his own initiative phoned Russian Defence
Minister Pavel Grachev. “They spoke of the fate of
Russian commissioned and non-commissioned officers
whom the Defence Ministry regards as Chechnya’s hos-
tages, not prisoners of war”.

Referring to reliable sources, the newspaper reports that
Dudayev and Grachev “reached agreement about abso-
lute inviolability of Russian citizens captured in
Chechnya during a military operation.”

The Russian defence minister, in an exclusive interview,
told IZVESTIYA on December | that he issued an
instruction to identify all Russian volunteers among
Chechen opposition forces, bring them to Mozdok and
disarm. A plane will be sent to collect them.

“As for 28 commissioned and non-commissioned
officers, who are kept in custody in Groznyy, appro-
priate agencies actively work to secure their release. The
minister has no doubt that they will return home, safe
and sound, shortly”, IZVESTIYA writes.

NOVAYA YEZHEDNEVNAYA GAZETA (New Daily
Newspaper) carries a transcript of a telephone conversa-
tion between th: newspaper’s staff member in Moscow
with Dzhokhar Dudayev on December 1.

INTERREGIONAL AFFAIRS 3

Asked about the “fate of Russian prisoners of war’’, the
Chechen president answered: “I do everything possible to
save their lives... Everything seems to indicate that, unlike
myself, the Russian military and generals do not show any
care for the lives of their soldiers. An order has already
been issued to establish court- martials which are to decide
the future of the prisoners of war. But your POWs do not
want to return home for fear of the Federal Counterintel-
ligence Service”.

Dudayev also said “volunteers are coming to Chechnya
from Dagestan, from over all Caucasus. Afghan muja-
hideen are also arriving.”

NEZAVISIMAYA GAZETA, referring to the Chechen
State Committee for Defence, reports that “several thou-
sand volunteers from Dagestan and Kabardino-Balkaria
have already arrived there. Several hundred Ingushes
have joined them.”

NEZAVISIMAYA GAZETA reports that the parliament
of the Confederation of the Peoples of the Caucasus
(CPC) is to meet in Nalchik on Sunday to discuss the
Situation in Chechnya and may take a decision to
urgently convene a congress of the Peoples of the Cau-
casus. “vepending on how acute the Chechen situation
will be, the CPC would call on the peoples of the north
Caucasus to send their volunteers there”’.

TRUD, which contacted Groznyy by telephone on
December 1, carries remarks by Musa Sultanov, chief of
the analysis and information section of the Chechen
State Security Department, who stated in particular that
“if Moscow eventually delivers a strike against Groznyy,
Groznyy would strike back against Moscow”’.

Newspapers report in detail measures to tighten security
in Moscow. The guarding of vital facilities has been
enhanced and armed police have been reinforced by
armed soldiers.

NEZAVISIMAYA GAZETA, touching upon the
December | session of the defence ministers’ Council of
the CIS Member-States, singles out the Council’s deci-
sion to extend the powers of the commander of the
collective peacekeeping force in Tajikistan for control
over the assigned units.

RABOCHAYA TRIBUNA runs a four-page bulletin
Sodruzhestvo (The Commonwealth of Independent
States)—the joint edition of the CIS Interparliamentary
Assembly and the newspaper. Among a variety of mate-
rials, the newspaper runs the charter of social rights of
and guarantees for ie citize’:s of the independent states.

IZVESTIYA carries an article by news analyst Otto Lacis
about the threat of fascism and political extremism in
Russia.

Several newspapers examine the conflict between the
Bolshoy Theatre director and his art-advisers.

Among international topics, the press singles out the
Serbian offensive on Bihac.

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Kozyrev Leaves France for Lrussels NATO
Meeting

LD0112164394 Moscow ITAR-TASS in English 1550
GMT I! Dec 94

[FBIS Transcribed Text] Paris December 1 TASS—
Russian Foreign Minister Andrey Kozyrev ended a one-
day visit to France «wn Thursday [1 December]. He
addressed a session of the parliamentary assembly of the
West-European Union at the invitation of the leaders of
this organisation which deals with military issues.

Kozyrev left Paris for Brussels to attend a session of the
Council of the North Atlantic Cooperation. An indi-
vidual cooperation programme ‘“‘Russia-NATO” is
expected to be signed. At the same time, the foreign
ministers of the contact group wil! meet to discuss the
settlement of the Bosnian crisis.

Opposes NATO’s Extension to East

LD0112190894 Moscow ITAR-TASS in English 1832
GMT | Dec 94

[By ITAR-TASS correspondents Mikhail Kalmykov,
Andrey Krasnoshchekov, Yuriy Lopatin, and Aleksey
Poroshin]

[FBIS Transcribed Text] Paris December | TASS—The
development of multi-aspect partnership is the most
straightforward way to overcome mutual distrust,
existing in Russia’s relations with NATO and other
West-European agencies. This distrust is a remainder of
the past, Russian Foreign Minister Andrey Kozyrev told
participants in the 40th session of the Western European
Union’s assembly here on Thursday [1 December].

At the session, Kozyrev described Russia’s stance on the
European security problems.

Asked about the Russian attitude to NATO’s possible
extending to the east, Kozyrev said that “this problem is
to be solved by these (East-European) countries them-
selves”. In Russia’s view, however, one must not speed
up this process, as the current stage offers good prospects
for East-European countries’ interaction with NATO
within the Partnership for Peace program.

This will enable (the concerned states) to overcome
mutual suspicions and specify spheres and forms of
cooperation. It would be appropriate io decide on this or
that country’s joining NATO only after a “preparatory
period’’, the Russian foreign minister said.

Russia does not view NATO as a potential enemy.
However, we are talking about enlarging a military and
political organization, which may bring its eastern bor-
ders much closer to Russia, and this can stir up a certain
concern in the Russian public. Therefore, “‘one need not
hurry with extending NATO. Haste will make no good”,
he said.

RUSSIA INTERNATIONAL AFFAIRS

FBIS-SOV-94-232
2 December 1994

Touching upon a forthcoming Budapest summit of the
Conference for Security and Cooperation in Europe,
Kozyrev said Russia believes the CSCE must play central
part in the European process due to its universal nature.

The CSCE’s original goal was to unite all the European
countries. At the modern stage, it should become an
efficient international organization, with its charter, as
well as legal and institutional support for peace-making
operations and protection of human rights. The CSCE
authority should be also used to prevent the develop-
ment of aggressive nationalism, the Russian minister
said.

Speaking about a suggested revision of the nuclear Non-
Proliferation Treaty, Kozyrev said Russia stands for the
only amendment to the document, that is to make it
infinite. At the same time, Russian proposals on further
reduction of Russian and U.S. nuclear arsenals are still
in force, Kozyrev noted.

Asked to comment upon the last French initiative to
hold an international conference on the Bosnian settle-
ment, Kozyrev said “one should first decide on what to
speak about”, and after that discuss whether this forum
would be appropriate.

He noted that the Contact Group members have repeat-
edly debated a possible composition of such a gathering.

Russia thinks a “G-8” format could be used, although
any other number of participants might be good as well.
However, some partners in the Contact Group oppose its
enlargement for fear that the group will turn into some
sort of a discussion club.

Upon reporters’ requesi, Kozyrev briefed them on the
situation in Chechnya. He said that constitutional rights
of the population are being infringed on this territory,
and criminal groups use growing military confrontation
to achieve their own purposes.

Speaking at the news conference A. Kozyrev highly
commended the work that had been done on the docu-
ment, which he had been ready to adopt. But literally just
two hours previously he had received the communique
on the NATO Council session. The first impression was
that “it contains more questions than answers.”

One gets the impression from this document that a
tendency toward quick preparations for an expansion of
NATO is discernible in it. A deadline has been set for
completing “internal discussion,” while no deadlines are
specified regarding cooperation in the sphere of “Part-
nership,” which Russia regards as the priority.

Kozyrev highly appreciated NATO’s desire, reflected in
the communique, to build Europe without dividing lines.
“But we need time to clarify the issues which have
arisen. We hope to go back to the path of partnership and
to adopt these two programs,” he said. ““We can see no
alternative to cooperation with Western democracies
and we will try to achieve equal partnership with them,”
he said.

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FBIS-SOV-94-232
2 December 1994

“We are not happy with NATO being hastily expanded,”
Kozyrev said. He recalled that Russia does not rule out
the possibility that she herself may join NATO but that
first of all the partnership stage needs to be fully
exhausted.

Willy Claes, who was with Kozyrev, said that the NATO
Council has done all it can to explain to Russia that the
alliance’s intentions and policy are unchanged, and that
there are no new aspects in its expansion policy. Internal
discussion on tie strategy and conditions for expansion
is still beginning. It should result in an informatory
document which will not contain any answers to the
questions of “who” and “where.” He expressed hope
that the documents have not been rejected and promised
to do all he can to clarify NATO's position, giving his
assurance that a new meeting will soon be held and the
“‘Russia-NATO” plan will be approved.

Commenting on the Russian minister’s statement, dip-
lomatic sources in NATO said that members of the
NATO Council are disappointed, because the work to
draw up the documents and prepare for today’s act of
adoption were very thorough and time-consuming, and
such unexp2cted developments could have been
avoided.

Kozyrev: Russia To Delay Partnership Program
With NATO

LDO0112201194 Moscow ITAR-TASS World Service in
Russian 1918 GMT 1 Nov 94

[By ITAR-TASS correspondents Aleksandr Mineyev and
Aleksey Poroshin]

[FBIS Translated Text] Brussels, 1 Dec—For the time
being Russia is refraining from adopting the “NATO-
Russia” individual program for partnership since the
final communique of NATO’s session today contains
provisions which need explanation, Andrey Kozyrev,
foreign minister of the Russian Federation, said when he
arrived at NATO headquarters in Brussels.

Russia brought for adoption a 40-page program of coop-
eration prepared by Russian and NATO experts. The
minister thanked all those who took part in this major
and rapidly completed work, but said that unfortunately
NATO’s final communique contains provisions which
are unclear. The main point which Russia finds unclear
is as follows: Russia understands ‘Partnership for Peace’
to be the center and axis for the development of future
relations with NATO. The communique gives the
impression that NATO gives paramount importance to
the expansion of the alliance, and not to this coopera-
tion, which is given the role of a subsidiary mechanism
for expansion. Russia has to ascertain whether or not
NATO is really investing its document with such a
meaning.

The minister said that he had spoken with President
Yeltsin and this viewpoint had been concurred.

RUSSIA INTERNATIONAL AFFAIRS 5

He said that studying the 18-page NATO communique
will take time and it is not possible to adopt the prograrn
on this occasion. But the document is ready and may be
adopted later.

Extra Security Measures Possible If NATO
Expands

LDO112180494 Moscow Radiostantsiya Ekho Moskvy
in Russian 1600 GMT I Dec 94

[FBIS Translated Text] Defense Minister Pavel Grachev
does not rvle out the possibility that, if new members are
admitted to NATO, Russia will take additional security
measures. He said that Russian military experts in
Brussels are currently in the final stage of drafting a
Russia-NATO program for the near future. Grachev
expressed the hope that the document would be agreed
and signed by the end of this year.

Kozyrev Hopes Georgia-Abkhazia Talks Continue

LDO112230494 Moscow INTERFAX in English 2033
GMT I Dec 94

[FBIS Transcribed Text] Russian Foreign Minister
Andrey Kozyrev has expressed the hope that talks
between Georgia and its breakaway province of Abk-
hazia will continue.

“It must be clear, however, that the basis for such
negotiations must remain unchanged: recognition of the
territorial integrity of Georgia and simultaneous formu-
lation of a status for Abkhazia,” Kozyrev said in Paris on
Thursday, answering a question by Interfax.

The minister cited a Russian Government statement
saying that recent proclamation of national sovereignty
by Abkhazia contradicts efforts to settle the conflict
taken by Russia, the Conference on Security and Coop-
eration in Europe and the United Nations.

Kozyrev: West Should Finance Russia’s
Peacekeepers

LDO0112144094 Moscow INTERFAX in English 1412
GMT | Dec 94

[FBIS Transcribed Text] Andrey Kozyrev, Russia’s for-
eign minister, indicated that Russia implements all nec-
essary actions to maintain peace on the territory of the
Commonwealth of Independent States at the request of
legal governments and with the consent of all parties
involved in the conflict.

“We do not need anybody’s permission or mandates, he
said at the session of the Western European Union
Assembly

(WEUV) on Thursday [1 December] in Paris.— However,
we need and we urge that the West should render
financial aid to the Russian peacekeeping operations.“

Kozyrev proposed a wide program of cooperation
between Russia and the Western European Union. In his

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6 RUSSIA INTERNATIONAL AFFAIRS

words, Russia, in particular, is ready to organize joint
naval maneuvers with the Union tc train peacekeeping
operations and to establish direct contacts between the
Russian company Rosvooruzhenie and appropriate
bodies of the WEU.

State Duma Official on Peace Plan for Bosnian
Conflict

OW0212061094 Tokyo YOMIURI SHIMBUN in
Japanese 1 Dec 94 Morning Edition p 4

[Article by Toshikazu Seguchi]

[FBIS Translated Text] Vladimir Lukin, 57, chairman of
the Russian State Duma Foreign Affairs Committee
(former ambassador to the United States), who is visiting
Japan, gave an interview to YOMIURI SHIMBUN in
Tokyo on 30 November. He discussed how to deal with
the stalemate in the Bosnia-Hercegovina conflict.

Regarding the recent development in which the “Liaison
Group,” formed by the United States, Russia, Britain,
France, and Germany, began to consider amending the
peace plan presented to the conflicting parties in the
Bosnian conflict during their negotiations with Serbian
President Slobodan Milosevic, Lukin sternly criticized
the Western nation’s “policy change.” He said: “The
Western nations have always treated Milosevic like a
criminal, regarding him the culprit who aggravated the
conflict. Now they realize that there is nobody they can
turn to except him.”

With regard to the amended peace plan including a
federation scheme between New Yugoslavia (consisting
of Serbia and Montenegro) and Serbian forces in Bosnia,
Lu'.n expressed a positive view, saying: “This should
have been deliberated on, while taking into consider-
ation the rights of the minorities, before the conflict had
intensified.”

Commenting on the discord among Western nations
over how to deal with the Bosnian conflict, Lukin said:
“Priority should be ;ven to collective diplomatic efforts
to stop the fighting and serarate the forces. Whether or
not Russia can play a constructive role also depends on
whether Western nations can agree among themselves.”
He called for a level-headed approach.

On the NATO forces’ intensifying its armed intervention
in the Bosnian conflict, Lukin stated: “It is still not
realistic for an organization that was formed to challenge
the old Warsaw Treaty Organization to find its raison
d’etre in intervention in regional conflicts, which it has
never experienced in the past. It is useless to do futile
things.” He indicated that NATO’s military intervention
does not help resolve the conflict.

Cooperation With WEU Seen as Way to
European Peace

LD0112181494 Moscow ITAR-TASS in English 1702
GMT I! Dec 94

{By ITAR-TASS special correspondents Mikhail
Kalmykov, Andrey Krasnoshchekov, Yuriy Lopatin and
Aleksey Poroshin]

FBIS-SOV-94-232
2 December 1994

[FBIS Transcribed Text] Paris December 1 TASS—
Russia is regarding its cooperation with the Western
European Union (WEU) as a perspective means of
strengthening peace in Europe, Russian Foreign Minister
Andrey Kozyrev stressed in his speech at a WEU’s
parliamentary assembly in Paris today where he was
invited by the leadership of this organization.

Such interaction, he said, means not a policy “against”
whoever it may be but a policy “in favor”—for the
realization of the interests of security of Russia, other
European countries and all Russia’s Western partners
including the United States. However, “the fact remains
that we, the Europeans, should take care of ourselves in
the first place,” the Russian foreign minister stressed.

According to the head of the Russian foreign office, a
dialogue between Russia and the Western European
Union should be orientated towards a more active search
for common approaches to the key problems of security
in Europe and neighboring regions.

Addressing parliamentarians of the WEU’s countries he
emphas.sed: ““You may be sure of a consistent, peaceful
and democratic policy of Russia’”’.

Andrey Kozyrev noted with satisfaction that Russian
and WEU approaches to the Bosnian crisis were “very
close”. Russia stands for the settlement of this problem
by political means, he said.

It is necessary to give a firm rebuff to any violators of
U.N. Security Council resolutions. Sanctions should be
applied strictly within the framework of decisions by the
Security Council and under its control. Touching on the
decision by Belgrade to close the border with Bosnia, the
Russian minister spoke for a “‘stage-by-stage lifting of
sanctions against rump Yugoslavia”.

Russia and the Western European Union, the top Rus-
sian diplomat noted, are sharing a common viewpoint
that “lifting of the embargo on arms deliveries to Mos-
lems will only lead to the further escalation of the
conflict”.

A situation may arise in which the U.N. peacekeeping
forces may be withdrawn from Bosnia. Russia, like
Britain and France, would pull out its peacekeepers if the
arms embargo on Bosnia were lifted and if the situation
developed into an uncontrollable escalation of the con-
flict, Andrey Kozyrev warned.

The foreign minister read out at the session a decree by
Russian President Boris Yeltsin on the imposition as of
today of three-year moratorium on export of antiper-
sonnel mines not equipped with a mechanism for self-
destruction and not to discovered by mine detectors.

According to Andrey Kozyrev, this Russian initiative
must make a contribution to the overcoming of tragic
consequences 0: armed conflicts in different parts of the
planet.

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FBIS-SOV-94-232
2 December 1994

The head of the Russian foreign office rejected allega-
tions that “Russia was a treat” to Central Europe. At the
same time local conflicts on the territory of the Com-
monwealth [of Independent States] threaten security in
Europe. However, Russia carries the burden of its peace-
keeping efforts there sometimes alone while always
acting with a consent or at a request of legitimate
authorities and warring sides.

The assertions about the “legitimacy deficit” of the
Russian peacemaking activities are groundless. We do
not need anybody’s mandates or permissions but are
welcoming and demanding outside assistance in peace-
keeping efforts, the minister emphasised.

Russia proposes to build a new model of all-European
security in which the existing international institutions
including the Conference for Security and Coordination
in Europe (CSCE), NATO and the Western European
Union, would carry out a new mission, Andrey Kozyrev
pointed out.

He also proposed establishing joint groups of experts
from Russia and the WEU on all problems of European
security and conducting thorough consultations on the
“architecture” of European security.

Russia, the minister noted, is prepared for practical
cooperation with the WEU member states on joint
military exercises, providing the WEU on a commercial
basis with photographic information transmitted by
Russian satellites, as well as using Russian aircraft in a
pool formed by the WEU member states within the
framework of the treaty “‘on the open sky”.

Russia is ready to start the joint development of the
WEU’s idea of the “European tactical anti-missile
defense” and establish direct contacts between the “Ros-
vooruzheniye” Russian company and the European
group of armaments under the WEU, as well as develop
scientific and technical cooperation, Andrey Kozyrev
stated.

The foreign minister also proposed creating a Russia-
WEU consultative council for coordination of bilateral
cooperation in all spheres.

Lukin: Moscow Faces ‘Dual’ Task in Japanese
Relations

LDO112152894 Moscow ITAR-TASS in English 1505
GMT I! Dec 94

[By ITAR-TASS correspondent Aleksandr Kopnov]

[FBIS Transcribed Text] Tokyo December 1 TASS—
Russia faces a dual foreign policy task concerning Japan:
to establish good, economically rich relations with this
country and “‘to freeze” the territorial problem, Vladimir
Lukin, now on a private visit to Tokyo, said in an
interview with ITAR-TASS on Thursday.

Lukin is chairman of the State Duma (Russian parlia-
ment lower house) commii‘ee on international relations.

RUSSIA INTERNATIONAL AFFAIRS 7

In the legislator’s opinion, the first step on this road has
already been made, since the nature of bilateral relations
has changed in many respects.

There was a dead end in the past, Lukin said, noting that
Japan demanded unconditionally the transfer of
southern Kurils to it, while the former Soviet Union
assured that this problem did not exist.

“We recognise now the existence of the territorial issue,
since it is raised by the Japanese side,” Lukin continued.
“‘However, we are ready to speak about this in the
context of a long perspective, taking into account that
accent should be put now on the development of con-
structive relations.

“Japan does not challenge this, although it does not
undertake anything in this respect,” Lukin noted.

The situation with Russian public opinion has changed
too, he stessed. The question of whether to surrender the
islands or not went to the background. “Sure, there are
*hotheads’ in the Russian parliament too, who would like
to build their careers on cheap populism,” Lukin
admitted.

“However, any attempt to raise the territorial question
another time runs counter to Russia’s national interests.
We have agreed on an acceptable formula: the question
is to be “frozen’, the islands are ours.”

In Lukin’s opinion, the emerging status quo situation
suits Moscow and, evidently, suits Tokyo too. This
notwithstanding, Japan “continues ritually to remind”
Russia of the existence of the territorial question.

“Therefore, the key question comes now to the fore: can
Russia interest Japan in investments? This will fully
depend on whether we are able to put things in order at
our own house,” Lukin stressed.

Forei
Meeting
LD0112182094 Moscow ITAR-TASS in English 15°4
GMT | Dec 94

Ministry Views Forthcoming CSCE

[By ITAR-TASS diplomatic correspondents Yana Poly-
akova and Vladimir Suprun]

[FBIS Transcribed Text] Moscow December 1 TASS—
In the focus of a forthcoming Budapest meeting of the
Conference for Security and Cooperation in Europe
(CSCE) will be the joint development of an integrated,
non-discriminatory, and comprehensive model for
maintaining security on the CSCE territory, a Russian
Foreign Ministry official told briefing on Thursday [1
December]. The Budapest meeting is scheduled for next
week.

Nikita Matkovskiy, the ministry’s official representative,
said the meeting plans to issue the political declaration,
a fundamertal document to contain assessments of the

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8 RUSSIA INTERNATIONAL AFFAIRS

European situation and set forth goals for a European
security model in the 21st century.

A package of military and political agreements,
including a code of conduct of the CSCE party states,
will be also submitted for the meeting’s approval. The
meeting is expected to take specific decisions on such
critical issues as human rights, and prevention of aggres-
sive nationalism, racism, chauvinism, xenophobia, and
anti-semitism.

The Russian diplomacy places large emphasis on the
economic trend of CSCE activities which would help
consolidate confidence in Europe and develop good-
neighbourly relations and mutual understanding, Matk-
ovskiy said.

Minister Saltykov, Iranian Envoy Discuss
Cooperation

LD0112202194 Tehran IRNA in English 2000 GMT I
Dec 94

[FBIS Transcribed Text] Moscow, Dec 1, IRNA—
Iranian Ambassador to Moscow Medhi Safari here today
in a meeting with Russian Minister for Scientific and
Technological Affairs Boris Georgiyevich [Saltykov],
disscussed Iran-Russia scientific and technical relations
as well as exchange of experts between the two countries.

In the meeting, Georgiyevich called for a review to be
made in an agreement reached in 1971 between the two
countries for scientific cooperation.

Georgiyevich underlined the need to expand bilateral
cooperation and to establish Russian exhibition in
Tehran to acquaint Iranians with the new Russian tech-
nical achievements. He also expressed his country’s
readiness to dispatch Enghlish-language Russian profes-
sors to Iranian universities.

Safari welcomed establishment of a Russian exhibition
in Tehran and called for deepening of scientific and
technical relations between the two countries.

Lukoil Official Denies Failure of Lukoil-Mitsui
Accord

LD0212095894 Moscow ITAR-TASS in English 0932
GMT 2 Dec 94

[FBIS Transcribed Text] Moscow December 2 TASS—
In a BUSINESS-TASS interview on Friday [2
December], Leonid Fedun, vice-president of Russia’s
Lukoil petroleum company, denied reports that an agree-
ment on credits between the Lukoil and the Japanese
Mitsui hid failed.

“Reports about the failure of the agreement are not true
to facts. Lukoil is satisfied with the results of the nego-
tiations which were held in Tokyo during the visit of
Russia’s First Vice-Premier Oleg Soskovets,” Fedun told
BUSINESS-TASS.

FBIS-SOV-94-232
2 December 1994

The signing of a special credit agreement between the
Lukoil, on the one hand, and the Mitsui, the Bank of
Tokyo Trust, and the Imperial Bank on the other, was
the key aspect of the meetings in Japan.

An official representative of the Central Bank of Russia
presented a licence to the Lukoil, certifying its right to
financial credits-related operations abroad.

Grachev on ‘Productive’ CIS Defense Ministers’
Meeting

LDO112232094 Moscow INTERFAX in English 2033
GMT | Dec 94

{[FBIS Transcribed Text] Russian Defense Minister
Pavel Grachev has estimated the CIS defense ministers’
meeting in Moscow Thursday [1 December] as one of the
most productive and pointed to the increasing tendency
for military and technical integration among CIS states.

According to Grachev, such meetings “gradually devel-
oped a single opinion on the need for a CIS collective
security system, and Ukraine’s nearness to this process is
shaping up.”

Grachev said the ministers supported the proposal put
forward by the commander of the CIS peacekeeping
forces in Tajikistan, Valeriy Patrikeyev, on granting him
extra powers. Now Patrikeyev is entitled to indepen-
dently decide on using peacekeepers and restructure
their command.

The Defense Ministers’ Council recommended to pro-
pose CIS leaders consider a closer interaction between
the peacekeepers and Russian border guards in Tajiki-
stan. According to the proposal, Patrikeyev will be able
to command both peacekeepers and border guards in
case of a break-up of the border and open military
operations.

Speaking on the peacekeeping operation in the Geor-
gian-Abkhaz conflict area, Grachev said that all partici-
pants of the meeting expressed their intention to assist
its implementation. “Some plans to render material aid,
some financial, while representatives of some states
supported sendirg national military units to Abkhazia.”
He said Ukrainian representatives made clear that nor
did they rule out the possibility to send their peace-
keeping unit to the Georgian- Abkhaz conflict area.

Latvian Ratification of Army Withdrawal To
‘Normalize’ Ties

LD0112160094 Moscow ITAR-TASS in English 1411
GMT I Dec 94

{By ITAR-TASS diplomatic correspondents Valeriy
Sevryukov and Vladimir Suprun]

[FBIS Transcribed Text] Moscow December 1 TASS—A
package of agreements connected with the Russian troop
withdrawal ratified by Russia’s Federal Assembly and
Latvia’s Sejm makes it possible to normalise bilateral

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the ccpyright owners.

FBIS-SOV-94-232
2 December 1994

relations, Nikita Matkovskiy, spokesman for the Russian
Foreign Ministry, told a briefing on Thursday [1
December]. He said that after the question of social
protection for military pensioners and their families
residing in Latvia had been resolved in the context of
international law it was possible to embark on full-scale
negotiations in Vienna about the participation of the
Conference on Security and Cooperation in Europe
(CSCE) in verification of fulfilling agreements on retired
military residing in Latvia and on the status of a radar
station in Skrunda.

The Russian Foreign Ministry hopes that after the
instruments of ratification are exchanged and the
package of military agreements goes into effect, the
Latvian side will make specific steps to bring the status
of the Russian-speaking population in Latvia in accord
with generally-recognised norms of international law.
This would give an impetus to the development of
mutually advantageous relations between the two coun-
tries, Matkovskiy said.

Two Turkmen Said Planning Anti-Nizyazov
‘Terrorism’

MM0212102394 Moscow IZVESTIYA in Russian 2 Dec
94p 1

{[IMA-PRESS report under “From Our Correspondents
and News Agencies” rubric: “‘Federal Counterintelli-
gence Service Nets Foreign Dissidents”

{[FBIS Translated Text] Two Turkmen journalists—
Murad Esenov and Khalmurad Soyunov, who were
working for Radio Liberty—were arrested in mysterious
circumstances in Moscow 24 and 25 November. Rights
campaigner Andrey Mironov reported this at a news
conference 30 November. According to him, only a few
days later was it possible to find out where they were and
that they were being charged with preparing acts of
terrorism against Turkmenbashi S. Niyazov. It has come
to light that the operation to seize the foreign dissidents
was carried out by employees of the Russian Federal
Counterintelligence Service, who have long denied this
fact.

Moscow Not To Extradite Arrested Turkmen
Reporters

LD0212114194 Moscow ITAR-TASS in English 1052
GMT 2 Dec 94

[By ITAR-TASS correspondent Tamara Zamyatina]}

[FBIS Transcribed Text] Moscow December 2 TASS—
Russia is not going to extradite two Turkmen journalists
who oppose the regime of President of Turkmenistan
Saparmurad Niyazov if it is not proved that they had

RUSSIA INTERNATIONAL AFFAIRS 9

committed a crime, according to Alexey Ilyushenko,
Russian acting prosecutor general who also recalled that
the Russian Constitution dues not allow to extradite
people persecuted for political convictions.

Murat Esenov, editor-in-chief of the “TURKMON ILI”
magazine and Kholmurat Suyunov, the Turkmen corre-
spondent of the “Liberty” radio, were arrested in
Moscow late in November upon a request of Turkmen
authorities and in compliance with the convention on
legal assistance in the CIS signed »y President Boris
Yeltsin on August 4, 1994.

“The two Turkmen journalists who are known among
human rights champions as opponents of Saparmurad
Niyazov are kept in ‘Lefortovo’ (investigation prison)
and there is no talk about their extradiction”’, Ilyushenko
told TASS on Friday [2 December].

He added that “ta whole delegation” had arrived from
Turkmenistan to press for the extradiction of the jour-
nalists. “But the office of the Russian prosecutor general
is not satisfied with some documents submitted by them.
A lawyer will be allowed to see the journalists”, Ilyush-
enko said.

Chernomyrdin, Turkmen Leader Discuss Gas
Transit Issue

LDO0112222294 Moscow Radio Rossii Network in
Russian 2100 GMT 1 Dec 94

[FBIS Translated Text] Russian Prime Minister Viktor
Chernomyrdin had a telephone conversation today with
Turkmenistan President Saparmurad Atayavich Niya-
zov. Chernomyrdin’s call was in regards to the gas
situation: transit of Turkmen gas through the Transcau-
casus republics to Ukraine. Ashgabat has halted gas
deliveries to these countries because of an exacerbation
of the nonpayments issue.

Tatarstan, Ukraine ) orm Joint Oil Company

LD0212115994 Moscow ITAR-TASS in English 1103
GMT 2 Dec 94

[By ITAR-TASS correspondent Nikolay Sorokin]

[FBIS Transcribed Text] Kazan December 2 TASS—
Ukrainian and Tatarstan governments agreed to form a
joint financial-and-industrial company called Ukrtat-
nafta.

The partners have equal shares in the joint-stock com-
pany’s charter capital.

Tatarstan is represented by several oil deposits which
will deliver up to eight million tonnes of sulphurous oil
to Kremenchug annually. Besides, Tatarstan-based

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
10 RUSSIA INTERNATIONAL AFFAIRS 2 December 1994

Nizhnekamskneftekhim joint-stock company will supply According to Tatarstan’s government, the new company
raw rubber to Ukrainian tyre-producers. will enable Tatarstan to preserve its oil markets, ensure
oil exports through the Odessa port and invest money in
develoyment of oil deposits and in construction of
surface facilities.

Ukrainian partners include the Kremenchug oil refinery,
Odessa oil terminal and a tyre-producing plant in Byelot-
serkovsk.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Political Issues

‘Third Force’ Union Favors USSR’s Return

LDO112190594 Moscow ITAR-TASS in English 1614
GMT | Dec 94

[By ITAR-TASS correspondent Igor Belskiy]

{FBIS Transcribed Text] Moscow December 1—
Immediate steps are required to reintegrate the former
Soviet republics, a news conference was told today by
leaders of socio-political blocs converging into a “Third
Force” union. This cluster comprises the “Civil Union”
bloc, with Arkadiy Volskiy among its leaders, the
Majority Party led by Vyacheslav Grechnev and the
Pan-Russian Union “Renaissance” chaired by Viktor
Mironenko and Igor Smirnov. The Agro-industrial
Union has recently joined the “Third Force.” Volskiy
said the “Third Force” union plans to hold, in end-
December in Moscow, a congress of delegates from
Belarus, Ukraine, Kazakhstan and Russia. The confer-
ence is to discuss economic, political and military rein-
tegration of the former Soviet Union.

According to the blocs’ leaders, the ex-Soviet republics
might be reunited through a CIS referendum. The
“Third Force” is sure the outcome of it will be in favor
of the USSR’s comeback. The leaders said the results of
March 1991 referendum on the Soviet Union’s fate
might recur today, since “about 70 percent of the popu-
lation wants the restoration of the integral political,
economic and defense space in the territory of the former
USSR.” The news conference was told that the reinte-
gration was advocated by those employed in the indus-
trial and agricultural sectors, small and medium-size
business and by the military.

Volskiy said he would meet CIS’ heads of state before the
end of the next week. He said his first meeting would be
with Ukrainian President Leonid Kuchma.

RCWP on Early Elections, Anpilov’s Candidacy

MK0112141094 Moscow MOSKOVSKIY
KOMSOMOLETS in Russian I Dec 94 p 2

[Report by Aleksandr Mitrofanov: “MOSKOVSKIY
KOMSOMOLETS Has Spoiled Anpilov’s Plans. The
RCWP Leader Is Going To ‘Win the Street’ That Raised
Him”}

{[FBIS Translated Text] Working Russia, headed by
Viktor Anpilov, and the Russian Communist Workers
Party [RCWP] Moscow organization have, according to
their leader, “been brought to the limit of their
patience.” The rally of Moscow communists/radicals,
which took place a few days ago, ruled to work for an
early election of Annilov as Russian president and pre-
pare an all-Russian strike.

The revolutionary storm will be facilitated by events
planned for December: “a march in memory of Stalin,”
and a procession by “Soviet women” under red banners
and holding saucepans.

RUSSIA NATIONAL AFFAIRS 11

Unlike parliamentary party faction leaders, Viktor
Anpilov hopes to “win in the street:” “In squares and
lanes we have no match!” “My task is to raise the masses
in Moscow,” the communist leader explained. Then the
metropolitan revolution will be suprorted by central
Russia, and the army “will be set in motion.” Yeltsin will
then have only one hope left: for “foreign bayonets.”
However, Anpilov assured, the revolutionaries will not
be “satisfied” with either Moscow or Ruvsia: “People of
labor must have the whole world!”

Anpilov’s closest associate, Boris Khorev, revealed to
journalists that Working Russia’s minimum program
envisions “revolutionary measures” with respect to
those who “are dividing property.” Even so the commu-
nist says there is no reason for concern: “Restitution of
what has been stolen does not mean a civil war.”

MOSKOVSKIY KOMSOMOLETS’ correspondent
inadvertently angered Viktor Ivanovich, asking an
apparently indecent question: Why has he been over-
throwing the “anti-national regime” for several years
now but has not succeeded in actually overthrowing it?
Revolutionary Anpilov declared that the “business of
overthrowing the regime is being hampered” by the
existence of MOSKOVSKIY KOMSOMOLETS, whose
1.5 million circulation is being paid for by... Aleksandr
Nikolayevich Yakovlev.

Prosecutor on Removal of Zhirinovskiy Immunity

LD0212123194 Moscow ITAR-TASS in English 1130
GMT 2 Dec 94

[By unidentified ITAR-TASS correspondent]

[FBIS Transcribed Text] Moscow December 2 TASS—
Russian Acting Prosecutcr General Aleksey Ilyushenko
called on the State Duma to strip nationalist leader
Vladimir Zhirinovskiy of immunity so that he can be
held responsible for his book “The Last Leap to the
South” which is assessed as an appeal for war. Zhiri-
novskiy says in the book, among other things, that he
dreams of the time when Russian soldiers would wash
their boots in the Indian Ocean.

Ilyushenko told TASS on Friday that his office had
already twice submitted corresponding requests to the
State Duma, but received no response. “Such a position
of the parliament makes one think about the observance
by the State Duma of the principle of equality of all
citizens before the law’, he stressed and called on the
lower chamber to “cooperate” in the issue.

Ilyushenko also said that local prosecutors in Russia
were instructed to “reexamine” the materials accumu-
lated while investigating the propaganda of fascist ideas
in order to bring those involved to responsibility.

Yeltsin Establishes Chechen Cossack Council

LD0212094494 Moscow ITAR-TASS in English 0837
GMT 2 Dec 94

[By unidentified ITAR-TASS correspondent]

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

12 RUSSIA NATIONAL AFFAIRS

[FBIS Transcribed Text] Moscow December 2 TASS—
On the eve of the meeting, which Russian minister for
nationalities and the president’s envoy in the Chechen
Republic Nikolay Yegorov is to have with Russian
Cossacks at Yessentuki on Saturday, President Yeltsin
issued a decree to set up a council for Cossack affairs—a
consultative body under the president. The decree
approves the statute of the new body.

The council, the presidential press service reports, will
be a consultative body under the president. Its purpose is
to inform the head of the Russian state on problems
linked with the revival of Russian Cossacks and the
unification of Cossack communities. It will also draw up
proposals concerning the Russian state’s policy vis-a-vis
the Cossack.

The decree also endorses the composition of the council
for Cossack affairs. Russian minister for nationalities
and for regional policy Nikolay Yegorov was appointed
chairman of the council. He was asked to submit to
President Yeltsin a list of candidates to the council
agreed with the all-Russia (unifying) Cossack conference.

As earlier reported, Yegorov is currently visiting the
northern Caucasus. He plans to attend the Yessentuki
meeting of the council of chieftains of the union of
Russia Cossacks.

Yegorov is former head of the Krasnodar territorial
administration and he is well aware of the moods of
Russian Cossacks.

Grachev Prepares To Resolve Chechen Conflict

LDO112192494 Moscow Russian Television Network in
Russian 1700 GMT 1 Dec 94

[Video report on news conference by Defense Minister
Pavel Grachev in Moscow on 1 December, from the
“Vesti” newscast; passages in quotation marks are
recorded]

[FBIS Translated Text] Russian Defense Minister Pavel
Grachev said today that the president has not set him the
task of establishing a state of emergency regime in
Chechnya. At the same time, the secretariat of the
chairman of the State Duma committee on defense said
that reports of the transfer of Russian military units to
the territory of Chechnya do not correspond to reality.
Pavel Grachev noted, however, that if the task were set
of imposing a state of emergency, the necessary forces
and resources would be found to implement it.

[Grachev] “I will tell you: If the army does take part in
resolving this conflict, it does not mean that the army
will fight against the Chechen people.”

[Correspondent] For the Russian Armed Forces to take
part in the Chechen conflict, there must be a presidential
edict and a decision by the Security Council, Pavel
Grachev stressed.

FBIS-SOV-94-232
2 December 1994

[Grachev] “Illegal armed formations have now been set
up on the territory of the Chechen Republic which are
not provided for by a single Russian law, and certainly
not by the Constitution.”

[Correspondent] According to the defense minister, if
troops are used, it will only be to render aid to interior
troops in disarming i:iegal formations. Pavel Grachev
promised to hold a special investigation into every case
of involvement of Russian Army servicemen in the
hostilities as mercenaries. Official structures are not
involved in this, the defense minister believes.

[Grachev] “Neither the defense minister nor the General
Staff has given the order for this.”

[Correspondent] Grachev believes that profit is the main
motive behind the participation of Russian soldiers in
the Russian-Chechen conflict.

[Grachev] “Well, they promised one or two million to a
soldier. There he is, a fresh-faced soldier, a tank
crewman, he is discharged—well, of course, some agreed,
and clearly many did not agree.”

Grachev, Dudayev Agree on ‘Hostages’

MM0112160494 Moscow IZVESTIYA in Russian
2 Dec 94 pl

[Report by Nikolay Burbyga: ““Dudayev Promises
Grachev Not To Touch the Prisoners”)

{[FBIS Translated Text] According to IZVESTIYA’s
information, in the afternoon of 30 November the ques-
tion of the inviolability of the Russian servicemen being
held captive in Groznyy was dealt with at the Russian
Defense Ministry. At approximately 1300 hours Pavel
Grachev, on his own initiative, called Dzhokhar
Dudayev, whereupon they discussed the fate of the
Russian officers and warrant officers whom the Defense
Ministry regards not as prisoners but hostages in Chech-
nya.

The content of the conversation between Pavel Grachev
and Dzhokhar Dudayev, who once used to serve in the
same army, is not known to the editorial office. How-
ever, information from reliable sources allows us to state
accurately: The conversation lasted approximately eight
minutes, and during that time an accord was reached on
the unconditional inviolability of Russian citizens seized
in Chechnya during the military operation.

What was happening in Groznyy at the time of this
telephone conversation is also known. IZVESTIYA’s
informers report that tactical fighters with no identifica-
tion marks were flying over the district where close
relatives of the president of Chechnya live, at low
altitude but at great speed and with a terrifying noise.

That same night the territory adjacent to the aforesaid
district was lit up by illumination flares.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

On 1 December the defense minister told IZVESTIYA in
an exclusive interview that he has issued instructions for
all Russian volunteers in the ranks of the Chechen
opposition to be identified, assembled in Mozdok, and
disarmed. A plane will be sent for them.

“ss for the 28 officers and warrant officers being held
under guard in Groznyy, energetic efforts to secure their
release are under way through the appropriate organs.
The minister has no doubt that they will all come home
alive and well in the very near future.

Dudayev Warns Kremlin of ‘World War IIT’

BR0212094894 Rome LA REPUBBLICA in Italian 2
Dec 94 p 20

{Interview with Chechen President General Dudayev by
unidentified correspondent; place and date not given:
“Dudayev: ‘I Will Not Surrender”’—first paragraph is
LA REPUBBLICA introduction}

[FBIS Translated Text] Moscow—On the day before, as
the Russian Army mustered troops and weapons along
the Chechen border, and as, between bombardments,
Groznyy awaited the big push with bated breath, Gen-
eral Dudayev issued the following warning to the
Kremlin and the world: “I say to you, with all the
authority that I possess, that this will not be the second
Caucasian War but World War III.”

{LA REPUBBLICA] General Dudayev, do you really
think you can stand up to the Russian Army?

[Dudayev] Volunteers are arriving now from Dagestan,
from... from every corner of the Caucasus. The moja-
hidin are arriving, and thousands of men in the villages
and the mountains are forming their own battalions.
They are not soldiers of my army, and they are not
answerable to me personally. They are answerable only
to Allah, and nobody can stop them until their desire for
revenge has been satisfied. Do not be under any illusions:
The war that they are preparing to wage will take place
on Russian territory.

{LA REPUBBLICA] Officially, all the attacks and bom-
bardments that Chechnya has suffered hitherto were
caused by the internal opposition, in a kind of civil war.
Why are you blaming Russia?

[Dudayev] As you are well aware, it is not the opposition
that is mounting the attacks, but Russia. The bombard-
ments have been going on for days here. All I know is
that last week some 150 armored vehicles, including 67
tanks, were brought to the vicinity of Groznyy. We
succeeded in halting the attack, in destroying much of
the equipment, and in taking hostages from among the
Russian—I repeat, Russian—troops.

[LA REPUBBLICA] What will happen to them?

[Dudayev] I am doing all I can to ensure their safety. I
even gave orders for them to be taken away from
Groznyy, to a safe place, so that they are not killed by

RUSSIA NATIONAL AFFAIRS 13

some bomb. Somebody must have discovered this, how-
ever, because the moment the troops arrived here the
bombardmenis began. That suggests that not everybody
wants to see them arrive safe and sound so that they can
recount what happened.

[LA REPUBBLICA] Defense Minister Grachev swears
that there were no Russian troops in Chechnya. Are you
really so sure about that?

[Dudayev] What do you mean, am I sure? Of course, I
am sure. Unlike me, the Russian military leaders, the
Russian generals, do not care much about what happens
to their troops. It is said that they have already estab-
lished military courts to try captured soldiers. But the
prisoners are in no hurry to return home: They are afraid
of the Russian secret services.

{LA REPUBBLICA] What are you doing right now?
How are you preparing for the attack?

[Dudayev] We have informed the UN Security Council
of what is happening. Apart from that, we are restoring
order to the city after the latest attack by the fighter
planes.

[LA REPUBBLICA] You think there is no further
chance of a peaceful settlement.

[Dudayev] Hope is always the last to die. I am trying to
control the situation, to restrain all the combatants. But
obviouszly things cannot continue this way for long. As
far as the negotiations are concerned, Yeltsin refuses to
talk on the phone.

Economic Issues

Military Industry Looks To Civilian Applications
LDO112184694

[FBIS Editorial Report] Moscow Russian Television
Network in Russian at 0912 GMT on | December 94
devotes part of its “Business Russia” program to a
20-minute feature by correspondent Aleksandr Akopov
about conversion in the Russian military industrial-
complex and its skill in developing high technology
which now can find various applications in civilian life.

Viktor Glukhikh, chairman of the state committee for
military branches of industry, says the committee aims
to set up a marketing center to study the internal and
foreign market and the potentialities of the military-
industrial complex itself.

Akopov then says that in 1994 the situation in the
military- iadustrial complex has become critical, with
the volume of arms and military hardware production
amounting only to 6 percent of what it was in 1991.

An unidentified speaker then says that the 1994 defense
budget amounted to 40.6 trillion rubles, though it is
difficult to say how much of it goes to the military-
industrial complex.

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

14 RUSSIA NATIONAL AFFAIRS

A representative of the military-industrial complex trade
unions adds that the military-industrial complex
received state orders last December, but in the first
quarter of 1994 the government cut military-industrial
complex financing by over 60 percent. A power struggle
at every level has pushed back such national priorities as
defense, industrial development, ani science. Mean-
while, 95 percent of the plants that made armaments
have been closed down. Designing is not financed.

Akopov presents facts and figures to illustrate this point:
the fall in the output of television sets made by the
military- industrial complex enterprises during the last
two years, and the 10-fold drop in production at aircraft
factories. In the radio industry output decreased about
15-fold, and in electronics about 20-fold. Only 30 per-
cent of all the armaments of the Russian Army are
modern, whereas for Western countries this figure is 70
percent.

Akopov says that one way of overcoming this situation is
setting up financial-industrial groups, and gives the
following examples:

- The famous Alekseyev Design Bureau has developed
unique military and wing-in-ground planes [ekrano-
plany] with the financial backing of the private company
GermesSoyuz.

- The Moscow plant belonging to the Scientific Research
Institute of Instrument Engineering has developed a
control system for power generators on the basis of a
control system for aircraft engines, and makes these
generators from discarded equipment. They work in any
climate and are very reliable.

- The same research institute makes an appliance called
an attitude indicator [inklinometer], which was formerly
used in the orientation system of rockets and is now used
for high-precision oil drilling.

- The military-industrial complex has also made drying
equipment for printing works, which is much cheaper
than foreign equipment.

- The Chkalov aircraft production association in
Novosibirsk, which used to make military aircraft, has
built the civilian AN-38 aircraft, which is very conve-
nient for internal flights and has aroused the interest of
the U.S. mail transportation company Federal Express.

Akopov says that cosmonautics in Russia is on the brink
of collapse, so it has to find outlets for its products in
other spheres. Thus, the Scientific and Production Asso-
ciation Komposit has started applying new materials it
has developed to traumatology and orthopedics, making
prostheses from extra-hard titanium and using zirco-
nium composite materials to make plates for orthosyn-
thesis.

During the program, the video shows military hardware,
ships, shops of military factories and plants, planes
taking off from an aircraft carrier and refueling in

FBIS-SOV-94-232
2 December 1994

mid-air, a plane apparently crash- landing, laboratory
and computer equipment, a drilling site with equipment,
drying equipinent for printing houses, combat planes in
flight, a plane being stripped down, a rocket launching, a
space flight control room, patients being operated on in
a hospital and metal prostheses and plates.

Moscow Exhibition Opens

LDO0112165794 Moscow INTERFAX in English 1540
GMT I Dec 94

[By ITAR-TASS correspondem Sergey Ostanin]

[FBIS Transcribed Text] Moscow December 1 TASS—
The fifth jubilee show Conversion-94 (“engineering—
conversion—market’’) opened at the all-Russia
exhibition centre here on Thursday. It has been arranged
on the initiative of the Russian state committee for the
defence industry, the Russian space agency, the Ministry
of Nuclear Power Eagineering, the Russian Academy of
Sciences, and the Moscow administration.

Deputy head of the Russian state committee for the
defence industry Gennadiy Voronin told a press-
conference held on the occasion of the opening of the
show that more than one thousand technologies covering
almost all economic sectors would be represented at the
exhibition.

According to Voronin, the funds allocated by the Rus-
sian Finance Ministry for the state conversion pro-
gramme can meet only from ten to thirty percent of the
needs of the Russian military-indistrial complex. Sup-
port of investment funds for defence enterprises could
allow to settle many conversion problems in the near
future, he said. The committee for the defence industry
has prepared almost 2000 investment projects, Voronin
added.

It was noted at the press-conference that almost 200
defence enterprises, investment funds, insurance and
trading companies and Russian major banks were par-
ticipating in the show. They plan to establish mutually
beneficial ties, define markets in Russia and abroad and
attract investments for new projects.

A conference “The Russian Military-Industrial Complex
for Business World” will be held within the framework
of the show which will last until December 6. The show
programme will also include meetings with Russian and
foreign businessmen, scholars and public figures.

Central Bank Sets Cash Transaction Limit

LDO112203594 Moscow ITAR-TASS World Service in
Russian 1337 GMT I Dec 94

{FBIS Translated Text] Moscow, 1 Dec (BUSINESS-
TASS)—The maximum size of transactions involving
cash between juridical persons in the Russian Federation
has been set at 2 million rubles per payment. All trans-
actions involving larger sums will now be carried out
only in a noncash form. According to the Russian

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Central Bank, this regulation has been introduced in
connection with a government decision on 17
November.

Yeltsin Aide Makes Draft Budget ‘Conclusions’

MM0112155394 Moscow IZVESTIYA in Russian 30
Nov 94 p 13

{Commentary by Dr. of Economic Sciences David Shav-
ishvili, Member of the Russian President’s Social Policy
Council: “The Social Sphere May Be Reduced to Star-
vation Rations: Expert Analysis of the Draft Law on the
Federal Budget for 1995”—from the EKSPERTIZA
section]

[FBIS Translated Text] An analysis of the 1995 draft
federal budget makes it possible to draw the following
main conclusions: The move toward overt mass unem-
ployment is predetermined, the material and technical
basis of the social sphere is going to collapse completely,
the main minimum social guarantees will not be ensured,
tax policy will remove workers’ motivation for produc-
tive labor, and the consolidation of extrabudgetary funds
in the budget will lead to the utilization of resources not
as directly intended.

The Specter of Mass Unemployment

The main budget indicators have been designed for the
conditions of the transition of the economy to overt mass
unemployment. For the first time in recent years the
government envisages that wages will rise faster than the
rate of inflation.

For example, according to the forecast for socioeco-
nomic development in 1995 the wage fund is set to rise
by 60 percent and inflation by 30 percent. However, such
a jump in real wages will be possible only if workers are
discharged on a massive scale because in 1995 it is
envisaged that GDP will fall by a further 6-8 percent.

This will inevitably mean that at least 8 million people
will lose their jobs and that unemployment will cease to
be hidden and will become overt.

The employment fund, according to the most optimistic
forecasts, could be 5.4 trillion rubles [R] next year. After
deducting the cost of maintaining the fund’s apparatus
that figure will be R4.1 trillion.

In these conditions the unemployment benefit will not
exceed R45,000 a month as against a subsistence min-
imum of the order of R150,000. It should be noted that
the size of the allowance will determine the living
standard of a considerable proportion of the active
population. The consequences will be far more serious
than the delays in the payment of wages.

Incomes in Jeopardy

There is insufficient reason to believe that the economic
slump will slow down next year. According to the expert
assessment of the Council for Social Policy, GDP in

RUSSIA NATIONAL AFFAIRS 15

1995 (in comparable prices) will be 76.2 percent of the
1994 level and will be down to 44 percent of the 1991
level.

The revenue section of the budget and tax receipts will be
extremely unstable if there is a repetition of the situation
that occurred in tax collection in the first nine months of
this year (just 37.7 percent of the planned figure has been
received).

The forecast that the rate of inflation will slow down to
0.5-1 percent a month by the end of 1995 is very
dubious.

The archaic structure of production oriented toward the
raw materials sectors and the constant “injections” in
agriculture, defense, and so forth predetermine the inef-
ficient structures of the national economy. To ensure the
supply of hard currency revenue from foreign trace there
will have to be a constant reduction in the ruble
exchange rate, which will inevitably lead to a general rise
in prices and spiralling inflation. However, the draft
budget does not provide for major structural transfor-
mations in the economy.

The orientation toward substantial foreign loans, which
the budget architects are trying to use to replace Central
Bank credits to the government, also poses a certain
threat.

The forecast growth in federal budget receipts is R24
trillion. However, it is planned that over 17 percent of
that will come from the introduction of a federal rate of
income tax on individuals. It is planned that additional
revenue will come from increased excise duty on
liqueurs, vodka, and automobiles.

Taxes levied on the Population

It is planned to ease the tax pressure on citizens on low
incomes, increase taxation on average income earners,
and raise the maximum tax rate for high income earners.
That is the draft’s intention.

In fact, however, the basic rate of tax for citizens on low
incomes will be at the present 12 percent while that on
those with very high incomes will be 35 percent. In other
words, all that we are looking at is a relative and not
absolute reduction in taxation on citizens on low
incomes.

In the opinion of the Social Policy Council’s experts, it is
necessary to exempt entirely from taxation those citizens
whose pay is up to three times the minimum wage (in
July 1994 this was slightly over 50 percent of the
subsistence minimum).

Preferential taxation (iess than 12 percent) should also
be introduced for those whose money incomes are below
the subsistence minimum and a rate of 12 percent should
be levied from those whose incomes vary between the
subsistence minimum and the average wage.

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is prohibited without permission of the copyright owners.

16 RUSSIA NATIONAL AFFAIRS

A Single Social Payment Is Needed

The diaft speaks of the need for the consolidation of
extrabudgetary funds—tne social and medical insurance
and employment funds—in the budget.

A “centralization” of this kind is fraught with far-
reaching consequences and is contrary to the interests of
the reform of the social sphere and its adaptation to
market economy conditions.

Furthermore, the complicated system of payments is
reinforced even though those p2yments have a single
revenue base [raschetnaya baza]—the labor remunera-
tion fund. To reduce the number of taxes and payments,
cut bureaucracy and red tape, and reduce the cost of
collection it is expedient to amalgamate these contribu-
tions into a single social payment which would then be
divided among the various funds according to legally
enshrined normatives.

It is necessary to introduce the principle of “‘o: tax—
one payment,” a principle generally recognized }.. world
practice.

Punishing the Law-Abiding

In an overall assessment of the tax reform proposed by
the draft budget the following should be noted.

The reduction in the total number of taxes is insignifi-
cant, in other words, the unwieldiness of the system itself
is not being eliminated. The old format of setting,
levying, and paying taxes is being preserved (with a
certain strengthening of sanctions on nonpayers). This
will be a further incentive to the proliferation of super-
fluous paperwork in the economy, will slow down gen-
eral money circulation, and increase the cost of the tax
collection system and the maintenance of the taxation

organs.

As an alternative there could be a system in which taxes
are paid to the federal, regional, and local budgets in
accordance with the legally established normatives.

The draft contains tough sanctions for nonpayment of
taxes. It is clear, however, that there may be different
reasons for nonpayment—from simple mathematical
error to varying interpretations of the normative docu-
ments.

The proposed sanctions will be aimed primarily at
law-abiding tax payers and will have no effect on those
who make extensive efforts to conceal the taxable
sources by making big transactions in cash.

“Tilegal” payments in cash have become widespread
primarily because of the inordinately high rates of tax
and are a consequence of the emergence in the economy
of a parallel “shadow” form of money circulation not
controlled by the state. Payments in cash are undoubt-
edly one of the main reasons for the colossal shortfall in
revenue to the state budget including revenue for social
needs.

FBIS-SOV-94-232
2 December 1994

In addition, a practice has developed recently in which
the financial organs’ normative documents have been
obliging tax payers to “split” their taxes among the
federal, regional, and local budgets. As a result an
enterprise is forced to fill out several payment docu-
ments when paying a single tax.

On a national scale this has led to the vast and unwar-
ranted expansion of paperwork and has increased the
cost of rvrning the system. To eliminate this situation
the taxation and financial services should themselves be
obliged to allocate tax revenue among budgets and
recipients. At the same time it is necessary to step up the
monitoring of contribution payments.

“Starvatiea Diet” Prescribed for The Social Sphere

The draft budget’s considerable shortcomings are con-
nected with the policy of funding the social sphere. The
main shortcoming is the absence of clearly defined
priorities. Although priorities were outlined in the 1994
budget, they have not been implemented.

Meanwhile, one of the main priorities is the funding of
the social sphere at the level of the minimum social
guarantees ensured from the federal budget’s resources.

An analysis of this area of the draft enables the conclu-
sion to be drawn that the structure of spending on social
needs developed in recent years will be fully retained in
1995. However, the socioeconomic situation means that
a major adjustment is needed.

This relates primarily tc the introduction of needs allow-
ances and the reform of the financing of the social sphere
of the components of the Federation and the organs of
local self-government.

Even though we have not yet reached the end of 1994,
the actual performance of the budget mav be only 50-60
percent of the planned level for certain items of social
sphere funding. It may be presumed with a large degree
of probability that the same fate awaits these items of
expenditure in the 1995 budget.

The trend toward the decentralization of social spending
is being consolidated. Put more simply, the burden of
spending on the social sphere is being shifted to the local
budgets. Consequently the local organs of power will
bear the responsibility for the efficient functioning of the
social sphere at a time of limited financial potential
because of the existing and planned distribution of taxes.

This enables the clear conclusion to be drawn that the
financial normatives on which the budget is based will
not be sufficient to ensure the stabilization of the
funding of the social sphere with all the attendant
socioeconomic and political consequences and that they
therefore need radical reworking.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

RUSSIA NATIONAL AFFAIRS

Performance of the Social Sphere Budget in the First Nine Months of This Year

| 1994 Budget }

9-month Budget

| Financed Jan-Sep 1994 |

Percentage Fulfilled

Sociocultural

Measures (total) | 14321.58 |

9051.62 |

6458.88 | 45.1

Including:

Education 7153.02

4555.61

3472.71

Culture, Art, and the 2247.11

Mass Media

1333.62

869.49

Health Care and Physical 3880.33

Culture

2466.75

1503.62

Science 4946.11

3101.36

1855.91

[Units in columns 2-4 not given]

Chubays Notes Increase in Personal Savings’

LDO0112161294 Moscow INTERFAX in English 1340
GM71 | Dec 94

[FBIS Transcribed Text] The money kept by Russia’s
population in the Savings Bank increased from 5 trillion
to 20 trillion rubles in the 10 months from January to
November, First Deputy Prime Minister Anatoliy Chu-
bays said.

This became possible because inflation went down from
24 percent at the beginning of the year to between 4 and
5 percent in August, Chubays told business people in
Novosibirsk.

He said Russian citizens are the main potential investors
of capital in the country’s economy. “People do have
money and are ready to invest it—in amounts that the
federal treasury couldn’t even dream of,” he said. Just
one company, he went on, through widely advertising
itself in the media, “‘manages to draw from the popula-
tion about 6 billion rubles a day, including Saturdays
and Sundays.”

According to Chubays, it is one of the government’s
priorities for 1995 “to create conditions to oust various
kinds of dubious investment companies onto the fringes
of the money market.” “Our citizens must be stimulated
to buy shares in serious industrial enterprises instead of
any tickets or any other ‘advertised products,” the
deputy premier said.

But this can only be achieved by curbing inflation to | or
2 percent a month, which will be possible if parliament
passes the draft budget for next year proposed by the
government, he said.

Unemployment Remains an ‘Acute’ Problem
MM0112154994 Moscow TRUD in Russian 30 Nov 94
pp 1-2

{Report by TRUD Political Observer Vitaliy Golo-
vachev: ““New Shock: Unemployment. Five Million Rus-
sians Cannot Find Jobs Today”

[FBIS Translated Excerpts] [Passage omitted] In the
Republic of Komi, 26,500 unemployed people were
officially registered as of 1 October, and there were only
5,500 job vacancies. That is an average of five people for
every job. It is, though, the same throughout the country.

The unemployment problem is becoming increasingly
acute in Russia. A report just in from the State Com-
mittee for Statistics does not ease our alarm: Taking into
account people who are employed part-time in produc-
tion, as of 1 November, the overall unemployment
potential constituted 9.7 million people—13 percent of
the economically active population. According to the
forecast of the Russian Federation Government Eco-
nomic Situation Center, over 7 million Russians (10
percent) will find themselves without any work by the
end of the year. This percentage indicator is greater than
in the United States, never mind Germany and Japan. In
terms of the level of unemployment Russia is catching up
with Poland. And the most depressing thing is that this is
just the beginning.

Admittedly, the State Employment Service provides
completely different figures: As of 1 November there
were 1.75 million “unoccupied” citizens, including 1.47
million with unemployed status. But at the same time the
Russians who have no job but who are actively seeking
one without the help of the employment office are not
taken into account. According to International Labor
Organization methodology, these people are classified as
unemployed. There are 4.9 million of them in all. And
there are also almost as many (4.8 million) who have
been forced to work incomplete weeks or have been on
leave without pay (or with partial pay). Tomorrow a lot
of them will become the “official” unemployed. So that
makes almost 10 million people. But if we ignore
“hidden” unemployment and only take those who do not
have any work at all, then it works out that one Russian
in 15 (with respect to the economically active popula-
tion) has found himself “superfluous” in our country. Of
course, the figure of 1.5 million “official” unemployed
(which is not that small either, as it happens) looks far
more tolerable, but the real acuteness of the problem is
not reduced as a result of this paper decoration.

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18 RUSSIA NATIONAL AFFAIRS

**...After dinner I send my daughter to bed, then I
telephone my friends and acquaintances to see if they
know where I can find a job in my profession. Of course
I have been to the employment office. The last time was
10 November. They told me that I need not bother them
before 27 December. Apparentiy if some kind of suitable
vacancy comes up (there is not much hope of that), they
will call me themselves.”

“Never mind the employment office—I have pestered
everyone! For example, i have been to the ‘Komineft’
and ‘Severgazprom’ Associations.... But cuts are being
made everywhere, just like in our associations. They say
that specialists in petroleum and gas prospecting are not
needed today. Not needed! I do not understand what is
happening: Petroleum and gas extraction in Komi is
falling (by 29-22 percent in the first 10 months of this
year as compared with 1993), yet prospecting is being
curtailed....”

“In the afternoon I take Katya to the therapeutic mud-
baths. People are going home from work. Sometimes I
meet people I know....”

The tide of unemployment is inexorably sweeping over
us. In the past 10 months alone 2.62 million people, of
whom almost 2 million have received unemployed
status, have registered with the employment services.
This is a lot more than in the analogous period of last
year. Admittedly, 867,000 citizens have been given
work. But a lot of them wander about with nothing to do
for six or eight months.... And ahead lies a second shock,
the shock of bankruptcy and mass unemployment. It
seems that everything is already in place for this.

One-fourth of workers in enterprises and organizations
in industry, construction, transportation, communica-
tions, science, and scientific servicing have been “‘enjoy-
ing themselves” on enforced vacations this year, while
16 percent of workers have been transferred to a reduced
work regime. That is the potential reserve of the new
wave of the unemployed. Incidentally, the total length of
administrative leave has amounted to 57 million man-days
in the last nine months. This is a huge number. According
to the assessment of the Economic Situation Center, by
the middle of this year, hidden unemployment had already
enveloped around 8 million Russians.

This hitherto invisible flame is constantly coming viv-
idly to light. In the first three quarters of 1994 900,000
people were dismissed in connection with staff cuts. And
in this period 10.9 million people (or one in five) have left
jobs with enterprises and organizations for various rea-
sons, while 8.1 million have been taken on. Enterprises
and organizations intend to dismiss another 300,000
workers in the present, fourth quarter. As we can see, the
calculations are running into hundreds of thousands and
millions of people, although the period of mass enter-
prise bankruptcies has not yet started. So what scale of
unemployment awaits us tomorrow?

In Ivanovo Oblast 57,000 people are already looking for
work. At the same time the number of announced

FBIS-SOV-94-232
2 December 1994

vacancies is only 948. One person in 12 here is “offi-
cially” unemployed. And if we also include people who
are not working full time, the picture becomes really
depressing. There is also a high level of unemployment
today in the Ingush Republic and Yaroslavl, Pskov,
Kostroma, Kirov, and Vladimir Oblasts.... It is also a
bad thing that the scale of long-term unemployment is
growing. At the beginning of last year it amounted to
three months, now it is six. [passage omitted]

The forecast of the State Employment Service for this
year has not come true: They thought that by the end of
1994 there would be 4 million “officially” unemployed
people, but in actual fact it seems there will be 2 million.
The employment specialists believed that the reforms
would be tougher, that enterprise bankruptcies would
occur earlier, and that hidden unemployment would be
transformed into open unemployment. It’s a gocd thing
that the State Employment Service is looking to the
worst-case scenario. But after all, the prospect of unem-
ployment on a greater scale has only been put off for a
while. And this means that we should tackle this most
acute problem with increasing energy. [passage omitted]

EBRD Finances Various Industrial Projects

LD0112135394 Moscow INTERFAX in English 1152
GMT | Dec 94

{[FBIS Translated Text] The European Bank for the
Reconstruction and Development (EBRD) approved on
Wednesday [30 November] the financing of 37 Russian
projects in various industries to the sum of $1.3 billion,
EBRD Director in Charge of Russia, Belarus and Tajiki-
stan Oleg Preksin told the Financial Information
Agency.

Preksin said that the EBRD had outlined priority direc-
tions for its relations with Russia. It will aid develop-
ment of enterprises, support the financial sector, help the
development of energy resources and support important
infrastructure projects. The EBRD’s Board of Directors
has also chosen regions for priority financing: St. Peters-
burg, Yekaterinburg, Vladivostok and the Krasnodar
Territory.

Preksin said that the choice of priority projects in Russia
was conditioned by the EBRD’s limited funds and pos-
sibilities.

He said that with the credits from other participants in
the above projects, World Bank among them, counted,
the total sum will amount to $3.4 billion. Credits are
usually offered for a period of five-seven years LIBOR +
1 percent.

Recent Data Shows High, Slower Inflation

MM0112134794 Moscow ROSSIYSKAYA GAZETA in
Russian 30 Nov 94 First Edition p 3

(Unattributed report based on Center for the Economic
Situation Under the Russian Federation Government

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

data: “‘Prices for the Week 15-22 November. But There
is Cheap Gasoline Somewhere”’]

{FBIS Translated Text] Despite the fact that inflation
was slower last week than in the first week of November,
it remained rather high and was 3.3 percent compared
with 4.2 in the first week of the month and 3.2 in the
previous week. Food was 4 percent dearer, nonfood
commodities were 3.2 percent dearer, and consumer
services were 1.4 percent dearer. On the basis of the
current rate at which prices are changing, inflation is
likely to be 13-14 percent in November.

Feasting Over, Time To Fast

In Moscow and St. Petersburg consumer prices for goods
and services rose much more quickly than the Russian
average.

Of the types of food surveyed, butter, dairy products,
and vegetables again saw rapid price rises. The price of
butter went up by 16 percent, vegetables by 6 percent,
and dairy products, groats, and pasta by 5 percent. The
prices of fish, vegetable oil, eggs, confectionery, and fruit
rose by nearly 4 percent. Since the beginning of the
month the price of butter has risen at a record rate of
nearly 50 percent; dairy products have gone up by 20
percent; and eggs, vegetables, and fruit by 17 percent.

Changes in food prices last week varied from economic
region to economic region. The biggest food price
increases were in the Volga-Vyatka region, where prices
of milk and butter rose by 16-17 percent and prices of
vegetables and fruit by 8-9 percent. The smallest food
price rises were in the North and East Siberia regions—
2.8 and 2.9 percent, respectively.

The average cost of the monthly shopping basket of 19
major foodstuffs as of 22 November was 84,000 rubles
[R], a rise in the weekly figure of 13.3 percent since the
beginning of the month and 2.7 times since the beginning
of the year. At organized trade prices the basket cost
R82,000; at free market prices it was R107,000

The Far East region was still the most expensive (the
basket cost R147,000). The “cheapest” was the Volga
region, where it cost R64,000.

In Moscow and St. Petersburg the cost of the basket was
R97,000 and R91,000, respectively. Moscow was still
24th in the list of cities surveyed, while St. Petersburg
moved from 35th to 34th.

Get Sandals Ready in Winter and the Refrigerator in
Summer

Of the nonfood commodities surveyed, last week saw
marked increases in the prices of certain types of medi-
cines (by 8.3 percent) and refrigerators (by 6 percent).
Summer footwear for children and adults, not surpris-
ingly, and tobacco products showed practically no price
change—1-2 percent at most.

RUSSIA NATIONAL AFFAIRS 19

Over the past three weeks Moscow has recorded the top
gasoline price in Russia of R1,040 per liter, which is 2.3
times more than at the beginning of the month; the
lowest price in Russia is R255 (4.1 times less than in
Moscow, and the average is R446. The greatest variation
in gasoline prices was in the Central region (3.6 times).

Crops Grow Despite Early Winter

MM0112170194 Moscow SELSKAYA ZHIZN in
Russian I Dec 94 p 7

[Report by Tamara Maksimenkova, chief specialist of
the Agrometeorological Forecasts Department of the
Russian Hydrometerological Center, under ““Agromete-
orological Forecast” rubric: “Winter Crops Are Over-
wintering Safely”)

[FBIS Translated Text] Cold weather was observed on
Russia’s European territory for most of November. The
average daily air temperature almost everywhere was 2-5
degrees below the long-term average, while on individual
days it was 7 or 8 degrees below the norm. Even in the
North Caucasus the minimum air temperature reached
minus 7 to minus 11 degrees, and in more northerly
regions minus 17 to minus 27.

At the start of the month the maximum air temperature
in the south of the Central, Volgo-Vyatka, and Ural
Regions and also in the north of the Central Chernozem
Region and in the Middle Volga Region rose to plus
10-14 degrees, and winter crops were observed to be
vegetating. Then the temperature dropped, and their
growth ceased. Vegetation was not noted at the start of
the last third of November either, when there was a
significant temperature rise in these and more northerly
regions. The maximum air temperature was within the
range of 2-4 degrees.

By the time vegetation ceased, the state of plants in the
aforementioned regions was mainly good and satisfac-
tory (on 90-95 percent of the crop area). The crops’
bushiness chiefly stood at two or three shoots per plant.
The topsoil mostly contained 30-40 mm of productive
moisture.

Over most of the territory of the North Caucasus Region
and in the southern half of the Volga Region the max-
imum air temperature at the start of the month rose to
17-23 degrees, and winter grain crops were growing. But
here the plants’ supply of moisture was inadequate and
in places bad. Here the winter crops were mainly in the
shooting and third-leaf phases. Over part of the areas the
winter crops did not come up. The topsoil primarily
contained 10-12 mm and in places less than 10 mm of
productive moisture, which is insufficient for winter
crops to sprout.

The rain that fell here in the second third of November
(40-60 mm) significantly replenished the reserves of
productive moisture.

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is prohibited without permission of the copyright owners.

¥

20 RUSSIA NATIONAL AFFAIRS

But there was insufficient warmth for winter crops to put
out shoots during that period. There was a drop in
temperature at the end of the month here too. Winter
crops stopped vegetating at times close to normal.

In the Northern Region and in the north of the Central,
Volgo-Vyatka, and Ural Regions a winter weather
regime was observed for most of the month, and winter
crops were in a dormant state beneath the snow cover.
By the end of the month the depth of the snow cover in
the northeast of the European part of Russia stood
mainly at 15-25 cm, and at 5-10 cm in western and
southwestern regions. The minimum soil temperature at
the winter crops’ tillering node depth stayed within the
range of 3-5 degrees. Conditions were satisfactory for the
crops to start wintering.

In the southern half of the European part of Russia there
was no snow cover in the fields at times of a drop in
temperature, or its depth did not exceed 5 cm.

At these times the minimum soil temperature at the
winter crops’ tillering node depth (approximately 3 cm)
stayed within the range of minus 2 to minus 5 degrees,
while in places it fell to minus 10 to minus 11 degrees—
which was not dangerous for the crops.

In West Siberia the weather was wintery for much of the
month and winter crops were in a state of dormancy.
Snow cover in fields sown to winter crops was predom-
inantly 10-15 cm deep by the end of the month in
Tyumen, Omsk, and Tomsk Oblasts and in northern
Novosibirsk Oblast.

Minimum soil temperature at winter crop tillering node
depth was between 4 and 6 degrees. Conditions for the
start of winter crop overwintering were good.

In the south of Novosibirsk and Kemerovo Oblasts and
most of Altay Kray snow cover for much of the month
was shallow (less than 10 cm) but there were no heavy
frosts and minimum soil temperature at a depth of 3 cm
did not fall below minus 12 to minus 15 degrees, which
presents no danger to rye.

According to the Russian Hydrometerological Center’s
forecast, the mean air temperature in December is
expected to be close to the long-term average over most
of European Russia. Precipitation will also be close to
the norm over almost all of European Russia. The mean
air temperature is expected to be below average over
most of the Northern Region but the amount of precip-
itation there will be above average. Conditions for over-
wintering of crops will be favorable. According to the
forecast it is not expected that large areas of winter grain
crops will suffer damage in the rest of European Russia
in December.

In southern Krasnodar Kray, most of Stavropol Kray,
and the republics of the North Caucasus, precipitation is
expected to be above the long-term average for
December, and mean air temperature will be close to the
average. Crops’ moisture supply could improve here.

FBIS-SOV-94-232
2 December 1994

Over most of West Siberia the mean air temperature in
December is expected to be 1-3 degrees above average
and the amount of precipitation will be close to the
norm. Precipitation in December is expected to be above
the perennial average only in the west of the West
Siberian Region. Conditions for winter grain crop over-
wintering here will be favorable in December.

Moscow Limits Crop Land To Ensure Harvests

LDO0112161494 Moscow INTERFAX in English 1340
GMT | Dec 94

[FBIS Transcribed Text] Russia has again slashed the
size of its crop land, which ensures more than one third
of the country’s grain harvest.

According to the Federal Service for Meteorology and
Environmental Monitoring, seeds were only planted on
14.2 million hectares—one million hectares less than last
year, and five million hectares less than the average crop
land of the last five years.

Assessing the planted winter crops quality, experts
describe them as good and satisfactory on 11.5 million
hectares or 81 percent of the plantations and sickly or
damaged on the remaining 19 percent of the crop land,
2.7 million hectares large.

Between 1989 and 1993, crippled winter crops were
registered on an area of 1.3 million hectares or 6.8
percent of the plantations.

The government forecasts next year’s grain harvest in
Russia at this year’s level. The 1994 grain crop of 85
million tonnes is the lowest gross pick of grain since
1981.

Military & Nuclear Issues

Grachev Indends Staff Reduction, Reorganization

LDO0112194094 Moscow INTERFAX in English 1725
GMT I Dec 94

[FBIS Transcribed Text] Leader of the Russian military
department Pavel Grachev reported that “in the near
term” the central apparatus of the Defense Ministry and
the General Staff would be cut down “but not by 30
percent as mass media reported earlier.”

In a conversation with journalists in Moscow on
Thursday he pointed out that the number of deputy
defense ministers would be reduced, several other
leading posts would be reduced and transformed.

“Unfortunately, several deputy defense ministers have
occupied controlling posts for two years. Now everyone
will carry personal responsibility for his sphere of work,”
Grachev underlined.

He refuted information stating that reduction of the
central apparatus of Russia’s Defense Ministry is “a

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

struggle with the inner opposition,” in particular, with
Deputy Defense Minister Boris Gromov.

As Grachev said, he also intends to carry out “organiza-
tional rearrangements” within the Defense Ministry in
order to prevent duplicating of different structures. In
addition, “‘several departments of the Defense Ministry
will be united.”

According to Grachev, he will officially announce about
the plans to change the structure of the central apparatus
on Friday at the conference of the commanding staff of
the defense ministry.

Grachev pointed out that it is the prerogative of the state
examination board headed by Yuriy Baturin, presiden-
tial aide on security, to appoint and to release of duties
the supreme commanding staff of the Defense Ministry.
In accordance with the Constitution the Commander in
Chief of the Russian Armed Forces President Boris
Yeltsin finally appoints or releases supreme com-
manders of the Russian armed forces.

Prosecutor Clears Grachev of Corruption Charge

LD0212101494 Moscow ITAR-TASS in English 0942
GMT 2 Dec 94

[By ITAR-TASS correspondent Anatoliy Yurkin]

[FBIS Transcribed Text] Moscow December 2 TASS—
Russian Acting Prosecutor General Alexey Ilyushenko
said on Friday that there was “no corpus delicti” in the
purchase of two “Mercedes” cars in Germany for the
Russian Defence Ministry and stressed that Pavel
Grachev had not committed any crime.

“Defence Minister Pavel Grachev cannot face responsi-
bility as he did not commit any crime”, Ilyushenko told
TASS and added that “there is no crime in purchasing
the two ‘Mercedes””.

Several Russian mass media accused Grachev of
ordering the purchase of the “Mercedes” by the Russian
troops in Germany for money which was intended for
the construction of housing for the withdrawn troops in
Russia. The “MOSKOVSKY KOMSOMOLETS” daily
was especially active in accusing Grachev after its mili-
tary correspondent Dmitriy Kholodov, who investigated
cases of corruption among Russian top military in Ger-
many, was killed in his office by a parcel bomb.

“There is no corpus delicti in the fact of purchasing the
notorious ‘Mercedes””, Iluyshenko said and stressed that
the “episode is considered exhausted”’. “This is the final
decision”, he added.

At the same time the prosecutor general said that, upon
a request from Grachev, a criminal case is being inves-
tigated against the “MOSKOVSKY KOMSOMOLETS”
daily which accused the defence minister of corruption.

RUSSIA NATIONAL AFFAIRS 21

Military Commanders’ ‘Conspiracy’ Unfounded

LD0212121494 Moscow ITAR-TASS in English 1109
GMT 2 Dec 94

[By ITAR-TASS correspondent Anatoliy Yurkin]

[FBIS Transcribed Text] Moscow December 2 TASS—
“Although criminal proceeding were instituted in the
Western Army Group on charges of abuse, there was no
criminal conspiracy between top military commanders,”
said Russian acting prosecutor general, Aleksey Ilyush-
enko, in an interview with ITAR-TASS today.

“As for corruption, such a notion does not currently exist
in the jurisprudence, but ‘bribery’ and ‘abuse of power’
are applied,” Ilyushenko said.

He confirmed that the chief military prosecutor’s office
and the general prosecutor’s office are investigating
criminal charges brought against the Western Army
Group, but there is not a single case to confirm that there
was corruption among top officers of the western group,“
Ilyushenko said.

“I was surprised to come across a statement made by the
chairman of the Duma Committee for Defence, Sergey
Yushenkov, saying that the general prosecutor’s office
withheld some facts. We do not conceal anything, but we
simply do not have any documents, although someone
wish the documents turn up,” Ilyushenko said.

Funding Shortages Idle Pacific Fleet Ships

OW0112132194 Moscow Ostankino Television First
Channel and Orbita Networks in Russian 1935 GMT 27
Nov 94

{Aleksandr Brodskiy video report; from the “Utro”
program]

[FBIS Translated Text] The situation Pacific Fleet
sailors find themselves in today is a very dramatic one.
Over 37,000 servicemen are on a waiting list for an
apartment. However, probably only a few of them will be
able to get a place of their own in the near future.
According to Admiral Khmelnov, commander of the
Pacific Fleet, it will take sever2! years at best. The
Russian Ministry of Defense allocates no money for this
purpose, and the only help the military bosses and the
state property committee give the sailors is by selling the
fleet’s own ships to foreign clients.

What is more, funds received through these deals are
channeled directly into the budget of the Ministry of
Defense, and only a small portion returns to the Mari-
time Kray to fund construction of housing. Meanwhile,
as the money is going around in a circle, many office.’s
are forced to bring their wives into their ship-board
quarters. One should add that a square meter in Vladi-
vostok is valued at 1.5 million rubles [R] today, while the
pay of a task force commander is only half of this. As for
a sailor on a submarine, his pay is only R9,000 a month.

This report may contain copyrighted material. Copying ana dissemination
is prohibited without permission of the copyright owners.

22 RUSSIA NATIONAL AFFAIRS

However, these are not the only problems of Pacific Fleet
sailors. Numerous battle ships have been idle for several
years now for re..sons of both personnel shortages and
the lack of funds for repairs. Moreover, because of the
complexity of their construction, many ships require
that repairs be carried out in the Western parts of the
country and in the Ukraine, which is impossible due to
economic and political considerations.

The problem of salvaging radioactive waste coming from
the reactors of decommissioned submarines is also being
solved with great difficulty. The problem is so important
that a special report will be dedicated to it in the near
future.

I would like to add just one thing in conclusion: In spite
of all the difficulties, the combatreadiness of the Pacific
Fleet is at the highest level and it is second to no foreign
fleet. However, this should by no means be a reason for
the center to continue ignoring the problems of sailors.

Reactors End Weapons-Grade Plutonium
Production

LD0212115694 Moscow INTERFAX in English 1115
GMT 2 Dec 94

[FBIS Transcribed Text] Russian Nuclear Energy Min-
istry factories ceased to use the plutonium obtained from
three industrial reactors of the mining and chemical
plants in Zheleznogorsk (Krasnoyarsk-26) and in the
Siberian Chemical Works in Seversk (Tomsk-7) for
weapon production as of October 1.

Georgiy Kaurov, head of the ministry’s information
board, told Interfax that this had been done in compli-
ance with nuclear disarmament agreements and would
make a tangible contribution to the improvement of the
international situation and reduce the nuclear threat.

According to Kaurov, these reactors cannot be stopped
because they are used for heat and energy generation for
the nearby towns.

Kaurov explained that the non-weapon-grade pluto-
nium, would be stored and later used as fuel in fast
reactors.

The Krasnoyarsk-26 and Tomsk-7 reactors are sched-
uled to be closed down before 2000 whea they will be
replaced by other heating and energy sources.

To Produce Electricity Until 2000

LD0212101394 Moscow ITAR-TASS in English 0934
GMT 2 Dec 94

[By ITAR-TASS correspondent Anna Bakina]

[FBIS Transcribed Text] Moscow December 2 TASS—
Enterprises of the Russian Ministry of Nuclear Industry
ceased to use plutonium produced at three industrial
reactors (in the Zheleznogorsk rock-chemistry combined
works and in the Sibirskiy chemical combined works in

FBIS-SOV-94-232
2 December 1994

Seversk) when making nuciear arms from October |, the
ministerial press service told ITAR-TASS on Friday [2
December].

These reactors cannot be stopped, for they are being used
to produce heat and electricity. Plutonium supplies
which are produced by these reactors in the form, which
is unacceptable for making nuclear arms, will be stored
and later on used as fuel to feed quick-neutron reactors.

In 2000, these industrial reactors in Zheleznogorsk (also
known as Krasnoyarsk-26) and Seversk (Tomsk-7) will
be brought to a standstill and replaced by other sources
of heat and electricity.

Media Issues

Press Committee Calls To Stop ‘Fascist’ Papers

LDO112140894 Moscow ITAR-TASS in English 1248
GMT | Dec 94

[By ITAR-TASS correspondent Tamara Ivanova]

{[FBIS Transcribed Text] Moscow December 1 TASS—
The Russian Committee for the Press is not going to put
up with the publication in Russia of some 100 fascist
newspapers, chairman of the committee Sergey Gry-
zunov said at a press conference today.

He pointed out that the Russian law on the mass media
does not allow to close them down immediately. The law
suggests official warning and a court trial.

According to Gryzunov, amendments to the law are now
being drawn up, which will make it possible to act more
effectively in this sphere. He expressed regret that the
printing house, which publishes the AL-KODS news-
paper, did not respond promptly enough to the resolu-
tion of the Committee for the Press on stripping the
newspaper of its registration certificate. If the publica-
tion of AL-KODS is continued, the printed copies will be
confiscated, and its distributors will be fined, the
chairman of the committee said.

He said the Committee for the Press now had a mecha-
nism in its disposal for responding to such phenomena.
After the disbandment of the state inspection for pro-
tecting freedom of the press and mass media organs, its
regional inspectors joined the Committee for the Press.
They will help tackle the problem of the violation of
rights of journalists.

In December the committee jointly with the judicial
chamber for information arguments will analyse the
situation of journalists in the Maritime Territory and
will issue recommendations on this problem.

Closes Palestinian Newspaper

LDO0112222694 Moscow INTERFAX in English 2033
GMT | Dec 94

[FBIS Transcribed Text] The Moscow newspaper Al-
Kods has been closed down under orders from the head

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

of the Russian State Committee for the Press Sergey
Gryzunov because under the press law a foreign citizen
cannot found a Russian publication. This was
announced at a Thursday news conference by Gryzunov
himself.

He said Izvestiya publishers will no longer print Al-
Kods. If attempts are made to print it elsewhere, Gry-
zunov intends to turn to law enforcement bodies and
confiscate editions.

The paper was founded by Shafe Shaaban, the head of
the unrecognized Palestinian government in exile which
is in opposition to Yasir ‘Arafat. According to experts,
the paper is a classical fighter against international
Zionism.

The news conference was told that Russia now has at
least 137 fascist or radical nationalist publications, but
the State Committee will not remain indifferent. ““We
have sufficient muscles to close down all the fascist
magazines and newspapers published in the country,”
the minister said.

Chernomyrdin Creates Chechen ‘Information
Center’

LDO0112192294 Moscow ITAR-TASS World Service in
Russian 1735 GMT 1 Dec 94

[By unidentified ITAR-TASS correspondent]

[FBIS Translated Text] Moscow, 1 Dec—The Russian
Prime Minister Viktor Chernomyrdin today signed
instructions for the creation of a temporary information
cenicer under the Russian Federation press committee.
Sergey Gryzunov, chairman of the press committee, has
been appointed as the center’s head.

This decision has been taken in connection with the
deteriorating situation in the North Caucasus, which
threatens to further destabilize the sociopolitical situa-
tion, and for the purpose of providing the Russian and
world public with objective information about events
taking place in the region.

The prime minister has instructed a number of minis-
tries and departments, including the power-wielding
structures, to provide the temporary information center
with up-to-date information about what is happening in
the North Caucasus.

Jointly with the Russian Defense Ministry, the Interior
Ministry, and the Federal Counterintelligence Service,
the center will help representatives of Russian and
foreign media working in the North Caucasus, providing
them with unbiased information and ensuring their
personal safety.

Gryzunov, the chairman of the Russian state press
committee, has explained at a news conference held at
the committee that it would in all probability be autho-
rized to state the official point of view on developments
in Chechnya. In his words, if a state of emergency is

RUSSIA NATIONAL AFFAIRS 23

introduced in the region, there is a law, and if political
solutions fail to work, censorship will start to operate in
the emergency zone. At the same time, he expressed a
hope that no such thing will happen in Moscow and no
one will be watching the printing-press there.

Gryzunov defined his own personal position in the event
of possible extraordinary events in the following way: If
the publications have any verified information it should
be published.

In private conversation with ITAR-TASS correspondent
Vadim Byrkin, Gryzunov said that he was awaiting a
government decision on directives for the Russian press
committee’s information activities in the event of a state
of emergency being introduced.

A number cf agencies and TV companies have been
given the opportunity to create modern correspondents’
Offices in the committee’s building. An ITAR-TASS
correspondent’s »ffice at the press committee has
already begun work.

The temporary information center today denied a report
from individual media claiming that former North Osse-
tian Interior Minister Yuriy Zayev (now head of the
Caucasus and Near East Department of the FSK [Fed-
eral Counterintelligence Service]), in hiding in Urus-
Martan, had supposedly led the opposition attack on
Groznyy. Quoting the FSK, the temporary information
center said that Yuriy Zayev had been working in the
FSK since June of this year where he dealt with analysis
of the counterintelligence agencies’ operational and
investigatory activities and that he had not left Moscow.

In connection with this it is noted that claims of this kind
look like psychologica! pressure.

TV ‘Corporating’ Seen To Hold Uncertain Future

MKO112140094 Moscow NEZAVISIMAYA GAZETA in
Russian I Dec 94 p 2

[Report by Antonina Belyayeva in the Television“
column: ”A new TV-Hybrid—‘Ostankino’—Has Been
Produced. Commercial Structures Have Received Their
Share of Central TV“]

{[FBIS Translated Text] At long last the president’s
ardent wish to do something with his TV has found a
vent. After several weeks of suspense and whispered
rumors, the agitated TV and para-TV circles were hit by
news of a new draft edict on TV and radio broadcasting.
It could not have been otherwise: Alarmed by the pres-
ident’s somewhat rash decision to merge the two state
TV companies into one, the TV bosses opposed such
transformations. An attempt to appease them and at the
same time address the problems of financing TV com-
panies was made with the help of a new edict, already
signed by the president, “On Corporatizing the
Ostankino TV Company,” as if completely forgetting the
famous “remark” about the possible merging of the two
state TV structures. (Once the words have been said they

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is prohibited without permission of the copyright owners.

24 RUSSIA NATIONAL AFFAIR®

cannot be unsaid, but then virtually any decision will
appear more or less acceptable and even life-saving
compared to the previous one).

With the new edict, things are back to square one. The
All- Russian TV and Radio Broadcasting Company,
which was created with the president’s personal partici-
pation, is being left alone, i.e., with the status of a state
company. Ostankino is to become “public” and subject
to corporatization. Let Russian TV remain state con-
trolled—let it. In any event, somehow or other it has
demonstrated its affiliation with the state. Maybe it will
also be easier to manage one company: Budget appropri-
ations to finance two TV companies or just one are
insufficient anyway.

What awaits Ostankino? The major shareholder will be
the State Property Committee (it will have 51 percent of
the stock and therefore the new company will be more
state-run than commercial). The remaining 12 share-
holders—Menatep, Stolichnyy bank, Inkombank,
Roskredit, ITAR-TASS (incidentally, a state company),
AvtoVAZ, the Aeroflot International Airlines, and so
forth—will control 49 percent of stock. A number of
banks that joined the struggle for Channel | were at the
last moment struck off the list of shareholders. The
resultant company—Public Russian TV (ORT)—under
the edict, will start broadcasting on Channel | (former
Ostankino) as of | February 1995. It will naturally be
financed from extra-budgetary funds (correspondingly,
the budgetary funds released will be directed to the
All-Russian TV and Radio Broadcasting Company).

The picture is almost idyllic. The process of corporati-
zation, however, mars it considerably. First, clearly the
shareholders will not get any profits from the new
company for five or more years to come. Therefore, in
investing their funds, commercial banks and other struc-
tures are hoping for a different kind of profits (1, for one,
do not believe in the honest intention to help the
collapsing TV system). And if someone believes that
“independent” TV, breaking free from state tutelage,
ceases to be a political rostrum, he is mistaken. Out of
the frying pan and into the fire.

Therefore, without attempting to create a large private
TV company, they have produced a hybrid: joint-stock,
independent, and “public” (watched by everybody but
owned by certain, including commercial, structures,
although the controlling interest is held by the state). It is
not known whether the hybrid will survive. But this has
been a burden off the state’s back: It will no longer have
to pay for it.

Federal Assembly

Duma Puts Forward 7 Principles for Peace in
Chechnya

LD0212100894 Moscow ITAR-TASS World Service in
Russian 0926 GMT 2 Dec 94

[By ITAR-TASS parliamentary correspondent Ivan
Novikov]

FBIS-SOV-94-232
2 December 1994

[FBIS Translated Text] Moscow, 2 Dec—The State
Duma is currently drawing up seven principles for a
peaceful settlement of the Chechen conflict. This was
stated at a news conference today by Valentin Kovalev,
a chamber deputy chairman.

These methods and means for a peaceful resolution of
the difficult situation that has arisen in Chechnya are as
follows:

1. All illegal armed formations in Chechnya must lay
down their weapons and be disbanded.

2. Citizens who are not involved in serious crimes and
who have voluntarily laid down their weapons shall be
exempt from criminal liability on the basis of the
amnesty enactment.

3. Persons seized during armed clashes and unlawfully
detained must be freed.

“, The question of national reconciliation must be con-
sidered at the Council of Elders in Chechnya ia the
traditions of the Caucasian peoples.

5. Comprehensive economic assistance must be given
immediately to the Chechen Republic at federal level.

6. Democratic elections must be held in the Republic.

7. Russian President Boris Yeltsin must act as guarantor
of peace in the Chechen Republic, of political and
economic stability, and of the legality and fairness of the
elections.

Yavlinskiy Criticized on Minimum Wage Increase

MK0O112144094 Moscow SEGODNYA in Russian I Dec
94 p 3

[Report from Omsk by Igor Spiridonov under the “Com-
mentary” rubric: “Aleksandr Pochinok Accused Grig-
oriy Yavlinskiy of Being a ’Political Prostitute.’ In itis
View, the Government Will Execute the Budget Even if
the Duma Does Not Pass It”’]

{[FBIS Translated Text] At a seminar organized in
Novosibirsk for journalists specializing in economic
subjects, Aleksandr Pochinok, deputy chairman of the
State Duma Budget Committee, called Grigoriy Yavlin-
skiy’s initiative to pass a law on raising the minimum
wage to 54,000 rubles “political prostitution.” In Mr.
Pochinok’s view, this call by Mr. Yavlinskiy, who con-
ceded that “his faction did so in order to forestall the
communists,” was simply immoral. Not only will this
law be impracticable, because it calls for over 30 trillion
rubles to be added to the budget expenditure, it will also
be damaging, because it will harm the underprivileged,
not help them: “If, as a result of its realization, the
lowest-paid citizens are given a monthly increase of
33,600 rubles, ministers and generals will get up to |
million, which will only increase social tension.” In
Aleksandr Pochinok’s view, what the badly off would
benefit from is not an increase in the minimum wage, on

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

which “the entire ladder of budget-financed company
workers’ wages” depends, but a rise in the wages of
society’s lowest-paid sectors. At the same time, Mr.
Pochinok was certain that neither the Federation
Council nor, moreover, the president would approve the
law passed by the State Duma.

With regard to the 1995 draft budget presented by the
government, Mr. Pochinok said he was certain the State
Duma would, to all appearances, reject it, because it will
not let political leaders indulge in populism and fritter
money away in the run-up to the election campaign, for
which reason the communists and the “Zhirinovites”
have a stake in spurning it. But the deputy budget
committee chairman does not see that as something
terrible: the government will simply be executing the
budget it has drawn up. Nor will there be any difficulties
for territories—their budgets are currently independent
from the federal budget except for transfers, which can at
any time be calculated and agreed on.

Regional Affairs

Yeltsin ‘Ready for Talks’ With Chechnya’s
Dudayev

LD0112133694 Moscow Russian Television Network in
Russian 1300 GMT 1 Dec 94

[From the “Vesti” newscast]

[FBIS Translated Text] President Boris Yeltsin is ready
for talks with Dzhokhar Dudayev, since the main task
for today is to avoid bloodshed. RIA news was told this
by Leonid Smirnyagin, a member of the Presidential
Council.

Duma Team Arrives in Nazran; To Meet Chechen
Delegation

LDO112134794 Moscow ITAR-TASS World Service in
Russian 1305 GMT 1 Dec 94

{By ITAR-TASS parliamentary correspondent Pavel
Kuznetsov]

[FBIS Transcribed Text] Moscow, 1 Dec—A delegation
of the Russian State Committee headed by the chairman
of the chamber’s defense committee arrived in Ingushe-
tia’s capital Nazran today. The ITAR-TASS correspon-
dent was told this at the apparatus of the Duma defense
committee, whose staff members have succeeded in
telephoning Movien Salamov, an aide of Chechnya’s
president.

He said that, in turn, a delegation of the Chechen
parliament had set off from Groznyy to Nazran, where it
will hold talks on what is to happen to the prisoners
captured during the storming of Groznyy. According to
the claims of the Chechen leadership, the prisoners are
Russian servicemen.

RUSSIA NATIONAL AFFAIRS 25

Movien Salamov confirmed the guarantees for the per-
sonal safety of the prisoners, given by Chechnya’s lead-
ership.

He also said that in the course of the day Groznyy has
been periodically subjected to bombings from the air.
The reports on the bombings were confirmed in a report
from Groznyy by ITAR-TASS correspondent Sharip
Asuyev.

Chechen Opposition Insists on Bringing in
Russian Troops

LDO112144294 Moscow ITAR-TASS World Service in
Russian 1335 GMT 1 Dec 94

[By ITAR-TASS correspondent Ruslan Maysigov]

[FBIS Translated Text] Znamenskoye, 1 Dec—The head
of the opposition interim council of Chechnya is cate-
gorically against talks between Moscow and official
Groznyy and is insisting on Russian troops being
brought into Chechnya.

“Talks of any kind with official Groznyy are impossi-
ble,” Umar Avturkhanov told journalists today, adding
that Dzhokhar Dudayev’s main purpose for talks would
be to play for time.

“Bringing in Russian troops is essential at this time,”
Umar Avturkhanov said in an interview with ITAR-
TASS. “A state of emergency is essential,” he added,
stressing that the opposition had “tasked Russia’s leader-
ship to postpone the deployment of the troops by several
days so that work could be done among the population so
that they do not offer resistance.”

A state of emergency and bringing in troops would, in
Avturkhanov’s opinion, be “for the good of the Chechen
people” and would help to halt the fratricidal war in
Chechnya.

The interim council today adopted an appeal to the
population of Chechnya in which they call upon the
people to avoid mass bloodshed and not to support the
ruling regime, which “is striving to draw duped people
into senseless slaughter.”

‘Official Text’ of Yeltsin Appeal on Chechnya
Released

LD0112161694 Moscow ITAR-TASS World Service in
Russian 1509 GMT 1 Dec 94

[All quotation marks are as received; passages differing
from the referent item are noted with ‘as received’
notations]

{[FBIS Translated Text] Moscow, | Dec (ITAR-
TASS)—An explanation from the press service of the
president of the Russian Federation has been sent to
ITAR-TASS. It reads:

“In connection with the situation around the Chechen
Republic and, in particular, with regard to the appeal of

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

26 RUSSIA NATIONAL AFFAIRS

the russian president, issued on 29 November by the
government press service and addressed to the partici-
pants of the armed conflict in the Chechen Republic,
certain discrepancies have appeared in the mass media
concerning the interpretation of a number of provisions
of this document. This applies, in particular, to the issue
of the measures which the Russian authorities may take
to restore constitutional legitimacy, law, order and peace
in the Chechen Republic.

“In order to avoid different interpretations of the appeal
by B.N. Yeltsin, the president’s press service is circu-
lating the official text of the appeal.”

Appeal to the participants in the armed conflict in the
Chechen Republic.

Blood is being shed on the ancient land of the Caucasus,
which is an inseparable part of our fatherland.

Despite all the efforts of the federal bodies of state
power, the elders who hold authority in the Northern
Caucasus, the leaders of the peoples living there, the calls
of the Russian and world public, they have not suc-
ceeded in stopping the internal conflict in Chechnya. Its
scale is broading, the fierceness of the armed clashes is
increasing. The confronting sides are attracting merce-
naries to take part in the armed actions, including
mercenaries from foreign states.

Through the fault of irresponsible politicians, due to
their self-seeking interests and unsatiated ambitions,
innocent people are perishing. The number of orphans is
multiplying. The constitutional rights and freedoms of
citizens are being trampled. Thousands of hapless people
are being turned into refugees, being deprived of a roof
over their heads, and are being forced to leave their
homes and the graves of their ancestors. [sentence as
received] Grief, suffering, fear in the face of excessive
crimes, and unbridled banditry are poisoning the life of
the Chechen people and their neighbors.

The hope of an independent solution to the internal
Chechen conflict has been completely exhausted. The
situation is acquiring a nature which is extremely dan-
gerous for stability and peace in our society, ant #r the
vitally important interests and national security of
Russia.

The entire responsibility for Chechnya’s fate, for the life
and health of all its citizens, lies with me, the president of
Russia. Expressing the will of our multinational people,
and in accordance with the powers vested in me by the
Constitution of the Russian Federation, I appeal to all
the participants in the armed confrontation in the
Chechen Republic with a demand that, from the
moment of my appeal, they have 48 hours to declare a
cease-fire, «. Jown their arms, disband all the armed
formations, and release all the citizens who have been
captured and are being detained by force. [sentence as
received]

FBIS-SOV-94-232
2 December 1994

If this demand is not met by the set deadline, all the
forces and means at the disposal of the state will be used
to put a stop to the bloodshed, to protect the life, rights
and freedoms of citizens of Russia, to restore constitu-
tional legality, law and order and peace in the Chechen
republic’. [sentence as received]

[Signed] B. Yeltsin, 29 November 1994 [no title as
received

Edict Conditions Aid Guarantees

LDO112142294 Moscow ITAR-TASS World Service in
Russian 1336 GMT 1 Dec 94

[By ITAR-TASS correspondent Tamara Zamyatina]

[FBIS Translated Text] Moscow, 1 Dec—Today, Rus-
sian President Boris Yeltsin signed an edict guaranteeing
aid to those Chechen citizens who have surrendered their
weapons and who are not involved in grave crimes
against the civilian population of this republic and of
individual north Caucasian regions of Russia. This edict
releases them from criminal liability.

The ITAR-TASS correspondent was told this by a high-
ranking source in the Yeltsin administration.

The decree applies to participants in the “unlawful
actions, connected with the armed conflict in Chech-
nya.”

Gives Deadline for Arms Surrender

LD0112180094 Moscow ITAR-TASS in English 1740
GMT I Dec 94

[FBIS Transcribed Text] Moscow December 1 TASS—
Russian President Boris Yeltsin issued a decree today
setting December 15 as a deadline for surrendering
weapons in Chechnya.

The decree “On Measures To Strengthen Law and Order
in the North Caucasus” recommends public prosecutors
not to file criminal charges against those people who
surrender their weapons voluntarily before December 15
and were not involved in grave crimes against civil
population.

Fails To Mention ‘Emergency’

LDO0112193494 Moscow INTERFAX in English 1725
GMT I Dec 94

[FBIS Transcribed Text] The press service of the Russian
president circulated Thursday evening the official text of
Boris Yeltsin’s appeal to the sides of the armed conflict
in Chechnya that contains no mention of the possible
introduction of a state of emergency there.

The press service accounted its move to the fact that
there have been certain differences in the mass media in
the interpretation of several provisions of the appeal that
was circulated on November 29 along channels of the
government press service.

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

The official text of the presidential appeal differs from
the one the mass media received Tuesday morning by
the absence of the mention of the possibility of intro-
ducing the state of emergency in Chechnya and the
absence of the sentence: “The hope that Chechnya wiil
settle its internal conflict itself has been fully exhausted.”

Official Views ‘Soft Variant’ of Chechen State of
Emergency

LDO112162194 Moscow INTERFAX in English 1340
GMT | Dec 94

{[FBIS Transcribed Text] The introduction of “‘a soft
variant of the state of emergency” would be the best
solution of the Chechen problem, believes Deputy
Chairman of the Federation Council Security and
Defense Committee Pyotr Premyak.

In an interview with Interfax on Thursday [1 December]
Premyak said: “We cannot evade the introduction o1 a
state of emergency since the Chechen regime is unable to
put things in order in the republic. It is better that it be
a soft variant, that is the appointment of a head of the
provisional administration in Chechnya and the settle-
ment of the relations with the population, armed units
and the teadership of the republic by peaceful means.”

Premyak velieves that the leaders of the Russian Feder-
ation and of the Chechen Republic “should have enough
courage to prevent the use of force.”

Premyak said that the Federation Council’s Security and
Defense Committee, whose member is Russian Minister
for Nationalities and Regional Policies Nikolai Yegorov,
is prepared to take part in the peace-keeping process.

Answering the question on possible participation of FSK
[Federal Counterintelligence Service] representatives in
recuiting volunteers who took part in the military oper-
ations on the Chechen territory, Premyak said that the
reports in the media were not objective and it is not
within the competence of the FSK to do this.

He believes that mediators who could have forged doc-
uments probably called themselves FSK people.

Presidential Official: No State of Emergency on
Chechnya

LDO112145994 Moscow ITAR-TASS in English 1507
GMT I! Dec 94

[By ITAR-TASS correspondent Tamara Zamyatina]

[FBIS Transcribed Text] Moscow December 1 TASS—
“The president will not sign a decree imposing a state of
emergency on Chechnya in the near future”, according to
a top official at the presidential administration.

When asked whether such a document is being prepared,
the official said “‘in a critical situation, one should have
a choice of variants, including a draft decree introducing
a state of emergency in Chechnya. Otherwise, with

RUSSIA NATIONAL AFFAIRS 27

events developing so fast, it might turn out too late to set
to writing a document in question”.

Commander Says No Troops Ordered Into
Chechnya

LDO112143394 Moscow INTERFAX in English 1411
GMT I! Dec 94

[FBIS Transcribed Text] Russian interior troops have
not been ordered to enter Chechnya, Commander of
Russian Interior Troops Anatoliy Kulikov told
INTERFAX on Thursday [1 December]. This was his
comment on the statement by the Russian president’s
press secretary Vyacheslav Kostikov about the start of
taking measures “‘to remedy the situation in the Chechen
Republic.”

Interior troops are still deployed along the perimeter of
the Chechen administrative border, said Kulikov.

Earlier, well-informed sources told INTERFAX that an
interior military contingent had been formed in the
vicinity of the town of Mozdok (North Ossetia).

Dudayev: Russia Waging ‘Undeclared War’
Against Chechnya

LDO112172794 Moscow ITAR-TASS World Service in
Russian 1558 GMT 1 Dec 94

{By ITAR-TASS correspondent Sharip Asuyev]

[FBIS Translated Text] Groznyy, 1 Dec—Dzhokar
Dudayev reported at a news conference today that at
0600 this morning his house in Katayama village was
bombed and his family was forced to go down into the
cellar. He showed the journalists a bomb fragment as
confirmation.

Dudayev considers that the aircraft were Russian. In this
connection he stated that Russia is waging an undeclared
war against the Chechen Republic. They are employing
all means possible, he said, to push me into using terror,
but I will not do that.

Concerning those taken prisoner in Chechnya, who are
described in Groznyy as Russian soldiers and officers,
Dudayev said that their fate will be determined by the
court. I am not a judge, he stressed.

The news conference took place in one of the basement
rocms of the presidential palace.

After arriving in Groznyy a Russian State Duma delega-
tion headed by Sergey Yushenkov, chairman of the
defense committee, met Shamseddin Yusef, foreign min-
ister in Dudayev’s government. The delegation is in
Chechnya for talks on the fate of the prisoners seized
during the storming of Groznyy on 26 November.

Nail Irtuganov, Ushenkov’s aide, informed ITAR-
TASS’s Moscow correspondent Pavel Kuznetsov that the

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is prohibited without permission of the copyright owners.

28 RUSSIA NATIONAL AFFAIRS

delegation also held talks with Chechnya’s vice president
and that Yushenkov is to have a meeting with Dudayev
later behind closed doors.

Meanwhile a rally is continuing in the center of Groznyy.
Its participants have demanded that after each raid on
the city reprisals be iaken one at a time against the
captured Russian mercenaries fighting on the opposi-
tion’s side.

In Moscow Vladimir Podolin, a spokesman for the
interior troops’ press center, informed an ITAR-TASS
correspondent that the subunits of interior troops sta-
tioned in the North Caucasus and areas bordering
Chechnya remain in their positions and are carrying out
their assigned duties. “Over the past 48 hours none of
our soldiers have left the places where they are sta-
tioned,” he noted.

Situation ‘Getting Out of Control’

LDO112191794 Moscow INTERFAX in English 1725
GMT I Dec 94

[FBIS Transcribed Text] Chechnya’s separatist Presi-
dent Dzhokhar Dudayev said the situation in the break-
away Russian republic “is gradually getting out of
control.”

“We may get to a point where neither (Russian President
Boris) Yeltsin nor Dudayev nor even joint efforts will be
able to prevent the situation from developing... Into a
total war,” the Chechen leader said on Thursday fol-
lowing a fresh air raid on his capital Groznyy.

Chechnya “has never refused negotiating, but talks con-
stantly get wrecked, for which the Russian leadership is
to blame,” he told a news conference in Groznyy.

“Chechnya is always ready to shake a hand which is
offered to it. But if a fist is thrust in its face, Chechnya is
simply forced to defend its freedom,” Dudayev said.

“A large number of volunteers from Islamic countries
who have shown readiness to fight on the Chechen side
for the freedom not only of Chechnya but of the entire
Caucasus are on their way here,” he said.

Shakhray Calls For Talks on Settlement in
Chechnya

LDO112192994 Moscow INTERFAX in English 1725
GMT I! Dec 94

{[FBIS Transcribed Text] The Russian Vice-Premier
Sergey Shakhray hopes that talks on a settlement in
Chechnya will begin. In an interview with Interfax he
said the surrender of arms, power and future elections in
Chechnya should be the key subjects of negotiations.

In his opinion talks should be preceded by many-sided
consultations which have actually begun with Chechen
communities in Moscow and Kazakhstan. The political
formula of the talks should remain unchanged: an end to

FBIS-SOV-94-232
2 December 1994

the bloodshed, the improvement of the situation, prep-
arations for elections, Shakhray said. They should result
in a treaty with the legitimate government on the sepa-
ration of powers.

However, the vice-premier felt that President Dzhokhar
Dudayev is not ready for talks because for two years he
did not respond to the telegrams from the Russian
leadership or the visits of government representatives to
Groznyy.

Still Shakhray said there are sober-minded people in
Groznyy, especially among economic leaders. In his
opinion there still is a chance of a peaceful settlement.
However, the situation is complicated by budding dif-
ferences in federal agencies, he said.

On the question of captives Shakhray said:“There are no
men fighting at order on either side, everyone is there
voluntarily and on contract, but they call some of the
men volunteers and others mercenaries. Everyone in
Chechnya beginning with Dudayev are Russian citizens,
except foreign mercenaries.”

He refrained from comments on government steps
saying: “Others make the decisions, but I get the blows.
I would have acted otherwise.”

Yeltsin Ready for Talks

LDO112195594 Moscow Mayak Radio Network in
Russian 1930 GMT I Dec 94

[FBIS Translated Text] Here is some fresh information
received by our radio station on events in Chechnya.
Russian President Boris Yeltsin recognizes Dudayev de
facto but not de jure and the president is ready to engage
in talks because the most important thing is to avoid
mass bloodshed, member of the Presidential Council of
the Russian Federation Leonid Smirnyagin told an Ekho
Moskvy radio station correspondent. He stressed that
peaceful means for resolving the conflict are not
exhausted but a new aspect has emerged: the demonstra-
tion of force.

Yushenkov, Dudayev Discuss Russian Prisoners

LD0112223494 Moscow ITAR-TASS in English 2005
GMT | Dec 94

[By ITAR-TASS parliamentary correspondent Pavel
Kuznetsov]

[FBIS Transcribed Text] Moscow December 1 TASS—A
Russian top lawmaker on Thursday [1 December] met
Chechen President Dzhokhar Dudayev for face-to-face
talks about the fate of Russian citizens captured during
last week’s opposition assault on the Chechen capital, the
lawmaker’s aide told TASS over the phone.

Sergey Yushenkov, head of the State Duma Committee
for Defence, said that he hoped that the Russian parlia-
mentary delegation he leads would bring back to

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Moscow part of Russians taken prisoner during the
fighting. Talks with Dudayev are to be continued on
Friday.

According to Yushenkov, all members of the Duma
delegation are confident that the current crisis can be
solved by political means, while the use of force or even
preparations for it will inevitably result in a collapse.

Duma Team May Secure Release of Some
Soldiers in Groznyy

LD0212095094 Moscow Radio Rossii Network in
Russian 0900 GMT 2 Dec 94

[FBIS Translated Text] Some of the Russian soldiers and
officers being held in Chechnya may be handed over to
the State Duma delegation now in Groznyy and may
return to Moscow with the delegation. This was stated in
a telephone interview with a RIA correspondent by
Sergey Yushenkov, chairman of the Duma Defense
Committee and head of the delegation. Grounds for this
hope, he said, were given by the conversation held
yesterday with Dzhokhar Dudayev. Yushenkov said the
Chechen leadership links the arrival of the State Duma
delegation with the hope that Moscow will give up trying
to resolve the Chechen problem by force.

The RIA-Novosti correspondent has learned that Yush-
enkov has sent a report on the results of the talks in
Groznyy to Boris Yeltsin. The contents of the report are
not being made public.

Yushenkov, Chechnya’s Yandarbiyev End First
Round of Talks

LDO112194494 Moscow Radiostantsiya Ekho Moskvy
in Russian 1900 GMT I Dec 94

[FBIS Translated Text] The first round of talks in
Groznyy between Sergey Yushenkov, chairman of the
State Duma Defense Committee, and Chechen Vice
President Zelimkhan Yandarbiyev has finished. POST-
FACTUM agency correspondent Igor Malov reports
from Groznyy.

[Malov] The delegation was received by Chechen For-
eign Minister Shamseddin Yusef and Chechen Vice
President Zelimkhan Yandarbiyev. After talks, Yandar-
biyev did not rule out the possibility of some of the
Russian servicemen being released. However, he did
make the possibility of their release conditional on the
Russian leadership’s further moves. Sergey Yushenkov
said that the Russian delegation put a number of ques-
tions to the Chechen party. Among other things, the
delegation asked for a full list of the prisoners, informa-
tion on the charges being laid against them, and evidence
of their guilt. For the time being it is a matter of 21
Russian servicemen. The Chechen party’s response is
expected tomorrow morning by 0900. The expected
meeting between the Russian deputies and Dzhokhar
Dudayev has not yet been set.

RUSSIA NATIONAL AFFAIRS 29

Premier Stops Newsmen Covering Yushenkov’s
Chechnya Visit

LD0112221394 Moscow Radiostantsiya Ekho Moskvy
in Russian 1900 GMT I Dec 94

[FBIS Translated Text] A State Duma delegation led by
Defense Committee Chairman Sergey Yushenkov is in
Groznyy. The aim of Yushenkov’s mission is to clarify
the fate of the prisoners suspected by the authorities in
Chechnya of belonging to the Russian Army.

It should be noted that General Kolesnikov, chief of the
General Staff of the Russian Army, gave his personnel
guarantee that journalists could take part in the trip.
However, the plane carrying the deputies and the jour-
nalists was cordoned off in Mozdok by special forces; no
one was allowed to leave the plane. It should be noted
that the special forces cited orders given by Nikolay
Yegorov, [Russian] nationalities minister and the presi-
dent’s personal representative in Chechnya.

[Correspondent Vorflamiyev] Delegation leader Sergey
Yushenkov managed to get in contact with Moscow. Ina
telephone conversation, Prime Minister Viktor Cherno-
myrdin only allowed the deputies to fly out of Mozdok
for Groznyy. Citing the problem of guaranteeing their
safety in the Chechen capital, he refused to allow any of
those accompanying the deputies, including (Sheykh
Geyruddin), the head of Russia’s Muslims, to go to
Groznyy. It is clear that the Russian authorities have
something to hide and have something to be afraid of in
the Caucasus. It is for this very reason that journalists
with their recorders and video cameras were not allowed
into Chechnya.

Viadimir Vorflamiyev, Ekho Moskvy, Chkalov airport.

Sixty Russian APC’s Heading Toward Chechnya

LDO112205394 Moscow Mayak Radio Network in
Russian 1930 GMT I Dec 94

[FBIS Translated Text] Another piece of news. An IMA-
press correspondent has learned that Russian military
units are moving toward the Chechen border. Thus on |!
December a column of roughly 60 armored personnel
carriers passed in the direction of the Chechen Republic.
On 30 November, a state of heightened combat prepa-
ration was implemented in the 21st air assault brigade
stationed in Stavropol. The governor of the kray
announced at a meeting with heads of the mass media
that he did not possess this information since the lead-
ership of the interior and border troops was simply not
supplying him with such informauon.

Chechen Opposition Leader Confident of Russian
Intervention

LDO112205594 Moscow Mayak Radio Network in
Russian 1930 GMT I Dec 94

[FBIS Translated Text] We know that Russian troops
will be brought in and there are no other measures today,

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30 RUSSIA NATIONAL AFFAIRS

Umar Avturkhanov, head of the Chechen Provisional
Council, said in an interview with Ekho Moskvy radio
station. Or rather there are—but those measures are
widescale bloodshed and the civil war which is already
under way.

Moscow TV Reports Air Attack on Chechnya

LD0212085994 Moscow 2x2 Television in Russian 0730
GMT 2 Dec 94

{FBIS Translated Text] There has been another air
missile strike on populated areas of Chechnya. On the
night of 2 December, a number of combat aircraft of
unknown origin shelled the populated areas of Guder-
mes, Shali, and also the former DOSAAF [All-Union
Order of Lenin Red Banner Voluntary Society of Assis-
tance to the Army, Air Force, and Navy—Soviet-era
organization] airfield in a suburb of Groznyy where a
unit is stationed. INTERFAX was informed of this in the
main headquarters of the Chechen armed forces.

Around 50 Reportedly in Killed Air Attack on
Groznyy

LD0212091594 Moscow 2x2 Television in Russian 0830
GMT 2 Dec 94

{[FBIS Translated Text] According to a report from
Groznyy, last night a number of combat aircraft of
unknown origin once again shelled the suburbs of
Groznyy with missiles. We have been told at the presi-
dential palace that around 50 people were killed, mainly
women and children, as a result of the shelling. Fifteen
buildings were destroyed.

Meanwhile, a parliamentary delegation headed by
Sergey Yushenkov, chairman of the State Duma Defense
Committee, plans to meet Chechen President Dzhokhar
Dudayev for talks on the release of Russian prisoners of
war.

Chechnya: Duma Delegation Protests Shelling of
Groznyy

LD0212092894 Moscow ITAR-TASS World Service in
Russian 0839 GMT 2 Dec 94

{FBIS Translated Text] Moscow, 2 Dec (ITAR-
TASS)—Sergey Yushenkov, chairman of the [State
Duma] Defense Committee and leader of a State Duma
delegation which is currently visiting in Groznyy, still
hopes they will be able to take back with them some of
the Russians captured during the storming of Groznyy.
According to him, about 20 Russians were taken pris-
oner.

On Thursday night he had one-on-one talks with
Chechen President Dzhokhar Dudayev. The talks are to
be continued today.

According to Yushenkov, all members of the delegation,
including Ella Pamfilova, Vladimir Lysenko, and Ana-
toliy Shabad, agree that it is possible to find a peaceful

FBIS-SOV-94-232
2 December 1994

way out of the situation which has developed and that
strong-arm methods or even preparations for them will
lead to a breakdown.

The Echo Moskvy radio station reported that the latest
shelling of Groznyy last night evoked a protest from the
Duma delegation. The editorial office received a copy of
the telegram which the delegation sent to Boris Yeltsin.
It contains a request “to do everything possible to stop
the shelling of Groznyy and other Chechnya regions.”

The delegation believes the president is not receiving
reliable information from Chechnya. They ask him to
urgently see them when they return to Moscow.

Yushenkov Confirms Aircraft Buzzed Groznyy

LD0212110994 Moscow ITAR-TASS World Service in
Russian 0952 GMT 2 Dec 94

[By ITAR-TASS parliamentary correspondent Ivan
Novikov]

[FBIS Translated Excerpt] Moscow, 2 Dec—{passage
omitted] Duma Deputy Chairman Valentin Kovalev
stated that the State Duma was constantly following the
situation in Chechnya. A State Duma delegation led by
Defense Committee chairman Sergey Yushenkov was in
Groznyy. It was constantly informing the Duma’s lead-
ership about the progress of the talks with Dzhokhar
Dudayev.

Valentin Kovalev said that the latest information from
Sergey Yushenkov was received by the Duma when the
delegation was leaving for another meeting with
Dudayev. Kovalev said that, according to Sergey Yush-
enkov, at 0010 hours today aircraft had begun to buzz
Groznyy and drop flares and that this had lasted until
0250 hours in the morning.

“We contacted the Defense Ministry to clarify the situ-
ation, and they did not confirm that the aircraft belonged
to the Russian Army,” Valentin Kovalev said.

He stressed that the Duma delegation held out “the hope
of a peaceful resolution of the situation that has devel-
oped.” At the same time, Kovalev declared that the
Duma delegation thought it was wrong to plan solutions
based on force in the Chechen conflict.

Yushenkov Calls For ‘Immediate’ End to Bombing

LD0212122094 Moscow INTERFAX in English 1139
GMT 2 Dec 94

{FBIS Transcribed Text] The chairman of the State
Duma’s Defense Committee Sergey Yushenkov, who is
currently visiting Groznyy as head of a State Duma
delegation, lashed out against those Russian leaders who
deny Russian Army involvement in the Chechen devel-
opments.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

In Thursday’s [1 December] exclusive interview with
INTERFAX Yushenkov reported a bombing raid on the
city of Gudermes. There were casualties, he said. Yush-
enkov quoted the Chechen authorities as reporting a
bombing raid on Djokhar Dudayev’s residence.

In Yushenkov’s view, the commitment of Russian troops
to action in Chechnya is absolutely inadmissible and no
link must be made between the commitment of Russian
troops and the fate of the detained Russian nationals in
Groznyy. It is much too late for the Duma to develop
plans for a non-violent accommodation in Chechnya,
Yushenkov said in reference to calls from the Duma’s
Deputy Speaker Valentin Kovalev and moves by the
Russian parliament.

An immediate end to the bombing raids must be the
word of the day, Yushenkov told INTERFAX.

Officers Said Assigned To Impose Emergency
Rule in Chechnya

MKO0O112143094 Moscow SEGODNYA in Russian
1] Dec 94 pl

[Report from Khabarovsk by Oleg Kryuchek]

[FBIS Translated Text] Your SEGODNYA correspon-
dent has learned that by directive of General Aleksandr
Kulikov, former Moscow commandant during the
October rebellion and current deputy internal affairs
minister, a special commandant’s office has been
formed, made up of officers of the Eastern Interior
Troops District (with headquarters in Khabarovsk) to
work in Chechnya. The officers, with their bags packed,
are only waiting for a report on the imposition of the
state of emergency in the Chechen capital to fly to a new
location of duty assignment. At issue are 30-50 officers,
called up to enforce the state of emergency in curfew
conditions with the help of interior troop subunits. The
situation is particularly juicy because Mr. Kulikov’s
directive was signed and given approximately one week
before President Boris Yeltsin issued his ultimatum to
Dzhokhar Dudayev.

Russian Assault Troops Moved Up to Chechen
Border Zone

MM0112161194 Moscow IZVESTIYA in Russian
2 Dec 94 p 1

[Report by Nikolay Burbyga: “Internal Troops in
Chechnya Region Reinforced by Assault Troops”]

[FBIS Translated Text] The newspaper has learned that
military transport aircraft have transferred several units
from the Pskov and Tula Airborne Assault Divisions to
the Mozdok area.

Around 300 men with the corresponding armaments and
hardware left the units’ base on the morning of 30
November for the strategic aviation airfield in Mozdok.

RUSSIA NATIONAL AFFAIRS 31

The assault troops will be quartered near the airfield.
Weapons and materiel continue to be brought in for
them.

We have learned after talking to the assault troops that
they have had no orders to begin offensive operations.
Nonetheless, they are in a state of heightened combat
readiness.

The airborne assault troops’ headquarters, which this
IZVESTIYA correspondent approached for an explana-
tion, told me: “Day one of winter training has begun.
Planned combat training is under way.” But they refused
to confirm or deny the news that the assault troops were
being redeployed to the southern borders of Russia.

Slightly later we learned from a trustworthy source at the
Defense Ministry that “in connection with the deterio-
rating domestic political situation in the Chechen
Republic a decision has been made to send small forces
and troop assets [neznachitelnyye sily i sredstva voysk]
from the North Caucasus Military District to the
Mozdok area to protect state lines of communication
and important facilities, to put a stop to acts of banditry
and sabotage, to eliminate [isklyucheniye] and prevent
approaches by armed formations and detachments from
adjoining territories or their movement beyond the
bounds of the Chechen Republic, to prevent the spread
of infectious disease, and to provide help to MVD
{Ministry of Internal Affairs] internal troops in the event
of a state of emergency being declared by the Defense
Ministry on the border with the Chechen Republic. It is
planned to complete the transfer and buildup of the
forces required for these purposes by 14 December.”

Twenty-seven Russian An-12 military transport aircraft
landed in the North Ossetian town of Beslan, 120 km
from Groznyy, on the night of 1 December, Dudayev
aide Movien Salamov claims. ITAR-TASS was told this
by the Duma Defense Committee apparatus, whose
staffers were able to telephone him in Groznyy.
According to Movlen Salamov, the planes were carrying
assault troops.

Moscow Security Stepped Up To Guard Against
Terrorism

MM0112184094 Moscow KRASNAYA ZVEZDA in
Russian 2 Dec 94 p 3

[Report by Boris Soldatenko: “‘Muscovites’ Safety Guar-
anteed. Law Enforcement Organs Introduce Heightened
Security Measures in Moscow’’]

{[FBIS Translated Text] Moscow has long been accus-
tomed to the wail of militia sirens and to militiamen on
patrol in the capital’s streets wearing flak jackets and
carrying automatic weapons. And therefore the confer-
ence held 30 November at the capital’s Internal Affairs
Main Administration could have been called highly
routine, had it not been for its results.

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32 RUSSIA NATIONAL AFFAIRS

Immediately after the conference ended, the entire guard
at the Internal Affairs Main Administration building and
rayon and district internal affairs administration build-
ings donned flak jackets and was armed with automatic
weapons. The last time the militia staffers put on this
“gear” was in October 1993, following the introduction
of the state of emergency in Moscow.

Presumably the introduction of heightened security mea-
sures in Moscow is due to the deterioration in the
situation in Chechnya and the end of the Russian pres-
ident’s 48-hour ultimatum to the participants in the
armed confrontation. This is confirmed by a statement
made 1 December by Moscow Mayor Yuriy Luzhkov,
which says, in particular, that the capital’s law enforce-
ment organs are ready to “prevent subversive, terrorist,
or other acts against Muscovites and targets in the
capital.”

The Internal Affairs Main Administration press service
confirmed to me that as of 2000 hours on 30 November
a staff was set up to coordinate the actions of all the
capital’s law enforcement organs. All the city’s vital
facilities have been placed under reinforced protection.
There is additional patrolling of bridges, hydroinstalla-
tions, the petroleum refinery, heat and electric power
stations, and power transmission lines. The arms and
equipment of Internal Affairs Main Administration sub-
units have been placed on full combat readiness. Oper-
ational investigations groups have been reinforced, city
leave passes for soldiers on compulsory service have
been canceled, and the Internal Affairs Main Adminis-
tration’s leadership personnel is working around the
clock.

Colonel General Anatoliy Kulikov, deputy minister of
internal affairs and commander of the Russian Federa-
tion MVD [Internal Affairs Ministry] internal troops,
told journalists back on Tuesday that strengthened
patrolling has been introduced at all strategic facilities.
And he promised Russians that they need not be worried
about their safety.

And although, as we were told at the Russian MVD, all
the statements by Dudayev’s supporters on possible
terrorist acts in the capital may be mere words, all the
law enforcement organs’ subunits stand ready for any-
thing unexpected. [A report on the same topic by Vasiliy
Ustyuzharin carried on page 3 of Moscow KOMSO-
MOLSKAYA PRAVDA in Russian 2 December adds
the following: “The guard at the ‘White House,’ the
Kremlin, and the presidential buildings on Staraya
Square has been issued with automatic weapons. In the
streets, armed soldiers are supplementing the armed
militia. At many state institutions civilian guards have
been reinforced with militia cadres. The president’s
bodyguard has been given the order to take tough
action—shoot to kill—in the event of the threat of a
terrorist act.”’]

FBIS-SOV-94-232
2 December 1994

Chechen Aide Claims Yeltsin Assassination Bid
Being Planned

MM0112194294 Moscow TRUD in Russian

2 Dec 94 pl

[Report by Aleksandr Korolev: ““If They Hit Groznyy,
We Hit Moscow””’]

[FBIS Translated Text] At midday yesterday the edito-
rial office made contact with Groznyy by telephone.
Musa Sultanov, leader of the Chechen Republic State
Security Department’s Analysis and Information Sec-
tion, told us the following about events which had been
taking place up to the moment of our conversation:

“During the night of 30 Nov-1 Dec (around 0300 hours)
the Republic’s capital was bombed yet again. More than
10 warplanes took part in the raid. The suburbs came
under fire, but two air-to-surface missiles also exploded
in the central part of the capital. There are casualties
among the civilian population. According to preliminary
figures, three people were killed and five wounded. The
attacking side continued to exert psychological pressure
on the population: Illumination flares blazed above the
city and a paratroop landing was simulated.

“At present many thousands of armed members of the
Republic’s volunteer militia have gathered in the center
of Groznyy. It is difficult for me even to imagine what
the Kremlin strategists intend to do against such a force.
One thing is certain: If Moscow goes ahead and hits
Groznyy anyway, Groznyy will hit Moscow.”

In conclusion, M. Sultanov said, in these very words:

“According to our information, an attempt on Boris
Yeltsin’s life is being prepared. The president will be
killed by a rocket launcher. ‘Chechen terrorists’ will be
falsely accused, although in reality the Russian presi-
dent’s immediate entourage will prove to have been
involved in committing the planned crime....”

‘Dangerous’ Radiation Recorded at War Memorial
Near Moscow

MM0112205594 Moscow IZVESTIYA in Russian
2 Dec 94 p 8

[Report by Arkadiy Zheludkov: “Guns on Poklonnaya
Gora Are Source of Danger”’]

{FBIS Translated Excerpt] The ecological protection
community has been disturbed by news that has very
rapidly spread around Moscow—heavy radiation has
been discovered at Poklonnaya Hill. Our correspondent
went to the scene to participate in the taking of readings
with radiation monitors from the “Radon” science and
production association.

Maksim Bolshakov, the “Radon” science and produc-
tion association’s senior radiation monitor, was clearly
nervous prior to departure. Before the memorial com-
plex was constructed on Poklonnaya Hill back in the

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

years of “stagnation” there was a city dump there, where
even radioactive waste was taken and buried. The burial
sites and the trash were dug up during construction of
the complex, but at that time the background radiation
at the location was no more than normal. This was
confirmed by Oleg Shanin, chief of Moscow City Radi-
ation and Ecological Monitoring Service, in a conversa-
tion with IZVESTIYA’s correspondent.

The readings, which were taken with our correspondent’s
assistance, were taken on professional equipment. A
ship’s gun displayed as an exhibit at the complex on
Poklonnaya Hill buzzed. Its instruments, made with a
phosphorite coating, showed a dangerous background:
During IZVESTIYA photographer Vladimir Mashatin’s
attempt to get a reading using a domestic dosimeter the
reading went off the scale. In such cases the domestic
dosimeter’s instructions advise people to leave the area
immediately and inform the competent services about
the source of radiation. Measurements taken by profes-
sionals showed that the instruments’ luminous markers
give a reading of 22,000 microroentgens per hour! A
considerable dose, especially bearing in mind that there
are always many children who showing an interest in the
guns and instruments on Poklonnaya Hill. The instru-
ment controls have been polished to a shine by children’s
hands. [passage omitted]

RUSSIA NATIONAL AFFAIRS 33

Minister: Only 8% of Oil-Polluted Komi Area
Cleansed

LDO0112153394 Moscow ITAR-TASS in English 1437
GMT I Dec 94

[By ITAR-TASS string correspondent Aleksandr Shu-
valov]

[FBIS Transcribed Text] Moscow December | TASS—A
Russian deputy environment minister said that only 8.3
percent of oil-polluted area has been cleansed in 45 days
after the breakdown at the Usinsk oil-pipe in Russia’s
northern Komi Republic occurred.

The ministry is also much concerned over the fact that
construction of a new pipe-line section is factually upset,
Viktor Kostin told TASS on Thursday. “One can expect
even worse failure there at any moment”, he said. Kostin
urged for speeding up oil removal and construction of
environment protection facilities to eliminate conse-
quences of the oil-spill.

The Komi republican commission for emergencies and
the joint- stock company “Komineft” drew plans to
eliminate the spill aftermath, but did not support them
with any rehabilitation schedule. This is the major
reason for delays and low efficiency of repair works,
according to Kostin.

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

UKRAINE

International Affairs

Tatars Condemn Russian ‘Interference’ in
Chechnya

LDO112174294 Kiev UNIAN in Ukrainian 1600 GMT 1
Dec 94

{[FBIS Translated Text] Simferopol—“The so-called
‘provisional council’ of the Chechen Republic is overtly
engaging in combat operations against the legitimate
government,” the Crimean Tatar peoples majlis pre-
sidium has said in a statement, out on 1 December. “The
Russian president's ultimatum on the introduction of a
state of emergency in Chechnya is nothing other than the
legalization of the Russian Army’s interference in
Chechnya’s affairs.”

The statement continues: “The provisional council is
maintained and armed by a third party that originates
outside the Chechen Republic. This party has no interest
in a peaceful settlement to the Chechen problem.
Forming and arming a so-called ‘opposition’ where there
isn’t any, and inflaming a civil war is an age-old and
well-tried method of imposing one’s own influence as
that of ‘peacekeepers.””

The Crimean Tartar peoples majlis rvesidium called on
all democratic forces of Russia to put an end to the
escalation of armed interference in Chechnya’s affairs
and to enable the Chechen people themselves to decide
their fate.

Crimea Wants Russia’s Duma To Act as
Guarantor

LDO112182594 Kiev UNIAR in Ukrainian 1515 GMT 1
Dec 94

{[FBIS Translated Text] Simferopol, | Dec—The
Supreme Council of Crimea held its second regular
sitting on 30 November. It elected the secretariat of the
session. (Andriy Stavytskyy) was elected head of the
secretariat.

The session also adopted a decision to discuss in group-
ings and, until the lunch break, the possible agenda for
the session.

After the break, at the beginning of the morning meeting
Stavytskyy announced the formation of groupings of the
Supreme Council of Crimea. He said that legally, the
following groupings had a right to exist: Crimea,
Reforms, and Agrarians. At the moment clarification of
those lists was being conducted so that they had a legal
right to exist.

The agenda of the second session of Crimea’s Supreme
Council was then discussed. About 20 issues were on the
agenda, in particular economic issues, issues connected
with the Crimean reaction to the Supreme Council
resolution “On repealing more than 40 acts of the
Crimean Supreme Council” and also the issue on the
Crimean Government’s control commission and other

FBIS-SOV-94-232
2 December 1994

issues. An appeal from the Supreme Council of Crimea
was adopted addressed to the State Duma of the Russian
Federation and Russia’s Federation Council. The appeal
notes that the State Duma and the Federation Council
should guarantee Crimea’s statehood. It also contains a
request that the Republic of Crimea’s interests should be
taken into account during the conclusion of the wide-
ranging interstate agreement between Ukraine and
Russia.

The issue about the program of Crimea’s social policy is
being discussed. The session will continue its work on |
December.

Official on Residents Obtaining Russian
Citizenship

LDO112134694 Moscow INTERFAX in English 1103
GMT I Dec 94

(FBIS Transcribed Text] The Crimean Supreme Soviet
intends to debate its permanent representation in Rus-
sia’s Federal Assembly Interfax-Ukraine reports that
this issue was included in the agenda Wednesday.

The Crimean lawmakers will also discuss a request to the
Russian president to open a Russian consular group in
Crimea.

Crimean legislature’s deputy chairman Viktor Mezhak
said that the possibility for Crimean residents to obtain
Russian citizenship had been discussed with Russian
State Duma members.

According to Mezhak, the opening of a permanent
consulate in Simferopol would be unacceptable because
this would imply that Crimea was not Russian territory.

Supreme Council Discusses Citizenship

LDO112132994 Kiev UNIAR in Ukrainian 2245 GMT
30 Nov 94

[FBIS Translated Text] Simferopol, 30 Nov—The par-
liamentary agenda was discussed at a meeting of the
second session of the Crimean Supreme Council. Among
the issues that the session was to discuss was a change in
the Crimean-Tartar alphabet from Cyrillic to Latin and
the adoption by Crimea’s Supreme Council of an appeal
to Russian President Boris Yeltsin. Viktor Mezhak,
deputy chairman of the Crimean Supreme Council,
made a speech on the latter issue. He noted that the
presidential council for issues of citizenship under the
president of the Russian Federation had passed a docu-
ment to the Russian Foreign Ministry concerning the
possibility of granting Russian citizenship to Crimeans
but that problems had arisen at the Foreign Affairs
Ministry.

There could be three mechanisms that would enable
residents of the peninsula to adopt Russian citizenship.
One of them would be to open a consulate, for example
in Odessa. It would be inexpedient to open a consulate in

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Simferopol, noted Mr. Mezhak, since that would indi-
cate that Crimea recognized that it does not belong to
Russia.

Peacekeepers Held Hostage in Bosnia Unharmed

LDO112153894 Moscow ITAR-TASS in English 1424
GMT I Dec 94

[FBIS Transcribed Text] Kiev December 1 TASS—
There is no threat to life of Ukrainian peacekeepers who
were taken hostage by Bosnian Serbs, the Ukrainian
Foreign Ministry press service said. The Ukrainians are
treated loyally.

The Ukrainians manning an armoured vehicle of the
U.N.’s peacekeeping forces were seized early on
November 30 near the town of Bihac at checkpoint No.
11. An officer and six men were brought to Dvor, where
they are held hostage in a local hotel until now.

Negotiation is being continued for release of the hos-
tages. Representatives of the U.N. peacekeepers’ com-
mand were to meet Bosnian Serb commanders at 16:00
today.

Debris of Ukrainian Plane Found in Bihac

LDO0112130994 Moscow ITAR-TASS in English 1132
GMT I Dec 94

[By ITAR-TASS]

[FBIS Transcribed Text] Kiev December 1 TASS—
Debris of an AN-26 transport aircraft were discovered in
the Muslim enclave of Bihac in Bosnia and Herzegovina
in the territory of former Yugoslavia, a representative of
the Ukrainian Department for Air Transport, who asked
that his name not be given, told ITAR-TASS. The
aircraft that belonged to the Kharkov air organisation
was missing since August 1.

The search group established that all the six members of
the crew and one passenger who were on board the plane
died in the crash, the source said. The plane came under
fire in the air. It was hit by the artillery of one of the
conflicting sides and crashed onto a mine field. Members
of the search group discovered the “black box” which
will shortly be taken to Kiev and inspected. Under the
agreement between the Kiev airlines and the Austrian-
Russian firm Safadi, the transport plane was to take juice
concentrate from Bihac to Kharkov.

Kuchma Pledges To Engage U.S. Companies in
Oil Extraction

LDO112215094 Kiev Radio Ukraine World Service in
Ukrainian 1700 GMT 1 Dec 94

{[FBIS Translated Text] Ukrainian President Leonid
Kuchma has pledged to create as liberal conditions as
possible to engage U.S. businessmen in Black Sea shelf
oil and gas extraction, Dmytro Tabachnyk, head of the

UKRAINE 35

presidential administration, has announced, com-
menting on a private conversation between Kuchma and
U.S. Overseas Private Investment Corporation Presi-
dent Ruth Harkin.

Tabachnyk added U.S. firms were also offered partici-
pation in a project to supply oil by a pipeline from the
Gulf via Turkey to Odessa.

Navy Rejects Statements, Favors Single Black Sea

LD0212095494 Kiev UNIAN in Ukrainian 1930 GMT 1
Dec 94

{[FBIS Translated Text] Sevastopol—The views
expressed by five or six officers of Ukraine’s naval
forces, who signed a letter to the political leadership of
Russia and Ukraine c2!ling for joint use of the Black Sea
Fleet, do not refle:< the opinions of the entire Ukrainian
Navy, it is said in a statement issued by the Ukrainian
Navy’s press center on 1 December.

Apart from that, the statement continues, a few Ukrai-
nian officers’ signatures inflict moral damage on all
naval personnel and do not do credit to those who
organized this address.

The press center said Ukrainian officers had repeatedly
stated the need for the soonest possible formation of
Ukrainian and Russian Navies on the basis of the Black
Sea Fleet. Ukrainian sailors believe it is necessary to
have in the Black Sea the national naval forces that will
guarantee the security of Ukraine.

National Affairs

Poll Finds Kuchma ‘Most Popular’ Ukrainian

LDO112181994 Moscow ITAR-TASS in English 1618
GMT I! Dec 94

[By ITAR-TASS correspondent Mikhail Melnik]

{FBIS Transcribed Text] Kiev December 1 (TASS)}—
Ukrainian President Leonid Kuchma rates higher than
any other politician in the country. His rating exceeds
that of ex-President Leonid Kravchuk and Speaker
Moroz, if taken together, according to a recent public
opinion poll conducted in Ukraine.

Kuchma is backed by 60 per cent of west Ukrainian
residents, 45.3 per cent of east Ukrainians, 52.5 per cent
of Kiev residents, and 34 per cent of people in Ukraine's
semi-autonomy of Crimea. He was named most popular
Ukrainian politician by 521 out of 1,200 respondeats, or
47.6 per cent.

Kuchma Backs Tartar Business Initiative
LDO112162094 Moscow INTERFAX in English 1417
GMT | Dec 94

{[FBIS Transcribed Text] Ukrainian President Leonid
Kuchma has backed the initiatives of the Ukrainian and

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is prohibited without permission of the copyright owners.

36 UKRAINE

Tartar governments to set up a transnational Ukrtatneft
financial and industrial oil company.

Under the Ukrainian president’s November 29 decree,
the State Property Fund and the State Oil and Gas
Committee have until January 1, 1995 to transfer the
appropriate number of state-owned shares and property
of the Kremenchugnefteorgsintez company and the
Ukrnefteprodukt oil and petroleum product supplying
company to the equity fund of Ukrtatneft.

The worth of the shares must be equivalent to the
property (securities) transferred to the equity fund by
Tatarstan.

The decree gave the Ukrainian State Property Fund, the
State Oil and Gas Committee, the Economics, Foreign
Economic Relations and Finance ministries and the
Anti-Monopoly Committee two weeks to draft funda-
mental documents for Ukrtatneft jointly with the neces-
sary Tartar bodies.

The Ukrainian Government will have a month in which
to agree on the founding documents with Tatarstan’s
government, to approve the company’s charter and to
determine benefits for the company which will supply oil
to Ukraine on a consignment basis.

Nuclear Official Criticizes Lack of U.S. Aid

WS0212123194 Kiev UKRAYINA MOLODA in
Ukrainian 29 Nov 94 p 3

{Interview with Mykhaylo Paviovskyy, chairman of the
Supreme Council Commission for the Issues of Nuclear
Policy and Nuclear Safety, by Mykhaylo Yakubivskyy;
place and date not given: “In Ukraine, There Is No
Alternative to Nuclear Power Engineering”—first para-
graph is UKRAYINA MOLODA introduction]

[FBIS Translated Text] Mykhaylo Paviovskyy, born in
1942, is chairman of the Supreme Council Commission
for Issues of Nuclear Policy and Nuclear Safety and a
member of the Ukrainian Republican Party Council. He
is also vice president of the Academy of Technological
Sciences, doctor of technological sciences, and professor.
Before his election to the Supreme Council this spring,
he was manager of Ukraine’s sole Scientific Research
Institute for the Problems of Mechanics—the Rytm,
involved in research and production of high-tech devices
and systems for steering movable objects. Besides,
Mykhaylo Pavlovskyy created the Ukrainian scientific
school for gyroscopes and navigation systems. He is the
honored activist of Ukraine’s science and technology
sector, a member of the scientific-technological councils
of the Ministry of Machine-Building and the Ministry of
Defense.

[Yakubivskyy] You have recently visited two superpow-
ers—the United States and China. What was the purpose
of those visits?

FBIS-SOV-94-232
2 December 1994

[Pavlovskyy] I spent two weeks of my leave studying in
the United States. After that, I spent another week in
China, where I attended a scientific symposium on space
science and technology. In the United States I, naturally,
met with people representing the Ukrainian diaspora.
Aside from that, I had meetings with congressmen and
government and department officials. During my talks
with representatives of U.S. Government circles, I
repeatedly emphasized the inadequate financial assis-
tance rendered to Ukraine by the United States. The
point is that in terms of U.S. per capita assistance to
foreign countries, Armenia is in first place, followed by
Russia. Meanwhile, Ukraine is in 11th position among
the CIS states. At the U.S. Department of Defense, I
tried to prove that the lion’s share of that assistance is
paid to U.S. companies operating in Ukraine. I was told
that there are appropriate congressional resolutions stip-
ulating that only U.S. companies can be granted finan-
cial assistance. I am an expert on issues of Ukraine’s
nuclear disarmament, however, and I know that for a
very long period of time, Ukraine did not receive a single
lousy dollar for the elimination of its nuclear arsenal,
although this elimination was very favorable for the
United States. After holding talks with me, a certain
senior military official promised that as an exception, he
would raise the issue of rendering financial assistance
directl; ‘> Ukraine before the government structures.

[Yakubivskyy] What can you say about the results of
your visit to China, particularly since the subject dis-
cussed there is closely connected with your profession?

[Pavlovskyy] Three states attended the symposium—
Ukraine, China, and Russia. Mr. Komarov, deputy
chairman of the Ukrainian National Space Agency, was
there with me, thus our delegation was the largest one
there, and was given an appropriate reception. The
Chinese reacted very favorably to my speech, in which I
suggested creating a joint association for space explora-
tion comprising Ukraine, China, and Russia. At present,
China has a most extended and comprehensive program
for space exploration. That state has already launched
commercial satellites for Germany and France. How-
ever, the level of scientific research in that area is higher
in Ukraine than China. Our accord is more likely, given
that the United States does not have a strong desire to
initiate our states into the latest achievements of space
technology. Thus, we should band together. At the Space
Academy, the appropriate ministry, the Independent
Association of Space Exploration, even the Chinese
legislature, all our proposals were received with under-
standing. Five major directions for our joint activities
were determined—new materials and technologies; the
creation of ground appliances and test-stands for testing
movable objects; new mihods of launching satellites
and placing them in orbit (Ukraine has a very interesting
program in this field not involving the use of launching
sites); and nuclear power engineering. Chinese specialists
are working very vigorously in that area, and our coop-
eration could be very advantageous. Or take, for
instance, the problem of dumping nuclear waste. Both

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

sides have an interest in it—China has necessary funds
for important scientific trends, however lacks qualified
specialists; Ukraine is rich in the latter. We are trying to
engage our embassy in China in that process.

[Yakubivskyy] My next question is related to the com-
petence of your legislative commission. G-7 experts have
recently visited the Chernobyl nuclear power plant.
What were the results of their visit? We know that the
visitors, just as many others before them, demanded that
the power plant be shut down, for it is a source of
ecological danger. However, nobody is going to compen-
sate our state for the losses caused by that step.

[Pavlovskyy] Yes, however the G-7 experts have seen for
themselves that security standards at the Chernobyl
nuclear power plant are even higher than at similar
plants in Russia. Prime Minister Vitaliy Masol and
Deputy Prime Minister Valeriy Shmarov explained to
the visitors that the plant could be closed down, yet
something has to be done with tens of thousands of

UKRAINE 37

people working there. What will the residents of Slavu-
tych do, given that a majority of them are nuclear
specialists? Besides, where will we get electricity? Would
it n: t be better to build new safer units at the station?
Moti. »alling the station is a very expensive undertak-
ing—it would cost trillions of karbovantsi. Nevertheless,
foreign envuys are unanimously urging the plant’s imme-
diate shutdown. Another serious question arises: Is there
an alternative to nuclear power engineering at present?
By thoroughly analyzing the current state of things in the
energy sector we come to the unambiguous conclusion—
we have no choice at this point.

There is another aspect to this problem. Our state has
large prospected deposits of uranium ore, sufficient for
150 years. Instead of buying nuclear fuel from Russia, we
should manufacture it in Ukraine. Once we have mas-
tered this process, wé could receive huge hard currency
profits by selling nuclear fuel. Meanwhile, we continue to
sell the ore at dirt-cheap prices. Its price covers only 10
percent of our nuclear fuel expenditures.

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is prohibited without permission of the copyright owners.

38 WESTERN REGION

Belarus

President Visits Homel, Views ‘Vertical Chain of
Power’

WS0112154494 Minsk Radio Minsk Network in
Belarusian 1300 GMT | Dec 94

[Report by Valeriy Sidorchik on visit to Homel by
President Alyaksandr Lukashenka on 1 December]

[FBIS Translated Excerpt] At 0900 [0700 GMT] sharp,
the presidential motorcade appeared in downtown
Homel. Although the city is not small [word indistinct],
the arrival of the Republic’s leader would always be a
great event here connected with certain changes. Many
people have already learned about today’s major event,
which is the appointment of a new chairman of the
oblast Executive Committee. There have been many
predictions as to who would be appointed to this posi-
tion by the president. However, the president, who was
the first to take the floor when the [Executive Com-
mittee] session opened, proposed a well-known man—
Pavel Uladzimiravich Shypuk, director of the Homel-
based Homelshklo joint- stock company, better known
as the Homel Lomonosov glass factory. Following a
short discussion, the candidacy of the new oblast Exec-
utive Committee was approved unanimously. [passage
omitted]

The session’s work lasted more than three hours, and
immediately after the session, the president gave an
exclusive interview to our radio.

[Begin recording] [Sidorchik] Valeriy Sidorchik, corre-
spondent of...

{Lukashenka, interrupting] I know Valeriy Sidorchik by
his reports from Homel Oblast.

[Sidorchik] Another week has passed, representing
another stage in building the vertical chain of presiden-
tial power. Are you pleased with its results?

[Lukashenka] Judging by the work in three oblasts, I am
not only pleased, but I am simply glad that everything
happened in a normal way, and that we have formed this
vertical chain of power. I am glad that I was supported
by people in the oblasts. I am glad that the people trust
me. This is another chance for me to convince myself
that it is worth working for those people, and to do my
very best. Those people, who told me not to pay too
much attention to the media’s attempts to agitate the
situation, were correct. People understand what is going
on in the Belarusian Republic. I am pleased with this. As
for the results, you can see them. You can only be
pleased when power is peacefully delegated from one
man to another.

[Sidorchik] What are the deadlines for this work? When
will the creation [of a vertical chain of power] be
completed?

FBIS-SOV-94-232
2 December 1994

[Lukashenka] This is very important. I am glad that you
asked this question. First, before my visit to Budapest, to
where I am traveling on Sunday [4 December] to partic-
ipate in the CSCE conference...{[Lukashenka pauses] we
have completed work in three oblasts. Tomorrow will be
devoted to an analysis and planning of our activities in
this direction in other oblasts, as we!l as in Minsk. Upon
my return from Budapest, within the next week I believe,
I will resolve the problem concerning the president and
the creation of the vertical chain of presidential power.
This includes Hrodno, Brest, Minsk, and Vitebsk
Oblasts. We will appoint heads there, particularly since
candidates have already been determined. [passage
omitted] [end recording]

President’s Spokesman Briefs on Security Council
Meeting

WS0212113194 Minsk ZVYAZDA in Belarusian 30
Nov 94 pp 1,5

[Report by Vital Tsyhankow: “The President Needs
Better Security, and Belarus—the ‘Partnership for
Peace’””—first paragraph published in boldface]

[FBIS Translated Text] A traditional “Tuesday” meeting
between Alyaksandr Fyaduta and journalists was held at
the Supreme Soviet press center. The chief of the Public
and Political Information Administration shared his
opinions on recent events with representatives of the
mass media.

As the most important event Fyaduta selected the pres-
ident’s statement on economic policy, which, according
to him, “demonstrated the president’s friendly attitude
toward the path to a welfare market.” As everyone
knows, Alyaksandr Lukashenka is to begin formation of
“the vertical chain of power” this week. In this regard he
will attend sessions of the Vitsebsk, Mahilyow, and
Homel Oblast Soviets, at which he will present his
candidates for administration leaders. However, except
for the already known candidate from Vitsebsk—
Uladzimir Andreychanka— Mr. Fyaduta refused to
name other candidates.

Alyaksandr Fyaduta reported on the latest Security
Council meeting (held on Monday evening), at which it
was decided that Belarus should join the “Partnership
for Peace” program. “We understand all the ambiguity
of attitudes toward this program in our country and
states which are our natural allies. In the opinion of the
Security Council, our accession to the program will not
endanger Belarus’ neutrality,” Fyaduta stated.

A SOVETSKAYA BELORUSSIYA correspondent then
asked about the president’s apparent pro-Western atti-
tude. In response, Alyaksandr Iosifavich jocularly said
the following: “Since our eastern neighbor, friend, com-
rade, and brother has already joined the program, it is
very interesting who is more pro-Western—Belarus or
Russia?” Fyaduta emphasized that the president had
reaffirmed of the pro-Russian orientation of his political

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

line, and in this case “we are proceeding on the same
path as Russia.” It should be recalled that all Central
Asian republics of the former Soviet Union have already
joined the “Partnership.”

Mr. Fyaduta also touched upon the third item on the
Security Council agenda—a debate on stepping up the
battle against crime. According to Fyaduta, participants
in the meeting noted that organized crime has been
politicized, and that a market for criminal services has
been formed within the CIS. They proposed an entire
range of concrete measures, but the Public and Political
Information Administration chief declined to reveal
them. He did inform the press, however, that “in con-
nection with information obtained by competent bodies,
the Security Council resolved to take additional mea-
sures for strengthening the security of the president and
his family” (by the way, the Security Council meeting
was, as always, chaired by Alyaksandr Lukashenka).
When I asked him what grounds there are to make such
a decision and which forces and organizations pose a
threat to our highest authority, Mr. Fyaduta responded
that he is not a Security Council member, and had not
been authorized to answer such questions. Finally,
Fyaduta publicly apologized for a recent incident that
took place at the Academy of Sciences, when, due to his
administration’s fault, certain reporters were denied
access to the conference room in which the president was
delivering a speech.

Government Members Brief on Pricing Policy,
Belgian Visit

WS0212102394 Minsk ZVYAZDA in Belarusian 30
Nov 94 p 1

[Report by Yuras Karmanaw: “Mikhail Chyhir: ‘I Hope
That the President Will Agree To Revise Current Prices
for Foodstuffs’””—first paragraph published in boldface]

[FBIS Translated Text] The government’s regular news
conference attended by Belarusian Prime Minister
Mikhail Chyhir and Deputy Prime Minister Syarhey
Linh was dedicated to the pricing policy and the results
of a Belarusian delegation’s visit to Brussels.

Pricing Policy Will Be Revised

Immediately after the well-known presidential edict on
lowering prices had been issued, Mikhail Chyhir stated
that this was a political step rather than an economic
one. He then even specified losses that Belarus will suffer
from the president’s actions—100 billion [Belarusian]
rubles [BR]. At the news conference, the prime minister
noted that the situation in the country has forced the
government to return to the issue of pricing, primarily
with regard to foodstuffs. In the opinion of M. Chyhir,
this was caused by the fact that prices for food in Russia,
the Baltics, and Ukraine are much lower than those in
Belarus. For comparison, he provided relations between
prices in Moscow and Minsk as of 15 Novemver (in
Russian rubles [R]): The price for beef was R4,078 in

WESTERN REGION 39

Moscow, in Minsk—R 1,639; boiled sausage—R2,175 in
Minsk against R10,332 in Moscow, etc. As a result of
this difference, the transfer of foodstuffs from Belarus to
neighboring countries is increasing, which on the eve of
winter may affect supplies of foodstuffs, particularly
diary products. The Cabinet of Ministers thus requested
that the president revise prices for foodstuffs. “So far we
have received no positive response from the president.
Taking into account that the Cabinet of Ministers
allotted BR15 billion for assistance to the most vulner-
able segments of society last week, and the planned
budget expenditures provide every reason to believe that
this sum will be increased, I think that the president will
support the idea of revising our pricing policy,” M.
Chyhir said.

The following question also arises in this regard: What
are the current prices for foodstuffs (except for bakery
and dairy products), since they are considered to be free,
which the government has repeatedly stated. Com-
menting on this issue, M. Chyhir noted that current
prices can be considered free only conventionally: “As
was the case before, current prices do not cover pro-
ducers’ costs, not to mention the maintenance of agri-
cultural equipment. Moreover, prices for energy sources
are the main factor in pricing.”

Having recalled the budget subsidies for municipal ser-
vices (BR 135 billion), transport (BR46 billion), and fuel
(BR121 billion), the prime minister informed that it has
been planned to spent BR9 billion on housing for ser-
vicemen alone. It has also been planned to allot BR18
billion at the end of this week, to cancel the denomina-
tion of citizens’ bank deposits and return them to the
status as it was on | January 1991. “I do not know why
the attorney general made a press statement in this
regard, since we envisioned this step during a debate on
our atiti-crisis program, which was also attended by
[Attorney General] Vasil Shaladonaw,” M. Chyhir
noted.

President May Visit Brussels Next January

Syarhey Linh told journalists that during its visit to
Belgium, the Belarusian delegation held a number of
talks with Belgian officials and EC representatives. In
January of 1995, the Belarusian president is to pay a visit
to Brussels, where he is supposed to sign an agreement on
partnership and cooperation between Belarus and the
EC. The agreement provides for increased quotas for
selling Belarusian textiles on European markets and
cancellation of antidumping sanctions on potash fertil-
izers, which the Republic intends to deliver to European
markets in their previous volume.

During the visit, the Belarusian delegation was told that
EC has allotted $5 million for liquidating the aftermath
of the Chernobyl disaster in the form of humanitarian
aid.

In the framework of Belarusian-Belgian negotiations, the
Belarusian delegation met with the Belgian prime min-
ister. The two sides discussed prospects for economic

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is prohibited without permission of the copyright owners.

Aly WESTERN REGION

cooperation and reached an agreement on establishing
working groups, which are to draft agreements between
Belarus and Belgium on economic cooperation, avoiding
double taxation, protection of investments, and trans-
port cooperation. This agreements are also expected to
be signed during the Belarusian president’s visit to
Belgium. During talks held at the regional level, the sides
discussed prospects for establishing Belarusian-Belgian
joint-venture companies.

Retired Generals Accuse Lukashenka of
Favoritism

MK0O112134094 Moscow SEGODNYA in Russian I Dec
94 p 5

[Report by Valentin Zhdanko under the “Belorussia”
rubric: “Generals Accuse President of Reviving Oprich-
nina”’]

{FBIS Translated Excerpt] Six retired Belorussian
[Belarus] generals led by former Defense Minister Pavel
Kozlovskiy have turned to President Alyaksandr
Lukashenka in an open letter warning that “making their
way into the presidential entourage are semi-competent
and immoral people who are trying to bring into reality
their career hopes by reviving the oprichnina [Ivan the
Terrible’s administrative elite].” [passages omitted]

The president is coming under increasing criticism for
his personnel policy from the right wing and the left. On
30 November, Hennadiy Karpenko, leader of the Party
of People’s Accord and Alyaksandr Lukashenka’s former
presidential election rival, accused the new team that has
come to power of “a massive breakdown of the manage-
ment apparatus in ministries and departments” and of
moving to the capital, without any grounds, personnel
from Mogilev Oblast, the president’s home turf. Per-
sonnel, Mr. Karpenko believes, who often lack profes-
sionalism but are devoted to the president. Incidentally,
Mogilev Oblast has never been among the front-ranking
as regards either the economic or social spheres. The
mounting attacks from a number of former high officials
hostile toward Alyaksandr Lukashenka have forced the
president to put the problem of personal security to a
Security Council discussion. The ranks of Alyaksandr
Lukashenka’s personal security service have swelled sev-
eral times over in recent several months. Not so long ago,
in the Stanislaw Shushkewich times, only two security
men could be seen beside the head of state.

Moldova

Snegur Meets Leaders in Brussels

AU0112213394 Chisinau BASAPRESS in English 1930
GMT 30 Nov 94

{[FBIS Transcribed Text] Chisinau BASAPRESS, 30/
11/1994—Yesterday, President Mircea Snegur returned
to Chisinau after a 2- day visit in Belgium. On the first
day of his visit, he met with Chislain Lenaers, Group GI

FBIS-SOV-94-232
2 December 1994

{expansion unknown] companies director. Snegur pro-
posed the creation of joint ventures, in particular in the
agricultural products processing industry. On the same
day, Snegur signed the Partnership and Cooperation
Agreement Between Moldova and the European Union
(EU). In his speech on this occasion, Snegur expressed
his hope that the EU and its member-states “will not be
indifferent toward the withdrawal of the 14th Army
temporarily located in Moldova.” Klaus Kinkel, EU
Council chairman, stated that the eastern districts are
integral part of Moldova. The first day of the visit
concluded with a meeting between President Snegur and
European Commission deputy chairman H. Cristo-
phersen who said that beginning December 7 Moldova
will be able to use ECU 25 million of the ECU 45 million
credit granted to ensure the balance of payments. On the
second day, Snegur met with Willy Klaas, NATO secre-
tary general. Klaas greeted the signing of the 14th Army’s
withdrawal agreement adding that it should be carried
out following international norms. Snegur requested
NATO's help in working out programs for conversion of
military plants and other scientific projects, the neces-
sary assistance being provided. Snegur also met with
European Commissioner Hans Van Den Broek and
Belgian Premier Jean-Luc Dehaene. During this latter
meeting Snegur said that a friendship and cooperation
treaty should be signed between Moldova and Belgium
as a foundation for ascending relations between the two
countries, relays the presidential press service.

Discusses NATO Cooperation

LDO112231394 Moscow INTERFAX in English 1851
GMT I! Dec 94

[From the “Presidential Bulletin” feature: compiled by
Nikolay Zherebtsov and Andrey Petrovskiy; edited by
Vladimir Shishlin]

{[FBIS Transcribed Text] NATO can support moves
taken by the Moldovan leaders for maintaining peace
and stability in the region, Moldovan President Mircea
Snegur told the Moldovan Security Council when
reporting on his visit to Brussels.

He said he had discussed possible cooperation with
NATO also within the scope of the Partnership for Peace
program during his meeting with NATO Secretary Gen-
eral Willy Klaas.

Snegur said his visit to Brussels was a success in general.
He said an agreement on cooperation and partnership
with the EU had been signed during his visit which “will
contribute to integration of Moldova with this European
mechanism.” He proposed that a special envoy be
appointed to the Moldovan Embassy to Belgium who
would be responsible for developing relations with the
EU. Snegur said work on drafting a treaty on friendship
and cooperation between Moldova and Belgium had
begun. Snegur said the treaty aimed at attracting invest-
ments and avoiding dual taxation. He added that an
agreement on cooperation in the sphere of science,

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

education and culture was also being worked on. Snegur
said he believed that the documents could be signed in
the near future.

Snegur said he had informed the high-ranking officials
with who he had met in Brussels on the political and
social situation in Moldova. He said the political situa-
tion in Moldova was stable and “contributing to imple-
mentation of the market reforms.” He said he had also
discussed the situation with human rights and rights of
ethnic minorities with the Belgian prime minister and
the NATO secretary general. Snegur stressed that various
structures for protecting these rights had been created in
Moldova within the scope of the executive and legisla-
tive powers.

Snegur highly appraised the contribution of the CSCE to
eliminating the armed conflict in Transdniestria. He said
he addressed the Belgian leaders and several interna-
tional organizations with a request to control the imple-
mentation of the agreement on withdrawing the Russian
14th Army from Moldova. Snegur said the 14th Army
must be withdrawn from Moldova during the next three
years. He said he believed that the issue of the status of
the Moldovan eastern regions “could and must be
resolved before the last Russian soldier leaves the repub-
lic.”

Snegur also said he was in favor of urgently resolving the
issue of the legal status of the regions mostly populated
by Gagauz and announced that he had sent an official
letter to the parliament proposing that the appropriate
draft law be approved in the second reading as soon as
possible.

Russia Reaffirms Peacekeeper Commitment

AU0112213494 Chisinau BASAPRESS in English 1930
GMT 30 Nov 94

[FBIS Transcribed Text] Chisinau BASAPRESS, 30/
11/1994—Georgiy Kondratyev, Russian Vice Minister
of Defence, addressed a declaration to the Joint Control
Commission (CMC) made public during today’s CMC
session. Last week, Kondratyev visited Moldova. A
CMC press release states that Kondratyev thanked CMC
for its understanding of the difficulties faced by Russia
in financing Russian peace keepers which made Moscow
reduce its contingent to 630 people. He said that “Rus-
sia’s obligations regarding its peace keeping mission in
Dniester cannot be doubted. It was important that ail
sides wished to preserve the security zone within its
current boundaries. We arrived to the conclusion that
the peace keeping forces will be reduced simultaneously
with the military observers’ increasing activity. We hope
that our proposal to use a certain number of Russian
officers of the military units subject to reduction and
which will be withdrawn irom Dniester will allow the
Joint Command to settle a series of problems,” said
Kondratyev. He said these soldiers and officers will be
transferred under Russian peace keeping forces’ subor-
dination and thus the 14th Army’s neutral status stipu-
lated in the July 21 1994 Moldovan-Russian agreement
will be preserved.

WESTERN REGION 41

Andronic Sees Force as ‘Complication’

LD0212111094 Moscow ITAR-TASS in English 1023
GMT 2 Dec 94

[By ITAR-TASS correspondent Valeriy Demidetskiy]

[FBIS Transcribed Text] Kishinev [Chisinau] December
2 TASS—The proposal to bring international peace-
keeping forces into the zone of the Dniester conflict,
made at a session of the North Atlantic Assembly by
deputy speaker of the Moldavian [Moldovan parliament
Nikolae Andronic may complicate Moscow-Kishinev
relations. This opinion is shared by Russian diplomats
involved in the settlement of the Dniester oroblem.

Diplomats told ITAR-TASS they were perplexed, to say
the least, at unilateral initiatives of the Moldavian
leaders about bringing international “blue helmets” and
international control over the 14th Army’s withdrawal.
In the opinion of the Russian side, this international
control is not stipulated by the bilateral agreement on the
army’s withdrawal that was signed by the heads of the
governments in October.

The Moldavian side motivates its steps by “a real danger
of the aggravation in the Dniester region”. Andronic
believes this danger arose after Russia last week unilat-
erally reduced its peacekeeping contingent. Russian
peacekeeping forces were brought into the area in 1992,
after Presidents Boris Yeltsin and Mircea Snegur signed
in Moscow an agreement on a peaceful settlement of the
conflict. Out of the six Russian peacekeeping battalions
only two remain stationed in the dividing safety zone.
The Russian leadership explains this reduction by the
stabilisation in the region and the shortage of the funds
for the upkeep of forces.

In his interview to ITAR-TASS Andronic denied that
“Moldavia’s unilateral initiatives about bringing in
international ‘blue helmets’ and for international control
over the 14th Army withdrawal will complicate relations
with Moscow and may have a negative effect on the
Moldavian economy whose lion’s share is oriented at the
use of Russian energy carriers, at Russian raw materials
and Russian markets”.

“We are grateful to Russia for having complied with the
agreement on the Dniester at the first stage”, the parlia-
mentary deputy speaker said. But later “The Russian
side grossly violated these agreements, permitting the
formation of three battalions of separatists in the safety
zone for which it is responsible”, Andronic said. He also
did not rule out ““Moscow’s wish to have the repetition of
what happened in Georgia”. To confirm this view, he
pointed to the proposal to transform the 14th Army into
a Russian military base, which was made last week by the
army’s commander, Lieutenant-General Aleksandr
Lebed.

General Lebed believes that the efforts for the army’s
withdrawal were premature. The authorities of the Dni-
ester region in whose territory Russian troops are sta-
tioned do not recognise the agreement on their

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42 WESTERN REGION

withdrawal, claim the army property and have recently
tightened the watch over the army’s units. “When arms
and ammunition withdrawal is attempted, pickets of
women and the aged will be formed. They object to
Russian troop withdrawal as they fear that war may flare
up again”, Lebed said. “The personnel of the army,
consisting mostly of men coming from local places will
stay on. So instead of a well-controlled and organised
army, a well- armed, well-trained and unpredictable
military force will be present in the heartland of Europe.
As long as the army stays on, I can guarantee that there
will be no leakage of armaments,” Lebed said.

In an interview to ITAR-TASS, the commander of the
14th Army proposed that “there should be a status quo
in the region and the situation should be kept under
control by preserving the military- political balance in
the region”.

Speaker of the Moldavian parliament Petr Luchinskiy
declared on Thursday in favour of coordinating with
Russia Kishinev’s initiatives regarding the international
control over the withdrawal of the 14th Russian Army at

FBIS-SOV-94-232
2 December i294

the upcoming conference of heads of member-countries
of the Conference on Security and Cooperation in
Europe (CSCE).

Duma Delegation Visits Dniester, ‘Familiarizes’

AU0112213294 Chisinau BASAPRESS in English 1930
GMT 30 Nov 94

[FBIS Transcribed Text] Chisinau BASAPRESS, 26/
11/1994—Late last week, a group of Russian State Duma
deputies, headed by Konstantin Zasulin, chairman of the
Russian Parliamentary Commission for CIS Affairs,
visited Tiraspol. They visited the 14th Army command
and met with Aleksandr Lebed. According to military
experts, the Russian deputies wanted to familiarize with
the situation in Dniester for a future report in the State
Duma. They also meet with Dniester President Igor
Smirnov and Dniester Supreme Soviet Chairman
Grigore Maracuta. Today, General Eduard Vorobyev,
former head of the Russian military experts in the
negotiations on the 14th Army’s withdrawal, arrived in
Tiraspol. 14th Army command sources relay that Voro-
byev will conduct an investigation on the recent arrest of
a counter-intelligence officer for alleged collaboration
with the Dniester secret services.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Kazakhstan

Paper Views Problems of Defense Industry
Conversion

LDO0112184994 Almaty KHALYK KENESI in Kazakh
23 Nov 94 p 3

[FBIS Translated Excerpt] [passage omitted] A few years
ago the V.I. Lenin heavy engineering industrial complex
which used to produce SS-20 rockets was converted into
a production association containing several plants. In
fact the industry’s workshops were turned into separate
plants. The only difference was that each new plant
acquired its own management, accounting, and supervi-
sion apparatus. Production, engineers, and workers have
lost, however. In the present difficult circumstances the
number of people involved in the production process is
being cut while the management staff are hardly touched

V. Yefremov, director general of the enterprise, is vis-
iting foreign countries and aliegedly seeking a way out of
the crisis. Success is modest, however. For example,
during his visit to Turkey he agreed to produce buttons.
No one knows how reasonable it is to make buttons on
machines which are supposed to make spare parts for
rockets. Besides, this “innovation” can provide only
100-150 people with jobs. The results of V. Yefremov’s
other trips, for which he uses the state’s money, are about
the same.

According to economists the intellectual potential of the
V.I. Lenin enterprise is good enough to work out a
business plan and ask the government for a credit in
foreign currency to implement a concrete project. [pas-
sage omitted]

The heads of other plants are doing their best to get out
of the crisis. The Kuybyshev and Kirov industries, which
were flourishing a few years ago, are in quite a difficult
situation now. The main problem is again funds.
Although at the moment the government cannot satisfy
the enterprises’ need for money, the >.»mmission sent to
the region by President Nazarbayev after his own visit in
October this year proposed using internal reserves and
opportunities to solve the problem.

One of the ways out is to ease the instruction on changing
foreign currency earned by the defense enterprises to
tenge. According to this instruction enterprises are
obliged to change at least half of their foreign currency
incomes to tenge. The main partners of the enterprises
we are talking about are in Russia. The only foreign
currency they receive is the Russian ruble. Half of these
Russian-ruble incomes must be changed to tenge. The
other half of the money is not enough to maintain the
necessary cooperation with Russian partners. So enter-
prises are forced to make another change—this time to
change the tenge into the Russian ruble. By any accounts
this is an absolute nonsense. So the existing currency
exchange instruction is causing big trouble for the

CENTRAL ASIA 43

defense enterprises. The commission headed by G. Abil-
seytov promised to raise this issue in Alma-Ata [Almaty]
saying that the National Bank will not object to ren-
dering assistance in this case.

The commission paid particular attention to the fol-
lowing matter, and G. Abilseytov considered this a main
issue. Just like every defense enterprise these plants have
mobilization stocks in case of war or any other extraor-
dinary events. These stocks contain considerable mate-
rial reserves. There is a strict ban on touching these
reserves in peace time. As the heads of the plants admit,
if they were used now it would be a substantial help to
enterprises. Members of the commission agreed with this
opinion.

They did not just agree but considered this a most
appropriate solution in present conditions. So according
to G. Abilseytov the enterprises should be allowed to use
80 percent of their emergency reserves. He also added
that he was intending to submit this proposal to the
Cabinet of Ministers. [passage omitted]

———— Electricity for Solvent Enterprizes
y

LD0212102594 Almaty Kazakh Radio Network in
Kazakh 0900 GMT 2 Dec 94

{[FBIS Translated Text] Power engineering stations of
Karaganda produced an extra 42,820,000 kWh on top of
their plan. Amid all the industry’s troubles, this is an
encouraging piece of information. Nevertheless, the
Karaganda power engineering workers are not in a
position to improve their situation all by themselves.
Since the beginning of winter, consumers owe them 6
billion tenge for heating. A decision has been made that
from now on the Karaganda power station will deliver
electricity to solvent enterprizes only.

Trade Targets With Russian Company Approved
for 1995

LDO112154494 Almaty KAZAKHSTANSKAYA
PRAVDA in Russian 26 Nov 94 p 1

[Report by Kanat Turapov, chairman of the board of the
Kazkontrakt joint stock company, carried in the KAZA-
KHSTANSKIYE NOVOSTI Saturday supplement]

{FBIS Translated Text] At the end of the last week of
November, working meetings of representatives of the
Kazkontrakt and Roskontrakt joint stock companies
were held in Moscow within the framework of intergov-
ernmental negotiations. They discussed the principles
and approaches of mutual supplies of the most impor-
tant products in 1995.

It is well known that because of Kazakhstan’s major
debts to Russian suppliers in 1993 for fuels and lubri-
cants supplied to rural areas, trade this year between our
republics has been noticeably reduced. Therefore, the
preliminary results of the meetings are encouraging—it

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is prohibited without permission of the copyright owners.

at

seems that an understanding of the need for partnership
and mutual payments has been found.

Draft agreements on mutual supplies of the most impor-
tant goods in 1995 and the conditions and procedures for
selling them have been approved. The volumes of such
supplies from both sides are put at approximately $530
million. Russia is planning to supply 600,000 [metric]
tonnes of petrol, 750,000 tonnes of diesel fuel, 300,000
tonnes of furnace fuel oil, 100,000 railroad ties, timber,
chemical, and paper products, and a significant amount
of various engineering products to Kazakhstan. More-
over it is proposed to import them to the republic
without collecting customs duties and the same will
apply to Kazakh goods imported to Russia.

The Kazakh side will supply the Russian Federation with
traditional goods: nonferrous meials, ferroalloys, metal
rolled products, cotton, grain, and so on. The needs of
the AKPO (Aktau), Propilen (Atirau), and Fosfor
(Chimkent) joint stock societies for ethyl benzene and
other primary chemical raw materials in exchange for
polymer materials which are shipped by production
practice to Russian enterprises have been taken into
account in the “framework contracts”.

It is especially necessary to note in the agreement on
conditions of supplies that in the absence of centralized
sources of finance, it is intended to implement mutual
supplies by attracting commercial credits and finance
from the Kazkontrakt joint stock company and the
customers. Moreover, property accountability for the
results of the implementation of the mutual obligations
is placed directly on the Roskontrakt and Kazkontrakt
economic entities.

The agreement achieved between the Kazakh and Rus-
sian sides on settling debts for petroleum products
received for state needs should be considered a reas-
suring symptom of the feasibility of mutual goods sup-
plies next year. Roskontrakt has given its consent to
defer payments for five years, with repayment to begin in
1998.

CENTRAL ASIA

FBIS-SOV-94-232
2 December 1994

Kyrgyzstan

ae Discusses Political, Economic Ties in
LDO112152694 Bishkek Kyrgyz Radio First Program
Network in Russian 0600 GMT I Dec 94

[FBIS Translated Text] A delegation led by Prime Min-
ister Abbas Dzhumagulov is visiting Tokyo to take part
in the first joint — of the intergovernmental eco-
nomic committees of Kyrgyzstan and Japan, the repub-
lican government’s press service reports. Further
strengthening of political and economic relations
between the two countries is being discussed there.
Resolving these issues will require financial support
from some Japanese corporations.

Our delegation includes Transport Minister Madybek
Oblesov [name and title as heard], Trade and Material
Resources Minister Andrey lordan, and other officials.

Broadcasters Sign Agreements With Russians

LDO0112160294 Bishkek Kyrgyz Radio First Program
Network in Kyrgyz 1000 GMT I Dec 94

{[FBIS Translated Text] A ceremony for signing agree-
ments on television broadcasting and on other fields
between the Kyrgyz State National Television and Radio
Company and the social and economic radio broad-
casting of the Russian State Television and Radio Broad-
casting Company Ostankino was held today. The agree-
ments were signed by Abdilamit Matisakov, the
president of the Kyrgyz State National Television and
Radio Company, and Gennadiy Shepetko, the vice
chairman of the Ostankino television and radio com-
pany, for Russia. The signing of the agreements was held
in a friendly and harmonious manner.

Statistics on Food Costs in Four Republics
LDO0112184094 Bishkek SLOVO KYRGYZSTANA:
DELOVOY CHETVERG in Russian 26 Nov 94 p2

[FBIS Translated Text] The cost of general foodstuffs in
January - October:

Kyrgyz Republic: (i) Name of foodstuffs (ii) Unit of

The implementation of these agreements will undoubt- measurement (iii) M norms of consumption
edly help to increase the flow of goods between the two (jy) Retail why ewe in a) — b) Russian ks
states and soften the financial deficit tension in the _ rubles: rate is 1 som = 280 roubles (v) Actual cost in
republic. October in a) soms b) Russian rubles:

(iv) ; (v)
(i) (ii) (iii) (ivA (ivB) (vA) (vB)
Beet kg 0.91 9.0 2506.00 8.14 2280.46
Mutton kg 1.07 10.5 2942.80 11.25 3148.80
Sausage boiled kg 0.3 22.6 6319.60 6.77 1895.88
(half smoked)
Butter kg 0.25 23.7 6624.80 5.92 1656.20
Milk 1 5.78 1.9 $23.60 10.81 3026.41

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

(vB)

788.20

836.86

3004.40

3118.50

4395.86

91.56

2232.22

168.76

3908.18

0.44

$79.04

0.41

342.10

1.6

3256.96

5.07

1987.44

3.31

1640.44

SST TTT) F) TTF -|F TITS

1.35

408.24

Uzbekistan: (iv) Retail price in October in a) soms b)
Russian rubles: rate is 1 som = 118 rubles (v) Actual
cost in October in Russian roubles:

(iii)

(v)

0.91

1610.70

1.07

1893.90

0.3

1416.00

0.25

1062.00

5.78

1500.49

0.25

472.00

0.64

724.99

0.5

3256.80

1800.98

1003.00

79.65

1598.31

89.21

1787.46

700.92

275.77

1132.80

2093.91

976.45

SITET) TF) FT| -(F FF /-|F| F/T IE

238.95

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

46 CENTRAL ASIA 2 December 1994
Rasalan rable rate eos gee i) temgeb)
Wholesale price in October rubles
(i) (ii) (iii) (iv) (v)
(iva) (ivB)

Beef kg 0.91 46.00 2830.84 2576.06
Mutton kg 1.07 43.00 2646.22 2631.46
heer boiled half kg 0.3 109.00 6707.86 2012.36
Butter kg 0.25 100.00 6154.00 1538.50
Milk 1 5.78 7.50 461.55 2667.76
Cream kg 0.25 43.00 2646.22 661.56
Curds kg 0.64 34.00 2092.36 1339.11
Black tea kg 0.5 166.00 10215.64 $107.82
Eggs 1 13.8 2.50 153.85 2115.44
Oil ke 0.85 65.00 4000.10 3400.09
Flour best grade kg 0.15 10.37 638.17 2565.44
Flour first grade kg 3.87 _ _ _
White bread high kg 0.21 16.00 984.64 206.77
quality
White bread first kg 5.41 10.00 615.40 3458.55
grade
Macaroni foods kg 0.44 25.00 1538.50 676.94
Rice kg 0.41 11.00 676.94 377.55
Sugar kg 1.6 35.00 2153.90 3146.24
Potatoes kg 5.07 11.00 676.94 3433.09
Onion kg 3.41 20.00 1280.00 4073.95
Cabbage kg 1.35 12.00 738.48 96.95
R ¢ in v
a (iv) ma ' in October in rubles (v) Actual
(i) (ii) (iii) (iv) (v)
Beef kg 0.91 4074.00 8066.52
Mutton kg 1.07 _ oo
ames boiled half kg 0.3 6913.00 2073.90
Butter kg 0.25 4566.00 1141.50
Milk 1 5.78 659.00 3809.02
Cream kg 0.25 3258.00 814.50
Curds kg 0.64 3220.00 2060.80
Black tea kg 0.5 8468.00 4234.00
Eggs 1 13.8 153.90 2116.13
Oil kg 0.85 3233.00 2748.05
Flour best grade kg 0.15 770.00 3095.40
Flour first grade kg 3.87 _ _
White bread high quality kg 0.21 1239.00 260.19
White bread first grade kg 5.41 758.00 4100.78

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is prohibited without Permission of the copyright owners.

FBIS-SOV-94-232

2 December 1994 CENTRAL ASIA 47

(i) (ii) (iii) (iv) (v)

Beef kg 0.91 4074.00 8066.52

Macaroni foods kg 4d 2189.0 963.16

Rice kg 0.41 908.00 372.28

Sugar kg 1.6 1458.00 2332.80

Potatoes kg 5.07 $56.00 2818.92

Onion " 3.41 1508.00 4991.48

Cabbage kg 1.35 790.00 1066.50
Tajikistan Arms, ammunition and food for rebels have been

CIs F Commander
Peacekeeping Forces Opposes

LDO112120294 Moscow Radio Rossii Network in
Russian 1000 GMT I Dec 94

[FBIS Translated Text] The CIS collective peacekeeping
forces must not be withdrawn from Tajikistan in the next
few years, believes Colonel General Valeriy Patrikeyev,
commander of the peacekeeping forces. If the peace-
keeping contingent is withdrawn from Tajikistan, the
republic will turn into today’s Afghanistan, where an war
between clans is under way, Valeriy Patrikeyev said in a
conversation with a group of Russian journalists.
According to the general, the Tajik army is not ready to
repel external aggression, while the republic’s border
troops are still being formed.

Miltants Situation T.
Detained, ‘ense on Afghan

LD0212100594 Moscow ITAR-TASS in English 0917
GMT 2 Dec 94

[By ITAR-TASS correspondents Galina Gridneva and
Aleksandr Kharchenko]

[FBIS Transcribed Text] Dushanbe December 2 TASS—
Three militants from the Islamic Revival Movement of
Tajikistan (IRMT) were detained in one of border areas
guarded by the Kalaikhoub border detachment in the
Pamirs sector on Thursday night.

One of the IRMT’s influential field commanders, Gayur,
was killed when crossing the Tajik-Afghan border on
Wednesday. Found on him were documents and photo-
graphs of members of armed groups of the opposition.
These are indicative of Tajik rebels’ involvement in the
attack on the posts of the 12th border picket of the
Moskovskiy border-guarding detachment, a spokesmen
at the press centre of the Russian border troops in
Tajikistan told ITAR-TASS on Friday.

The situation on the border still remains tense. State
Duma members, who visited the border picket, saw that
for themselves. It was noted that new groups of militants
had appeared in a number of border villages of the
Afghan Badakhshan.

brought to the border line from Talukan. Field com-
mander Khakim Bangi, who eari.er had lived in southern
Tajikistan, is now in charge of the provision of military

Karimov Appointed as New Prime Minister

LD0212115494 Moscow ITAR-TASS World Service in
Russian 1129 GMT 2 Dec 94

[By TIA Khovar correspondent Zayniddin Nasriddinov
for TASS]

{FBIS Translated Text] Dushanbe, 2 Dec—Dzhamshed
Karimov has been appointed to the post of Tajikistan’s
prime minister. President Emomali Rakhmanov today
signed a decree to this effect.

The new prime minister is 54 years old. He is a doctor of
economics. Until now he has held the post of chief
adviser to the head of state.

Rakhmanov Addresses New Session of Tajik
Parliament

LDO0112172394 Dushanbe Radio Tajikistan Network in
Tajik 0800 GMT 1 Dec 94

[FBIS Translated Excerpt] As we have already reported,
the 21st session of the Supreme Council of the 12th
convocation started work at 1000 today. [passage
omitted]

Musoyeva, chairman of the committee on state struc-
tures under the Supreme Council, reported on the first
issue—the draft law of the Republic of Tajikistan on
elections to the Tajik Supreme Council. The speaker
noted that the draft of this law has been considered in the
Supreme Council’s committees, in consultations with
people’s representatives and with the Presidium of the
Supreme Council. A great number of deputies com-
mented on this issue.

Deputy Safarali Kenjayev said that the draft has some
shortcomings and imperfections. In particular, it does
not include nomination of candidates for the Supreme
Council by trades unions and public organizations, yet
this draft law gives town and district councils the right to
nominate. [passage omitted]

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is prohibited without permission of the copyright owners.

48 CENTRAL ASIA

President Emomali Rakhmanov made a speech on this
issue at the session of people’s deputies. He stressed: We
will create a law-based constitutional republic accepted
by the world. For this reason, people’s deputies are asked
to acknowledge their serious responsibility in approving
every resolution and law necessary for the future of the
republic.

Emomali Rakhmanov also told those present that the
normalization of the situation provides the opportunity
to implement political solutions. The president will do
his best to implement political solutions in order to
establish peace and calm in the republic.

After some discussion, the deputies started approving
this law section by section.

By noon, the first interval of the morning session, three
sections of the draft had been approved. Other sections
of the draft law are now under discussion.

Parliament Adopts Documents on Reforms

LDO112131294 Moscow ITAR-TASS in English 1132
GMT I Dec 94

[By ITAR-TASS correspondents Galina Gridneva,
Aleksandr Kharchenko]

[FBIS Transcribed Text] Dushanbe December 1 TASS—
The Tajik parliament, which resumed its session today
after a two-week interval, has adopted a package of
documents aimed at improving the constitutional
reform. The documents include a law on elections of
deputies to local bodies of power, whose mandates
expire in December, 1994, a law on the freedom of faith
and religious rituals, and a law on pensions for Tajik
servicemen.

Heated debates arose when a draft law was discussed on
elections to the highest legislative body of power—the
People’s Assembly. A number of lawmakers declared
that the draft law infringed on democratic freedoms in
the system of nominating candidates, and in particular,
the exclusion from this process of such big public organ-
isations as trade unions, the union of young people and
the council of women. The draft law submitted to the
lawmakers for discussion stipulates that the right to
nominate candidates to the People’s Assembly was given
to local bodies of power, political parties and work
collectives numbering over 500. In this connection,
debates continued by discussing each article separately,
and will be resumed after an intermission.

The Tajik President Emomali Rakhmanov addressed the
parliament and called on the lawmakers to show
restraint and carry on a constructive discussion of the
draft bill for the sake of people’s interests and the
speediest economic and political revival of the country.

The agenda of the parliamentary session includes prob-
lems pertaining to a draft parliamentary resolution on
priority measures aimed at the realization of the Tajik

FBIS-SOV-94-232
2 December 1994

Constitution adopted at a nationwide referendum on
November 6, and a draft resolution of the Tajik parlia-
ment on the structure of the Tajik Government.

Elections Set for 26 Feb 1995

LDO112184294 Dushanbe Radio Tajikistan Network in
Tajik 1700 GMT I Dec 94

[FBIS Translated Excerpt] Today, the 21st session of the
Supreme Council of the Republic of Tajikistan of the
12th convocation, resumed its work in Dushanbe after a
two-week interval. [passage omitted]

The discussion of the first agenda item [adoption of the
draft law of the Republic of Tajikistan on elections to the
Supreme Council of the republic] was continued in the
afternoon session. Rafika Musoyeva, the chairman of the
committee on state structure under the Supreme Council
of the republic, submitted the draft law on elections of
people’s deputies to the authorities of local administra-
tion and members of parliament. The draft law has been
prepared by the committees of the Supreme Council on
state structure and legislation, law and order, and human
rights. The people’s deputies approved this law. [passage
omitted]

Two other items were included on the session’s agenda—
the election day to the highest and local bodies, and the
election of the members of the Central Electoral Com-
mission. The Supreme Council adopted a decree on
elections to be held on 26 February 1995. Homid
Sharipov was approved as the chairman of the Central
Electoral Commission. The Supreme Council [words
indistinct] relieved [word indistinct] of his post as the
chairman of the Supreme Court. Ubaydulio Daviatov,
who earlier worked at the high mediation court of the
republic, was elected to this post. With this, the session
concluded its work.

Turkmenistan

Niyazov Unlikely To Attend CSCE Summit in
Budapest

LDO0112225594 Moscow INTERFAX in English 1851
GMT I! Dec 94

[From the “Presidential Bulletin” feature compiled by
Nikolay Zherebtsov and Andrey Petrovskiy, and edited
by Vladimir Shishlin]

[FBIS Transcribed Text] Sources in the president's
entourage told Interfax that Saparmurad Niyazov was
unlikely to go to Budapest to attend the CSCE summit
where U.S. President Bill Clinton had invited him.
(Turkmenian media published Clinton’s letter Thursday
expressing the hope that he would meet Niyazov at the
meeting of CSCE heads of state to be opened on
December 5).

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

Officially, the Niyazov visit has not been properly pre-
pared but independent observers say that the Turkme-
nian authorities are disappointed because the; expected
Clinton to invite Niyazov to the U.S. IF Note: Niyazov
was to the U.S. twice on private visits at the invitation of
former secretary of state Alexander Haig.

The U.S. Administration had earlier shown interest in
Niyazov's talks with his Ukrainian counterpart Leonid
Kuchma on November 4 and 5. Observers believe that it
was the position of Clinton who pledged support to
Ukrainian reforms and sent James Collins, chief coordi-
nator on the CIS, to attend the Ukrainian-Turkmenian
talks that made Turkmenistan agree to stretch out the
payment of Ukraine's debts for gas deliveries.

Niyazov Regards Russia as ‘Partner’
LD0212102194 Moscow ITAR-TASS in English 0952
GMT 2 Dec 94

[By ITAR-TASS correspondent Lyudmila Glazovskaya]

{[FBIS Transcribed Text] Ashkhabad [Ashgabat]
December 2 TASS—Turkmenistan regards Russia as a
partner with whose assistance it can sooner assert eco-
nomic independence and * nplement it fuller and get an
opportunity to be integrated into the world economic
system.

Turkmenistan’s President Saparmurad Niyazov said this
in an interview to ITAR-TASS. He summed up the
results of his recent visits to a number of European
countries, above all, problems of bilateral economic ties.
Establishing relations with European countries, Turk-
menistan will never do anything to affect the interests of
third countries, above all Russia, the president said.

Turkmenistan regards it as its duty to take into account
Russia’s interests in establishing relations with European
and Asian partners, the president said. First of all, this is
in Turkmenistan’s own interests. Russia is situated in
proximity to Turkmenistan, which is very important for
the market. Second, Russia is in transition, just as all
former union republics, and this makes for the sharing of
expirience in reforming. Third, there is a special level of
bilateral relations between Russia and Turkmenistan
which, alongside politicial and economic interests,
include mutual understanding and confidence, such as
have not yet been achieved with other countries in the
Commonwealth of Independent States.

“I would also note our trusting personal relations with
President Boris Yeltsin. I regard him as an experienced
and staunch politician and reformer,” Niyazov said. He
also spoke highly of the relations with Russian Prime
Minister Viktor Chernomyrdin and other Russian

“Stressing Russia’s role as Turkmenistan’s main partner,
we view Russia as a great power. We do not deny
profound spiritual and historical bonds between our
peoples,” Niyazov said. “But we also see Russia as a

CENTRAL ASIA a9

partner equal to us which is admitted also by Russia. It
is precisely this equality and the absence of dependence,
even in trifling matters, that enable Turkmenistan to
decide itself on its top priorities.”

The president noted that the main principles of Turk-
menistan’s foreign policy are openness, non-interference
and mutually-advantageous partnership will all states. At
the same time, also in its present efforts to establish ties
in Eurasia, Turkmenistan assigns special place to Russia.
Russia’s interests are taken into account in all Turkmen-
istan’s strategic projects of development, fuel and energy
projects, including the gas pipeline Turkmenistan-
Iran-Turkey-Europe, and in the communications
projects, in the sphere of Eurasian transport, Niyazov
said. He said that when concluding agreemen’= during
his recent trips to a number of European countries, he
advanced terms ensuring Russia’s interests and proposed
specific versions of their furthering. For instance,
Romania, being interested in Turkmenistan gas, will be
receiving it in near future from the existing gas pipeline
Turkmenistan-Russia. “The signing of virtually all
arrangements was arrived at through the prism of Turk-
menistan-Russian coordination,” Niyazov said.

Turkmen-Kyrgyz Meeting Resolves Trade, Debt

LDO112150694 Bishkek Kyrgyz Radio First Program
Network in Russian 0600 GMT I Dec 94

[FBIS Translated Text] According to the Kyrgyz govern-

ment’s press service, the deputy prime ministers of
Turkmenistan and Kyrgyzstan met in Ashgabat yes-
terday [30 November]. The Kyrgyz dr‘egation was led by
First Deputy Prime Minister Almamw<* Matubraimov,
while Deputy Prime Minister Saparov icvk part in the
meeting on the Turkmen side.

During the meeting, trade and economic cooperation
between the two countries in 1995 was discussed, as was
the problem of regulating of payment arrears relating to
technical credit. Terms were set for paying off the debt.
The finance ministers and the heads of the national
banks of both countries took part in the meeting.

The agreement that the governments of the two countries
signed on the former issue says that mutual deliveries of
resources and goods will be carried out according t= the
principles of equality and mutual benefit by concluding
contracts between the states and the economic entities in
them, irrespective of their form of ownership. These
deliveries will promote the maintenance of mutually
beneficial economic links which have developed between
the enterprises and the states.

Gas Supply Agreement Signed With Georgia,
Armenia

LD0212124094 Moscow ITAR-TASS World Service in
Russian 1101 GMT 2 Dec 94

{ITAR-TASS correspondents Lyudmila Glazovskaya
and Anna Kurbanova]

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

50 CENTRAL ASIA

{FBIS Translated Text] Ashkhabad [Ashgzbat], 2 Dec
(ITAR-TASS)—Turkmenian gas is being supplied to the
Transcaucasian republics. An agreement on this was
reached today in Ashkhabad by Saparmurad Niyazov,
Levon Ter-Petrosyan, Eduard Shevardnadze and Azer-
baijani Vice Premier Abbas Abbasov. The question of
mutual settlements for gas supplies to those states was
settled during the talks. Mutual guarantees of supplies
and of payment for them in 1995 were received.

The meeting between the heads of the three states—
Turkmenistan, Armenia and Georgia—rcsulted in a tri-
lateral joint statement confirming mutual liability for
honouring contractual commitments.

Uzbekistan

Karimov Issues Decree To Reform Tax System

LDO112174194 Tashkent NARODNOYE SLOVO in
Russian I Dec 94 pl

[FBIS Translated Text]
Sone een on See Sea

1. The following shall be regarded as the most important
areas of reforming the tax system during the formation
of the 1995 state budget of the Republic of Uzbek‘stan:

- reducing of the burden of taxation on legal persons;

- strengthening the role of taxes as incentives in
increasing the volumes of production and the sales of
products, extending entrepreneuriai activity and invest-
ment activity, speeding up the circulation of money, and
increasing profits;

- improving the structure of incomes by raising the
portion of taxes on natural resources and property and
strengthening their influence on the effectiveness of the
use of resource and production potential;

- considerable increasing the proportion of local budgets
in the republic’s state budget by strengthening the
income base of local budgets and a demarcation of taxes
between the republican and local budgets;

- striving for the maximum simplification of the taxation
mechanism and ensuring the stability of the tax system.

2. With the aim of ensuring the realization of these areas
of improving the tax system from | January 1995:

2.1. The rate of Value Added Tax is reduced from 20 to
18 percent.

2.2. A tax on enterprise profits will replace the tax on
enterprise takings with the maximum rate set at 38

percent;

PBIS-SOV-94-232
2 December 1994

2.3. The existing procedure of income tax and tax breaks
for peasant farms, private enterprises, trade enterprises,
and enterprises with foreign investments is preserved.
3. During collection of the tax on profits:

3.1. A reducing coefficient of 0.3 percent will be used
against the set tax rate for each percent of growth of
volumes of production of output (works, services) in
comparable costs.

3.2. A reducing coefficient of 5 percent will be used when
from 30 to 50 percent of balance profit is used for
development, reconstruction and the technical re-
equipment of production, and when over 50 percent of
Ee
10 percent.

3.3. The existing procedure for tax exemption and
granting privileges for newly created enterprises will be
preserved;

3.4. Of money used from the profits of enterprises and
organizations, irrespective of their form of ownership,
aimed at housing, social, or cultural construction, 50
percent will be exempted from tax.

4. An increasing coefficient of 0.5 percent against the set
tax rate will be introduced for each percent above the set
level of profitability for monopoly enterprises.

5. The level of the wage fund, included in manufacturing
costs and not subject to taxation, will be set at four times
the level of the minimum wage.

It is established that the part of the wage fund which
exceeds the set norm will be subject to profit tax at a
progressive rate, reflecting the rate at which it exceeds
the norm.

6. The following forms of taxes are abolished:

6.1. The tax on raw material resources and production
exported from the Republic of Uzbekistan,

6.2. The tax on the wages funds of members of collective
farms and the legislation on income tax on citizens
which applied to them;

6.3. The confiscation of incomes from foresiry.

7. It is established that the whole volume of depreciation
deductions will remain at the disposal of enterprises.

8. The Cabinet of Ministers is given the right to approve
the basic parameters of the 1995 state budget of the
Republic of Uzbekistan once it has examined:

- the setting of new tax rates on natural resources which
stimulate their effective utilization;

- the regulztion of tax breaks;

This report may contain copyrighted material. Copying and dissemination
is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994 CENTRAL ASIA 51

- the redistribution of incomes for the benefit of local 9. Point 3 of Decree No. 7-997 from 31 October 1994 is
budgets and the setting of differentiated norms of con- _—_ declared no longer valid as of 1 January 1995.
tributions from state taxes, depending on the level of a

territory’s development; [signed] Uzbek President Islam Karimov

- the introduction of amendments to the procedure for
imposing fines for the infringement of tax legislation. [dated] Tashkent, 30 November 1994.

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is prohibited without permission of the copyright owners.

52 CAUCASUS

Armenia

Government Appeals to People on 1 Dec Price
Increases

NC0O112134094 Yerevan Radio Yerevan International
Service in Armenian 1615 GMT 30 Nov 94

[Appeal by the government of the Armenian Republic
to the people” —radio headline]

[FBIS Translated Text] Dear compatriots, our country
will be embarking on a new period of economic reforms
as of 1 December. During this time, the measures to be
implemented, particularly the sharp reduction of the
budget deficit and regulation of the balance of payments,
will first ensure economic stability and then economic
growth and development.

This is the crucial phase in the transition to a market
economy. It is that mandatory step that will make it
possible to steadily raise the standard of living and
bolster the country’s defense capability, thereby leading
to the consolidation of Armenian statehood on this land
bequeathed to us.

The measures being implemented are the continuation
of the government’s economic policy, and [words indis-
tinct] increase in the bread and energy prices. This step
seen in isolation from the rest of reform package might
not appear correct in societal terms. However, future
reforms will be impossible and economic stability and
development unrealizable if we do not give up the policy
of subsidies and continue to have an abysmal budget
deficit. In any case, that would not only not solve the
economic problems, it also would not solve social prob-
lems.

While raising the price of one kilogram of bread to 66
Dram, the government is, at the same time, fully com-
pensating all the employees at the budgetary organiza-
tions, unprotected strata of the population, pensioners,
disabled, children, and unemployed for the increase in
prices.

At the same time, the government has instructed the
state-controlled enterprises to use their own funds to
raise the wages of their workers.

Compensation is also to be given for the increase in
electricity rates.

Once again noting the necessity of this step, the govern-
ment declares with all the responsibility that this step
was not imposed or urged by anyone, namely, the IMF.
The government’s program aimed at reforms and sur-
mounting the economic crisis has gained the approval of
both the IMF as well as other major international
financial organizations and creditor countries. This was
confirmed yet again during the Armenian Government
delegation’s meeting with the consultative group held in

FBIS-SOV-94-232
2 December 1994

Paris on 22 November of this year. The aid promised to
Armenia at that meeting is a confirmation of that
approval and confidence.

The government is taking, and will take, every measure
to prevent the possible negative consequences of the
price increases in order to prevent a new decline in the
standard of living of the population.

Dear compatriots, our people have experienced enor-
mous difficulties and deprivations, which continue
today. These difficulties and deprivations have not been
in vain. We have achieved structural changes and land
privatization. The privatization of the industrial and
service sectors is in progress, and we have introduced
and stabilized our own national currency under the
collapse of trade and economic ties [between former
Soviet republics], the blockade, the dearth of local energy
and raw material resources, and under the exceedingly
difficult conditions of undeclared war.

All of these could not have raised the living standards at
one stroke. Rather, a substantial decline in the living
standard took place. However, the worst has been left
behind. Henceforth, each coming year will be substan-
tially better then the preceding one. This is guaranteed
not only by the achievements already accomplished
through suffering but also by our nation’s creative power
and industriousness coupled with its patience and excep-
tional ability to brave the difficulties.

Raises Bread Prices, Electricity Tariffs

LDO112203794 Moscow SNTERFAX in English 1725
GMT I Dec 94

[FBIS Transcribed Text] Armenia raised prices for bread
by 11 times and tariffs on electric power by six times on
December |, said the Armenian. government’s resolution
circulated in Yerevan today.

The govern: ent’s resojution said that the measure was
necessary for impleme:iting the recommendations made
by the IMF granting credits to the republic.

Local experts said the present growth in prices and
completely liberalizing prices in the future marked the
beginning of implementation of a new program for
economic reforms worked out jointly by the Armenian
government and the IMF. The program aims at elimi-
nating the budget deficit, stabilizing the national cur-
rency unit and developing the market economy.

Well-informed sources in Yerevan said the IMF would
give to Armenia the first credit worth $25 million at
around mid-December. The same sources said that
Armenia expected to receive credits totalling $260 mil-
lion from different financial organizations in 1995.

The Armenian government’s resoiution said that the
Armenian authorities would pay compensations for the
growth in prices to the least well-off categories of the
population and employees of budget organizations from

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

reserve funds of the Central Bank of Armenia. Compen-
sation payments will be 11.2 billion drams.

“If we want to build market relations it is necessary to
free prices and change the policy for establishing prices
as a whole,” Armenian Premier Grant Bagratyan said on
national television on November 30. He said he believed
that prices for other goods would not change signifi-
cantly.

Bagratyan said the Armenian population would live in
1995 better than in 1994.

Stavropol To Send Gas Until Turkmen Supply
Resumes

NC0112194994 Yerevan Armenia’s Radio First
Program Network in Armenian 1900 GMT I Dec 94

[FBIS Translated Text] In accordance with an agreement
between the Russian and Armenian governments, 2
million cubic meters of gas will be sent to Armenia daily
from Stavropol pending the resumption of gas supplies
from Turkmenistan.

Georgia

Parliament Discusses Harsh Statement on
Abkhazia

LDO112144794 Moscow INTERFAX in English 1340
GMT I! Dec 94

{[FBIS Transcribed Text] The Georgian parliament
started discussing a draft statement to be issucd in
response to a recent proclamation of sovereignty by
Georgia’s breakaway province of Abkhazia.

“Now that the separatists have adopted illegal (legisla-
tive) acts, Georgia has the full moral, political and legal
right to use every means to restore its national sover-
eignty on its entire territory,” says the draft, put before
an emergency parliament session on Thursday.

Head of state Eduard Shevardnadze, urging the legisla-
tors to approve the document, said its text had been
endorsed by parliament’s leadership the day before.

Abkhazia’s legislature on November 26 passed a consti-
tution declaring the region a sovereign republic, a step
rejected by Tbilisi, which refused to recognize Abkha-
zia’s new status or have any talks with its leaders.

“There is no legitimate body on the territory of Abkhazia
which is authorized to adopt a constitution on behalf of
the people living in the republic,” the draft statement,
being considered behind closed doors, reads further on.
“The separatists’ decision to proclaim Abkhazia an
independent state, the adoption of the constitution and
the election of the president of Abkhazia cannot have
any legal significance either within the cuuniry or in the
context of international law. The legislation of Georgia
will continue to apply in Abkhazia.”

CAUCASUS 53

The session gave consideration to the economic situation
in the country as well. Shevardnadze said he was leaving
for Ashkhabad, Turkmenistan, on Friday to hold what
woui ' apparently be “rather difficult” talks with Presi-
dent ‘aparmurad Niyazov to negotiate natural gas
imporis. He also assured parliament that Russia would
“in two or three days” formally agree to export more gas
to Georgia.

State May Use ‘Any Means’ To Restore Order

LD0112180294 Tbilisi SAKINFORM in Russian 1335
GMT | Dec 94

[FBIS Translated Text] The Georgian Parliament has
issued a statement today severely criticizing the adop-
tion by the Abkhaz Supreme Council of a constitution
that declares Abkhazia a sovereign state and subject of
international law. The parliament appeals to the United
Nations, the international community, including CIS
member states, and all people of good will to support
Georgia. What happened in Abkhazia is not Georgia’s
internal affair because the Abkhaz conflict was and still
is being influenced by external factors. Events in Abk-
hazia may have dangerous repercussions in other states.
The parliament states that the Georgian state has a full
moral, political, and legal right to use any means to
restore its jurisdiction on its entire territory.

UN Meeting on Abkhaz Constitution Urged

LDO112192394 Moscow ITAR-TASS World Service in
Russian 1843 GMT I Dec 94

[By ITAR-TASS correspondent Boris Sitnikov]

[FBIS Translated Text] United Nations, 1 Dec—Georgia
is calling for an urgent meeting of the UN Security
Council to be convened in connection with the adoption
of Abkhazia’s new constitution. This is according to a
letter from Georgian Head of State Eduard Shevard-
nadze that was released here today as a Security Council
document.

“I ask for a meeting of the Security Council to be
convened as a matter of urgency in so far as recent events
in the Abkhazian Autonomous Republic may have
unpredictable results and lead to a further escalation of
the conflict,” E. Shevardnadze noted.

Georgia regards the adoption on 26 November of a new
constitution of Abkhazia, proclaiming it a sovereign
republic and a subject of international law, as a step
aimed at disrupting the Georgian-Abkhazian peace talks.
In the opinion of the Georgian leaders, by doing this
Abkhazia “chose to disrupt the talks, being aware of the
fact that the Republic of Georgia would not enter any
talks with the Abkhazian party in this conflict as an
independent state and a subject of international law.”

Shevardnadze Fires Head of Energy Department

LDO0112194994 Tbilisi IPRINDA in Russian 1400 GMT
1 Dec 94

[FBIS Translated Text] Tbilisi (IPRINDA)—Late in the
evening of 30 November, Georgian Head of State

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is prohibited without permission of the copyright owners.

Ma CAUCASUS

Eduard Shevardnadze dismissed Iuri Chedia from the
post of head of the Sakenergo [Georgian energy] depart-
ment. The former head of Sakmortazhmshenebeli
[?Georgian construction association] Givi Gamkrelidze
was appointed as Chedia’s replacement.

Shevardnadze Blames Mafia for Economic
Corruption

LDO0112160894 Tbilisi SAKINFORM in Russian 1000
GMT 1! Dec 94

[FBIS Translated Text] Commenting on the current
complex economic situation in the republic at the gov-
ernment session, Georgian Head of State Eduard She-
vardnadze admitted that the situation was caused by the
rampage of mafia and wide scale corruption the roots of

FBIS-SOV-94-232
2 December 1994

which had to be searched for, first of all, in high echelons
of power, the head of state’s office, republic’s Cabinet of
Ministers, ministries, and departments.

Shevardnadze To Settle Gas Issue in Ashgabat

LD0212094094 Moscow Mayak Radio Network in
Russian 0800 GMT 2 Dec 94

[FBIS Translated Text] Eduard Shevardnadze is off to
Ashgabat today to settle the problem of natural gas
supplies to this Transcaucasian republic. The situation
regarding energy supplies became exacerbated in
Georgia in November. In the middle of the month gas
deliveries from Turkmenistan were reduced as a result of
problems on the Uzbek section of o gas pipe-line via
which the gas enters Georgia.

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FBIS-SOV-94-232
2 December 1994

Estonia

Prime Minister Threatens To Resign Over
Ownership Law

LDO112155494 Tallinn Radio Tallinn Network in
Estonian 1500 GMT 1 Dec 94

[FBIS Translated Text] Prime Minister Andres Tarand
has said the government may resign because of the fact
that President Lennart Meri has no intention of promul-
gating the law amending some clauses to do with the
implementation of the ownership rights law [asjaoigus-
seadus]. According to the presidential office’s press ser-
vice, the president has taken this decision because in his
opinion some clauses in the law run counter to the
constitution. Here is Andres Tarand stating his view.

[Begin Tarand recording] The aim of the law was an
extensive tidying up of legislation on reforms, with the
emphasis on speeding up land reform and simplify the
housing privatization. The fact that the law will not
come into effect will put the attainment of these aims
back into a more distant future. The law on housing
privatization set down the deadline of 1 December 1994
for the residents’ rights of the first option. The Riigikogu
wished to extend this deadline, up until 1 March 1995.
As the Republic’s president has decided not to promul-
gate the law, which includes the clause about this amend-
ment, a certain legal uncertainty will result when it
comes to housing privatization. The government is given
by law the task of organizing housing privatization, and
we would like to continue this privatization so that the
residents’ rights of the first option would be valid up
until the deadline set by the Kiigikogu.

I would like to add, by way of comment, so as to
highlight the fact that during this present stage the
government is in no way able to intervene in the legisla-
tion to do with housing privatization and legislative
activity. This has been laid down in the constitution
precisely as being an activity between the Riigikogu and
the president. However, the executive power’s task is to
ensure that there is order in the country, and that
includes also housing privatization. In other words, the
government must accept responsibility for a situation it
has not created. In case this present situation, which,
quite justifiably, will make the people ask a lot of
questions, is used by some political force in the interests
of the election campaign, the government is likely to ask
to resign. We will discuss this issue in greater detail at the
goverment sitting due just now. [end recording]

Tarand: Government Not To Resign Over
Differences With Meri

LD0212114694 Moscow Mayak Radio Network in
Russian 1100 GMT 2 Dec 94

{FBIS Translated Text] The Estonian Government has
adopted a decision not to resign. As Andres Tarand, the
head of the cabinet, said yesterday evening at the end of

BALTIC STATES 55

its session, the government has found a way round a
solution to its differences with the president.

We recall that earlier Estonian President Lennart Meri
had refused to endorse the amendments to the propri-
etary right law.

Cooperation Accord Signed With Finland, Russia

WS0112154394 Tallinn BNS in English 1617 GMT 30
Nov 94

{[FBIS Transcribed Text] Tallinn, Nov 30, BNS—The
heads of the national border guard departments of
Estonia, Finland and Russia signed a trilateral coopera-
tion protocol and plan for 1995 in Helsinki on Tuesday
[29 November].

Estonia at the meeting also signed separate bilateral
protocols with Finland and Russia, plus a protocol with
Russia on exchanging of information and operational
activity in tracking down violators.

The documents were signed by the director general of the
Estonian Border Guard Department, Navy Captain
Tarmo Kouts, border guard chiefs Lieutenant General
Matti Autio of Finland and Colonel General Andrei
Nikolayev of Russia. The signing of the documents came
on Finland’s initiative.

The trilateral cooperation protocol regulates the activity
of the coast guards of Estonia, Finland and Russia on the
Gulf of Finland. The countries will work closely to
prevent illegal activity in the area and contribute to
smooth border crossing.

Trilateral cooperation will be coordinated by the coun-
tries’ border guard staffs. The plan includes regular
meetings of experts and exchanging of information.

Under the protocol signed between Estonia and Finland,
experts from the two countries will work on measures
against forfeiting of documents, exchange information
between their offices and assist each other professionally
in the fight against crime. Also agreed upon was joint
activity in rescue operations.

Estonia’s cooperation protocol with Russia provides for
working closely in controlling the sea areas and in rescue
operations, in the struggle against illegal immigration,
organized crime and transport of illegal goods.

Estonian border guard Chief Tarmo Kouts said that the
documents ruled out all political diversities of opinions
on the border.

“We have agreed with the Russian border guard leaders
to discuss only the technical guarding of the borders
without touching upon the aspects which have to be
settled by the two countries’ politicians by means of
negotiations,” Kouts said.

The Estonian border guard chief said his Russian col-
leagues had adopted more “Western” patterns of work
over the recent period.

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56 BALTIC STATES

“It is a great victory for us that the border guard
structure of our eastern neighbors is adopting a Western-
type attitude toward the guarding of borders and (that
they) are not going to establish a total border of the kind
that the state border of the former Soviet Union used to
be. The better the Russian border guard structure works
the easier it is for us,” Kouts said.

The texts of the agreements were previously agreed upon
by the three countries and the documents stepped into
force from the moment of signing. Each of the national
border guard chiefs also met with his country’s president
a few days before the Helsinki meeting. Kouts and
Russian border guard chief Andrei Nikolayev agreed to
again meet in Tallinn on Dec. 25-27.

Development of Relations With Belarus To Be
Improved

WS0212111294 Tallinn BNS in English 1808 GMT 01
Dec 94

[FBIS Transcribed Text] Tallinn, Dec 01, BNS—The
development of relations between Estonia and Belarus
has been lagging and now steps have to be taken to make
up quickly for lost time, Foreign Ministry Deputy Chan-
cellor Raul Malk said Thursday [1 December] upon his
return from a visit to Minsk.

Malk met during the visit with Foreign Minister
Vladimir Senko and held talks with a Foreign Ministry
delegation.

The Estonian diplomat said the talks focused on the
foundation of contractual relations between the two
states. In his words, a document to regulate the relations
between the two countries’ Foreign Ministries was
signed Wednesday. The parties also drew up stage-
by-stage plans for concluding interstate agreements.

Malk told reporters both sides gave priority to signing
treaties concerning the situation of ethnic minorities and
establishing visa-free travel for persons holding diplo-
matic passports. Another issue of primary importance is
concluding an agreement on economy and trade whose
central element is establishment of a most favored
nation regime in trade.

In Malk’s words, concluding of the abovementioned
agreements should be followed by solving problems
related to legal aid, anti-crime combat, cooperation in
culture, education, and science, and transit.

The Estonian diplomat had Wednesday meetings also
with representatives from the Belarusian Foreign Eco-
nomic Relations Ministry to discuss questions of eco-
nomic cooperation.

Malk told reporters Thursday that current conditions of
trade between Belarus and Estonia are extremely disad-
vantageous for the Baltic republic. He said that Estonia’s
very liberal economic policy puts practically no obstacles
in the path of Belarusian goods to the Estonian market,
whereas Estonian goods are up against a very high

FBIS-SOV-94-232
2 December 1994

customs barrier, since under a Russian-Belarusian agree-
ment concluded in April Belarus applies to third coun-
tries similar tariffs as Russia.

Representatives of the Belarusian Foreign Ministry

brought no accusations against Estonia with regard to the
minority situation, Malk noted at the news con-
erence.

During the meetings in Minsk, Malk also discussed the
opening of an Estonian consulate in Belarus. The Esto-
nian Government made the relevant decision already in
1992, but it depends on financial possibilities, Malk said.

Belarusian authorities gave Malk documents concerning
the new head of the Belarusian consulate in Estonia. The
Estonian diplomat said Belarus wants new premises for
its diplomatic representation in Tallinn and authorities
believe the consulate may with time develop into an

embassy.

Malk said Belarus accounts for one to two percent of
Estonia’s foreign trade and a considerable part of transit
trade also passes through Belarus.

Bank Refutes Kroon Devaluation Rumors
WS0212112794 Tallinn ETA in English 1743 GMT 1
Dec 94

[FBIS Transcribed Text] Bank of Estonia made a state-
ment on Thursday [1 December] refuting rumours about
devaluation of Estonian kroon in the nearest future,
widely quoted in both international and Estonian press
and political circles.

Bank of Estonia says that such a process raised a certain
concern in them. Bank of Estonia stresses that it has
fulfilled all obligations and conditions in keeping the
monetary system stable, put on them by the money law
and the law on backing the Estonian kroon that created
the basics of Estonian monetary system in 1992. The
reserves to back the kroon, demanded in the law, exist,
and their amount has been published by Bank of Estonia
monthly since July 1993. There are no limitations as to
exchanging convertible currency into kroons and the
other way round, no monetary emission, not backed with
reserves, has been made. Thus Bank of Estonia has given
no monetary technical reason to devaluate the kroon, the
bank states.

Neither does the Bank of Estonia consider the situation
of real economy as giving any reason to devaluate the
kroon. “It is true that Estonia’s foreign trade balance is
in deficit but the balance of payments capital account is
about 1.5 times bigger than current account deficit. In
the period of restructuring economy it is an unavoidable
situation which will start paying after the investments
have been put to work,” the statement says.

The stable exchange rate of the kroon as to the German
mark (8:1) has been a creator of stability and credibility
to our whole economy, which is testified by the ever

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FBIS-SOV-94-232
2 December 1994

increasing amount of foreign investments and acknowl-
edgement of kroon by our neighbour states central
banks, Bank of Estonia says, adding that this is why the
bank is against any change of the exchange rate.

Bank of Estonia states that the devaluation of the kroon
would at first bring about increase of prices of import
goods, which will be followed by these of the Estonian
goods that have to compete with them at the market,
which means that about 70 percent of the consumer
basket will become more expensive in a short time, while
the Estonian export goods would loose in value and
foreign loans already taken would become more expen-
sive to pay back.

The fact that the issue of devaluation of Estonian kroon
was raised just before the official election campaign for
the 1995 March general elections starts, shows attempts
to use the issue of stability of kroon as a weapon to
achieve populistic success in election fight, which is
considered unethical by the Bank of Estonia.

Bank of Estonia reminds that the devaluation of the
kroon is, according to the money law, to be decided by
the parliament i.e. politicians and political parties. That
is why Bank of Estonia asks all parties that will take part
in the elections to express in their election programme,
directly and comprehensively, their attitude to pre-
serving the stability of the exchange rate of the kroon.
This is important for both Estonian people and compa-
nies and our foreign trade partners to know, Bank of
Estonia concludes.

Latvia

Government Approves 1995 State Budget Pian

WS0112101094 Tallinn BNS in English 1000 GMT 30
Nov 94

{[FBIS Transcribed Text] Riga, Nov 30, BNS—The
Latvian Government approved Tuesday [29 November]
the draft state budget plan for 1995, fixing the income at
475 million lats and spendings at 515 million lats.

The maximally admissible budget deficit is 40 million
lats.

In another action, the ministers passed amendments to
the law on privatization vouchers providing that com-
pensation for property uniting in state-owned Soviet
farming enterprises will be paid in vouchers.

The Cabinet also accepted amendments to visa regula-
tions lifting transit visas for passengers of transit trains,
which pass through customs and frontier control at each
stop in the Latvian territory. The development will speed
the passage of transit trains through Latvia by two hours.

In addition, the group approved financial reports of the
State Property Privatization Fund for 1993 and eight
months of 1994.

BALTIC STATES 57

The newly adopted amendments to the law on court
power provide that 20 percent of collected state duties
for lawsuits will be used to develop the court system.

The government passed a draft Latvian-Chinese agree-
ment stipulating the most favored nation status in bilat-
eral trade relations and a Latvian-Israeli pact on coop-
eration in telecommunications and post service.

The ministers also voiced support for Latvia’s entrance
into the Central and East European Privatization Orga-
nization.

To ensure Latvia’s participation in the U.N. World
Social Development summit, the government set up a
national committee at the leadership of Prime Minister
Maris Gailis. The conference is scheduled for March,
1995, in Copenhagen.

Finally, the Cabinet confirmed a draft letter to the
International Monetary Fund about the performance of
economic and financial programs.

Parliament Supports 12 New Taxation Laws
WS0212111494 Tallinn BNS in English 1614 GMT 1
Dec 94

[FBIS Transcribed Text] Riga, Dec 01, BNS—The
Latvian parliament voted Thursday for the first reading
of 12 bills in a new package of 15 taxation laws. The last
bill on natural resources tax will be considered later
today.

Lawmakers rejected two of the draft laws, namely,
amendments to the law on entrepreneurship and amend-
ments to the law on the value-added tax in view of
similar projects already being discussed by the parlia-
ment.

The new iaws will improve the legal arrangement of the
tax collection system and promote tax collection simul-
taneously retaining low tax rates, said Finance Minister
Andris Piebalgs. The fiscal aim of the package is to
achieve that taxes constitute 33.7 percent of the gross
domestic product in 1995. The amendments are also
targeted at reducing the direct taxes and determining
uniform rates for all enterprises.

The social aim of the package is abstaining from tax
increase to low income residents and creating favorable
environment for the development of small farms.

Six bills of the package will be passed as urgent in two
readings, the others will have to go through three read-
ings.

As reported, the package included laws on taxes and
duties; on enterprises’ income tax; on value-added tax;
on natural resources’ tax; and amendments to the the law
on residents’ income tax.

In addition, the set involved an already passed law on
gambling and lottery tax and amendments to a law on
excise tax and customs duties.

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58 BALTIC STATES

The package does not contain a law on property tax
because it is still being improved taking into account
recommendations by local governments and house
owners.

The new legislations were drafted to order the Latvian
taxation laws in line with the European Union require-
ments and create an easy-to-operate taxation control
mechanism.

Part of the new laws could take effect Jan. 1, 1995, while
the other part could start to function somewhat later,
said Piebalgs.

Debts to Russian Gas Concern Obstruct Talks on
Contract

WS0112101394 Tallinn BNS in English 1000 GMT 30
Nov 94

{[FBIS Transcribed Text] Riga, Nov 30, BNS—Talks
between the Latvijas Gaze (Latvian Gas) enterprise and
the Russian Gazprom gas concern are obstructed by the
Latvian 12-million-U.S.-dollar debt for supplied gas,
Latvian Energy Minister Juris Ozolins told reporters
Tuesday [29 November].

The debt formed between September and November,
and Latvijas Gaze will have to look for loans to pay it,
Ozolins said.

As reported, Latvijas Gaze has already received 28.39
million dollars in loans from the Japanese Export and
Import Bank and the International Reconstruction and
Development Bank to pay for Gazprom supplies in 1993
and 1994.

Commenting on the talks with Gazprom’s management,
Ozolins described them as “inflexible” regarding prices.
Gazprom insists that this year’s price of 77.5 U.S. dollars
per 1,000 cubic meters of gas is preserved, while Latvian
Gas wants the price curtailed to $60. The Latvian gas
company also aims at extension of accounting terms
from 10 days to one month.

“Compared with the 1993 talks on natural gas supply to
Latvia when Gazprom management dictated its own
terms, economic concern is felt in the talks this year
because Russia has already lost 60 percent of the Baitic
market,” said Latvian Gas Director General Adrians
Davis.

It is more advantageous to Russia to transport gas to the
Baltic states than, for example, to France because the
task is less complicated, Davis noted.

The Baltic energy ministers failed to reach an agreement
last week in Riga on common strategies for talks with
Gazprom. In addition, each of the three Baltic states
have different relations with Gazprom. For example, the
Estonian gas supply system has fully become Gazprom’s
property, Ozolins noted.

FBIS-SOV-94-232
2 December 1994

As reported, Gazprom’s leadership is expected to visit
Riga in the beginning of December to meet with Latvijas
Gaze management over an anticipated contract on
supply of natural gas in 1995. If the contract is con-
cluded, Russia could start pumping gas into the Latvian
Incukalns container in April, 1993, said Davis.

Lithuania

—e Partnership Program With NATO
LD0112115894 Vilnius Radio Vilnius Network in
Lithuanian 1000 GMT | Dec 94

[FBIS Translated Text] Albinas Januska, secretary of the
Foreign Affairs Ministry, and NATO Secretary General
Willy Claes signed an individual Lithuanian-NATO
partnership program in Brussels yesterday.

According to the present NATO expansion strategy, a
consistent and active implementation of the individual
program is leading to a new state becoming a full NATO
member.

Vigantas Usackas, the adviser of the Lithuanian perma-
nent mission in the European Union, informed during
‘is speech at a meeting of the ambassadors of the North
atlantic Council that Januska had noted that individual
partnership was opening a new era of bilateral Lithua-
nian-NATO relations and was leading to a membership
in the North Atlantic alliance. Albinas Januska also
noted that the individual program is the first obvious
fruit of cooperation with NATO, illustrating Lithuania’s
progress in the integration with Western institutions.

The Lithuanian delegation also includes Ambassador
Virgilijus Bulovas, General Jonas Andriskevicius, com-
mander of the Lithuanian Army, and Eidvidas Bajoru-
nas, deputy head of the department of multilateral
relations of the Lithuanian Foreign Affairs Ministry.

More meetings with NATO officials, politicians, and
military leaders are to take place in Brussels to discuss
Lithuania's security policy and prospects on integration
with NATO.

Jursenas Praises Signed Agreement With Poland

WS2911104294 Tallinn BNS in English 1815 GMT 28
Nov 94

[FBIS Transcribed Text] Vilnius, Nov 28, BNS—The
Lithuanian-Polish agreement on friendship and cooper-
ation is important not only to the two countries, but to
the rest of Europe, as well, Lithuanian Parliament
Chairman Ceslovas Jursenas said Monday [28
November].

The agreement took effect Saturday after Polish Prime
Minister Waldemar Pawlak and his Lithuanian counter-
part Adolfas Slezevicius exchanged ratification notes.

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FBIS-SOV-94-232
2 December 1994

Jursenas told reporters that the accord not only closes
“unpleasant pages” in the history of the two countries,
but also “determines opportunities for potential cooper-
ation.” Jursenas said the agreement is a continuation of
the 1992 Lithuanian-Polish declaration and added that it
proves the “continuity of policy.”

The parliament chairman said the agreement is more
acceptable to Lithuania than the declaration because it
ensures territorial integrity more clearly. In his words,
the agreement does not leave a chance for any forces in
Poland to claim that Vilnius does not belong to
Lithuania lawfully, because it was handed over
according to the Molotov-Ribbentrop pact.

Jursenas also noted that the rights and obligations of
national minorities are more accurately defined in the
agreement. He pointed out an article, which says that
national minorities are loyal to the country where they
live. In his words, the condition was only mentioned in
the declaration, while the agreement made this an obli-
gation. Jursenas said the rights given to national minor-
ities do not mean that they can violate the principles of
territorial integrity.

President Claims Problems With Russia Can Be
Settled

LD2911110594 Moscow ITAR-TASS in English 0951
GMT 29 Nov 94

[By ITAR-TASS correspondent Vladas Burbulis]

[FBIS Transcribed Text] Vilnius November 29 TASS—
“I believe there are no problems in our relations with
Russia that cannot be settled,” Lithuanian President
Algirdas Brazauskas told ITAR-TASS today. “In any
case, we are fully resolved to reach agreement as equi-
table partners on all the problems concerning Lithuania
and Russia,” he added.

“The relations between our two countries are normal,”
Brazauskas stated. However, he finds it illogical that the
agreement on the mutual granting of the most favoured
nation treatment remains inactive for more than one
year. The president believes that the principles of the
General Agreement on Trade and Tariffs (GATT) are
thereby being ignored. He stressed that both Lithuania
and Russia wanted to be members of that organisation.
“I believe it is not quite right to make a trade regime
dependent on transit problems. After all, transit ship-
ments are being continued, while there is no normal
trade between our two countries,” Brazauskas stated.

The rules for shipping dangerous and military cargoes
across Lithuanian territory, which were » ndorsed by the
government of the republic, will be- dinding both on
Russia and the other states as © © uary Ist, 1995.
However, this does not mean ti. ‘Russian transit
shipments will be suspended or that we want to break off
the talks. Transit shipments will continue just as, I hope,

BALTIC STATES 59

the talks with Moscow on the shipment through its
territory of especially dangerous and military cargoes,”
the president stressed.

“Lithuania has no preliminary commitments to Russia,
allowing the latter to effect military transit shipments
across its territory,” Brazauskas noted. “We realise Rus-
sia’s desire to ensure the vital needs of Kaliningrad
region. Transit shipments are being effected, and nobody
can say that obstacles are being put up to them,” he

The Baltic MPs’ resolution on Kaliningrad region, which
has triggered a sharp reaction in Russia, “does not fully
meet the principles and fundamental directions of
Lithuania’s external policy,” Brazauskas stressed. ““How-
ever, it is up to the Baltic Assembly to make such
statements or not,” he added. Brazauskas reiterated that
Lithuania recognised Kaliningrad region as part and
parcel of Russia. The republic’s leadership categorically
rejects all extremist, irresponsible statements,
attempting to call in doubt this region’s inclusion in
Russia or to sow doubts concerning Lithuania’s present
borders with Russia, Poland, and Belarus. “Unfortu-
nately, some of our rather well-known politicians are
known to be engaging in this,” the president noted.

He stressed that Lithuania “is interested in the develop-
ment of Kaliningrad region as a free economic zone and
wants our 20,000 fellow countrymen, now residing there,
to enjoy the same rights as those given to Russians in our
republic.”

“We realise that the number of servicemen in Kalinin-
grad region can be cut only by Russia itself,” Brazauskas
stated. “It is important that this process is already taking
place. I noted this in my speech to the session of the U.N.
General Assembly. Not only our country, but the other
Baltic nations, too, are apparently interested in the
continuation of this process.”

The head of the Lithuanian state said that everything
would depend on Russia’s policy, on the situation in
Europe and in the given region. “If the situation
develops favourably, Kaliningrad region will apparently
become a connecting link between several regions, will
play an important role in Russia’s economy and trade,”
Brazauskas said, rounding off the interview.

Deputy Chairman: All New Officials in Office by
New Year

LD3011231794 Vilnius Radio Vilnius in Lithuanian
2200 GMT 30 Nov 94

{FBIS Translated Text] Lithuanian Seimas Deputy
Chairman Juozas Bernatonis says that all officials of law
and order institutions will be approved by the New Year.

He told a news conference on Wednesday, 30 November,
that it will mark the beginning of legal reform in Lithua-
nia. As of the beginning of 1995 a new system of courts

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60 BALTIC STATES

will start functioning in Lithuania. There will be the
supreme court, the court of appeal and regional courts.

The Lithuanian Seimas has already appointed thirteen
out of the 23 judges of the supreme court and eleven
judges of the court of appeal. The forming of regional
courts is in its final stage as well.

Bernatonis voiced his regret over the voting down in the
Seimas of Justinas Vasiliauskas who was proposed by the
president to the post of procurator general. On Tuesday
Vasiliauskas’ candidature was rejected as he did not get
the necessary number of votes to become the general
procurator.

Before the voting on Tuesday the opposition forces—the
rightists, the centrists and the social democrats unilater-
ally spoke against the candidate. However, as the deputy
chairman of the Seimas put it, there is no need to make
a problem out of the voting results. The term of office of
the present procurator general, Arturas Paulauskas,
expires on Ist January. Bernatonis expressed his convic-
tion that the Seimas will designate a new procurator
general to be again put forward by the president.

Brazauskas on Mili Transit T:
Kaliningrad ad _

LD2811192594

[FBIS Editorial Report] Vilnius Radio Vilnius Network
in Lithuanian at 1430 GMT on 28 November carries on
its regular Monday interview a 15-minute interview with
Lithuanian President Algirdas Brazauskas.

To a question about accusations by Russia that the
Lithuanian side has halted negotiations on military
transit, Brazauskas says the following:

“IT would like to remind you that Lithuania does not have
any prior obligations to allow Russia’s military transit
through the territory of Lithuania.

“However, we understand Russia’s interest to maintain
the vitality of the Kaliningrad region, and that is why the
transit is taking place. Therefore, nobody can reproach
us that we are making artificial obstacles. Russia, who is
our partner, cannot present any claims on that today.

“As of 1 January 1995 the regulations for transportation
of hazardous and military cargoes confirmed by the
Lithuanian Government will be applied to Russia and
indeed to any other state. This does not mean that the
Russian transit will be stopped or that we want to halt
the negotiations.”

Brazauskas says Lithuania is prepared to continue the
negotiations on all the issues.

Answering a question on whether Russo-Lithuanian rela-
tions at the moment are normal, Brazauskas says the
following:

FBIS-SOV-94-232
2 December 1994

“Ther ’ 4 ao problems in our relations with Russia, to
my mix¢é, on which we would not be able to reach an
agreement.”

The president admits, however, that it is unreasonable
that the treaty on most favored nation signed more than
a year ago is not valid yet. He says: “This is a clear case
of ignoring the principles of GATT, which is a world-
wide-known organization.”

He continues: “I would call the linking of the problem of
trade regime with the problem of transit as rather inap-
propriate, because the transit is taking place, whereas
normal trade, as you know, is practically not.”

In the wake of the recent controversial resolution on the
future status of the Kaliningrad region adopted by the
Baltic Assembly and Russia’s heated reaction to it,
Brazauskas is asked to give his view on the future of the
Kaliningrad region and its geopolitical position in
Europe. He says:

“Well, to make statements or not is a matter of the Baltic
Assembly. The deputies were discussing these issues
there; however, one could say that the above resolution
does not entirely correspond to the main trends and
principles of Lithuania’s foreign policy.

“Once again I would like to say that Lithuania recognizes
the Kaliningrad region as an integral part of Russia. The
leadership of Lithuania rejects vigorously any extreme
statements by which attempts are made to question
whether the Kaliningrad region belongs to Russia.”

The president mentions specifically the report made at
the conference concerning historic development of
Lithuania’s state borders and problems of today. He says
a resolution that had been adopted on that report could
not be supported. He says: “Of course Lithuania would
like to see the Kaliningrad region developing as a free
trade zone and the 20,000 or so Lithuanians living there
enjoying the same rights as the Russians living in Lithua-
nia.”

He says only Russia could reduce the number of troops
there and adds that “this process will depend on Russia’s
policy and the general situation in the region and
Europe.”

Both Ignalina Nuclear Reactors in Operation

LD2811135394 Vilnius Radio Vilnius Network in
Lithuanian 1000 GMT 28 Nov 94

[FBIS Translated Text] Both power units at the Ignalina
nuclear power station are already supplying energy to the
power grid of the country today.

The first power unit which was shut down exactly two
weeks ago when the safety of the power plant was being
inspected was put back into operation yesterday at 1730
GMT and currently is working with the capacity of 750
MW.

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is prohibited without permission of the copyright owners.

FBIS-SOV-94-232
2 December 1994

The work load of the second reactor was reduced to the
same capacity which had been working at the capacity of
1,300 MW.

The Director of the power plant Viktor Shevaldin told
the BNS correspondent that both reactors were ready to
work at a higher capacity, however, at the moment this
was not required.

The shutdown of both reactors at the Ignalina nuclear
power plant in the middle of November will cost about
40 million litas.

Opposition Fails To Discuss Chechen in Seimas

LD2811185294 Moscow INTERFAX in English 1609
GMT 28 Nov 94

[FBIS Transcribed Text] The opposition factions in the
Lithuanian parliament [Seimas] failed to include discus-
sion of a statement supporting Chechen President
Dzhokhar Dudayev in the agenda of the parliament’s
plenary meeting, the Lithuanian opposition’s press ser-
vice said today. The same source said that the proposal
had failed to receive the required majority of votes in the
parliament’s presidium.

A group of the opposition’s parliamentarians supporting
Groznyy intends to initiate a meeting represen-
tatives of political and public organizations backing the
Chechen leadership on Wednesday.

Leader of the parliament’s right opposition Vytautas
Landsbergis held a press conference on the issue today.
He told the press conference that “Russia is using
military force for overthrowing the legitimate power in
the Chechen Republic under disguise of the interior
Chechen opposition.”

BALTIC STATES 61

The Lithuanian parliament’s Speaker Ceslovas Jursenas
told another press conference today that he regretted that
blood was being shed and force was used in Chechnya
and other regions. He added that, however, the Lithua-
nian parliament should concentrate on urgent domestic
problems rather than on the Chechen problem.

Russian Community Says Cultural Needs
‘Disregarded’

WS$2911105194 Tallinn BNS in English 1815 GMT 28
Nov 94

{FBIS Transcribed Text] Vilnius, Nov 28, BNS—The
Lithuanian Government does not support the develop-
ment of Russian culture in the country and even seeks to
create an “information and cultural vacuum,” the Rus-
sian Community of Lithuania (RCL) said in a commu-
nique released Nov. 26.

Last week, RCL representatives met with Vasili Tara-
senko, chairman of the Federation Affairs Committee of
the Russian Federation Council (upper house of the
Russian parliament).

The meeting focused on problems encountered by Rus-
sians living in Lithuania and their aspiration to get
integrated into Lithuania’s political, economic and
social life without losing their language and culture.
RCL representatives indicated that the cultural needs of
Russians are disregarded in Lithuania, the number of
radio and TV programs in Russian is reduced and that
Russian schools are in a critical situation through
shortage of funds.

Tarasenko said preparatory work for supporting Rus-
sians in the Baltic countries and the CIS is currently
underway on governmental and legislative level in
Russia. He also promised to inform Lithuania’s Govern-
ment about problems pointed out during the meeting.

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