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U.S. Department of State

Daily Press Briefing

QUESTION: Now that Russia is getting this huge new loan from the IMF, do you think the United States might be able to make a stronger argument or be more compelling in trying to get Russia not to deliver those weapons to Cyprus?

MR. RUBIN: That's an interesting linkage. Let me say this -- we believe that the success of reform in Russia is an extremely important thing for the future of Europe and the future of the security of the world; that Russia is a large power holding nuclear weapons, and that it has played an important role in Europe and in the world and it will continue to do so.

Russian reform, if it succeeds fully in the democracy and economic area, will help Russia play an important part in an international community that we are trying to help construct. It is those reasons that generated our decision to try to be of assistance to Russia. And we believe that is so important that we are moving forward, with our partners through the IMF and the World Bank and other mechanisms, to try to assist Russian reform and assist avoid the country from collapsing. A collapsing Russian economy would pose grave risks to the national security of the United States. It is those reasons that led us to make our facilities and assistance available in this regard. To try to link every issue where we and the Russians disagree to this package is simply unrealistic.

We have many areas of disagreement with Russia on foreign policy, and the one that you mentioned is not the only one. What I am suggesting to you is that we will, of course, be pushing very hard on the Russian Government to stop the cooperation with Iran that we have been so concerned about. As you know, today the Russian Government announced an investigation into several companies that we have been concerned about. We welcome that investigation, and we want to see the Russians get to the bottom of the companies that we believe have been of assistance to Iran in its pursuit of medium-range missiles.

We have raised at the highest levels -- the President has raised it, Secretary Albright has raised it - our concerns across the board. There has been progress. They have put into place catch-all legislation. Some of the specific cases that we have been concerned about have been resolved to our satisfaction. But there remain a significant number of Russian entities - I believe the number is nine - that they have announced an investigation of. We, on our part, are going to be ensuring that those companies don't benefit from any US program. They are going to be investigating their activities.

So we are working with the Russians on an issue like Iran, where we have big differences. We are working with the Russians on tactical differences we have on subjects like Kosovo and sometimes on Iraq. In addition, we have tried to convince the government in Cyprus not to purchase the S-300 missiles.

But to suggest that we need to start down the path of linking every disagreement we have with the Russians to the important efforts we're making to prevent a collapse of the Russian economy is simply not realistic in our view.

QUESTION: Well, I mean, I didn't suggest that you linked every issue. But it seems to me that having supported this enormous aid package, that the United States may have a more compelling case to make or be heard more clearly in Moscow when it raises concerns about issues like the missiles in Cyprus, which Turkey has said if delivered would cause a war.

MR. RUBIN: Well, I'm suggesting to you that we have many issues of concern - Russia, Iran, in the area of missiles - the missiles in Cyprus, Kosovo, Iraq, other subjects where we either have fundamental disagreements or tactical disagreement. What I am suggesting to you is that we fully intend to push our agenda with Russia in our meetings with the Foreign Minister, in Vice President Gore's meetings with Prime Minister Kiriyenko and in the President's summit meeting with President Yeltsin. We will have several important opportunities in the coming month to push our agenda; and we would expect the Russians to perhaps hear us a little more clearly in the context of this effort that we've made on their behalf.

But to suggest that we ought to deny Russia the assistance that we think it needs to prevent a collapse because of a disagreement like this is simply not realistic in our view.

QUESTION: (Inaudible.)

MR. RUBIN: I think I answered your question.

QUESTION: Jamie, the investigation you say the Russians announced - the nine entities - those are the ones, correct me if I'm wrong, that are on the so-called "watch list" that the State Department issued some --

MR. RUBIN: We didn't issue a watch list; that I remember. There was a discussion of a watch list by some. What I am saying is that the government commission on export controls is conducting special investigations on nine entities. I can give you the list of the entities after the briefing.

These entities are believed to have violated Russian export controls and attempted to export goods or services which could contribute to weapons of mass destruction or missiles to deliver them. These investigations may result in administrative actions. Consistent with this action, and we're consistent with our own assessment, the United States will suspend any US Government program or assistance to entities on the list.

What I have suggested to you is that we have many cases of concern in this area. We have made significant progress both in general terms by the Russians putting forward this catch-all legislation, and in specific terms by resolving concerns we had about several companies. There are additional concerns that we have. These nine entities are on our list of entities that we have concern about. We are going to, as I indicated, take action to ensure that no assistance is provided by us to those companies.

We do not have a master watch list of the kind that was reported several weeks ago; but we do watch very carefully to make sure that companies or entities that we have concerns about don't get assistance from US programs.

QUESTION: I believe, though, when that spate of stories came out a month ago or so, that you all had already suspended that type of activity with these companies. Is that --

MR. RUBIN: I believe the suspension that we take in this area is a rolling process. I'm not in a position to answer the question of which of the nine that we're taking this action on now have previously taken action on. It may be something that's been happening over the last weeks. We've amalgamated the fact of that and told you that nine have had their programs curtailed. But I'll have to get someone who monitors each one of these entities and each one of these programs on a daily and weekly basis to answer such a difficult and specific question.

(The briefing concluded at 2:45 P.M.)