March 9, 1998  
This Date's Issues:    2099  • 2100  2101

Johnson's Russia List
#2100
9 March 1998
davidjohnson@erols.com

[Note from David Johnson:
1. Bart Etter: Re 2098-Blagov/Copyright Piracy.
2. Elizabeth Teague: Jamestown's website.
3. Jamestown Foundation Monitor: ZYUGANOV LIFTS VEIL ON SHADOW 
CABINET.
4. BBC News: No easy life for Russian women.
5. Fred Weir on Russia and the Missile Technology Control Regime.
6. Washington Times: Martin Sieff, Experts see Russia's economy 
reaching stability.
7. Los Angeles Times editorial: Go Slow on Expanding NATO.
8. New York Times editorial: What's the Rush on NATO?
9. Washington Times: James Morrison, Embaassy Row. NATO warning 
and plea.
10. New York Times letter: Katherine Bliss, Russian Prostitution.
11. AP: Russian Premier Denies Iran Sale.
12. Interfax: Gore, Chernomyrdin to Work Out US-Russia Partnership 
Program.
13. Interfax: Russia To Discharge 300,000 Commissioned Officers In 1998.
14. Paul Goble (RFE/RL): Latvia: Analysis From Washington -- 
Russia Plays The Ethnic Card.
15. Reuters: Gazprom Builds Political Role in Own Media.
16. RIA Novosti: FINDING OF AN OPTIMAL FORMULA OF STRONG CENTRAL AUTHORITY
AND INDEPENDENT GOVERNORS IS RATHER A COMPLEX PROCESS,
VITORIYA MITINA THINKS.
17. Russky Telegraf: Sofya Razvedkina, CIS REVIVAL LAUNCHED.
18. RIA Novosti: LARGER VOLUMES OF US INVESTMENTS IN RUSSIAN ECONOMY TO BE 
DISCUSSED DURING REGULAR SESSION OF THE CHERNOMYRDIN-GORE COMMISSION ON 
MARCH 10-12.]

*******

#1
Date: Sun, 8 Mar 1998 
From: Bart Etter <bart@org.ktu.lt> 
Subject: Re: 2098-Blagov/Copyright Piracy

By way of establishing context, I now teach in Lithuania, following a
27-year career in software development. Because of the latter career, I am
sensitive to "intellectual property rights." A former U.S.-based BBS
operator, I was always scrupulous in reviewing uploads with property
rights in mind. But I am also a student of markets.

When R.J. Reynolds Tobacco Company chose to expand its activities in this
part of the world, they went about it in what I consider to be the right
way. They considered "what the market would bear," and concluded that they
must do final packaging *in* Lithuania, in order to price *to market*. The
music and publishing and software crowd have missed this message. In
Lithuania, *doctors* earn, perhaps, $100 per month; teachers even less.
Western prices will, in my opinion, *never* be viable here. Western
distributors *need* the services of Eastern partners to handle
reproduction and distribution. But they must learn to price *to market*
here, if they are to succeed. If they refuse, they not only reinforce, but
further *insure* the success of pirate operations in this part of the
world, and others like it. Every time I inquire about a software title, I
am directed to a "catch-all" CD-ROM with every product I could dream of,
at bargain-basement prices.

You cannot adhere to Westen practices and collect Western prices; it just
won't happen. But you can take advantage of the economies of scale -- and
*place* -- by permitting well-placed, but lower-paid local entities to
take over local distribution, thus lowering per-unit costs.

Or, you can *pretend* that the local market will abide by the rules you
know and love. At your own peril.

Whether your venue is music, software, or literature, I believe that
herein lies the secret to choosing between success or well-deserved
failure in this market.

Respectfully,
Bart Etter
Kaunas, Lithuania
bart@org.ktu.lt

*******

#2
Date: Mon, 9 Mar 1998 15:03:44 +0100 (MET)
From: "Elizabeth Teague" 
Subject: Jamestown's website

Dear David

It was nice to see that Johnson's Russia List (##2098 and 2099) reprinted
two of
the articles from the latest issue of the Jamestown Foundation's fortnightly 
PRISM. Your readers might like to know that the latest issue also includes 
interesting articles on Russian national identity as seen from Tatarstan, 
President Yeltsin's adviser Viktoria Mitina, and clans in Ukrainian politics. 
These, and back issues of Jamestown's daily MONITOR, can be read at our
website.
It's in the process of being updated, but the address is: 
http://www.jamestown.org

Kind regards
Elizabeth Teague
Jamestown Foundation 

*******

#3
Jamestown Foundation Monitor
9 March 1998

ZYUGANOV LIFTS VEIL ON SHADOW CABINET. In an informal conversation with
Russia's Independent TV, Communist party leader Gennady Zyuganov revealed
the contours of the shadow cabinet being put together by the Communists and
their nationalist and agrarian allies. Oddly enough, there seemed to be no
place for Zyuganov himself in the team, which is to number some thirty
members. The final composition of the shadow cabinet will be decided at the
end of April by a plenary meeting of the Popular-Patriotic Union of
Communists, nationalists and agrarians. (NTV, March 6)

The post of prime minister is likely to go to Yegor Stroyev, governor of
Orel Oblast and speaker of the upper house of the Russian parliament.
Stroyev, a moderate Communist, would not be a controversial choice, but
Zyuganov's other nominees certainly would. Nikolai Kondratenko, governor of
Krasnodar Krai, would be deputy prime minister in charge of the economy.
Kondratenko is notorious for his virulently racist and anti-Semitic views.
Since he was elected governor at the end of 1996, he has put together a
coalition of Communists, Cossacks and nationalists and enacted a krai
charter that declares the North Caucasus region to be the "historical
territory of the Kuban Cossacks" and "a place of residence for the [ethnic]
Russian people." (Izvestia, March 4)

Another controversial appointee would be Vasily Strarodubtsev as deputy
premier with responsibility for agriculture. Starodubtsev, a leader of the
Agrarian party, was one of the plotters of the August 1991 coup that brought
down the USSR. He was elected one year ago as governor of Tula Oblast and is
a strong opponent of private land ownership. (See Monitor, March 6, lead
story)

Zyuganov's choice of the Communist firebrand Viktor Ilyukhin to take charge
of state security would usher in a witch hunt against leading members of the
present government. As a member of the State Duma, Ilyukhin has repeatedly
called for criminal investigations against first deputy premier Anatoly
Chubais and his government associates. Zyuganov pointedly told NTV that,
though the Communists could work with several of the members of the present
cabinet, they drew the line at Chubais, Boris Nemtsov and deputy premier
Yakov Urinson.

Finally, Zyuganov mentioned Aman Tuleev, governor of Kemerovo Oblast, to
return to the cabinet to take charge of Russia's relations with the CIS, a
post that Tuleev held until a year ago. Zyuganov promised that some seats in
the shadow cabinet would go to women, but he named none, other than
commenting that Svetlana Goryacheva, the Communist deputy speaker of the
Duma, is "experienced and educated." Zyuganov infuriated many at the weekend
when he marked International Women's Day with the comment that there is
"nothing more frightful" than a woman who is both smart and pretty and "asks
too many questions." (Itar-Tass, March 5)

*******

#4
BBC News
March 8, 1998 
Despatches
No easy life for Russian women

Across Russia, millions of men have been buying
roses and flowers for their mothers and wives, to
mark international Women's Day. In spite of this
annual tribute to women in Russia, human rights
organisations say violence against women remains
a huge problem, as Andrew Harding reports from
Moscow. 
Outside Belaroski train station, long lines of women
stand in the cold. Some are selling Russian vodka;
others are selling Ecuadorian roses. 
In front of them, crowds of men haggle over the prices. A
decent bouquet can cost $50, and what sort of holiday
would it be without something to drink. 
Women's Day is a big holiday in Russia, as it was in the
Soviet era. It starts on Friday afternoon, and ends on
Tuesday morning. 
Male politicians usually mark the occasion with a few
warm, and often patronising, remarks about the fairer
sex. 
The Communist party leader, Gennady Zyuganov,
surpassed himself this year, saying he preferred women
who don't ask too many questions, and that a clever
and pretty woman was frightful. 
Many Russian women welcome the holiday - a day
off, some pampering and some presents - but many
also remark that the other
364 days of the year are usually men's days. 
Violence against women is a particular problem in
Russia. According to some estimates, 14,000 women
are killed by family members every year. 
A new report by the organisation, Human Rights Watch,
has condemned the lack of laws protecting women, as
well as the hostility of the police and courts towards rape
victims. 

*******

#5
From: fweir.ncade@rex.iasnet.ru
Date: Mon, 09 Mar 1998 18:35:58 (MSK)
For the Hindustan Times
From: Fred Weir in Moscow

MOSCOW (HT Mar 10) -- Moscow has not provided ballistic
missile or dual-purpose nuclear technology to Teheran and will
not buckle under U.S. pressure to cancel an atomic power project
in Iran, Russian Prime Minister Viktor Chernomyrdin said Monday.
Mr. Chernomyrdin, headed to Washington for trade and
cooperation talks with U.S. Vice President Al Gore, insisted that
a Russian-Iranian project to build an $850-million 1,000-megawatt
nuclear power station at Bushehr, in southern Iran, involves only
legal and peaceful technology.
"We are true to our commitments and we shall never depart
from them," Mr. Chernomyrdin said. "We have not transferred and
shall not transfer anything to Iran or other countries."
The Clinton administration charges that Moscow has violated
the Missile Technology Control Regime (MTCR) by supplying Iran
with technology for its alleged ballistic missile program. It
also claims that atomic materials and know-how from the Bushehr
project could be used to produce nuclear warheads for those missiles.
Washington officials warn that Moscow's involvement
in Iran's military programs is the single most difficult issue in
Russian-American relations. The U.S. Congress has threatened to
cut-off aid to Russia if it is not resolved.
But Russian analysts say the U.S. is using the pretext of
arms control to cut Moscow out of lucrative markets and cripple
Russia's high technology industries.
"There have been several instances in the recent past where
Washington has used specious arguments and economic weapons to
wreck Russia's peaceful cooperation with third countries," says
Nikolai Zyubov, an independent analyst.
"The Russian government is right to be very suspicious of
these tactics".
In 1994 the U.S. compelled Moscow to abrogate a deal to
provide cryogenic rocket engine technology to the Indian Space
Agency, charging that the transfer violated the MTCR. 
Last week Ukraine cancelled a contract to provide turbines
to Iran for the Bushehr atomic project, after U.S. State
Secretary Madeleine Albright threatened to block American aid to
Kiev.
Moscow expressed regret over the Ukrainian withdrawal from
the project, but said Moscow would go ahead on its own.
"Russia has sufficient capability to complete this project
and if turbines made in Ukraine are not used, Russian ones will
do just as well," ITAR-Tass quoted a spokesman for Russia's
Atomic Ministry as saying.
Western intelligence reports, leaked to the press, say that
Iran is within two years of producing ballistic missiles with a
range of 1,400-km, sufficient to strike U.S. allies such as
Israel, Saudi Arabia or Turkey.
The reports suggest that Russian scientists have been
providing Iran with vital expertise in fields such as laser
equipment, guidance systems, maraging steel and tungsten-coated
graphite. They also claim that Iranian students are studying
rocket construction at Russian academic institutes.
Analysts say it is possible that impoverished scientists
from Russia's collapsing military-industrial complex could be
selling their services abroad -- with or without Moscow's
official blessing.
"Iran is taking advantage of Russia's economic woes and
large reservoir of defense technology and scientific talent to
accelerate development of an indigenous ballistic missile
capability," Stephen Sestanovich, the U.S. ambassador-at-large
for the former Soviet states, said recently.
But Mr. Chernomyrdin said the accusations of Russian
involvement in Iran's military programs are false, and that he
will tell Mr. Gore so if the issue comes up in this week's
Washington negotiations.
"Any provocative talk will not work. It is useless. We have
no worries on that score and we shall not break our commitments,"
Mr. Chernomyrdin said.

*******

#6
Washington Times
9 March 1998
[for personal use only]
Experts see Russia's economy reaching stability
By Martin Sieff

Russia's economy has stabilized since it was swept by the aftershocks of
the Asian financial crisis late last year, but huge fiscal reforms are
still needed soon, two of Russia's most powerful industrialists and
financiers said.
   Vladimir Potanin, head of Russia's mighty United Export-Import Bank,
controls a financial empire that includes industrial plants and oil
companies. From August 1996 to March 1997 he also served as first deputy
prime minister of Russia.
     He told reporters and editors at The Washington Times that Russian
President Boris Yeltsin remains devoted to the cause of economic free
market reform and still strongly supports his reforming first deputy prime
ministers, Anatoly Chubais and Boris Nemtsov.
     Boris Jordan, a U.S. citizen, is the founder and chairman of
Renaissance Capital, the largest investment bank and brokerage house in
Russia, and a close business associate of Mr. Potanin's. He said official
government statistics underestimated the real growth of the Russian economy.
     "The country is on the right track," Mr. Jordan said. "Our assessment
is that Russia's economy has been growing by 1 [percent] to 2 percent per
year [although] the official statistics show [only] 1 percent growth."
     Mr. Jordan said the collapse of Asian markets and currencies late last
year "caught [Russian] policymakers by surprise."
     The crisis sent Russian domestic interest rates soaring from 25
percent to 35 percent and an estimated $8 billion flowed out of the Russian
treasury. Central Bank reserves fell by at least $5 billion from a high of
$26 billion, he said.
     After a brief lull over Christmas, Mr. Jordan said, "Russian equity
markets slipped 35 percent in the first three weeks of January."
Altogether, Russian markets lost 60 percent of their equity between October
and January.
     Mr. Jordan said the Yeltsin government responded by acting on advice
from private bankers including Mr. Potanin and himself.
     "Our group recommended a 12-point plan and ... the government accepted
11 out of the 12 points," Mr. Jordan said.
     These moves included:
* Adjusting planning assumptions to expect interest rates of 25 percent, up
from 12 percent.
* Assuming there would be a primary fiscal surplus rather than a deficit.
* Making future privatization programs more open to public scrutiny in
order to attract more needed Western investment.
* Lower estimates of the amount of revenue the government will raise from
taxation.
     The Yeltsin government, in line with the Potanin group
recommendations, then raised interest rates to 42 percent.
     "Today, interest rates are back down to 18 percent," Mr. Jordan said.
"The share markets have rallied 25 percent [since then]."
     Also, after a worrying bout of capital flight out of Russia in
December and January, "Russian money is coming back in" to the country, Mr.
Jordan said.
     U.S. analysts agreed with this cautiously optimistic assessment. They
said Russian inflation has declined from a peak of 2,324 percent in 1992 to
below 10 percent today.
     Mr. Potanin expressed concern that Russia's newly privatized
industries are not yet integrating sufficiently into the global economy.
     "We think the involvement of Russia in the global economy is very
important," he said. "The economy of the Soviet Union suffered very greatly
because it was not competitive at all. We were not [then] involved in the
international economic process." 

*******

#7
Los Angeles Times
March 9, 1998 
[for personal use only]
Editorial 
Go Slow on Expanding NATO 
 
With barely a whisper of dissent, the Foreign Relations Committee has
sent to the Senate floor a resolution to bring Poland, Hungary and the
Czech Republic into NATO next year. A vote on the measure--technically, a
revision of the 1949 NATO treaty--could come within a few weeks. But more
than a dozen senators have had the good sense to ask for a delay until
after June 1 so that important clarifications can be sought. The expansion
of NATO is the most significant foreign policy issue to arise since the end
of the Cold War. The Senate by all means should take a few more months to
better understand its implications. 
     The Clinton administration and other supporters of enlargement have
recited a list of generalities about supposed benefits. What's needed
instead are specific answers to basic questions about just what NATO's
growth will mean, involve and cost. President Clinton contends that
expanding the 16-nation alliance "will make NATO stronger, Europe more
stable and America more secure." But the reverse can also be argued for
each of these claims. 
     For instance, because NATO acts by consensus, a larger alliance could
make it harder to agree on responses to threats to peace. Rather than
promoting stability, an enlarged NATO could fuel tensions by deepening the
political divisions and national jealousies among those who are in the
alliance and those who are not. And just how would taking on major new
military and financial responsibilities for Europe's defense by itself
enhance U.S. security? 

*******

#8
New York Times
March 9, 1998
[for personal use only]
Editorial
What's the Rush on NATO?

As more members of the Senate realize a vote on NATO expansion is
barreling toward them, they are understandably asking for more time to
consider a decision that is likely to be among the most important they make
as lawmakers. For all the talk about using NATO to consolidate democracy
and unity in Europe, the issue before the Senate is the enlargement of a
military alliance and the commitment that carries to use American soldiers
and weapons, including nuclear arms, to defend new members in Eastern Europe. 
That is not a decision to be taken lightly, or made in a hurry without
adequate information. Yet that is precisely what the White House and Trent
Lott, the Senate majority leader, are planning. 
They believe approval by two-thirds of the Senate can be secured if
debate is attenuated and a vote quickly called. So they have advanced the
NATO decision from May to March, and it could come up this week. 
On Friday, 17 Senators, nine Republicans and eight Democrats, petitioned
Mr. Lott to delay a vote until at least June. Their reasoning should be
required reading for every senator: "We are uncomfortable voting when so
many of the purposes and assumptions of NATO enlargement remain either
ambiguous or contradictory." Whether members of the Senate support or
oppose the eastward extension of NATO to include Poland, Hungary and the
Czech Republic, they share a responsibility to make an informed decision
and to understand the military, political and financial consequences of
expansion. 
The signers of the letter to Mr. Lott, for example, would properly like
to know how far east NATO is likely to go, how much it will cost and
whether NATO's now open-ended peacekeeping operations in Bosnia are a model
for future engagements and entanglements. They also worry that the larger
NATO gets, the more fractious it may become, possibly immobilizing the
alliance on matters of critical importance to the United States. 
These and other questions have never been adequately answered by the
Clinton Administration. Nor has it ever made a convincing case that NATO
expansion will help embed democracy in Russia, the central issue facing
Europe. 
Though NATO expansion has been looming, many senators have just begun to
address the complexities. It seems reasonable to give them a chance to
study the matter carefully before they vote. It is hard to imagine any
senator, including Mr. Lott, telling voters that he or she agreed to commit
American forces to the defense of Warsaw, Budapest and Prague after a few
days of debate and without really knowing how much it would cost. 

*******

#9
Washington Times
9 March 1998
[for personal use only]
Embaassy Row
By James Morrison
NATO warning and plea

     NATO expansion could cost more than 80 times more than the $1.5
billion the Clinton administration now projects and antagonize Russia as
Washington and Moscow are trying to ratify arms control treaties, a leading
Washington think tank said.
     Ivan Eland, the defense specialist at the libertarian Cato Institute,
warned in a new policy paper that expansion could cost a "whopping" $125
billion if an estimate by the Congressional Budget Office proves correct.
     NATO says alliance costs will be about $1.5 billion. New members could
face additional costs depending upon their military needs.
     "It is hard to avoid the conclusion that the United States will pick
up a gigantic tab sooner or later," Mr. Eland wrote.
     He also argued that Moscow will reject future arms control measures if
the United States pursues the expansion of NATO beyond the first three
candidates. The Senate is considering a bill to admit Poland, Hungary and
the Czech Republic.
     "Antagonizing Russia merely to provide vague security benefits to
small Central and Eastern European states is akin to a chess player's
sacrificing his queen to capture a pawn," Mr. Eland wrote.
     Meanwhile, Polish parliamentary leaders have appealed to Senate
Majority Leader Trent Lott and Senate Minority Leader Tom Daschle for
passage of the NATO expansion bill.
     Including the three new candidates "will provide our region, which has
suffered so much in the 20th century, with stability, security and lasting
democratic order," says the letter signed by Leszek Miller of the
Democratic Left Alliance, Marian Krzaklewski of Solidarity Election Action,
Janusz Dobrosz of the Polish Peasant Party, Tadeusz Syryjczyk of the Union
for Freedom and Jan Olszewski of the Movement for the Reconstruction of
Poland.
     "Poland, as a future member of NATO, would like to be not only a
security consumer but also a security provider," they said. "At the same
time, we are determined to fulfill all necessary alliance obligations,
including financial ones."

******

#10
New York Times
March 9, 1998
[for personal use only]
Letter
Russian Prostitution

To the Editor: 

A March 3 front-page article reports that public officials in the
economically depressed Russian city of Saratov who are concerned with
escalating rates of sexually transmitted disease have proposed licensing
prostitutes and brothels, a practice banned since the Revolution. 

Yet Aleksandr Lando, a regional human rights official, suggesting that
corruption will continue, says that "the most we can expect is to get some
measure of control over the spread of AIDS and venereal disease, and,
maybe, collect some tax money." 

At best, taxes create an additional financial burden on poor women who
work as prostitutes. They will continue to work clandestinely, hiding even
more vigilantly from police and health care workers. It might be more
prudent for Saratov officials to establish free, anonymous clinics where
prostitutes, clients and clients' families can find adequate health care. 

KATHERINE BLISS 
Cambridge, Mass., March 4, 1998

The writer is an assistant professor of history at the University of
Massachusetts at Amherst. 

*******

#11
Russian Premier Denies Iran Sale 
March 9, 1998 

MOSCOW (AP) -- Trying to soothe a major worry of the United States, Prime
Minister Viktor Chernomyrdin insisted today that Russia is sticking to its
promise not to transfer nuclear weapons technology to Iran. 
``We are true to our commitments and we shall never depart from them,''
Chernomyrdin said. ``We have not transferred and will not transfer anything
to Iran.'' 
Chernomyrdin spoke to reporters before departing for Washington, where
he and Vice President Gore are to attend the 10th session of the
Chernomyrdin-Gore commission, which meets twice a year to boost cooperation
between Russia and the United States. 
On the agenda will be a U.S. proposal offering Russia an opportunity to
expand its lucrative satellite launching business -- if Moscow agrees to
clamp down on any of the missile technology sales, The New York Times
reported today. 
The offer -- conveyed confidentially in advance of the meeting -- could
be worth millions of dollars to Russian companies and their American
partners, the Times said. 
``We are prepared to go forward and enhance cooperation in this area,
but we cannot do it in the absence of progress on the Iran ballistic
missile front,'' a senior Clinton administration official was quoted by the
Times as saying. 
A major stumbling block in relations has been the nuclear power plant
Russia is building in Bushehr, Iran. Washington strongly opposes it,
fearing it might help Iran get access to technology for its suspected
nuclear weapons program. 
The two leaders are to talk about implementing a decree signed by
Russian President Boris Yeltsin in January that would prevent the export of
so-called dual-use technologies that can be used to build missiles,
nuclear, biological and chemical weapons. 
Moscow insists that it is no longer supplying missile technology to
Iran. Russian officials have said they have foiled attempts by Russian
companies to provide Iran with dual-use technology. 
Over the weekend, Chernomyrdin voiced hope the talks in Washington would
set the course of U.S.-Russian economic relations into the next century. 
The commission's work since it was created in 1993 has helped boost
trade by 50 percent to $7 billion, Chernomyrdin said. 

*******

#12
Gore, Chernomyrdin to Work Out US-Russia Partnership Program 
Interfax
8 March 1998

MOSCOW -- A program for Russian-U.S. partnership in the 21st century will
be worked out at the 10th session of the Gore-Chernomyrdin commission
slated for Tuesday and Wednesday in Washington. 
Members of the commission for economic, scientific and technological
cooperation will undertake "an inventory and deep analysis of past
activity" in light of the fifth anniversary of its work, said the Russian
prime minister's international adviser, Mikhail Tarasov. 
A report on these results and prospects for bilateral trade and economic
ties will be presented to the Russian and U.S. presidents. 
Members of the session are "to clear up some of the rubble" in bilateral
trade and economic ties, in line with decisions reached by Russian
President Boris Yeltsin and U.S. President Bill Clinton at the Helsinki
summit in March. 
A draft bilateral agreement on cooperation in combating crime in the
economic and financial spheres will be worked out during the upcoming
session, he said. The agreement is likely to be signed at the next
Russian-U.S. summit. 
Approximately 20 documents on trade, economic, scientific and
technological cooperation are to be inked at the session, he said. 
Russian and U.S. companies are also prepared to close numerous
contracts. LUKoil oil of Russia will sign a contract with Conoco on
cooperation in developing Russian northern territories and oil deposits
there, he said, and U.S. companies are to stipulate their participation in
building an oil terminal in the Dagestani capital of Makhachkala on the
Caspian Sea. 
A series of large construction contracts will also be concluded. U.S.
companies will participate in a program to provide housing to Russian
servicemen ("My Home"), and in another program "Russian Roads." Russia is
to receive U.S. construction technology, materials and equipment under
these contracts. 
From Washington, Chernomyrdin and Gore will depart for San Jose,
California, to visit several aerospace companies. They will attend a
meeting of the Russian Far East - U.S. Western Coast working group which
unites regional leaders and senior executives of the companies working in
these areas. 
Tarasov said cooperation on direct bilateral aerospace contracts alone
exceeded $500 million last year. The figure is to reach $800 million this
year, he said. 
Discussions will also be held on bilateral cooperation in space. The
countries have already moved beyond joint flights to construction of the
international space station with participation of European partners, said
Chernomyrdin. 
"Maintaining ties and extending assistance allows Russia and the United
States to save billions of dollars, enriching each other through mutual
achievements," he said. 
U.S. investors should take a more active part in modernizing the Russian
economy, he said. Chernomyrdin said he hoped the unfavorable results of the
January hike in GKO treasury bill prices will have turned around by summer
and the investment climate will become more favorable. 
Russian and U.S. partners should pay closer attention to joint projects
of small and medium businesses, he said. "The commission should become a
front runner in forging ties between the new Russia and the United States
in the 21st century," he said. 

*******

#13
Russia To Discharge 300,000 Commissioned Officers In 1998 

MOSCOW, March 9 (Interfax) - A total of 300,000 commissioned officer
positions, especially in the command structure, will be made redundant in
1998, sources in the Russian Defense Ministry have told Interfax. 
The General Staff and service commands will be reduced by 30% before the
end of the year, they say. 
Over 40 institutes of higher military learning will be closed. Their
nearly 15,000 graduates, of whom 4,000 in the air force, 3,000 in the navy
and over 6,000 in the ground troops will be dismissed. What is to be done
with graduates of academies is being discussed. 
The training costs of a pilot are estimated as 520,000, a sailor from
100,000 to 150,000, a tankman 30,000 and a rifleman, 17,000 to 20,000 new
rubles a year, military experts say. 

*******

#14
Latvia: Analysis From Washington -- Russia Plays The Ethnic Card
By Paul Goble

Washington, 9 March 1998 (RFE/RL) -- Riga's handling of a demonstration
last week and the Moscow's response to it represent an object lesson on
both how sensitive certain ethnic issues remain in this region and how
quickly they can be exploited for broader political ends. 
Last Tuesday, police used batons to disperse a protest march by some
1,000 elderly residents of the Latvian capital against increases utility
rate hikes. The Latvian authorities said the protesters lacked a permit and
were blocking traffic, and the police insisted that they had not used
excessive force. 
But because most of the demonstrators were ethnic Russians, their
protest and even more the Latvian handling of it immediately set off a
political firestorm in Russia. And at least some in Moscow now appear to be
using this incident to isolate Riga and to pressure Latvia on a broader
front. 
The day of the demonstration, Russia's ORT television carried pictures
of the clash between demonstrators and the Latvian police but gave little
space to statements by Latvian authorities that the police had acted within
the law. 
That report then generated a crescendo of statements and actions by
Russian officials. On Wednesday, Foreign Minister Yevgeny Primakov
denounced Latvia's handling of the protest as "a flagrant violation of
human rights." 
On Thursday, Russian President Boris Yeltsin's spokesman Sergey
Yastrzhembsky described the Latvian action as "a blatant violation of
elementary human rights" and said that there "can be no talk" now about
setting a date for a meeting between Yeltsin and Latvian President Guntis
Ulmanis. 
Also on Thursday, foreign ministry spokesman Gennady Tarasov called for
international pressure on Latvia to change its approach to ethnic Russians
more generally. And some 60 people gathered in front of the Latvian embassy
in Moscow to protest Riga's policy. 
On Friday, Prime Minister Viktor Chernomyrdin said he was "indignant" at
Latvia's behavior for which he said there could be "no justification." And
the Russian Duma called on Yeltsin to take firm steps, including economic
sanctions and political reprisals, to force Riga to change its policies. 
And finally on Saturday, Yastrzhemsky told Moscow's Ekho Moskvy radio
that Yeltsin's advisors now favor imposing economic sanctions on Latvia,
thus setting the stage for a further escalation of this crisis. 
In the course of the week, Latvian officials continued to deny that the
police had acted illegally and suggested instead that the Russian
authorities were acting on the basis of insufficient information. 
On Saturday, to give but one example, Latvian Prime Minister Guntars
Krasts repeated that the police had acted "very correctly" and that they
had not violated anyone's human rights. 
Regardless of what happens next in this crisis, the events of the past
week already point to three conclusions. 
* First, relations between Russia and the Baltic states remain far more
finely balanced than many on both sides had believed and can be shifted by
a single incident. 
Prior to the events of last Tuesday, relations between Russia and Latvia
in fact had been on the upswing. 
As recently as February 19, a Latvian government spokesman said Yeltsin
had sent Latvian President Guntis Ulmanis which he characterized as
"hopeful and positive" about relations between the two countries. 
* Second, many in the Russian government believe that they can play the
ethnic card against Latvia and its neighbor Estonia because neither country
gave automatic citizenship to all residents at the time that they recovered
independence. 
Instead, these two countries required a naturalization process for all
those who moved onto their territories while they were under Soviet
occupation. 
Although consistent with international law as any number of authorities
have concluded, their decision to do so has offended many in Russia and
left them on occasion vulnerable to criticism from abroad. 
Indeed, since 1992, Moscow has routinely sought to enlist Western
support against these two states on this issue and, failing that, to
isolate Latvia and Estonia from their Western partners by appealing to
human rights concerns among Western populations. 
* And third, and perhaps most disturbing, at least some in the Russian
government appear to be willing to exploit such situations to generate
support for themselves. 
Given recent polls which suggest that many Russians dislike or are
indifferent to the current Russian government, some officials there may
have concluded that the exacerbation of relations between Moscow and her
neighbors could serve their personal interests. 
To the extent they have, protests from Moscow over the status and
treatment of ethnic Russians outside the Russian Federation may soon be
directed at other countries as well.

********

#15
Gazprom Builds Political Role in Own Media 
Reuters
6 March 1998

MOSCOW -- Gazprom, the world's largest gas company, is building an image of
a strong political force in Russia by using its vast media influence, an
official of its media arm was quoted as saying on Thursday. 
"We need to shape an image, build up our political muscles in accordance
with Gazprom's economic might," Sergei Karaganov, member of the board of
Gazprom-Media, told the Kommersant Daily business newspaper. 
Karaganov said the aim of the media arm, set up earlier this year, went
far beyond defending Gazprom's political interests in Russia's presidential
elections in the year 2000. 
"We have set up the holding (Gazprom-Media) for Gazprom to have proper
means of influencing politics, regardless of any elections," Karaganov said. 
Prime Minister Victor Chernomyrdin, who once headed Gazprom, is known to
have close links with the company. 
Chernomyrdin, also backed by the Our Home Is Russia party, is viewed as
a potentially strong contender for the presidency, but has so far given no
sign of wanting to run. Analysts say Gazprom could be a power base if he
decided to enter the race. 
Much of Russia's big business has shown a growing interest in the media
in the past three years, snapping up stakes in television, newspapers and
magazines. 
New media magnates tend to deny they are using their media business as a
political power base, and insist editors are free to issue what they wish,
restricted only by commercial considerations. 
The 1996 Russian presidential election campaign, in which President
Boris Yeltsin won a second four-year term, highlighted the role of the media. 
Yeltsin's communist rivals accused the media of bias and of trying to
sell the Kremlin leader "like toothpaste." 
In his interview, Karaganov said Gazprom would issue no demands on its
media arm, but said the company had interests to defend. "It is useless to
invest money if it does not bring political or financial dividends," he said. 
Television is the most effective means of reaching Russians stretched
across 11 time zones and many political and business interests have been
battling for stakes. 
Last year, Gazprom bought a 30 percent stake in the NTV television
network, with its audience of 120 million, from the powerful Most Group.
NTV was among those accused of bias in the 1996 campaign. 
Karaganov made no specific comment on other media stakes held by
Gazprom, but said the concern controlled a wide range of regional media and
a number of central newspapers. 
He did not rule out purchase of whole newspapers, as well as stakes in
television companies, and said mergers of some Gazprom-owned media units
were being considered to consolidate its position. 
"The concept is being worked out," he said. "We will probably sell or
buy shares of certain media units belonging to Gazprom. It is also possible
that some companies will merge." 
Gazprom also wants to promote its image abroad, where it will have to
raise billions of dollars in the next few years to finance major expansion
projects. 
It signed a memorandum in February with international public relations
company Hill and Knowlton to monitor and promote the company outside Russia. 
Among Gazprom's media projects is a deal to make, launch and operate
communications satellites. 
It signed a deal in 1996 with Russian rocket builder Energiya and
Lockheed Martin Corp unit Loral Corp. After purchasing the 30-percent stake
in NTV, Gazprom denied the satellite deal was linked to the purchase. 

*******

#16
FINDING OF AN OPTIMAL FORMULA OF STRONG CENTRAL AUTHORITY
AND INDEPENDENT GOVERNORS IS RATHER A COMPLEX PROCESS,
VITORIYA MITINA THINKS

MOSCOW, MARCH 6. /FROM RIA NOVOSTI CORRESPONDENT MARIYA
BALYNINA/. -Even now, many Governors have become aware "of the
necessity to give the President some levers of administration in
regions in order to have vertical authority complemented." The
above view was expressed today by deputy head of the
Presidential Administration Viktorya Mitina, in a live Radio
Mayak programme. On the whole, speaking about the delimitation
of powers between the Federal centre and regions, she pointed
out that so far it is difficult to find an "optimal formula of
strong central authority and independent Governors," as "this is
rather a complex process."
The deputy head of the Presidential Administration pointed
out that Russian society has lately started increasingly
gravitating to stability, tranquillity and pragmatism;
therefore, the political division in regions into "Reds" and
"Whites" "has come to nought." "At present, citizens on all
levels vote for pragmatists, advocates of a market economy," she
said, and Russian society is beginning to seek "business
approaches to the government, the market economy and
stability."
Mitina indicated that the Federal centre is planning to
cash in on a wealth of experience gained in regions, in the
first place, in the regional associations. "An active search is
now under way for mechanisms of cooperation between the centre
sand regions," she emphasised. According to the deputy head of
the Presidential Administration, the fact that "the centre
failed to hear regions" was an "enormous issue" at the end of
1997. "While the state was engaged in the macro-economic
processes, a huge problem has emerged," she summed up. -0-

*******

#17
>From RIA Novosti
Russky Telegraf
March 6, 1998
CIS REVIVAL LAUNCHED
Foreign ministers advocate a review of concepts
By Sofya RAZVEDKINA

The architects of post-Soviet integration are still
searching for a conceptual definition for its aims and methods.
It appears that the Moscow summit of the CIS heads, planned for
March 19, will not finish this work, but will become another
stage on the way to yet another "moment of truth," the
international conference on the reform of the CIS. 
The idea of the presidents of Russia and Ukraine was
supported at yesterday's session of the Council of Foreign
Ministers of the CIS States, where Yevgeny Primakov said the
conference should be held by mid-April at the latest. This
functions will remind experts on European integration of
drawn-out and painful intergovernmental conferences on the reform
of the EU institutions. 
Everybody agrees that the foundations of the CIS integration
should be reviewed. It has been accepted at the highest level
that the CIS structures and legal basis are ineffective. This
hinders the implementation of practical initiatives on combating
crime and illegal migration, and on creating a common agrarian
market. These issues are discussed at the level of foreign
ministers and heads of government. 
Primakov believes that there is nascent "consensus on ways
to renew and develop the Commonwealth." In particular, all
participants recognise "the unconditional and sovereign right of
each CIS state to its own development model and independence in
foreign affairs, both political and economic ones." This
recognition is a major symbolic gesture of Moscow, without which
any integration projects would be doomed to failure. 
However, its CIS partners are not satisfied. They fear most
of all the creation of "supranational structures) within the CIS
framework. Trying to preclude this, the Georgian delegation plans
to suggest quite a few amendments to the draft documents at
tomorrow's session, said Minister Niko Lekishvili, Georgia. 
In particular, Tbilisi has doubts about the idea of a
committee on conflict situations. This Russian idea was rejected
at the Chisinau summit, and may be blackballed at this session,
too. Ukraine has announced that it would not sign this document
or the programme of military cooperation. 
Georgia has reasons to be alarmed by the creation of a
special agency on regional conflicts. During the Moscow summit,
Georgia will again raise the question of the fulfilment of
decisions on Abkhazia. After the attempt on President
Shevardnadze, Tbilisi again demanded that the Russian troops be
pulled out of Abkhazia. 
Russia's Defence Minister Igor Sergeyev hinted that this
might happen, but the Georgian Foreign Ministry believes this
would be premature. The Georgian President will attend the Moscow
summit, although he was recommended otherwise. In their turn, the
Abkhazian authorities stated that they would not honour decisions
made in the CIS framework without their participation. 
Meanwhile, major changes took place in the CIS "intensive
care" team. Vice-Premier Ivan Rybkin has been made responsible
for this project in the Russian Government. Yesterday he met with
Ivan Korotchenya, CIS Executive Secretary, and Anatoly Adamishin,
Minister of CIS Cooperation. 
The Kremlin describes the forthcoming summit as "the first
test" for the new vice-premier. Presidential press secretary
Sergei Yastrzhembsky believes that "all talents and skills of
Ivan Rybkin will come in handy." CIS representatives have a
positive attitude to Rybkin, too. But even the benevolent Rybkin
will not recover the trust of the former "junior brothers"
without radical changes in Moscow's policy. 

*******

#18
LARGER VOLUMES OF US INVESTMENTS IN RUSSIAN ECONOMY TO BE 
DISCUSSED DURING REGULAR SESSION OF THE 
CHERNOMYRDIN-GORE COMMISSION ON MARCH 10-12

MOSCOW, MARCH 6 (RIA NOVOSTI's correspondent Alexander
Ivashchenko) - The issues of the increase of US investments in
the Russian economy will be discussed on March 10-12 during the
regular session of the Russian-US inter-government commission
for trade and economic, scientific and technological commission
(Chernomyrdin-Gore commission). 
As RIA Novosti has been told at the department for the
regulation of foreign economic ties of the Russian Ministry for
Foreign Economic Relations, US investments at present exceed $5
billion. The share of the USA in the general volume of
accumulated foreign capital investments constitutes 24 per cent;
the US share in direct investments constitutes 41.3 per cent. 
According to estimates of the Ministry for Foreign Economic
Relations, US companies hold the leading positions by the
aggregate volume of investments in Russia, outpacing companies
from Great Britain, Germany and Japan. At the same time,
according to estimates available in the USA, the volume of US
investments does not correspond to the Russian market capacity
and could be increased several dozen times over. 
About 60 per cent of US investments are channeled to the
Russian fuel and energy complex which attracts US operators most
of all. In particular, under development are two large Sakhalin
projects with the participation of the companies Marathon, Exxon
and Mcdermott carried out under production-sharing terms. 
The companies Chevron, Mobil, Amoco and Orix take part in
the Caspian pipeline consortium. At present talks are being held
on the preparation of new agreements to develop oil deposits. 
US investors display interest in the Russian automobile
industry. Under development are also joint projects in such
sectors as the aerospace industry, machine-building, chemicals, 
the production of medical equipment and medicines,
agri-business, telecommunications, the conversion of military
production, etc. 
The financing of the cooperation projects is shared by some
government organisations from the USA, basically, the
Export-Import Bank, the corporation of overseas private
investments engaged in the insurance of capital investments, and
the Agency for Trade and Development which finances feasibility
studies of joint projects. 

********