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CDI Russia Weekly
         Issue #121 September 29, 2000

Edited by David Johnson
The CDI Russia Weekly is a weekly e-mail newsletter that carries news and analysis on all aspects of today's Russia, including political, economic, social, military, and foreign policy issues. With funding from the Carnegie Corporation of New York, CDI Russia Weekly is a project of the Washington-based Center for Defense Information (CDI), a nonprofit research and education organization. To receive a free subscription, e-mail David Johnson at djohnson@cdi.org
 
Contents
CDI Russia Weekly-#121
29 September 2000
Edited by David Johnson
Center for Defense Information
1779 Massachusetts Ave. NW
Washington DC 20036
phone: 202-332-0600; fax:202-462-4559
djohnson@cdi.org

The CDI Russia Weekly is an e-mail newsletter that carries news and
analysis on all aspects of today's Russia, including political, 
economic, social, military, and foreign policy issues. With funding 
from the Carnegie Corporation of New York, CDI Russia Weekly is a 
project of the Washington-based Center for Defense Information (CDI), 
a nonprofit research and education organization. 
CDI Russia Weekly web page (with archive): http://www.cdi.org/russia/
Visit CDI's web site: http://www.cdi.org

Contents: 
1. NOW AVAILABLE! CDI's Issue Brief "National Missile Defense: What Does It All Mean?"
2. Moscow Times: Simon Saradzhyanm, Lopsided Army Cuts Show Kremlin Fears.
3. Jamestown Foundation Monitor: MOSCOW STRUGGLES WITH DECISIONS OVER LOST SUBMARINE KURSK
4. gazeta.ru: Nuclear Materials Controls To Be Tightened.
5. RFE/RL: Paul Goble, Fighting Corruption.
6. Washington Times: Amos Perlmutter, Policies steering Russia to corruption.
7. The Globe and Mail (Canada): Geoffrey York, Bolshoi dancers revolt over firing of leaders.
8. World Socialist Web Site: Vladimir Volkov, The battle for control of state television. Russian President Putin tries to break Berezovsky's grip.
9. BBC MONITORING: RUSSIAN BALKANS EXPERT ON POST-ELECTION SITUATION IN YUGOSLAVIA.

******

#1
From the Center for Defense Information Washington DC
NOW AVAILABLE! CDI's Issue Brief "National Missile Defense: What Does It
All Mean?"

As the debate in the United States on the planned deployment of the
national missile defense (NMD) system heats up, the Center for Defense
Information (CDI) has released a timely Issue Brief, "National Missile
Defense: What Does It All Mean?" on this important national security issue.

The Issue Brief is designed to offer unbiased, in-depth, and up-to-date
information on all aspects of the NMD debate to citizens, educators and
decision-makers nationwide. Missile defense has gained additional
prominence as one of the most divisive and defining issues in this year's
presidential campaign. The 56 page document includes the following:

"The Impact of National Missile Defense on Strategic Relations with Russia" 
By Dr. Bruce G. Blair, President of CDI and the author of "The Logic of
Accidental Nuclear War."

"Why Should You/We Care?"
By Rear Admiral Eugene J. Carroll, Jr., USN (Ret.), Vice-President of CDI,
and former Assistant Deputy Chief of Naval Operations for Plans, Policy
and Operations.

"Technical Feasibility, Threat Justification, and Program History and
Chronology"
By Colonel Daniel Smith, USA (Ret.),CDI Chief of Research, and a former
Defense Intelligence Agency official and a Military Attaché in London.

"Current and Past Cost Estimates"
By Christopher Hellman, CDI Senior Analyst, former Congressional aide.

"NMD and Asia: Views from China, India, Pakistan, Japan, North and South
Korea"
By Dr. Nicholas Berry, CDI Senior Analyst, and the co-author of "IR: The
New World of International Relations."

"Europe and NMD: Views from the European Continent and the Role of Europe
in NMD Architecture"
By Tomas Valasek, CDI Senior Analyst, former journalist on European
security issues.

In addition to the print version, CDI is preparing a web site with further
information on the National Missile Defense program. Each section in the
print version will be updated on the web, on an as-needed basis, to keep
the document current.

Readers of the Issue Brief will further benefit from access to the latest
CDI documentary on missile defense, "Star Wars: New Hope or Phantom
Menace?" This thirty-minute film contains interviews and testimonies by
the nation's foremost experts on missile defense. A transcript of the film
is available on the Web. www.cdi.org 

TO ORDER...
Please send a check for $5 to the Center for Defense Information,
1779 Massachusetts Avenue NW, Suite 615, Washington, DC 20036. Please
write "Issue Brief" on the check. For more information, please e-mail
Tomas Valasek at tvalasek@cdi.org

******

#2
Moscow Times
September 29, 2000 
Lopsided Army Cuts Show Kremlin Fears 
By Simon Saradzhyan
Staff Writer

The Kremlin's plan to drastically downsize the 1.2 million-strong army while 
keeping the number of troops with other defense agencies largely intact 
indictates that, like his predecessor, President Vladimir Putin is more 
concerned about maintaining control of the country than any external threats. 

The plan, which Putin's Security Council is set to endorse within the next 
two months, calls for the Defense Ministry's armed forces to be cut to 
850,000 by 2004. 

Other agencies such as the Interior Ministry and Federal Border Service will 
fire a total of only 50,000 to 60,000 servicemen. 

"The planned reforms show the Kremlin is more concerned about its control of 
the regions, instability inside the country," said Alexander Vetsko, defense 
analyst at the Moscow Carnegie Center. 

Army personnel will be slashed from the present total of some 400,000 to a 
mere 220,000, according to the plan. The navy and air force are set to lose 
50,000 and 40,000 servicemen, respectively, according to news reports. 

In comparison, the Interior Ministry will see its troops cut from about 
200,000 to 180,000. 

The railway troops will lose 10,000 servicemen and the Federal Border Service 
will be downsized by 5,000 guards. 

The very possibility that the Interior Ministry's forces and the army will be 
roughly equal in size proves how ill-thoughtout the pending reforms are, said 
Konstantin Makiyenko, a defense analyst at the Center for the Analysis of 
Strategies and Technologies. 

Like his predecessor Boris Yeltsin, Putin continues to cherish the Interior 
Ministry, and its troops have proved to be "good only at tackling unarmed 
civilians," Makienko said. 

Charles Dick, head of the Conflict Studies Center at Britain's Sandhurst 
Military Academy, said that cuts in the army "would have made sense" if the 
interior troops were combat ready. But they are not. 

Observers agree that inner threats, such as separatism in the North Caucasus, 
are more imminent than the possibility of foreign aggression. 

But they note that the interior troops cannot cope even with lightly armed 
Chechen rebels. 

Units from the Defense Ministry have borne the brunt of fighting in Chechnya, 
while interior troops have mostly been used for mopping up afterward. 

That sentiment raises questions about whether cutting the armed forces alone 
is the best way to go about army reforms. 

Dick said it would have been more expedient to merge the interior troops and 
army into one force, but the Kremlin won't do that because it is afraid that 
such a force could be used by political opposition to topple the government. 

The Security Council met to discuss the military reforms Wednesday, but the 
president decided to postpone formal endorsement of the plan. He did 
reiterate, however, his determination to downsize the Defense Ministry and 
the other defense agencies that jointly consume about one-third of the 
federal budget. 

"We spend colossal resources on the military, and we allow the military 
budget to be wasted on peripheral issues that have nothing in common with 
either the army's combat readiness nor with its direct supplies," Putin told 
the council. 

Indeed, the Defense Ministry shells out about 80 percent of its budget just 
to maintain the size of its forces. Such a hefty price tag leaves only 
pennies to spend on new arms and combat training. 

Reforming the armed forces by merely slashing its size will not make the 
remaining units more combat ready. Although such cuts are a significant step 
forward, they will need to be followed by other reforms such as transitioning 
the forces from a drafted into a professional army and putting more money 
into training and weapons. 

*******

#3
Jamestown Foundation Monitor
September 28, 2000

MOSCOW STRUGGLES WITH DECISIONS OVER LOST SUBMARINE KURSK. More than a 
month after the tragedy in the Barents Sea which left 118 Russian 
submariners dead, confusion continues to plague government efforts to reach 
decisions on whether and how to mount separate operations aimed at 
recovering bodies and raising the vessel itself. The government's 
indecision has been highlighted anew over the past several days, with the 
signing of a contract to mount the operation for recovering the bodies with 
one Norwegian firm being postponed only to be followed in short order by 
the approval of another contract--but this time apparently with an entirely 
different Norwegian company (AP, APN, September 27). The hasty change can 
only raise new questions about both the competency of the government 
commission overseeing the Kursk recovery efforts and the preparedness of 
the Russian-Norwegian diving team which will ultimately descend to the 
sunken submarine. The move to push ahead with recovering the bodies comes, 
moreover, amid increasing pressure in Russia to cancel the recovery mission 
altogether. Under such conditions there may yet be new twists and turns in 
the Kremlin's approach to dealing with the Kursk.

There have been a fair number of twists and turns already. On September 22 
the St. Petersburg-based Rubin maritime technological design bureau, which 
built the Kursk and is overseeing the recovery operations, was to have 
signed a contract to recover the bodies with Stolt Offshore. That is the 
Norwegian firm whose divers took part in the original rescue mission to the 
Kursk. But negotiations with Stolt faltered at the last minute, and there 
were reports that Moscow had again put the contract out for bid to other 
foreign firms. Then, on September 26, Russian agencies reported that the 
government commission investigating the Kursk disaster, which is chaired by 
Deputy Prime Minister Ilya Klebanov, had in fact reached a decision to 
authorize an agreement on the recovery of the bodies with a Norwegian firm. 
Suddenly, however, it was not clear either when the contract would be 
finalized or whether it would go to Stolt (The Norway Post, September 19; 
Itar-Tass, Russian Public TV, AP, September 22; Russian agencies, AFP, 
September 26).

According to reports published last week, the sticking point between the 
Rubin plant and Stolt Offshore was the cost of the operation. According to 
one report, Moscow was offering US$5-7 million for the operation to recover 
the bodies, while Stolt was insisting on considerably more (possibly as 
much as US$20-25 million) (Reuters, September 24).

Russian hesitations, however, seemed possibly to have been the result of 
factors other than a concern over pricing. Over the past two weeks there 

have been indications that political pressure on the Russian government to 
mount the body recovery operation is weakening. In the immediate aftermath 
of the Kursk tragedy, and amid the government's gross mishandling of the 
accident, families of the lost sailors pressed hard for a quick recovery of 
the bodies. That pressure led Putin to pledge that the government would 
launch a recovery mission. Putin backed that decision up on September 19, 
when he reportedly gave official approval for the mission to go forward 
UPI, September 19; Vremya MN, September 20).

Even at that time, however, family members of the lost sailors were said to 
be looking anew at the considerable risks involved in the mission, and were 
coming around to accept the view that the sailors might be best left 
onboard the sunken Kursk. That view was corroborated more concretely 
yesterday, when it was reported that some eighty relatives of Kursk crewmen 
had addressed a letter to the Kremlin and top government officials. It 
urged the government not to mount the recovery mission this fall. Reports 
suggested that those favoring this view were growing increasingly concerned 
that a rescue effort mounted so late in the year could wind up being the 
cause of new fatalities at sea (AP, Reuters, September 20; Segodnya, 
September 21; Russian agencies, September 27).

Similar concerns have also been expressed by several leading naval 
officers, including current Northern Fleet commander Vyacheslav Popov and 
former Black Sea Fleet commander Eduard Baltin. They and others have argued 
that, in tragedies of this sort, it is traditional and honorable for the 
navy to leave those lost buried at sea. They have also pointed out the sad 
but undeniable fact that it will be virtually impossible in any case to 
recover all of the bodies on the Kursk--Baltin suggested at most twenty to 
thirty might be recovered--and that the rescue operation would only bring 
more pain to the sailors' families and to Russian society. Those critical 
of the recovery mission have also pointed out that the operation 
involved--which would include cutting holes into the Kursk's hull in order 
to gain access to its interior--would likely weaken the vessel structurally 
and further complicate any future effort to raise the submarine as a whole. 
Klebanov himself, moreover, appeared earlier to state quite clearly his own 
disinclination to mount a recovery operation. He was quoted on September 13 
as urging the Russian government to "consider the expediency of raising the 
bodies" (NTV, Russia TV, September 15; Segodnya, September 14).

The failure after long negotiations to reach an agreement with Stolt on 
recovering the bodies led to a delay which some thought might in any event 
rule out the likelihood of mounting a recovery operation this year. It was 
pointed out, for example, that training for the Russian divers who are to 
conduct the operation with the Norwegian team was to have begun on 
September 16 and is now behind schedule. Underwater operations in the 
Barents Sea will only become more difficult and risky as the weeks pass, 
and it was unclear how deep into November the Norwegians might be willing 
to go before insisting on putting off the operation until next year 
(Segodnya, September 20). But those considerations seem no longer to be on 
the Russian government's mind. In an appearance before the Russian 
Federation Council yesterday, Klebanov assured lawmakers that retrieval 
work would begin before October 10 and would be completed by the end of the 
month. He appeared also to suggest that the Russian divers would be 
carrying out an even greater portion of the recovery operation than had 
earlier been indicated (AP, Russian agencies, September 27).

In his appearance before the Federation Council, Klebanov had another 
surprise. He told lawmakers that the Rubin facility's plan for next year's 
effort to raise the Kursk submarine has now been rejected in favor of an 
alternative "Russian-Belgian" plan. The latter has the advantages, 
according to Klebanov, of being both technically simpler and cheaper. He 
provided no details (Russian agencies, September 27; Segodnya, September 28).

Klebanov's assurances notwithstanding, it seems likely that next year will 
nevertheless only bring new and equally difficult decisions for the Russian 
government regarding the advisability and feasibility of raising the Kursk 
as a whole. Prior to Klebanov's announcement yesterday, reports had 
suggested that the operation would go forward sometime next summer and that 
the costs would be considerable--more than US$50 million, according to one 
estimate (UPI, September 19). In this debate, however, Klebanov is 
apparently strongly on the side of those who are urging that the Kursk be 
raised. The Russian minister has reportedly argued that this is the only 
way that Moscow can allay fears--expressed most forcefully by environmental 
groups--of a possible radiation leak from the severely damaged vessel. Some 
Russian authorities are thought also to want the opportunity to conduct a 
more thorough investigation into the reasons why the Kursk was lost (BBC, 
September 19). On the other hand, Russia's atomic energy minister, Yevgeny 
Adamov, has argued against trying to raise the vessel. He and some other 
Russian experts contend that the Kursk's reactors shut down automatically 
at the time of the accident, eliminating the threat to the environment. 
"From the point of view of the nuclear reactors, of nuclear safety, 
absolutely nothing justifies raising" the sub, Adamov said on September 12. 
He suggested that trying to raise the Kursk would only increase the chances 
of a radiation leak (AFP, September 12; UPI, September 13).

Answers to some of the many questions unanswered by the government with 
regard to its plans for the Kursk may be provided this weekend, when the 
contract with the still-unnamed Norwegian company is scheduled to be signed 
(AP, September 27). Developments to date, however, generate little 
confidence in the Russian government's ability to make sound decisions or 
to pursue sensible policies in its efforts to deal with the consequences of 
the Kursk disaster. Under such conditions, those watching the Kremlin can 
only hope that its actions do not generate new tragedies in the Barents 

Sea, either through an over-hasty effort to recover the bodies of Kursk 
crewmen, or in conducting the technologically demanding job of trying to 
raise the vessel itself.

*******

#4
gazeta.ru
September 28, 2000
Nuclear Materials Controls To Be Tightened

The Russian cabinet has admitted that state authorities have failed to
exercise sufficient control over nuclear materials and as a consequence,
there have been numerous attempts to steal nuclear materials. Prime
Minister Kasyanov has promised to improve the situation and promised that
consolidated control over the nuclear materials will be established by 2001. 

At Thursday’s cabinet meeting the Russian government ministers discussed
the blueprint for a federal system of registration and control of
fissionable materials. 

According Prime Minister Mikhail Kasyanov, in the Soviet Union a strong and
highly efficient system of consolidated control over nuclear materials
existed and persons who had access to those materials were personally
liable for the safe use of those materials. From 1945 till 1991 there were
only two attempts to steal registered nuclear materials, whereas in
1991-1999, there were twenty-three such attempts. 

An official with the Atomic Ministry Vitaly Nassonov has informed Gazeta.Ru
that at present there is no consolidated system of nuclear materials
registration and therefore, it is very difficult to track the quantity,
deployment and transportation of nuclear materials. 

Currently, control of nuclear materials is the responsibility of several
government agencies and state-controlled organizations: Amongst others
those are the Atomic Ministry, the Defense Ministry, the Ministry of
Emergency Situations, State Atomic Inspectorate (Gosatomnadzor). 

At present, the agencies which deal with fissionable materials use two
methods of regulation: bookkeeping and technical registration. The second
methods provides for registering quantities at all stages of processing and
storing. 

The enterprises that produce and store and distribute nuclear materials
have to present quarterly reports on the amount stored and distribution etc. 

There are 61 enterprises in Russia that store nuclear materials. 14 of
those are beyond the Atomic Ministry’s jurisdiction. According to the
Ministry’s estimations, it is necessary to establish control over
approximately 70 enterprises and organizations that belong to 13 federal
executive power organs. 

The Russian government has since long attempted to create a consolidated
system of control over nuclear materials. This goal was set in 1996. 

The government’s latest initiative stipulates that all data concerning
nuclear materials will be accumulated in the federal nuclear control data
center. 

In order to implement the new measures, special legal acts stipulating the
liability of the persons granted access to nuclear materials need to be
devised and passed. 

According to Kasyanov, the necessary paper work is being completed but the
main obstacle is a poor state of finances. 

Two years ago the concept of the unified system of nuclear control was
elaborated. The concept outlined the jurisdiction of the Atomic Ministry,
State Atomic Inspectorate, Interior Ministry and other agencies, and of the
State Academy of Science. 

However, resulting from dispute with the Atomic Inspectorate, the concept
remained merely a concept. 

Besides, the governmental resolution dated July 10, 1998 did not stipulate
for allotting any financing for the implementation of the concept from the
state budget and therefore, control over nuclear materials was in fact
financed by the enterprises concerned. 

Eventually, in January this year, the state allotted 70 million rubles for
a period of 7 years. However, according to experts’ estimations, 30 times
that amount is required for the measures to be effective. 

Nevertheless, in July 2000 the Atomic Ministry launched a pilot model of
the Federal nuclear control data center into operation. 

At Thursday’s cabinet meeting, the ministers drew up instructions for
agencies in charge of control over nuclear materials, first and foremost
the Atomic Ministry, to speed up the solution of outstanding problems. 

The government also promised to raise additional funding for nuclear
materials control program. 

Mikhail Kotov

******

#5
East: Analysis From Washington -- Fighting Corruption
By Paul Goble

Washington, 27 September 2000 (RFE/RL) -- Corruption in Eastern Europe and 
the post-Soviet states is "reaching new heights and posing new challenges" 
both to the countries of that region and to international institutions which 
seek to help them, according to a World Bank report issued in advance of that 
organization's annual meeting this week in Prague. 

The challenges to the countries of this region are obvious: If they do not 
move quickly and effectively to fight corruption, the 250-page report says, 
the costs to them will be "extremely high" in the form of lower economic 
growth, less foreign investment, and greater domestic cynicism about moves 
toward a free market.

Even worse, the authors of the report say, corruption having become 
institutionalized in these states now hits new companies there far harder 
than it does state-owned enterprises or already privatized enterprises, a 
pattern that strikes at the most dynamic part of the economy and thus casts a 
shadow over the economic future of these states. 

The extent of the problem was signaled earlier this month when Transparency 
International released its annual Corruption Perceptions Index ranking 90 
countries according to surveys of business people and the public in those 
states. Only two of the former communist countries -- Estonia and Slovenia -- 
were in the top third of the ranking as among the least corrupt -- and even 
they were 27th and 28th, respectively. 

Most former communist countries were in the middle third. But some of the 
largest -- including the Russian Federation, Ukraine, Kazakhstan, Uzbekistan, 
Azerbaijan, and Yugoslavia -- were in the bottom third, among the most 
corrupt. Indeed, Russia ranked 81st out of 90, and Yugoslavia was 89th, 
exceeded in corruption only by Nigeria. 

The World Bank report says that even those countries which have launched 
anti-corruption campaigns often have failed to follow through. Or what has 
been still worse, it continues, they have conducted these campaigns for the 
political benefit of one part of the elite rather than for the goal of 
instituting "key structural reforms."

But the challenges that corruption in these countries pose to international 
institutions may be equally great, the report entitled "The Quality of 
Growth" suggests. Over the last decade, the World Bank and many other Western 
institutions and governments have viewed privatization, liberalization, and 
macrostabilization as both a necessary and sufficient means to overcome the 
legacy of the communist past. 

The continuing growth of corruption, the authors of this report argue, 
indicates that these institutions, just like the countries in this region 
themselves, must devote more attention to the development of effective legal 
systems, greater political participation, and the social welfare 
infrastructure that largely collapsed along with the old communist regime. 

And at the same time, these Western countries have seen corruption from the 
post-communist countries spread into their own countries as those who have 
received such illegal gains seek to launder them through Western banks. 

The World Bank report appears to represent a potentially significant shift in 
the way the bank does business with this region. Some critics of the bank 
insist that its loans, made on the basis of the old paradigm of how to 
promote economic change, have only added to the problem. But bank officials, 
including the authors of this report, insist that they have already begun to 
factor in its conclusions as they make decisions about new loans.

To the extent that this document does become a turning point at the World 
Bank, its basic argument would suggest that that international financial 
institution may now invest more in social and political infrastructure, 
helping to build better court systems and other programs as a means to 
promoting economic change.

That would mark a major departure from the bank's past approach. Moreover, 
such recommendations could put it at odds with some of the preferences 
expressed by some of the governments who are its largest shareholders who 
likely will continue to press for money to go to strictly economic projects.

But even if that happens, this report is likely to play an important role in 
sparking a new debate in the West over just what it will take to help the 
formerly communist countries of this region make the transition and thus 
contribute to a better understanding of both the possibilities these 
countries have and the difficulties they and the West continue to face.

******

#6
Washington Times
September 27, 2000
Policies steering Russia to corruption
By Amos Perlmutter
Amos Perlmutter is a professor of political science and sociology at American 
University and editor of the Journal of Strategic Studies.

Rep. Christopher Cox, California Republican and chairman of the House 
Policy Committee, and members of the Speaker's Advisory Group on Russia have 
just published a most devastating report on Russia's road to corruption, in 
which the Clinton-Gore administration is found guilty of failing the Russian 
people and exporting government instead of free enterprise to Russia. They 
strengthened the central government with inappropriate and misunderstood 
policies toward a post-Cold War Russia.
Despite the fact it is a Republican partisan report, all of the 
indictment can be found in the American press and media over the past eight 
years, as the footnotes to the report demonstrate. The report also had the 
benefit of an advisory group that includes Democrats, Republicans, Russian 
and American diplomats, scholars and experts. It is impeccable scholarly and 
policy analysis of the Clinton-Gore foreign policy toward Russia.
The major indictees are Vice President Al Gore, Deputy Secretary of 
State Strobe Talbott, and then Deputy Treasury Secretary Lawrence Summers. 
Under this troika, according to the report, "By focusing on strengthening the 
finances of the Russian government and on transforming state-owned monopolies 
into private monopolies, instead of building the fundamentals of a free 
enterprise system, the Clinton administration ensured that billions in 
Western economic assistance to Russia would amount to mere temporizing."
The main culprit, of course, is President Clinton, who was unwilling to 
involve himself in foreign policy generally, and in critical issues of the 
U.S. policy toward Russia specifically. This administration forfeited a 
monumental historical opportunity to design an American post-Cold War policy 
that could usher Russia into the democratic Western world and into free 
enterprise.
Compare this with Harry Truman, who succeeded in helping design a policy 
that moved Germany from its Nazi ignominiousness into a Western democratic 
society and restored Germany as a part of European and Western civilization.
Mr. Clinton did not have the vision to do for Russia what Truman did for 
Germany. Truman did not leave the German-European Cold War policy to his vice 
president. Truman and his most senior advisers were responsible, as a 
commander-in-chief should be, for dealing with the most significant event 
after the utter defeat of Nazism.
For 50 years we waged a Cold War to bring an end to the Soviet Union. 
When the end came, President Clinton had no historical or intellectual 
understanding of the significance of turning Russia away from central 
government and authoritarianism. He delegated his leadership responsibility 
in this area to the vice president, which meant it actually went to chief 
Russian adviser, Strobe Talbott. "The structure of the policy-making troika 
left the rest of the government either unwilling or unable to critically 
assess the direction of the Clinton administration policy."
The Cox report lists other fundamental flaws of the Clinton 
administration Russian policy: A strong preference for strengthening Russia's 
central government; a close personal association with a few Russian officials 
who were among the main culprits of the corruption, especially with the 
corrupt former Prime Minister of Russia Viktor Chernomyrdin, who amassed more 
than $5 billion during the manipulation of privatization of energy after the 
collapse of the Soviet Union; a narrow focus on the Russian executive branch 
at the expense of the emerging democratic forces outside the Kremlin; "an 
arrogance toward Russia's nascent democratic constituencies that led to 
attempts at democratic ends through decidedly non-democratic means"; and, 
above all, in light of increasing corruption and mounting evidence of the 
failure of their policies, the troika was unwilling to recognize their 
monumental errors and continued to support a failing policy.
Mr. Clinton effectively delegated the management of U.S.-Russian 
relations to Mr. Gore in April 1993 with the establishment of the 
Gore-Chernomyrdin Commission, the function and structure of which "offered a 
perfect blueprint for the eventual failure of the entire Clinton 
administration policy toward Russia. By superseding normal policy-making and 
well-established intra- and intergovernmental channels of communication, the 
Gore-Chernomyrdin Commission would come to impede the information flow to 
decision-makers in Washington . . . distracted Russian government officials 
from what should have been their main focus: constructing the essential 
elements of a free enterprise." The most critical indictment, next to the 
absence of the president, is the report's finding that the Gore-Chernomyrdin 
Commission "contributed to a deliberately uninformed U.S. policy toward 
Russia."
The report faults the administration for failure to establish basic 
legal elements of free enterprise that would have replaced communism and 
could have prevented the conditions that helped organized crime to flourish. 
"Privatization" of government entities in Russia should have taken place 
under an independent legal system, not connected with the Kremlin. Courts, 
business law, the enforcement of property rights, should have been part of a 
system independent of central authority. This would have brought an end to 
the oligarcical economy, and to the corrupt financial moguls that were part 
of the Yeltsin court, which was supported by the troika.
According to the report, President Clinton compared Mr. Yeltsin to 
Abraham Lincoln. What an oxymoron. The administration encouraged disregard 
for the legislative branch of the Yeltsin administration, and thus played a 
part in undermining the growth of pluralistic, democratic government in 
Russia.
In the area of weapons proliferation, the failure of the Clinton 
administration's economic strategy for Russia was found to have a profound 
effect on America's national security interests. The one industry in which 
Russia enjoyed a true comparative advantage in the global market, according 
to the report, "was its military hardware, weaponry, and related technology." 
This critical non-privatized industry became a source for corruption and for 
selling weapons to rogue states like Iran, Iraq, Korea and elsewhere. It 
could have generated hard currency and put hundreds of thousands of 
unemployed Russians back to work. Instead, it became involved in organized 
crime.
The Cox committee's recommendations include: "A stable, secure, 
democratic and prosperous Russia is a vital American interest"; a legal 
foundation for a free enterprise economy. They recommend rethinking the 
economic strategies the Clinton administration adopted. An end must come to 
"unconditional subsidies to the Russian central government." And an end to 
concealing failures in U.S.-Russian relations, which have been "a hallmark of 
U.S.- Russia policy during the 1990s." Stop misleading the American people on 
U.S.-Russia policy. "President Clinton failed to make the reconstruction of 
Russia at the end of the Cold War his priority. . . . The president must 
lead."

******

#7
The Globe and Mail (Canada)
September 28, 2000
Bolshoi dancers revolt over firing of leaders
New management cancels performances,
overhauls plans for ballet's fall season
By GEOFFREY YORK

MOSCOW -- Russia's top ballet dancers have erupted in open revolt against the 
Kremlin, accusing it of wrecking the world-famous Bolshoi Theatre by sacking 
its leaders and cancelling its latest productions.

Dozens of the Bolshoi's leading dancers are supporting a protest against the 
radical shakeup at the 225-year-old ballet and opera theatre, already rocked 
by the firing of its top director last month.

"I've danced at the Bolshoi for 20 years and it's painful for me to see them 
ruining everything that is dear to me," said Alexei Fadeyechev, the ballet's 
director and one of its most popular dancers in recent decades.

"I could easily stay quiet and keep my job. But I'm ready to fight to save 
the name of the Bolshoi. We've had good performances lately, we just had a 
successful foreign tour, and now all of our efforts are being destroyed by 
someone's evil will."

After a decade of turmoil and stagnation at the theatre, Russian President 
Vladimir Putin issued a decree last month sacking the Bolshoi's general 
director.

The director, Vladimir Vasilyev, was replaced by a new management team that 
has cancelled ballet performances and overhauled plans for the theatre's fall 
and winter season. The result, according to the dancers, is a chaotic 
situation of broken contracts and jeopardized foreign tours.

"I can only call it a disaster," Mr. Fadeyechev told a hastily called press 
conference this week. "The Bolshoi has always been called a state within a 
state, but now we have a state of emergency. The consequences are an empty 
repertoire, cancelled tours and the theatre's ruined reputation."

Mr. Fadeyechev has appealed to Russia's top cabinet ministers and 
parliamentary leaders for support in the battle. He said the appeal was 
endorsed by the ballet's trade union and about 100 of its dancers at a 
special meeting last week.

"It is against Russia's national interests to ruin the Bolshoi ballet, which 
is our national pride," he said in an interview. "What else do we have, what 
other achievements do we have in this country now? Rusty missiles? 
Self-exploding submarines?"

Mr. Fadeyechev charged that the Kremlin tried to silence him by preventing 
him from holding his press conference at the Bolshoi or at a state-controlled 
news agency. Instead, he was forced to hold it at the offices of a weekly 
newspaper.

Other dancers have confirmed that the ballet company is demoralized and 
unhappy with the shakeup. Yuliana Malkhassiants, a leading dancer and 17-year 
veteran of the Bolshoi, said the sudden changes at the theatre were "like a 
revolution that destroys everything, down to the ground."

The Bolshoi's new deputy director, Alexander Voroshilo, denied that any tours 
will be cancelled. He said the cancelled performances were a result of the 
"musical taste" of the Bolshoi's new artistic director, Gennady 
Rozhdestvensky, a well-known orchestra conductor who was appointed to the new 
management team this month.

To the astonishment of the dancers, Mr. Rozhdestvensky has now disappeared on 
a six-week foreign tour, although he stayed in Moscow long enough to cancel 
the Bolshoi's scheduled opening-night show and replace it with another opera. 
He said he had to leave the country to fulfill previous contractual 
agreements with orchestras in the West.

"How long will we be managed by people who admit they don't understand what 
they are managing?" Mr. Fadeyechev said.

******

#8
World Socialist Web Site
www.wsws.org
The battle for control of state television
Russian President Putin tries to break Berezovsky's grip
By Vladimir Volkov
28 September 2000

In recent weeks, the battle for control of the most important Russian
television channel ORT has intensified. The Kremlin is trying to strengthen
its own control over this semi-state-owned broadcaster, since it adopted an
extremely critical attitude to the government following the disaster on the
nuclear-powered submarine Kursk.

ORT is the only station that can be received in all 89 regions of Russia,
and therefore has a high propaganda value. It is the direct successor of
the former central Soviet television broadcaster, which was denationalised
in the mid 1990s. Since then the station has been under the control of the
oligarch Boris Berezovsky.

Although the state owns 51 percent of the shares in the station and
Berezovsky only has a relatively small proportion, he has succeeded in
being able to act as spokesman for the entire remaining 49 percent of the
shares, which to a large extent are in private hands.

Up until the spring of this year, Berezovsky did not have any problems
regarding his position in relation to ORT, since as an entrepreneur and a
politician he was close to the Kremlin. ORT played the crucial role last
autumn in provoking anti-Chechen hysteria, which guaranteed victory for the
Kremlin bloc “Unity” in the parliamentary elections of December 1999 and
cleared the way for Putin's victory in the presidential elections in March
2000.

But since then the interests of the Putin government and Berezovsky's have
developed in different directions. Berezovsky was publicly and sharply
critical of the administrative reforms Putin implemented. These foresee the
creation of seven large federal districts and mean the dissolution of the
federation council, which represent the interests of the regional elite.
Berezovsky was also against continuing the war in Chechnya and called for
the conflict to be settled politically as soon as possible.

This summer, Berezovsky undertook a number of demonstrative steps. First he
tried to form a new parliamentary group in the Duma, but failed. Then he
announced the creation of a new political organisation under the name
“Civilisation”. Next he resigned as a deputy from the Duma.

The series of disasters in August—the explosion in the centre of Moscow
that claimed more than ten lives; the sinking of the Kursk and the fire on
Moscow's landmark TV tower—highlighted the Russian government's
incompetence and its indifference regarding the fate of the population, and
supplied Putin's opponents with new arguments.

In the second half of August, one of Berezovsky's most important
“information cudgels”, the political programme of Sergei Dorienko on ORT,
attacked Putin. In response, the Kremlin put pressure on ORT's executive
board, which banned further transmissions of the programme. In addition,
two members of the board were dismissed who were considered Berezovsky
supporters and editorially responsible for the newscasts. It became obvious
that the Kremlin was endeavouring to purge the management of the television
station to defend its own interests.

Berezovsky reacted by issuing an open letter to President Putin, saying
that the logic of his methods were a return to totalitarian rule. At the
end of the letter Berezovsky expressed the intention of entrusting control
of his block of shares to a group of journalists and cultural
representatives, and suggested that the state do the same with its shares.

Berezovsky extended the original list of shareholders, which had contained
only a few names, to over twenty and presented it during a press conference
on September 7.

The people on this list can be divided into three groups: To the first,
(and probably the largest) belong people who are actively connected either
with Berezovsky's media enterprises or are personally close to him. To the
second belong representatives from the field of culture, opponents of any
state interference into business affairs and the media (e.g. the writer
Vassily Aksionov who lives in America). The third group comprises
representatives of Berezovsky's competitors in the media business,
particularly from the “Media Most” holding led by Vladimir Gusinsky.
Berezovsky has taken great pains to make everything look as if he has set
aside his own interests, and in view of the increasing danger of a state
diktat, is exclusively concerned with the creative freedom of the
television station.

His proposal would be carried out legally in the following way: the chosen
people should be combined in a legal entity that will take over the 49
percent belonging to Berezovsky. The transfer should be without cost and
for a period of four years, during which time the ownership of the shares
will be divided equally among the administrators. If the process is
successful, then, once the four years have passed, 20 percent of the shares
would become the private property of the administrators.

It is not hard to see what Berezovsky really hopes to achieve. By
dispersing the shares among a larger group, he hopes to retain his
influence over each one individually and make it more difficult for the
Kremlin to push through its own interests regarding the television channel.
Most of his enterprises work on exactly the same basis. His management
principle has long been known: why buy a whole enterprise, when one can
have the management?

The Kremlin received Berezovsky's initiative with calm, regarding it as a
small tactical victory. Putin commented, one can “only” praise Berezovsky,
and added that it was important the list of shareholders did not contain
“influenced people”.

The Kremlin will keep a whole series of administrative and financial levers
regarding ORT. Additionally, Putin can count on the support of a majority
in the Duma, which is clear from the letters of two large Duma
factions—“Unity” and “OWR.” Also, the chairman of the largest parliamentary
group, Gennady Zyuganov of the Communist Party of the Russian Federation,
supports the Kremlin and suggested placing ORT completely under state control.

Putin has also received further support from ultra-nationalist forces such
as the notorious newspaper Saftra (Tomorrow). In one of their editorials
they accuse the media holdings of Berezovsky and Gusinsky of an
anti-Russian conspiracy. In Putin, Saftra sees a Russian national hero and
looks upon all Putin's opponents as representatives of the “fifth column”,
who operate in the interest of the US and other Western powers.

In fact, despite all this nationalist mythology, it is Putin who is
supported by Western politicians and governments rather than his opponents.
After the submarine disaster it looked as if Putin's international
reputation had been seriously shaken. But the West does not see any
alternative to Putin at the present moment.

One the manifestations of the West's confidence in relation to the Russian
side was the transmission of data about the submarine disaster by the
American military. All the documents came into the hands of Sergei Ivanov,
chairman of the Security Council and one of the closest people to Putin.
Undoubtedly, it will now become even more difficult to find out the details
of the course of events that led to the misfortune in the Barents Sea.

After the announcement that he will give up his block of shares, Berezovsky
is trying to present himself as someone who is concerned about the fate of
democracy and freedom of opinion. “This step”, he explained, “is one of the
first steps in the construction of a civil society.” The Kremlin apologists
are trying, for their part, to present this conflict as a fight against the
oligarchs and corruption.

The events of the last years have exposed the arguments of both sides as
grotesque and inexcusable lies. It does not need repeating here, what a
crucial role Berezovsky and his media enterprises played in arguing for the
strong state and the “dictatorship of the law”. All that has become an
integral part of today's Kremlin policy. As far as Putin is concerned, he
is and remains nothing other than a creature of the “Oligarchs”, who
represent the interests of big capital.

All sides are only concerned with bringing the country's most important
mass media under their complete control. The rest is hypocrisy and fraud.

******

#9
BBC MONITORING
RUSSIAN BALKANS EXPERT ON POST-ELECTION SITUATION IN YUGOSLAVIA
Source: Russia TV, Moscow, in Russian 1630 gmt 27 Sep 00 

Interviewed in Russia TV's "Details" programme on 27th September, Russian
Balkans expert Vladimir Volkov said the situation in Yugoslavia after the
elections is new and very alarming. Morally, the Milosevic regime is
suffering defeat, but the constitution requires a second round to be held.
However, Vojislav Kostunica is backed and funded by Western leaders and
NATO's aggression against Yugoslavia in 1998 is now repeating itself. It is
true however that Milosevic is on a losing streak and that logic suggests a
change of political leaders. But the West should not foster any illusions
about Kostunica being an obedient toy, given the existence of the Serb
ethnic question. Following are excerpts of the interview. Subheadings have
been inserted editorially. 

[Presenter Sergey Pashkov] The "Details" programme is on the air. Hullo! 

It looks as if the political map of Central Europe is changing again. It
looks as if Milosevic is on the way out: eight per cent is a wide gap and
perhaps, a second tour, an extra two weeks, would be needed by Slobodan
Milosevic in order to come to agreement both with the opposition and
perhaps with the West, to exchange his personal security and the security
of his comrades-in-arms for a peaceful handover of power, perhaps, at
worst. At best, Slobodan Milosevic can lay claim to a fairly high post
inside Yugoslavia: he has a very large party and he has a very large
faction in parliament. What will happen? What will happen in Europe? What
implications does this hold for Russia? We will be talking about this today
with Professor Vladimir Konstantinovich Volkov, director of the Institute
of Slavistics and Balkan Studies, doctor of history... 

Situation is new and very alarming 

[Q] Let's get to the point straight away: the situation in the Balkans, the
situation in Belgrade, is this at last the long-awaited stability and peace
or is it the forerunner of a new civil war? 

[A] Unfortunately, it does not seem to me that this draws a final line.
This is rather a new and a very alarming interim stage. We are now seeing a
totally unique situation and, evidently, it is necessary to separate the
situation, which has arisen in Yugoslavia itself, from the situation we are
observing now in the international arena. 

Morally, the Milosevic regime is suffering defeat 

[Q] Let's first talk about the situation which has arisen in Yugoslavia
itself. Do you agree with the thesis that the Milosevic regime is declining
in importance: Milosevic, as a politician, has ceased his existence? 

[A] I agree with your remark that eight per cent is a very large gap and
the recognition of this fact by the Central Electoral Commission is in
itself already a very serious phenomenon. We can say that, morally
speaking, the Milosevic regime is suffering defeat. But the sphere of moral
assessments is one thing, another matter is that we are dealing with a
specific constitutional situation. Under the Yugoslav constitution and in
accordance with all electoral regulations, the winner is he who gets over
50 per cent of the vote... 

[Q] Is 50 per cent of the vote also needed in the second round? Or is an
ordinary majority enough? 

[A] An ordinary majority is needed there. But inasmuch as there are [only]
two candidates and there will not be any dissipation of votes, the winner
will be perfectly evident. 

Kostunica backed and funded by Western leaders 

But here we have come up against a totally unique situation when literally
the same evening when balloting had ended, the Democratic Opposition of
Serbia, whose leader and candidate is Vojislav Kostunica, declared itself
the winner. That is not something which has occurred in any other state.
Nowhere else have we come up against such a situation. 

[Q] But unique is that this position was backed there and then by Western
leaders: both the prime minister of Great Britain and the president of the
United States said that they are absolutely certain that such statements by
the Serb opposition are well-founded. 

[A] There we move to the other aspect of these elections, namely the
international situation in which they are taking place. Please pay
attention to the following matters. Literally a week or even more prior to
the elections, the mass media in the West, and not only they, but officials
as well, started saying that they would not allow Milosevic, as they put
it, "steal victory". That is to say, he was accused beforehand of a
premeditated attempt to rig the elections. They were saying that under no
circumstances would they allow him to walk off with this victory, they
predicted Kostunica's victory. That is the first thing. 

Secondly, we know that officially - and that is also an absolutely new fact
- large funds were handed over to the opposition, which this opposition is
using to operate. I am not at all against this political struggle and it
seems to me that both the Democratic Opposition of Serbia and Kostunica are
very worthy leaders, but when such a - well - public struggle is unfolding
around these elections, such a whipping up of passions from outside, this
is blatant interference in Serbia's internal affairs. 

NATO's aggression in 1998 is repeating itself 

[Q] But as regards Serbia and the Balkans, this is not exactly new: There
has been both the bombing of Belgrade, military pressure, real pressure on
the Milosevic regime on the part of the NATO countries - this is already as
it were an event of the most recent history: political pressure and
military pressure. What does this mean for us? Does this mean that if
Kostunica wins, that if the West is now investing financially, backing the
victorious Serb opposition, Russia will have no place left in the Balkans? 

[A] You have touched on an entire set of problems. Let's try sorting them
out a bit... Now we are seeing a repetition of this [1998] situation and I
am getting the impression that NATO simply wants to take revenge for the
thwarting of its preliminary scenario over a year ago. And we can now see
that a very unconcealed and very powerful news-and-psychological,
propaganda war is being waged against Yugoslavia. An economic war -
sanctions - is being waged against it. But, at the same time we can also
see and are observing that the ships of the 6th American Fleet in the
Mediterranean have been put on combat alert, the troops stationed in Kosovo
have been placed in a state of increased combat readiness, and in Croatia,
Yugoslavia's neighbour, military manoeuvres are taking place, that is to
say, evident sabre-rattling is in progress. How do you assess this situation? 

[Q] Well, one can interpret it two ways. On the one hand, one can say that
this is pressure on Yugoslavia, on the other hand, one can say that this is
pressure on the Milosevic regime. After all, objectively this entire
situation is being supported by Kostunica: we have outlined this topic. 

Milosevic on a losing streak -logic suggests change of political leaders 

Let's talk about Russia now. I would like to know what will happen to our
policy in the Balkans? 

[A] Russia has been placed in a very difficult position in this situation.
First of all, I would like to stress that Russia has long-standing,
friendly relations with Serbia and we regard Serbs and Serbia as a state
which is very close to us, but this does not mean that Russia should
support the Milosevic regime. Unfortunately, the situation has turned out
in such a way now that Milosevic is losing one round after another, both in
the international arena and in domestic politics. Naturally, the logic
itself of the unfolding of events prompts the need for a change of
political leaders. That is one issue. 

Kostunica will not be obedient toy in the hands of the West 

[Q] But will we be able to come to an agreement with the new political
leader, will we be able to come to an agreement with the Democratic
Opposition of Serbia or will they already be staunch and stable allies of
the West? 

[A] That is difficult to say. It seems to me that if the West fosters great
illusions about, say, Serbia's new leader - let's assume this will be
Kostunica - being an absolutely obedient toy in the hands of the Western
powers, that is an illusion. It is an illusion because, it seems to me,
many analysts in the West do not realize, it would seem, a simple truth: as
a result of the ethno-civilian conflicts in the former Yugoslavia a new and
very dangerous question has arisen: the Serb ethnic question: Serbs, as a
nation, have found themselves dismembered. The territory on which the Serb
population has lived for centuries has found itself cut off: the Serb
Krajina in Croatia, the territory of Bosnia-Hercegovina, the territory of
Kosovo which was the heart of the medieval Serbian state. As a result of
the collapse of the old Yugoslavia, the Serb people has found itself
dismembered, divided and all the gains it received through two Balkans wars
and two world wars have been cancelled. 

[Q] Moreover, I believe that the issue of the future of Montenegro also
arises now . I believe that Montenegro's president, [Milo] Djukanovic, will
raise the matter of Montenegro leaving the federal Yugoslavia and thus the
existence of Yugoslavia as such can be can called into question. 

Albanian national question also rears its head 

There is also the Albanian question, the question of Macedonia's Albanians.
That is to say, the apparently explosive situation there is not very
reassuring. 

[A] Here we have touched one more problem which is interconnected with
other questions existing in the Balkans. Apart from the Serb national
question which has arisen as a result of the ethno-civilian conflicts in
Yugoslavia, the Albanian national question also exists objectively. The
Albanians, as a nation, have found themselves historically divided among
various states... Therefore this question is very complicated. We cannot
say that peace could come the Balkans even as a result of this question
being resolved. 

Stability in Balkans is in the West's interests 

[Q] Thank you, Vladimir Konstantinovich. The question is whether the West
will be able, whether the West will try - by investing substantial funds in
Serbia, in Yugoslavia - avoiding new bloody conflicts. At any rate, it is
evident, that it is in the interests, of Western leaders, including Bill
Clinton, who has elections coming up and a chance for [Albert] Gore to win
in the elections, to achieve some stability in the region. 

The question about what Russian diplomacy will do in the Balkans
henceforth, remains open. 

You have listened to the "Details" programme. All the best! 

*****

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