CDI Russia Weekly

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Edited by David Johnson
ISSUE #66 September 17, 1999


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.


Contents


  1. Christian Science Monitor: Fred Weirk, Continuing blasts in Russia put heat on Yeltsin.
  2. Jamestown Foundation Monitor: VOLOSHIN DENOUNCES "SLANDER" BY AMERICAN PRESS.
  3. Itar-Tass: Seleznev: START II Ratification Not On Duma Agenda.
  4. Summary of Secretary of State Albright's speech at the Carnegie Endowment.
  5. Itar-Tass: Russia Refutes Holding Nuclear Tests on Novaya Zemlya.
  6. RFE/RL: Sophie Lambroschini, Russia: Complexities Make State Of Emergency Almost Impossible.
  7. Interfax: ALLOCATIONS TO DEFENSE ORDER WILL INCREASE 1.5 TIMES IN 2000 - DEPUTY PM.
  8. Interfax: U.S. TO ALLOCATE $2.7 BILLION FOR ELIMINATING ITS OWN, RUSSIAN NUCLEAR WEAPONS.
  9. Itar-Tass: Russia Lacks Money to Eliminate Chemical Weapons.
  10. Rossiyskaya Gazeta: Nikolay Paklin, The World Rebuffs Terrorism. What About Russia?
  11. Moscow Times: Andrei Piontkovsky, Bombs Offer Russia Slice of Chechen Life.
  12. House Banking Committee: Leach Announces Hearings on Russian Money Laundering.
  13. RFE/RL: Western Press Review: Terrorism In Russia.]

#1
Christian Science Monitor
17 September 1999
Continuing blasts in Russia put heat on Yeltsin
After yesterday's bomb, politicians are calling on the president to resign. 
By Fred Weir, Special to The Christian Science Monitor


President Boris Yeltsin appears to be in the hot seat after another suspected 
terrorist bomb went off in Russia yesterday. 


Five blasts have rocked the country in the past month, killing nearly 300 
people. Some leaders have blamed Chechen rebels for the attacks, although 
they have denied responsibility. 


With fear mushrooming that more violence could come, people are holding Mr. 
Yeltsin personally accountable for the security problems. And leading Russian 
politicians are calling on him to resign. 


"Everyone can see that the main threat to Russia today is the president," 
says Sergei Metrokhin, a deputy with the liberal Yabloko Party in the Duma, 
the lower house of Russia's parliament. 


"He is to blame for initiating the war against Chechnya [which took place 
from 1994 to 1996] ... and for all the security blunders that have happened 
since. Our security system is clearly not working." 


Russian newspapers have been full of speculation for days that Yeltsin may 
soon quit to clear the way for fresh presidential elections. 


According to Russia's Constitution, if the president resigns the prime 
minister takes his place for three months, and then new polls must be held. 


Last month Yeltsin appointed Vladimir Putin, head of the former KGB internal 
security service, prime minister and anointed him as his successor. 


If Yeltsin resigned soon, that would force new presidential polls in 
December, the same time elections for the Duma and the Moscow mayor's post 
are to be held. 


The supposed advantage for the Kremlin inner circle is that their main 
rivals, former Prime Minister Yevgeny Primakov and Moscow Mayor Yury Luzhkov, 
would be tied up with the other elections at that time. 


"Luzhkov is enemy No. 1 for the Kremlin, and he would not want to risk losing 
his mayor's job by running for president in December," says Andrei 
Piontkovsky, director of the independent Center for Strategic Studies. 
"Primakov is heading the Fatherland coalition in parliamentary elections." 


Mr. Putin, meanwhile, would be the incumbent for three months, meaning he 
would be able to muster the state's resources behind him and control the 
political agenda. The Kremlin's parliamentary envoy, Alexander Kotenkov, 
denied the rumors. "I don't see any possibility for the president to resign 
ahead of schedule," the official ITAR-Tass news agency quoted him as saying. 


Short of resigning himself, analysts say Yeltsin could resort to his favorite 
tactic of displacing responsibility - by firing Putin. Yeltsin met with the 
prime minister yesterday to demand that security countermeasures be stepped 
up. 


"Putin's head is clearly on the block," says Mr. Metrokhin, the Duma deputy. 
"If he fails to solve this problem, he can be sacked as a scapegoat. But if 
he takes control of the situation and acts firmly, he will probably be fired 
anyway." 


In any case, there seems little doubt that the wave of bombings has put 
enormous pressure on the Kremlin to delivery swiftly on its pledges to ensure 
that Russians can sleep safely in their beds once again. 


Tens of thousands of Interior Ministry troops have been brought into control 
in Moscow, and the government has promised special security measures across 
the country. Extensive precautions have been taken at strategic points such 
as nuclear power stations, airports, and subway stations. 


On Wednesday, a man with a thick Caucasian accent phoned Tass to take 
responsibility for the explosions on behalf of the Dagestani Liberation Army. 
He promised there would be more. Yesterday's early-morning bomb blew away the 
front section of a nine-story apartment building in the city of Volgodonsk, 
600 miles south of Moscow.
Back to the top

#2
Jamestown Foundation Monitor
16 September 1999


VOLOSHIN DENOUNCES "SLANDER" BY AMERICAN PRESS. Kremlin administration
chief Aleksandr Voloshin has reportedly warned major American media to put
an end to "the anti-Russian campaign of slander." Voloshin, in a letter
sent to The New York Times, The Wall Street Journal, USA Today and
Newsweek, reportedly said that the administration of President Boris
Yeltsin is ready to use "the entire force of international law" to end the
alleged slander campaign, which he said was connected with "a certain
invented financial scandal." Voloshin also called the "malicious
accusations" of corruption aimed at Yeltsin "exclusively political in
character" and said that attempts to link the Russian president with the
"so-called financial scandal" were "an act of political provocation." He
warned the U.S. publications "to thoroughly weigh the possible
consequences" of their involvement in "an unprecedented campaign aiming to
discredit Russia and its president" (Itar-Tass, September 14).


While Voloshin's wrath, at least in this letter, was directed at the
American press, some of the most relentless reporting on Russian
corruption, including charges aimed at Yeltsin himself, has appeared in
Western European publications like Italy's Corriere della Serra. And
France's Paris Match got into the act last week, reporting that the tycoon
Boris Berezovsky and Tatyana Dyachenko, Yeltsin's daughter and adviser,
visited a castle in Bavaria this past spring, which was subsequently bought
by "Russian purchasers" for US$20 million. The magazine reported that the
purchaser was in fact Roman Abramovich, the head of the Sibneft oil company
and a member of the Kremlin inner circle, through a company located in
Liechtenstein (Paris Match, September 9).


Despite the Kremlin's "attack the messenger" strategy, the media--including
some in Russia--show no sign of backing off. A new wrinkle in the Kremlin
corruption scandal appeared yesterday, that the vice president of Mercata
Trading, the general contractor for reconstructing the Kremlin and an
affiliate of the Swiss construction firm Mabetex, is Anatoly Siletsky, the
son-in-law of Pavel Borodin, head of the Kremlin's property department. The
same account suggested that the president of Mercata Trading, Viktor
Stolpovskikh, was an adviser to former Prime Minister Viktor Chernomyrdin
(Vedmomosti, September 15). Stolpovskikh reportedly remains on the
executive council of Our Home Is Russia, the political movement founded by
Chernomyrdin (Moskovsky komsomolets, September 14).


The contracts for refurbishing the Kremlin were worth hundreds of millions
of dollars, and Swiss investigators are investigating whether Mabetex gave
kickbacks to top Russian officials, including Borodin. According to one of
the main witnesses in that investigation, Filip Turover, once an adviser to
Switzerland's Banca del Gottardo, which serviced Mabetex's accounts, the
bank held a "gigantic" number of accounts of top Russian officials--many
more than the fifty-nine accounts mentioned in various press reports.
Turover said that while working for Banca del Gottardo, he had heard some
of the names of some of these account holders: Chernomyrdin, former Kremlin
administration chief Valentin Yumashev, former privatization chief Maxim
Boiko and former Deputy Finance Minister Andrei Vavilov. Turover also gave
details of credit cards he said were opened in the Banca del Gottardo in
1993 for Yeltsin and members of his family (Moskovsky komsomolets,
September 14).


Russian media friendly to the Kremlin have portrayed Turover as an ally of
Yuri Skuratov, Russia's suspended prosecutor general, and noted that he has
been investigated by Russian law enforcement.
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#3
Seleznev: START II Ratification Not On Duma Agenda  


MOSCOW, September 15 (Itar-Tass) -- The problem of 
the ratification of the START II Treaty will not be on the agenda of the 
State Duma in the near future, Duma Speaker Gennady Seleznyov told a 
press conference held at the Itar-Tass news agency on Wednesday. 


There was a certain period when we approached the ratification of this 
document, the speaker said. "As for the Russian part of this document, we 
have, in fact, re-written it," Seleznyov said, adding that this does not 
run contrary to the requirements of signing this Treaty. "We have 
envisaged in the law on START-2 ratification future prospects for 
ensuring Russia's security and how new weapons, which are to replace the 
destroyed ones, should be financed," Seleznyov said. Regrettably, no 
financing has been done yet to meet the requirements envisaged in any of 
the clauses of the law," the speaker said. 


He pointed out that the Treaty, can, undoubtedly, be ratified "on the 
condition that the government pays serious attention and guarantees 
security to the society from an external aggressor." 


"When the war in Yugoslavia began and we saw that NATO could use force on 
any pretext we suspended debates on this document and suspended our 
relations with NATO as well. If a thaw sets in in this respect -- then we 
shall seriously speak about the fate of the Treaty," the speaker said. 


In this connection, Seleznyov noted that Russia was concerned about 
reports that the US "was beginning to secede from the IBM Treaty". 


In a separate statement, Seleznyov declared that deputies of the State 
Duma intend to pay close attention to the struggle against separatism. He 
noted that Prime Minister Vladimir Putin had been rather tough, 
commenting on this problem at a session of the State Duma on Tuesday. 


Speaking about the situation in the Karachai-Cherkess Republic, the speaker 
said that "Vladimir Semyonov (elected head of the republic), and another 
candidate to the post, Stanislav Derev, who had lost the elections, 
should reach an agreement. "A split of the Karachai-Cherkess republic 
would be unconstitutional," Seleznyov said, adding that "this should 
never happen." The possibility of creating a two-chamber parliament in the 
Karachai-Cherkess republic is one of the possible variants of regulating 
the situation there," Seleznyov said. 


"A division of the Karachai-Cherkess Republic means separatism imposed 
by extremists," Seleznyov said. 

Back to the top

#4
Date: Thu, 16 Sep 1999 
From: Elizabeth Reisch
Subject: Summary of Albright's speech at the Carnegie Endowment Albright: Russia is Not Ours to Lose U.S. Secretary of State Madeleine Albright spoke to a gathering of 120 people at the Carnegie Endowment today about U.S. policy toward Russia. Following is a summary of her remarks. Responding to critics who charge that the United States has lost Russia, Secretary of State Madeleine Albright said, "The suggestion that Russia is ours to lose is arrogant; the suggestion that Russia is lost is simply wrong." She pointed out that throughout all of the crises in Russia in recent years -- Yeltsin's armed confrontation with the Duma in 1993, the war in Chechnya, the financial crisis of August 1998, the disagreement over Kosovo, and now investigations into money laundering and corruption -- a chorus has arisen to pronounce the death of the new Russia. Each time, she said, "the Russian people have refused to attend the funeral." Drawing upon the words of Lev Tolstoy, who wrote that "the strongest of warriors are these two -- time and patience," Albright advocated for the United States to continue to support Russia's transition with vision and persistence. A hostile and dismissive policy toward Russia would only risk re-creating our enemy, she said. Albright stressed that Russian reform is "a work in progress." Since the Cold War ended, she said, first President Bush and then President Clinton have pursued two basic goals in relations with Russia. The first is to work to reduce Cold War arsenals in both countries, to stop the proliferation of nuclear and conventional arms, and to create a stable and undivided Europe. The second is to support Russia's effort to transform its political, economic and social institutions. While acknowledging that neither of these goals has been fully achieved, she argued that neither has been lost. Despite turbulence and "even a midair turnaround" [referring to Primakov's decision to cancel his visit to Washington mid-flight to protest NATO strikes on Belgrade], the U.S.-Russian relationship is still aloft, she said. Helping to transform Russia into a functioning pluralist society with a market economy is a "Herculean task," she said, but not a hopeless cause. Albright called attention to events of the last ten years that the world could not have imagined in 1990: the removal of Russian forces from the Baltics and Central Europe, a formal Russian partnership with NATO and the European Union, and Russian participation with Americans in peacekeeping operations in Bosnia and Kosovo. She juxtaposed these positive developments with some of the worst episodes of the Cold War: proxy wars that destroyed lives on every continent, barbed wire stretched across parts of Europe, and gulags. "Leaders in Washington and Moscow have no greater responsibility," she said, "than to ensure that we do not return to that time or any variation of it." The uncertainty over Russia's future course is largely due to the flood of opposing forces that have been unleashed since 1991. "Currents of free enterprise, initiative, and greater freedom compete with those of corruption and crime," Albright noted, while "impulses toward integration and openness vie with tendencies toward isolation and alienation." The United States should support the positive currents, she said, while recognizing that the result will be "distinctively Russian." On the recent spate of bombings in Russia, Albright expressed the Administration's shock and anger at these "callous and cowardly acts of murder." She stressed the Administration's desire to see Russian authorities "bring the perpetrators to justice by constitutional means." Corruption in Russia Albright refuted the notion that the problem of corruption originated with post-Cold War democratic reforms. Corruption, she stated, flourished under the Czars and thrived under the Soviets, but as a state monopoly. "The problem now," she said, "is that Russia has gone from a system with too many bad rules to one with not enough good rules." As a result of this absence of a rule of law, she continued, "foreign investors have hesitated, capital has taken flight, the influential few have distorted markets, and the economy has sagged." Albright defended the Clinton Administration's record on fighting corruption in Russia. She highlighted the work of the U.S. Agency for International Development's rule of law project. She also recalled Administration officials' statements against corruption in Russia, including President Clinton in 1995 in Moscow, when he called for "a market based on law, not lawlessness," and Vice President Gore in 1997 when he pressed for enactment of money-laundering legislation. Unfortunately, she said, "the response from Russian authorities has not been adequate." It is time for the Yeltsin government to make fighting corruption a priority, she warned, because the "tentacles of Russian organized crime have spread far beyond the nation's borders." Responding to some Russians who attribute the furor over corruption to a desire by the West to embarrass Moscow, and to electoral politics in the United States, Albright said that such scenarios are "fantasies." She urged Russia to fully cooperate with investigations into corruption, including money laundering and the use of IMF funds, "no matter where or to whom the evidence leads." She suggested several concrete measures that must be taken to curb corruption, including the enactment of anti-crime and money laundering legislation, financial sector reforms that stress transparency and accountability, and judicial training and advice on fair and efficient tax collection. Albright stated that the United States should not respond to the current allegations of high-level corruption by reducing aid for programs in Russia, as Congress is proposing with its 25-30 percent cut in the Administration's request for FY00. At the same time, she said, the United States should not support further multilateral assistance to Russia "unless fully adequate safeguards are in place." Democracy Promotion One area of assistance in which Albright said the United States cannot afford to waver is supporting the democratic principles that underlie the elections to the Duma scheduled for December 19 and for the presidency next summer. To this end, USAID will continue its work with non-governmental organizations to help provide the infrastructure for elections that are free and fair, she said. "Nothing," she warned, "could do more damage to Russia, at home or abroad, than a failure to observe the constitutional process." Moreover, "nothing could do more to cement Russia's place among the world's democracies than the constitutional election and inauguration of Boris Yeltsin's successor," she said. Albright challenged those who say that grassroots democracy assistance cannot affect much in a nation as large as Russia: "A small difference has the potential to make all the difference when the cause is just and the time is right." She noted that democratic habits are among the world's most "benign addictions" and are starting to spread in Russia. Abandoning U.S. assistance to those committed to democracy and human rights in Russia would be hypocritical, she said: "We championed liberty through five decades of Cold War, so we should not desert liberty's cause in Russia now." The U.S. Arms Control Agenda with Russia Albright expounded on U.S. assistance to Russia aimed at lowering their nuclear arsenals and preventing the proliferation of nuclear, chemical, and biological weapons. She highlighted a number of initiatives that the Administration has undertaken since 1992, including the deactivation of almost 5000 nuclear warheads in the former Soviet Union, the strengthening of security of nuclear weapons and materials at more than 100 sites in Russia, and the purchase of more than sixty tons of highly enriched uranium that otherwise "could have been used by terrorists or outlaw states." The Administration's Expanded Threat Reduction Initiative builds upon these efforts, she said. The Initiative includes measures to help Russia tighten export controls, improve security over its arsenal, and provide opportunities for more than 30,000 former Soviet weapons scientists to participate in peaceful commercial and research ventures. One of the contentious issues in the U.S.-Russian relationship is disagreement over the National Missile Defense system, which the United States has been developing and testing in advance of President Clinton's decision on deployment next summer. Should the United States decide to go forward with deployment, Albright said, the United States would need to make changes to the Anti-Ballistic Missile Treaty (ABM). While the Administration has emphasized to the Russians that the "changes would be consistent with the underlying purposes of the Treaty," and that cooperating on strategic defense will make both countries less vulnerable to new international threats, the Russians resist any changes or amendments to ABM, she said. Albright underscored the dilemma by saying that Russia cannot have it both ways: "They cannot fail to crack down effectively on the transfer of advanced technologies and then express surprise when we insist on protecting ourselves against threats fueled by those transfers." Asked about Russian technology transfers to Iran, Albright said, "I think that there has been some progress on this subject, but not enough." She noted that when Clinton met with Russian Prime Minister Putin in Auckland, Australia, they talked about the problems posed by the transfer of nuclear technology to states like Iran. Cooperation on this issue, Albright said, "is one of the essential marks of cooperation in our relationship and we will continue to hold them accountable." - Summary by Elizabeth Reisch, research assistant with the Russian and Eurasian Program. CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE 1779 Massachusetts Avenue, NW Washington, DC 20036 Phone 202-483-7600 Fax 202-483-1840
www.ceip.org

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#5
Russia Refutes Holding Nuclear Tests on Novaya Zemlya.


MOSCOW, September 16 (Itar-Tass) -- The Russian Ministry of Atomic Energy on 
Thursday refuted U.S. media reports of nuclear tests on Novaya Zemlya, an 
archipelago in the Arctic Ocean between the Barents and Kara seas. 


"The U.S. Washington Times newspaper on Wednesday reported that Russia had 
held low-yield nuclear tests on Novaya Zemlya, citing unnamed analysts," a 
spokesman for the ministry told Itar-Tass. 


"This information is not true. The Novaya Zemlya firing range holds only 
so-called subcritical tests, which are effected by conventional blasts, not 
prohibited by international agreements. But such tests have not been held 
there this year," the spokesman stressed. 


According to the Washington Times, U.S. intelligence agencies registered a 
subterranean explosion on Novaya Zemlya on September 8. It quoted unnamed 
analysts as saying the explosion had been a low-yield nuclear test. The 
newspaper claimed that such tests were challenging a Russian-U.S. treaty 
banning all nuclear tests, which awaits ratification by the U.S. Senate. 


The test is also a blow to the Clinton administration which is just about to 
begin pushing for ratification of this treaty, the Washington Times added. 
Back to the top

#6
Russia: Complexities Make State Of Emergency Almost Impossible
By Sophie Lambroschini


As Russia's wave of bombings continues, the country's political circles are 
rife with speculation that the Kremlin may be contemplating declaring a 
general state of emergency. But while authorities have been able to put some 
strict security measures into effect, both legal and political considerations 
make it close to impossible for President Boris Yeltsin to legally declare a 
state of emergency. RFE/RL's correspondent in Moscow, Sophie Lambroschini, 
explores the legal complexities of Russia's fight against terrorism. 


Moscow, 16 September 1999 (RFE/RL) -- In the past two weeks, Russian Prime 
Minister Vladimir Putin has pledged that no general state of emergency would 
be proclaimed in response to a series of deadly bombings in Russia. But three 
months before scheduled parliamentary elections and less than a year before a 
presidential vote, rumors to that effect remain quite hard to quash. 


Yesterday, the Russian daily "Segodnya" said the panic sown by the bombs, 
which have killed some 285 people since August 31, has created an atmosphere 
in which the public would look favorably on a state of emergency. The paper 
said, too, that such a measure would be politically profitable for the 
currently unpopular president, Boris Yeltsin. In particular, "Segodnya" 
noted, emergency measures would give Yeltsin the possibility of canceling the 
coming elections, limiting the activities of political parties, and 
introducing strict censorship in the media. 


Communist Party leader Gennady Zyuganov said earlier this week that he had 
seen presidential administration documents that could impose a state of 
emergency throughout the country. But Russian legislators say the present 
situation does not provide Yeltsin with either the possibility or the right 
to declare a general emergency.


The legislators say that's because the conditions and limits of a state of 
emergency are all spelled out in a draft law that has not been adopted by the 
State Duma (lower house). And to fill the legal vacuum left by the unpassed 
law, the country's 1993 constitution says Russia must abide by Soviet-era 
laws.


The last Soviet law on a state of emergency was passed in 1991. It allows for 
the suspension of many basic rights and freedoms. The law provides for 
canceling elections, introducing censorship, and allowing the suspension of 
media. It also makes possible a ban on demonstrations, strikes and political 
parties, and allows for the expulsion of people disrupting public order. 


Duma deputy Aleksei Popov, a lawyer specializing in public law, says the 
Soviet law treats a state of emergency as a last resort to be imposed only 
when other measures are not sufficient. 


Popov calls the 1991 text "quite clear" in allowing for a state of emergency 
to be declared in several cases that resemble the present situation in 
Russia's North Caucasus. He cites as examples attempts to overthrow 
constitutional order, conflicts among national minorities, and threats to 
people's safety. But Popov stresses that under the 1991 law the state of 
emergency would apply only to that part of Russia where such threats are 
present. He says that means that today "a state of emergency in the regions 
bordering Chechnya could be imposed. But in the rest of the country," he 
adds, "it would not apply--not even in Moscow." 


According to Popov, therefore, Yeltsin does not have the legal right to 
cancel or postpone the upcoming Duma elections. Under the Russian 
Constitution, Yeltsin is allowed to introduce a state of emergency in the 
whole country or in certain parts of it. But he has to ask the governors and 
heads of regional parliaments of the Federation Council, Russia's upper 
house, to confirm it. Popov says: "The atmosphere in Russia would really have 
to be extreme for the senators to accept measures that would limit their own 
powers." 


Yet some politicians warn that the 1991 Soviet law may not be valid anymore, 
an interpretation which would create a legal vacuum on emergency measures. 
Former Security Council Secretary and Duma deputy Ivan Rybkin says the 
legitimacy of the Soviet state of emergency law is disputable because it was 
abrogated by new Russian legislation that partially contradicts it.


Whatever the validity of the Soviet state of emergency law may be, other 
Russian politicians note that the government could legally introduce extreme 
measures that partially resemble a state of emergency by using other 
legislation.


Senator Sergei Sobyanin, deputy chairman of the Federation Council's legal 
affairs committee, says that a law on fighting terrorism that was adopted 
last year does allow authorities to "limit citizens' freedom of movement and 
to introduce limits on the press." Moreover, he says, this is possible 
without any parliamentary or other institutional authorization. 


According to "Segodnya," Putin has referred to the 1998 law as a text that 
could be used by the government. The paper said the prime minister believed 
it made the proclamation of a state of emergency unnecessary. 


Senator Sobyanin said the security measures announced by Moscow Mayor Yurii 
Luzhkov in the past few days "seem to be inspired by this law." He was 
apparently referring to the mayor's order making the city off-limits to 
people who don't have an official authorization of residence. 


Others say, however, that by imposing the limitations permitted in last 
year's law on fighting terrorism, the authorities might actually be bending 
the law. Popov, for one, says that "any reference to the [1998] law on 
terrorism is completely ridiculous. That law, for example, applies to a 
building or a street where terrorists may be hiding. But it does not apply to 
a whole city or the whole country."   
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#7
ALLOCATIONS TO DEFENSE ORDER WILL INCREASE 1.5 TIMES IN 2000 - DEPUTY PM


     MOSCOW. Sept 15 (Interfax) - Allocations to the state defense order
will be  increased 1.5  times in  2000 as  compared with  1999,  Russian
Deputy Prime Minister Ilya Klebanov told journalists on Wednesday.
     
     He said  the federal authorities are guaranteeing the allocation of
the necessary resources for purchasing modern weapons.

     He also  said that  the most  up-to date  individual protection and
security systems  for soldiers  and officers  are available  in  Russia.
"There are  also upgraded fire arms and other types of weapons. Dagestan
does  not   experience  any  shortages  of  modern  weapons.  They  have
helicopters and the most up-to-date aircraft," Klebanov said.

     In Dagestan,  "the  Russian  military  have  been  confronted  with
international terrorism,  not with  Chechen terrorists," he said, adding
that the state defense order must be oriented to local conflicts."

     He described  the federal  troops' operations in Dagestan as "good"
in terms  of strategy  and tactics.  "The one-to-ten  losses are  a good
achievement as  compared with  what we  had in Chechnya. The present-day
tactics have  been changed  to reduce the loss of life to a minimum," he
said.

     He said that priority in 2000 must be given to increasing the state
defense order  and to the purchase of the most up-to-date weapons, "with
due account taken of the Chechen factor."

     "Prime Minister  Vladimir Putin  said in  the  State  Duma  that  a
quarantine zone  must be  created around  Chechnya. This  zone  will  be
effective if  efficient motion  detection systems are made available and
are set  up in  mountain gorges  and valleys.  We have such systems," he
said, adding that such means don't need to be purchased abroad.

     He said  that  during  his  recent  meeting  with  President  Boris
Yeltsin, no  replacements or  appointments  were  discussed.  "Generally
speaking, it  is the  president's right  to make  appointments he thinks
proper," said Klebanov.

     He denied  reports about  the dismissal  of Rosvooruzheniye general
director Alexei Ogaryov.

     He said  that,  shortly  after  reports  were  circulated,  Ogaryov
offered his  resignation, he  got in  touch with Ogaryov who denied this
information.

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#8
U.S. TO  ALLOCATE $2.7  BILLION FOR ELIMINATING ITS OWN, RUSSIAN NUCLEAR
WEAPONS

     ARKHANGELSK. Sept 15 (Interfax-Northwest) - The U.S. administration
plans to  put $2.7  billion into  a program  for eliminating its own and
Russian  nuclear  weapons  during  the  next  six  years,  U.S.  Defense
Secretary William  Cohen on  Tuesday stated  in  Severodvinsk,  Russia's
rkhangelsk region,  during a  meeting with the workers of the state-run
machine-building enterprise Zvyozdochka.
 
    A delegation  of the  U.S. Department  of Defense  has visited this
Russian center  for nuclear  shipbuilding to get acquainted with methods
of eliminating  Russian  nuclear  submarines  and  with  a  program  and
prospects for processing solid and liquid radioactive wastes and for the
removal of nuclear fuel from scrapped nuclear submarines.

     Cohen told  Interfax that the U.S. government had already allocated
$1.7 billion  to nuclear  arms reduction  programs.  He  said  that  the
Pentagon is  implementing the  program  for  eliminating  its  strategic
armaments and  has already  eliminated 23  nuclear  submarines  and  368
ballistic missiles.  However, the  American side believes, he said, that
priority must  be given  to the elimination of sea-based nuclear forces.
Russia  insists   on  a   priority  elimination  of  land-based  nuclear
armaments, he said.
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#9
Russia Lacks Money to Eliminate Chemical Weapons.


MOSCOW, September 15 (Itar-Tass) -- Russia's financial difficulties threaten 
further implementation of the federal programme for elimination of chemical 
weapons, Zinovy Pak, general director of the Russian ammunition agency, said 
on Wednesday. 


Russia currently possesses 40,000 tons of chemical weapons, Pak told a news 
conference in the Itar-Tass headquarters. The programme, which is to be 
implemented before the year 2009, envisages two stages of their elimination. 
First, Russia is to get rid of 7,500 tons of vesicant gases, then of 32,500 
tones of phosphorous gases which are used in missiles and ground troops 
artillery shells and aviation ammunition. 


The programme envisages spending of 600 million dollars yearly for the 
elimination of chemical weapons, while only from 320 to 330 million dollars 
are effectively spent for this purpose, Pak said. 


However Russia can enhance effectiveness of the programme's implementation in 
several ways, he went on. It can "change the technology of elimination, 
conduct scientific and research works and tests, or attract financing from 
extra-budget sources," Pak said. 
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#10
Russian Blasts Seen in Context of Terrorism Worldwide  


Rossiyskaya Gazeta
14 September 1999
[translation for personal use only]
 Article by Nikolay Paklin under "Sore Spot" rubric: "The World 
Rebuffs Terrorism. What About Russia?" 


Paris-Milan -- Reality has proved more terrible 
than could have been imagined. Terrorism of a merciless, fanatical, base 
kind has burst into the very heart of Russia -- Moscow. The terrorists 
struck their blow not at the authorities against which, presumably, they 
are fighting but at the most ordinary people, who are far removed from 
war or politics. 


They caused explosions, separated by short intervals of time, in 
thoroughly civilian facilities -- an underground shopping mall near the 
Kremlin and two apartment blocks. There are dozens of dead and hundreds 
of maimed and wounded. 


There has been a turning point in people's consciousness. They used to 
regard the war as going on somewhere far away in the North Caucasus. Now 
they have seen the war in the center of Russia. Moscow is the 
battleground today; it may be any other Russian city tomorrow. [passage 
omitted on history of Russian, Algerian, and Palestinian terrorism] 


Nowadays, however, terrorist organizations formed deep underground -- not so 
much on the historical territory of Palestine as in neighboring Islamic 
countries -- no longer express the Palestinians' national interests. They 
lead their own internal lives, often acting in the interests of various 
Muslim billionaires such as Bin-Ladin, the well-known inspirer of 
international terrorism. Hiding behind the green banner of Islam, they 
often wage war against their fellow believers, trying to impose their own 
will on them by force. Events in Afghanistan following the withdrawal of 
Soviet forces provided graphic confirmation of this. We have witnessed a 
rare historical event: One Russian Federation component -- Dagestan -- 
has been subjected to outright aggression by another component -- 
Chechnya. In both components most of the inhabitants are Muslims. The 
blame for this aggression lies not only with the leaders of the terrorist 
units -- Basayev and Khattab -- but also with the Chechen authorities. 
[passage omitted on terrorism in Ireland, Spain, Italy, and France] 


Experience shows that combating terrorism, whether "homegrown" or imported, 
is extremely difficult. As a rule, the law and order organs and the secret 
services plant agents in terrorist "brigades" and "columns." By obtaining 
advance information about the terrorists' schemes, they successfully 
avert crimes and destroy terrorist organizations. Police operations have 
made it possible to subdue the wave of terrorism in Germany. The 
terrorists have been pacified in Italy and France. At the same time the 
authorities are trying to start a dialogue with the terrorists' political 
organizations. This provides at least a "truce" and so reduces the number 
of victims. A state cannot coexist with terrorism, be it of a political, 
religious, criminal, ethnic, or other nature. But it is virtually 
impossible to eradicate terrorism by means of the power departments 
alone. Germany's experience has demonstrated that terrorism can be 
crushed; people will come to realize its danger for all members of 
society without exception and will give the state effective help in 
combating terrorists.
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#11
Moscow Times
September 16, 1999 
SEASON OF DISCONTENT: Bombs Offer Russia Slice of Chechen Life 
By Andrei Piontkovsky 


Gangster State" -- that was the heading over a recent Newsweek article about 
Russia. We didn't like it much. "Can you really cast a shadow over a whole 
people and a whole government on the basis of a few separate and unrelated 
and not always reliable facts?" our eggheads fairly asked after reading the 
Newsweek article. For us, eggheads and lunkheads alike, it's much more 
comfortable to call somebody else a gangster state. Like Chechnya, for 
instance. 


Nobody likes the Chechens. The common cry from the pages of newspapers and 
the screens of televisions concerning Chechnya is to "mercilessly destroy 
it," to "blow it to bits once and for all," to "plow it over and turn it into 
a parking lot." Quite typical, and justified, was the recent prodding by 
Nezavisimaya Gazeta's editor Vitaly Tretyakov for Russians to have a 
"shocked" and "fighting" reaction to the "insolent and unspeakably inhumane 
bombing of an apartment building in Moscow." 


But there are things that we don't want to think about, things that the laws 
of psychological defense dictate we crowd out of our minds. As I write this, 
it is still not clear who is responsible for the blasts in Moscow that have 
brought down two apartment buildings in less that a week. But then we do know 
who is responsible for the "insolent and unspeakably inhumane bombing" of 
apartment buildings in the Chechen capital of Grozny from 1994 to 1996. 
Thousands of innocent people died as a result of aerial bomb raids and 
artillery shellings. Their deaths were no less terrible than those in Moscow. 
Bombs are raining on Chechen villages even today. While this conscious and 
pitiless bombardment continues to kill peaceful citizens of Chechnya, can we 
really expect to be viewed any differently by the Chechens than we view 
Shamil Basayev or Khattab? Russia shouldn't kid itself with myths about 
"surgical strikes at terrorist bases." 


But to those who would still doubt the nature of the feelings of Chechens 
toward Russians I would recommend the writings of a Russian officer who was a 
participant in that eternal war with the Chechens. It is shocking but 
nonetheless required reading for anyone with the authority to make Russian 
policy decisions in the Caucasus. One hundred and fifty years ago, this 
officer wrote the following lines after another cleansing campaign in the 
mountain villages of the Caucasus: "The elders gathered on the square and, 
squatting, discussed their circumstances. The sensation experienced by all 
the Chechens from the smallest to the greatest was stronger than hate. It 
wasn't hate, but the denial of even calling these Russian dogs people, and 
such an aversion, disgust and incomprehension of the absurd cruelty of these 
creatures that the desire to eliminate them, like the desire to eliminate a 
rat or a poisonous spider, was as natural a sensation as the sense of 
self-preservation." 


The officer was Leo Tolstoy and this is from chapter 17 of his "Hadji Murat." 


There is only one thing that would force the Chechens to become citizens of 
Russia - the complete destruction of any Chechen capable of holding a gun. 
Technically, we are capable of grasping such a victory. But are we prepared 
for such a "final solution" to the Chechen question? 


We, Russians and Chechens, have veered too far into mutual hatred and mutual 
atrocities. We have only two ways out. Either we live apart, or we die 
together in the name of our territorial integrity. 

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#12
House Banking and Financial Services Committee
For Immediate Release: Contact: David Runkel or  
Tuesday, September 14 , 1999 Andrew Parmentier (202) 226-0471 


Leach Announces Hearings on Russian Money Laundering


Rep. James A. Leach, Chairman of the House Banking and Financial Services 
Committee, today announced that the Committee will hold a series of hearings 
this fall, beginning with two days of testimony on September 21 and 22, to 
examine Russian corruption and allegations of the laundering of billions of 
dollars, including the possibility that international aid funds were 
improperly diverted.


"The purposes of these hearings will be to underscore the degree of 
corruption in Russian and any taint to the US and/or the international 
financial system," Leach said. "In addition, it is important for the West to 
adequately respond to the current Russian kleptrocratic situation in a way 
that assists the Russian people in successfully making the transition from a 
communist to a democratic free-market society.


"Let me emphasis that the Committee’s interest is in putting the facts on the 
public record in a fair manner," Leach said. "Our goal is not simply to 
rehash the past, but to look to the future by examining the past. My 
principal concern isn’t "Who Lost Russia?," but what can be done to save 
Russian democracy." 


"These hearings are absolutely essential," said Rep. Marge Roukema, 
Chairwoman of the Financial Institutions and Consumer Credit Subcommittee. 
"The most important thing is to identify the openings in law - statutory and 
regulatory - which permitted this to occur. We clearly learned in our April 
Subcommittee hearings that money laundering is a growing menace. Now we know 
it is occurring both in the United States and internationally. It is our 
responsibility to develop reforms. It is shocking that IMF funds may have 
been used. Obviously this requires a complete review of IMF practices."


The September 21 and 22 hearings will begin at 10 a.m. in Room 2128 Rayburn 
House Office Building. A witness list will be released later. The hearings 
will be the first of a number of Committee hearings this fall on the money 
laundering and Russian corruption issues.

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#13
Excerpt
Western Press Review: Terrorism In Russia, New EC Commission
By Joel Blocker and Anthony Georgieff 


Prague, 16 September 1999 (RFE/RL) -- Western press commentary today is much 
concerned again with the effects of a continuing wave of terrorist bombings 
in Russia -- capped this morning by a fifth lethal blast, this time in the 
Rostov region south of Moscow. There is also considerable comment on the 
European Union's new Executive Commission, confirmed yesterday by the EU 
Parliament in Strasbourg. 


WALL STREET JOURNAL EUROPE: Bombing attacks must not obscure need to find new 
policy for the Caucasus 


The Wall Street Journal Europe says that the Russian bombings pose two 
questions: "Can the government deal with the terrorist threat [without 
impinging] on the rule of law, such as it exists in Russia? And given the 
instinct to blame Trans-Caucasus Muslims, will Moscow become even more brutal 
in trying to suppress separatists in Dagestan and Chechnya?"


The paper writes: "On the first count, the Kremlin's response has so far been 
level-headed. The government and Kremlin have denied any plans to use the 
bomb attacks...as an excuse to declare a state of emergency, much less cancel 
the December parliamentary elections." But the WSJ adds: "All clarity of 
thought seems to disappear...when it comes to the Northern Caucasus. 
...Whatever the truth [of the assumption that Chechen rebels are directing 
the bombings], the Kremlin's response has been to step up actions in Chechnya 
in a way that is bound to further the problem there."


The editorial concludes: "Nobody will fault the resolve to be tough on 
terrorism. But Russia's leaders will not be wise if they let the bombing 
obscure the need to find a new policy for the Caucasus, one that recognizes 
the futility of sheer force to resolve the conflict." 


LOS ANGELES TIMES: Russia must not overreact 


The Los Angeles Times warns that "Russia must not overreact" to the bombings. 
Like the WSJ, the California daily notes that "the threat of domestic 
terrorism always puts the rule of law at some risk." It adds: "The challenge 
for Russia is to meet this crisis without recourse to regressive measures."


The LAT editorial urges that "timetables for the scheduled elections 
[including a presidential vote next June] should not be changed -- first 
because postponement isn't warranted, second because Russia urgently needs a 
parliament more effective than the one it has now and a new president with a 
broader base of popular support."


The paper sums up: "The terrorism danger can be overcome without sacrificing 
the gains Russia has made toward representative rule." 


BERLINSKE TIDENDE: Terror attacks have put Russia under new kind of pressure 


In Denmark, the daily Berlingske Tidende says in an editorial today: 
"Russia's democracy has not developed much during the decade that has passed 
since the collapse of communism, and the recent wave of terror attacks has 
put it under a new kind of pressure. In addition," the paper says, "the 
series of bombings has also provided new fodder for gossip for the always 
very active Russian rumor market, where conspiracy theorists are now having a 
field day."


"But," the editorial continues, "nothing so far suggests that either 
President Boris Yeltsin or the military will use the situation to declare a 
state of emergency or attempt some kind of coup d'etat. Such a coup," it 
adds, "could hardly succeed under the present circumstances [while] Yeltsin, 
despite all the criticism of his rule -- both at home and abroad -- has 
always stood by his democratic principles in critical situations."


The paper also says: "Nothing is certain yet about the bombings, but it is 
surely possible that there is a relationship between the terrorist attacks 
and the conflict between Russia and the separatist movements in the Caucasus. 
...The Caucasian separatists should understand that the use of terror will 
not further their independence aims. ...Most Russians opposed the war in 
Chechnya," the paper concludes. "But now the hatred against the 'Black 
Faces,' as the Caucasians are called in Moscow...has grown." 


AFTENPOSTEN: Terror, war in the Caucasus and corruption could provoke 
countrywide crisis 


The Norwegian daily Aftenposten runs a commentary by Halvor Tjoern that says: 
"Collective anxiety has never been so widespread in Russia over the past 10 
years as it is now. No one can go to bed and be sure he will wake up alive 
the next morning. No one knows what sort of weapons the terrorists will use 
the next time they strike: poison gas, car bombs, or hand grenades."


The commentary continues: "While Muscovites continue to be [a major] target 
for the bombs, a real war is going on in the outer reaches of the country. 
Every day the media report that this or that portion of the federation has 
been 'purged of terrorists.' This war [in the Caucasus] has become permanent, 
something no one, not even the military, can bring to an end."


Tjoern also says: "The terrorist crisis has made other major Russian news -- 
such as the extent of corruption in the Kremlin or the squandering of 
International Monetary Fund aid -- fade for the moment." He warns in 
conclusion: "These three phenomena -- widespread terror, the war in the 
Caucasus and alleged corruption in the Kremlin -- could provoke a countrywide 
crisis of huge proportions. The more the Russian people realize that the 
regime that is supposed to govern them is in fact unable to do so, the more 
the chances of them reacting in an unpredictable manner will grow." 
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