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Johnson's Russia List
 

 

July 21, 1997   

This Date's Issues:   1066  1069•  

Johnson's Russia List [list two]
#1069
21 July 1997
djohnson@cdi.org

[Note from David Johnson:
1. John Helmer: Russia: U.S. Expert To Advise Controversy-Stricken 
Central Bank.

2. American Chamber of Commerce in Russia: AmCham News, On the Right 
Track by Peter Charow, President>

3. Nezavisimaya Gazeta: FSB MILITARY COUNTERINTELLIGENCE LEADER 
CLAIMS THAT THE SITUATION IN THE ARMY IS UNDER CONTROL.

4. Eugene Holman passes on Los Angeles Times article: Michael Tarm,
Estonia Finds Consolation in EU Hopes.

5. New York Times: James Baker, America's Vital Interest in the 
'New Silk Road.'

6. St. Petersburg Times: Yevgeny Popov, Civilization Returns 
to the Banks of the Volga.

7. From Russia Today: Satire by Mary Campbell, Measure for 
Measure.

8. Rossiiskaya Gazeta: EVERY THIRD MAN, STEP OUT!
The Russian Army Is To Be Cut by 500,000.

9. RIA Novosti: YELTSIN: RUSSIAN ARMY STARTS STRENGTHENING 
DISCIPLINE.

10. RIA Novosti: UKRAINE: CABINET PASSES BILL TO PARLIAMENT 
TO MAKE UKRAINIAN SOLE OFFICIAL LANGUAGE.

11. Julie Moffett (RFE/RL): Russia: U.S. State Department, 
Senate Disagree On Religion Bill.

12. Reuters: Yeltsin Flies South on Second Stage of Holiday .] 

********

#1
Russia: U.S. Expert To Advise Controversy-Stricken Central Bank
By John Helmer

Moscow, 21 July 1997 (RFE/RL) -- Who does Russia's Central Bank turn to for
inspection of the books of the most controversial banks in the country? A
Connecticut Yankee named Robert Porter. 
A veteran of the Federal Reserve Bank of Boston, Porter is head of the
Bank Review Unit (BRU), a ten-person team of bank supervisors that is
advising the Central Bank on problems that have hit the headlines of the
Russian press this month. 
Controversies and conspiracies involving Russia's leading commercial
banks are nothing new. A few days ago, however, the Central Bank chairman,
Sergei Dubinin, broke a long silence to accuse high-ranking officials of
prominent banks. He said they had unlawfully diverted several hundred
million dollars of federal budget funds through a chain of banks,
generating windfall profits, and possibly even depriving the intended
beneficiaries of the money. 
Officials who are under investigation include Vladimir Potanin, the
chief executive of Uneximbank, the leading commercial bank in Russia, and
Andrei Vavilov, head of MFK investment bank, an affiliate of Uneximbank.
MFK recently announced a plan to merge with Renaissance Capital, a
Moscow-based investment house run by Boris Jordan, an American financier. 
Potanin was first deputy prime minister, and Vavilov first deputy
finance minister at the time the alleged diversion occurred. They deny
wrongdoing, and claim they observed government orders and rules. 
American and international bankers are having to puzzle through the
allegations, because Potanin and Vavilov are seeking thousands of millions
of dollars in equity, loan, and bond financing on American and European
markets. This is to enable them to capture control of major new
shareholdings of state companies to be privatized in the coming weeks. 
The treasure-trove of data Porter and his Bank Review Unit have amassed
is something American bankers would give much to see right now. But Porter
say he cannot talk about the condition of any bank. The World Bank, which
-- with the European Bank for Reconstruction and Development, the Japanese
government, and the British Know-How Fund -- funds Porter's BRU, confirms
that the BRU's data on Russian banks are known only to the Central Bank. 
Porter cautions Western bankers against trying to gauge the condition of
Russian banks from what he calls "simplistic ratios." He says balance-sheet
analysis of bank costs or bank income may produce misleading pictures of
the soundness of the institutions. 
According to Western analyses, the ratio of costs to assets is unusually
high among Russian banks. Porter says these figures are difficult to
interpret. 
Since he left the Federal Reserve, Porter has spent 16 years abroad,
advising mostly Middle Eastern and African countries. The difference
between bank regulation there and in Russia today, he says, is one of scale
and speed. 

********

#2
American Chamber of Commerce in Russia
AmCham News
July-August 1997
http://www.amcham.ru/news18/4.htm
On the Right Track
By Peter Charow, President 

Now that summer is upon us, the Chamber's staff and active members have
been taking many hours out from their enjoyment of the fine weather to work
on the goals laid out in our strategic plan for 1997. 

One of our highest priorities for 1997 was to broaden and deepen our
contacts with the Russian government, particularly with the Duma. Toward
this end, we have hired a legislative assistant, Svetlana Ovanesova, who
comes to us after several years of staff work within the Duma. Svetlana has
an excellent understanding of the legislative process as well as a wide
range of personal contacts that allow us to stay in touch with legislative
developments on a day-to-day basis. 

In the past, we have primarily focused on committee and subcommittee
chairmen in our work with the Duma. This spring we also began reaching out
to the leadership of the fractions. Twice over the last several months,
representatives of the staff and the board of directors have met with
Sergei Belyaev, leader of the Our Home Is Russia fraction. In the first
meeting, we discussed the new policy requiring payment of deposits on autos
imported by representative offices. In our second meeting, we talked about
a broader range of issues, including taxation, PSAís, international
accounting standards, and the new draft law on foreign investment as well
as again raising the question of auto imports. 

Belyaev listened with great interest, asked questions, and commented on
several issues. On the taxation question, he said he expects significant
movement in tax reform this year, either through passage of the new tax
code or through other legislation aimed at some of the more pressing
issues, such as deductibility of standard operating expenses, normalization
of the VAT regime, and the transition away from revenue-based taxes. On the
issue of the PSA legislation, he expressed concern over the slowness of its
passage, but said the adoption of the initial law on lists would pave the
way for adoption of additional lists. These other lists would bring further
sites into the production sharing sphere. Belyaev also said the draft law
on *foreign investment had little chance of passing in its present form and
if passed would inevitably be vetoed. Other issues ó including the adoption
of international accounting standards and the temporary importation regime
ó Belyaev said he would take up with First Deputy Prime Minister Anatoly
Chubais in the near future. 

We also met with Vladimir Zhirinovsky, head of the Liberal Democratic Party
of Russia. In our discussion with Zhirinovsky, we raised essentially the
same topics we had discussed with Belyaev. We also talked more broadly
about remnants of Cold War attitudes in Russian society, the experiences of
American businesses in Russia over the past several years, and Russian
popular opinions regarding foreign investment. Zhirinovsky stated that his
party is in favor of broadening and improving relations between the United
States and Russia, but that he personally had often felt marginalized in
the process and not accorded the attention and respect that is due to the
leader of one of the largest fractions in the Duma. He also stated that he
supported the expansion of U.S. investment in Russia and was happy to take
under advisement our opinions on issues such as the draft law on foreign
investment. 

In the context of its participation in the Small Business Working Group of
the Gore-Chernomyrdin Commission, the Chamber has set up a legislative
subcommittee of the Small Business Committee. This group is working closely
with the Duma subcommittee on Private Property and Privatization, which has
responsibility for small business legislation in the Duma. New pieces of
legislation are now pending that deal with taxation of small businesses,
simplified registration processes and other issues that will support and
encourage the development of small businesses in Russia. We will review
these draft laws and provide our comments to the subcommittee. 

The Chamber, through the Investment Committee, has also been very active in
reviewing the new draft law on foreign investment. The draft law is
sponsored by the Committee on Economic Policy and is intended to provide
enhanced protections for foreign investment in Russia. Unfortunately, upon
further analysis, the Investment Committee has identified a number of areas
where this law will in fact have a negative impact on investors, including
the ability to import capital and capital equipment, the repatriation of
profits, limited recourse to international arbitration, potential conflict
with existing legislation, and a substantial list of sectors where foreign
investment will either be restricted or prohibited. The Chamber was invited
to testify at the Duma hearings on May 13, a first for us. We expressed our
concerns and offered continued assistance in the amending of the law in
order to achieve the original intent. This process is ongoing and we will
keep our members apprised. (see excerpts from Chamber report on foreign
investment law, page 14) 

In May, I also travelled to Washington D.C. to take part in the Working
Group on Standards and Certification under the Gore-Chernomyrdin
Commission. The working group participated in three days of meetings
between officials from the U.S. Department of Commerce and the Trade
Representativeís Office and Russian representatives from Gossstandart,
Gosgortechnadzor, and other certifying agencies. The dialogue was by far
the most substantive I have experienced on these issues, with an increased
willingness on the part of the Russians to address these critical
questions. As part of the agreement reached at the meetings, the Chamber
and Gosstandart will host a series of seminars in Moscow in July on
standards and certification processes for different industries. If
successful, these seminars could turn into ongoing, industry-based working
groups. We also agreed to discuss the new regulations governing
Russian-language labelling requirements. 

As I mentioned at the outset, all these activities represent the priorities
laid out in our strategic plan for 1997. We will be going through a
mid-year review process to ascertain that we are on track in achieving
these and the other goals contained in the plan. The Chamber will also
conduct a strategic retreat in the fall to examine how we can best continue
to meet the needs of our members. We encourage all Chamber members to
become involved in helping us realize our goals. Enjoy the rest of your
summer! 

*********

#3
>From RIA Novositi
Nezavisimaya Gazeta
July 19, 1997
FSB MILITARY COUNTERINTELLIGENCE LEADER CLAIMS THAT THE SITUATION IN THE
ARMY IS UNDER CONTROL

The situation in the army remains one of Russia's most
serious problems. Despite profuse talk about the military and
the army reform and even certain concrete decisions in this
sphere, one cannot be sure that the masses of men in uniforms
who are exhausted by the lack of money, the "Chechen syndrome",
endless accidents, tragedies and the unauthorised use of arms
are under due control from either the political or the military
leadership of the country. All the more so in the view of the
growth of the political alliance of the group of retired
servicemen who propose their alternative to the present
military reform cause, though their proposal is not quite
convincing yet.
Of great importance against this background is the opinion
of Colonel General Alexei Molyakov who heads the Military
Counterintelligence Directorate (UVKR), one of the leading
structures of the Federal Security Service (FSB), which is in 
charge of the loyalty of the country's armed forces. The
following is General Molyakov's first interview for the Russian
press given to Nezavisimaya Gazeta's Igor Korotchenko. The full
text of this interview is to be published in one of the nearest
issues of the Bulletin Nezavisimoye Voyennoye Obozreniye
(Independent Military Review).

Question: To what degree does your Directorate keeps the
situation in the army under control, especially, after General
Lev Rokhlin's recent address to the armed forces?
Answer: We keep the situation in the armed forces of the
Russian Federation under constant and indefatigable
supervision. Lately, different public and political
organisations have been actively trying to infiltrate the army
to use it later in pursuit of their own aims. That is why the
military counterintelligence units which are working in the
troops have been strictly instructed to timely expose and
prevent any extremist and other dangerous aspirations. All this
is necessary to prevent the loss of the control by the supreme
commander in chief--the president--over the armed forces and
neutralise any attempt to draw the army into political
confrontation in case of a possible aggravation of the
political situation in the country. As the events which
happened in October 1993 showed, such developments are fraught
with very grave consequences for the country.
In my opinion, the military counterintelligence bodies 
generally control the situation in the army and navy as well as
in the structures under our operational management--the Federal
Frontier Service, the Interior Ministry troops, the Federal
Agency of Government Communications and Information in the
Office of the Russian President and other military formations.
Question: Whom exactly do you send your reports?
Answer: First, all the information is sent to the
leadership of the Federal Security Service. After the materials
are analysed and appraised, they are sent to President Boris
Yeltsin, Prime Minister Viktor Chernomyrdin, the Security and
Defense Councils and the leaders of both houses of the Federal
Assembly.
Question: Do you have any problems in your relations with
Defense Minister Igor Sergeyev?
Answer: Our relations are built on a principled basis.
Urgent information allows the Defense Ministry leaders to know
better the situation in the troops and take necessary measures.
By and large, our relations with the Defense Ministry and
supreme commanders of the different services of the armed
forces can be qualified as constructive.
Question: What is the structure of the military
counterintelligence bodies which service the Defense Ministry?
Answer: Their structure depends on the structure of the
army. Each service and arm of the armed forces, military
district (fleet), army, corps and division has UVKR departments
and sub-departments. UVKR representatives also work at the
level of some army units, including regiments and battalions.
It is a kind of pyramid with the FSB Military
Counterintelligence Directorate at the top.
Question: Can you single out the priorities of the UVKR's
work?
Answer: Such priorities are to expose and arrest
intelligence-subversive activities by foreign secret services,
protect our armed forces against subversive and terrorist acts,
prevent (as far as our terms of reference permit us)
unauthorised actions involving mass destruction weapons,
protect state secrets, struggle against the illegal arms sales
and combat corruption.
Question: At some time, the officers of the special
departments of the Black Sea Fleet took the Ukrainian oath and
began working for the Ukrainian Security Service. Do you have
any plans for assuming the counterintelligence management
function with regard to the Russian part of the Black Sea
Fleet?
Answer: It is a very urgent issue, indeed, but it needs to
be solved at the inter-state level. We for our part have
prepared a draft of an agreement stipulating cooperation
between Russia's and Ukraine's National Security Services in
ensuring the safety of the Russian part of the Black Sea Fleet.
Question: How large is the personnel of your Directorate?
Answer: About six thousand.
Question: Do your agents work in the Russian army?
Answer: We have the right to carry out such work under the
law On Operations and Search Activities, and we actively use
this right. Otherwise we would be unable to handle our tasks
for ensuring the country's security.
I want to use this opportunity to thank all those who are
in the same ranks with us.
Question: Do you have your agents in foreign countries?
Answer: Yes, we do. In accordance with the regulation on
the military counterintelligence bodies, we are permitted to
carry out intelligence to obtain information about possible
threats to the security of Russia and its armed forces.
Question: Some Western mass media claim that control over
the safety of nuclear ammunition has been slackened in the
Russian army.
Answer: The nuclear safety of Russia and its armed forces
has always been a matter of prime concern for military
counterintelligence workers. This problem has been more than
once discussed by the governing board of the FSB. Our
Directorate submits regular reports on these issues to the
country's leadership and the Defense Ministry. I must state
with full responsibility that there has been no loss of nuclear
ammunition in the Russian armed forces. We have come across
some attempts to steal components of used nuclear fuel at one
of the bases of the Northern Fleet. All that has been stolen
has been returned, and serious conclusions have been drawn from
that happening.
The aim of the above mentioned Western publications is
obvious, in my opinion. It is an attempt to impose
international control over Russian nuclear arsenals.
Question: The exposure of Russians recruited by foreign
intelligence services has acquired a mass scale lately. The FSB
takes pride in such statistics. But the number of spies who
continue to work is usually several times bigger than the
number of those who have been arrested.
Answer: Your question is the projection of the logic of
the never-ending struggle between intelligence and
counterintelligence. We have to state that even today foreign
secret services do not slow down their efforts to infiltrate
their agents into Russia. This is confirmed by the results of
our work. That is why military counterintelligence agents have
been trusted with the task to continue improving their
professional skills in countering foreign secret services.
Question: Major Dudnik, an officer of the Orenburg missile
army, has been recently arrested for the attempt to sell CIA
agents in Moscow a computer disc containing top secret
information for 500,000 dollars. Could you give some details of
this high-profile scandal? 
Answer: The sanctity of investigation does not allow me to
discuss the details of this case. However, we already see that
some servicemen embark on a course of state treason by their
own free will out of purely mercantile interests. It is an
extremely dangerous trend. It goes without saying that the UVKR
takes it into consideration in its day-to-day activities. But
each case like that is just an exception.
Question: Who is in charge of ensuring the
counterintelligence protection of the offices of Russia's
military attaches abroad?
Answer: The safety of the offices of the Russian military
attaches and other Defense Ministry units abroad is ensured by
Russia's Foreign Intelligence Service.
Question: Do you think that the officers' corps will
support the plans for the reform of the Russian armed forces?
Can there be an armed action of army units against the supreme
commander in chief?
Answer: The reformation of the armed forces is of vital
importance, in my opinion. It is only natural that it is a
difficult and painful process bearing on the interests of many
thousands of servicemen. But without the reform we will be
unable to reach a new level of ensuring our country's defense
capability under the present harsh economic situation. The
majority of servicemen understand these realities. So, there
will be no excesses on the scale of the country's armed forces.

********

#4
Date: Mon, 21 Jul 1997 22:08:50 +0300
From: holman@elo.helsinki.fi (Eugene Holman)
Subject: LA Times on Estonian EU hopes

Dear David,
Here is an article dealing with Estonia from the Los Angeles Times. From
the standpoint of the development of the post-Soviet space it is important
because it shows that Estonia has succeeded, both economically and
"geopsychologically", in establishing an image for itself in the eyes of
the European Union as something quite distinct from an 'ex-Soviet
republic'.

Keep up the great work.
Regards,
Eugene Homan

Estonia Finds Consolation in EU Hopes
Passed over for NATO membership, Baltic nation is a front-runner to join
economic bloc.

By Michael Tarm
Special to The Los Angeles Times
Saturday, July 19, 1997

TALLINN, Estonia--Like the unlucky loser in a beauty pageant, this Baltic
republic--excluded from the first round of NATO expansion--has won the
consolation prize of promised talks on joining the European Union.
The announcement that Estonia, together with four other East European
nations plus Cyprus, was being marked for early membership in the world's
most powerful economic bloc is being seen here as the best thing to
happen to this country since it won independence from Moscow in 1991.
At his 10th-floor office overlooking Tallinn's Germanic old town,
Estonian Foreign Minister Toomas Ilves hailed the day as ultimate
recognition that this republic, which was enslaved by Communists for half
a century, belongs firmly in the Western camp. "You could say that, as of
today, we can no longer be considered an ex-Soviet republic," an
enthusiastic Ilves said just hours after confirmation came from Brussels
on Wednesday.
Ilves said the decision by the executive commission of the EU, which
is still subject to final approval in December, was also recognition that
Estonia's market reforms were a success. "This is like getting an A in
school," said Ilves, smiling broadly. "Estonia has put up with the
toughest shock therapies in Europe, and it paid off."
But the decision to include this nation of 1.5 million was hardly a
foregone conclusion. Estonians say many EU officials had a tendency to
lump them in with the basket cases of post-Communist reform, such as
Albania and Uzbekistan. Now that the decision's been made, however, hopes
are high here that the vote of confidence from the EU will draw even more
investment and spur even greater growth, already hovering at a
respectable 5%.
Others say the real plus in getting into the EU has less to do with
economics than with security.
Estonian officials say the North Atlantic Treaty Organization and the
EU are separate processes and--despite objections by Russia to Baltic
members of NATO--they insist that they are as committed as ever to
someday entering the U.S.-led alliance.
But Estonians have also been saying for years that enmeshing
themselves with the West was a key to their long-term national security.
And if that is the goal, many observers say it is achieved better with
the EU, which interlocks political and economic relations, than with the
one-dimensional NATO, which deals with military matters only.
Estonia's foreign minister said another fringe benefit of the EU
invitation could be improved relations with Russia. Estonia already
handles tons of Russian transit trade annually. In the EU, Ilves said,
his country would have an interest in further improving Russian access to
Western markets.
Russian Czar Peter the Great came to Estonia and said he was hacking
open a window to Europe for Russia," Ilves said. "Estonia is opening the
door."
But if bad relations with Russia could improve now that Estonia seems
to be on the road to EU membership, good relations with the other two
Baltic states may suffer, at least temporarily. Latvian and Lithuanian
officials have complained openly that they deserved the nod from Brussels
every bit as much as Estonia.
Vytautas Landsbergis, Lithuania's speaker of parliament, said he
worried that Western investment marked for the Baltics could now flow to
Estonia simply because it has a stamp of approval from the EU. "We're
happy for Estonia," said Landsbergis, speaking via mobile phone from a
beach on the Lithuanian coast. "But being eliminated from the same
starting line as Estonia is a bit unfair."
While the vast majority of Estonians welcome the news that they now
appear to be on the fast track to EU membership, there were misgivings. A
minority believes that Estonia should stay out all together, arguing that
the EU is too centralized and heavy-handed--too reminiscent of the Soviet
network Estonians spent the past five decades trying to escape.
Even ardent EU supporters say the European bloc isn't market-oriented
enough. Estonia stakes claim to having one of the most open trade regimes
in the world, and business people here fear that the adoption of
thousands of EU-mandated laws and directives could undermine that.
The International Monetary Fund representative to Estonia and Latvia,
Dimitri Demekas, says Estonia may face another kind of threat now that it
is close to EU membership.
"This could lead to a feeling of overconfidence and complacency," said
Demekas, speaking from the Latvian capital, Riga. "Some Estonians may
think that now we have made it and we don't need to do anything else.
They should be careful not to fall into that trap."

***********

#5
New York Times
21 July 1997
[for personal use only]
America's Vital Interest in the 'New Silk Road'
By JAMES A. BAKER 3d
James A. Baker 3d, Secretary of State under President George Bush, is
honorary chairman of the James A. Baker 3d Institute for Public Policy at
Rice University. 

HOUSTON -- On Aug. 2, 1990, when Iraqi troops crossed the border into
Kuwait, I happened to be meeting with the Soviet Foreign Minister, Eduard
A. Shevardnadze, in Siberia. 
The next day, he and I issued a joint statement condemning Iraq, despite
the fact that the document had not been formally cleared with the Soviet
President, Mikhail S. Gorbachev. Mr. Shevardnadze made the decision on his
own because he felt it was simply the right thing to do. "When the two of
us meet," he told me, "there must be results." Such personal and political
courage exhibited by Mr. Gorbachev and Mr. Shevardnadze throughout this
period helped write an end to the cold war. 
Mr. Shevardnadze has been in Washington these last few days in his new
role as President of Georgia. He talked to President Clinton, members of
the Cabinet and business leaders about opportunities for American companies
in Georgia. I hope they will listen sympathetically: Georgia needs American
investment, and more important, it is in the strategic interests of the
United States to build the strongest possible economic, cultural and
political ties to Georgia. 
Under Mr. Shevardnadze's leadership, Georgia has emerged as one of the
most Western-friendly countries of the former Soviet Union, with a rapidly
growing economy. Georgia's importance is its location at the nexus of
Europe and Asia, with ports on the Black Sea. The country is poised to be a
principal outlet for bringing the oil and gas resources of the Caspian Sea
to international markets. Caspian oil may eventually be as important to the
industrialized world as Middle East oil is today. Georgia's future
security, therefore, is important to America's security. 
Georgia sits at the Western end of what is often described as the "new
silk road," the revival of historical trade routes linking China and
Central Asia with Europe. 
In addition, Georgia's oil and gas resources will lead to the
development of new road, rail and communications links. Development of this
Eurasian corridor is receiving priority from a number of international
organizations. 
These changes have transformed the continent from the north-south
character of the former Soviet Union into the east-west orientation of the
new independent nations. Enders Wimbush, a leading analyst of the region,
has called this change "one of the fundamental political shifts of our
time, with important consequences for U.S. strategic interests from Europe
to China." 
Mr. Shevardnadze sees this transformation more clearly than most. He
understands the cultures involved, the historical relationships, the
importance of timing. He has carefully nurtured relations with his
country's neighbors and actively promoted regional economic cooperation and
growth to bring a new stability to the region.   
American businessmen in the region speak of his ability to get things
done. Some cite the way he re-opened the important rail link between Baku
in Azerbaijan and the Georgian port of Batumi that had long since fallen
into disuse, but now carries over a million barrels of oil a month from
Kazakhstan to the West. 
To me, Mr. Shevardnadze has always been more than a politician and
diplomat. He has an ability to predict with great accuracy the future flow
of world events. 
His current visit, the first as President of his country, is important
not only to Georgia but also to the United States. We can benefit from
listening to this man of experience and understanding.

*********

#6
St. Petersburg Times
JULY 21-27, 1997
Civilization Returns to the Banks of the Volga 
By Yevgeny Popov
Yevgeny Popov is a writer whose novels include "Soul of a Patriot." 

ANYONE who has ever traveled on the Volga will undoubtedly recall
Samara, one of the most beautiful cities along the river, with its
modernist-style merchants' houses, well-kept, clean embankment and sandy
beaches stretching for several kilometers. With over 400 years of history,
1.3 million inhabitants and, as the encyclopedias say, the status of a
"scientific and cultural center," Samara is also known in Russia for its
city anthem: a frivolous erotic song, in which a young girl complains that
she is sick with love and asks to be "calmed down."
Few people, however, know that Samara had at least two chances to become
Russia's capital. First, in the summer of 1918, when the city's residents
grew tired of the new government established in October 1917 and chased the
Bolsheviks out after declaring Samara to be the center of a "democratic
counter-revolution." 
The second opportunity came during the war, in 1942, when Josef Stalin,
doubting his own genius, transferred foreign embassies, major Soviet
institutions and defense plants to Samara, then called Kuibyshev. While he
was at it, Stalin ordered a bunker to be built, equipped with an elevator,
air conditioners and water-supply and air-filtration systems. Today, the
bunker is eagerly shown to Russian and foreign tourists by a retired KGB
agent turned tour guide, who proudly informs them that "our bunker" proved
to be much better and more durable than Hitler's: "See for yourselves,
comrades, how it functions to this day." 
Now, anyone has the right to be photographed in this bunker and even to
drink a glass of champagne there. But no matter how much Russians may
grumble about the outrages and social inequalities of these new times, it's
rare to hear anybody argue that life has become even worse than under the
commies.
And this Russian city is no exception. It, too, has many problems - with
housing, with employment - but none of these are dead-end problems. They
all have the potential to be solved. For dead ends appear where there is
bitterness, despondency, loss of heart. And I can say I didn't notice any
of the above in Samara.
The more I travel around Russia, the less it seems that people are
amazed at things that are actually normal. It is less astonishing when
people are dressed normally; when in the provincial town of Samara one can
find the All-Russia avant-garde literary/artistic newspaper Tsirk Olimp,
the pre-revolutionary name of Samara's circus where the "decadents" of
those years held readings, which is published, with great hardship, by the
poet and theoretician Sergei Leibgrad; when the city's 20 functioning state
institutions of higher learning are supplemented by another 15 private ones
that are full of students willing to pay a lot of money for a solid
education that will allow them to lead an interesting life and earn good
money in the future; when city and regional authorities put up their best
fight and manage not only to preserve but to increase their cultural
legacy, thus the city has successfully functioning theaters, libraries,
ensembles of classical and folk music.
This makes me feel optimistic. God forbid I am mistaken, but it seems
that Russia is surviving and truly becoming part of the larger world; that
Russian civilization, which the Bolsheviks tried for so many years to
destroy, is returning; that all of us from St. Petersburg to Samara and
beyond are a single people; and that, at century's end, we are worthy of a
better lot and we shall finally have it.

*********

#7
>From Russia Today
http://www.russiatoday.com
Satire
The Week That Was
Measure for Measure 
by Mary Campbell 

Let me begin by offering my apologies to the French. Writing in this space
two weeks ago, I raised the ire of some of our French readers by
questioning Reuters' habit of referring to Kazakhstan as a country "five
times the size of France." 

I maintain that my target was not so much the French nation as the
journalistic cliché (of which they must be aware – they invented the term)
but I'm facing up to the criticism nonetheless. 

I am, it seems, not as funny as Voltaire. 

You can imagine my dismay. Each time I finish a piece, I end with a silent,
"Take that, Voltaire!" or "Touché, Voltaire!" if not a long, sneering "Ha!" 

This new knowledge really set me back. And I'd not even begun to recover
from the blow when I was hit by a second, in an electrifying un-deux
combination that left me reeling: 

I rate 0.003 on the French politeness scale. 

Now here I really must object. I will grant the French superiority in
pastries, perfume, and post-modern philosophy. I will recognize the dangers
of cultural stereotyping. But I do not believe the French are now known, or
ever have been known, for their politeness. 

A 0.003 rating on the French politeness scale would seem to make me some
sort of cross between Leona Helmsley and the Tasmanian Devil. 

Fortunately, facing criticism is not all shame and self-abasement – it can
also be a learning experience. One of my readers, while taking me to task
for mocking his homeland, also passed along some very interesting examples
that show France is not the only nation that has been pressed into service
as a measuring stick. 

Consider this, from the World Meteorological Organization: 

"Despite not being the largest or the deepest hole ever, last year's ozone
depletion lasted longer than in previous years. Significantly, a hole 60
times the size of Britain was present for a total of 71 days. This compares
to a hole only 40 times the size of Britain lasting for 25 days in 1985." 

Who does these calculations? How do they decide whether the ozone hole
should be measured in Britains or Frances? 

The answer seems to be that sometimes they don't: 

"The Republic of South Africa occupies 1 223 410 square kilometers (472659
square miles) at the southernmost tip of the African continent, stretching
from the Limpopo River in the north to Cape Agulhas in the south. It is
five times the size of Britain, twice as big as France and about one-eighth
of the size of the United States." 

Speaking as someone who accidentally converted kilometers into rubles
yesterday, I can only express my relief that it is not I who must do the
math. A nation divided against itself is a terrible thing – a nation
divided into another is a mathematical and geographical nightmare. 

And even if I mastered the art of the geographical measurement, the ground
is still sewn with landmines, waiting to blow me and my calculator sky
high. Consider this: 

"By July 5, a six-wheeled 'micro-rover,' dubbed Sojourner, had rolled down
its flexible ramp onto the surface of Mars. About the size of a household
microwave oven, Sojourner is an experiment in automated robotics, designed
to pilot itself between the rocks, study the composition of the soil and
rocks and send the data back to the Earth." (…where somebody else can do
the conversions and tell us how big Mars is in relation to Britain, or
South Africa or his mother's Mix Master.) 

Oh, for the days when everything could be measured with reference to a
bread box. 

Ms. Campbell is an editor for Russia Today. 

********

#8
>From RIA Novosti
Rossiiskaya Gazeta
July 19, 1997
EVERY THIRD MAN, STEP OUT!
The Russian Army Is To Be Cut by 500,000
By B. YAMSHANOV

The army reform, of which so much talk has been of late,
is passing from the sphere of vague projects into the field of
practical moves. The President of Russia has signed decrees
which outline concrete changes, and indicate executors and the
timeframe.
x x x
On January 1, 1999 the numerical strength of the personnel
in the army must be 1.2 million, i.e., the army is to be cut by
500,000, or approximately by one-third. So, the slogan "Every
third man, step out!" is voiced again after the Khrushchev
reforms of the beginning of the 1960s. That time they ended
sadly for a mass of officers who had gone through the war but
were discharged from service without pensions, housing and
civilian professions and trades.
The situation is different at the present time. Taking
into consideration that today the shortage of personnel in the
army stands at more than 200,000, and that it will be possible
to make corrections in the remaining three call-ups, the cuts
will affect several dozens of thousands of officers. The number
of those who have the right to go on pension exceeds this
figure, and therefore young people have no reason to worry.
The situation with housing is certainly more complicated.
True, a number of social-protection measures are envisaged for
those who will be discharged from service, specifically
acquisition of housing for them. Financial resources for this
purpose are to be obtained through sale of the material values
which are to be freed-up in the course of the reform.
The term "restructuring of command", which was frequently
used of late, has been filled with specific content. Already
this year the new Strategic Missile Forces (RVSN) will
incorporate, alongside the proper RVSN which we are accustomed
to, also the Military Space Forces and the rocket-space 
defence forces which form part of the air defence. The rest of
the air-defence troops will join the Air Force.
The Chief Command of the Land Forces is to be abolished,
and the actions of the military districts, which are to be
given the status of commands in strategic directions, will be
coordinated by the Land Forces Main Directorate with far less
numerous personnel than now.
On the whole, it is proposed that the central and local
command apparatus of the Defence Ministry be substantially
reduced, bringing it to one per cent of the strength of
personnel. That is why the Generals will be affected by the
reform most of all. But Generals are not the most frustrated
stratum of society.
It is beyond doubt that the signed decrees and the reform
which has begun will rouse much criticism. An undertaking of
such scale objectively cannot but have contradictions. But it
is also abundantly clear that it is necessary to begin with
something because time has already been lost. Furthermore, it
is clear that at the present time the decrees do not provide
for an all-embracing military reform in the state but for
high-priority measures in the army.

********

#9
YELTSIN: RUSSIAN ARMY STARTS STRENGTHENING DISCIPLINE
MOSCOW, JULY 21 (FROM RIA NOVOSTI CORRESPONDENT MARIYA
BALYNINA) -- In the course of his meeting with Russia`s Defense
Minister Igor Sergeyev Russian President Boris Yeltsin said
discipline is being strengthened in the Russian army. The
officials discussed urgent measures necessary to implement the
first stage of the military reform. The meeting which lasted for
an hour and a half took place in the Volzhsky Utyos sanatorium
where the president is vacationing now.
As head of the press service of the regional administration
Anatoly Sherstnev told a RIA NOVOSTI correspondent, it was
decided not to cut down the number of military districts as it
was planned earlier. Several arms of forces, in particular,
military space and strategic rocket forces will be united.
According to Sherstnev, Yeltsin in detail spoke of the
problem of social protection of servicemen. He said that about
50,000 apartments will be built for the retiring servicemen at
the expense of the Defense Ministry and the same number at the
expense of regional budgets. "It is necessary to attentively
treat every military so that they could be confident of their
future and there were no unrest in the army," Yeltsin said.
He pointed to the importance of technical equipping of the
army. As Sherstnev said, Yeltsin "intends to pursue such a
course so as to ensure the army`s combat efficiency by means of
its technical equipping." "There are still hands and brains in
the military-industrial complex," the president said. 

*******

#10
UKRAINE: CABINET PASSES BILL TO PARLIAMENT TO MAKE 
UKRAINIAN SOLE OFFICIAL LANGUAGE
SIMFEROPOL, JULY 21 (from RIA Novosti's Svetlana Tumanova)
- A bill, "On the Use and Development of Languages in Ukraine",
drawn by the Cabinet and the presidential staff, was passed to
Parliament for approval, Ukrainian MP Vladimir Alexeyev said to
a news conference in Simferopol, Crimean capital.
The bill proclaims Ukrainian as the only official language
and communication idiom in all social spheres throughout the
country, the Crimean autonomy being no exception. All civil
servants and other persons speaking other languages in public
offices will be fined.
This coercive promotion of the Ukrainian language boils
down to "discrimination against citizens of many nationalities
through the abuse of their language rights", pointed out Mr.
Alexeyev with the respect of the Crimea, where Russian speakers
account for 93 per cent of the population, including ethnic
Ukrainians.
Oppositionary parliamentary groups are ready with an
alternative bill, though the government version is more likely
to be passed despite its discriminatory content, said the MP.
The Crimean Parliament debated the issue today to stress
that the autonomy's constitution, which was passed for approval
to the Ukrainian Parliament last month, stipulated equal
official statuses of three languages--Ukrainian, Russian and
Crimean Tatar.
If Kiev goes on to ignore the Crimea's Fundamental Law and
centuries-old ethnic situation, Ukrainian-Crimean relations may
again come to an edge. 

*********

#11
Russia: U.S. State Department, Senate Disagree On Religion Bill
By Julie Moffett

Washington, 21 July 1997 (RFE/RL) -- The U.S. State Department said Friday
it is not in America's national interest to cut off assistance to Russia
even if President Boris Yeltsin were to sign a restrictive religious bill
into law.
State Department spokesman Nicholas Burns said the Clinton
Administration agrees in principle with the reasons behind a U.S. Senate
vote this week critical of the Russian legislation and said the U.S. does
not want Yeltsin to sign the bill. But, Burns said, Clinton also does not
want to jeopardize a "multiplicity of American interests in Russia" because
of one bill.
He said the administration will convey its concerns to the members of
the U.S. House of Representatives who must now review and vote on the bill
before it can be sent on to the president.
The Russian legislation, passed by both houses of its national
legislature, requires new religious organizations to wait 15 years after
registering before being officially established.
The U.S. Senate last week overwhelmingly passed an amendment to the U.S.
Foreign Appropriations bill that would cut off some $200 million in aid to
Russia if Yeltsin approves the measure. 
Earlier Friday, the Russian Foreign Ministry issued a statement saying
any attempts to impose conditions on aid would be "counter-productive." 

*********

#12
Yeltsin Flies South on Second Stage of Holiday 
Reuters
MOSCOW -- President Boris Yeltsin, jokingly calling himself Boris the
First, headed for a holiday resort by Russia's Volga river on Friday after
nearly two weeks relaxing near the border with Finland. 
The 66-year-old president left northwestern Russia for the Volzhsky Utyos
sanatorium once used by Soviet leaders on a lake near Togliatti, 800 km
(500 miles) southeast of Moscow. The Kremlin did not say how long he would
stay there. 
"No Russian leader had come here on holiday since (18th century ruler)
Peter I. Now Boris the First has been," Russian television showed Yeltsin
telling reporters before flying out of the Karelia region where he had been
staying. 
Yeltsin's firm grip on power, and his often fatherly manner, have often
drawn comparisons with Russia's former czars. 
The president, who had heart surgery last November, looked well and
relaxed. "The nature was beautiful, the air was beautiful. I slept
wonderfully," said Yeltsin. 

*******


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