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U.S. Department of State

Daily Press Briefing

...................

QUESTION: Deputy Secretary Talbott also gave a speech on Friday concerning Russia.

MR. RUBIN: There have been a lot of speeches on Russia - Larry Summers today, Secretary Albright a couple weeks before that. Do you want me to repeat the elements of these speeches?

QUESTION: No, no.

MR. RUBIN: I hope not, because I don't have them all in front of me.

QUESTION: No, just the broad policy. It appears that there's a new policy now towards Russia. If so, could you state that policy?

MR. RUBIN: I'm always told that we never have new policies.

QUESTION: (Inaudible.)

MR. RUBIN: There has never been a change and nothing moves that quickly. Having stated that --

QUESTION: How do you feel about the czar?

(Laughter.)

MR. RUBIN: Having stated that, I think we've made clear that in the case of Russia, that we are concerned about some of the indicators that we're seeing in the economic area. We are concerned that the kind of plans being formulated are ones that focus too much on having a large state role in economic decision-making and that provide for large budget deficits. We think this is unlikely to create a favorable condition for growth and investment, and we think the plans that we've seen tend too much on trying to spend one's way out of very real structural problems.

We would prefer to see focus on restraining the budget deficit, stabilizing the exchange rate, fighting inflation, restructuring the banking sector, restarting the payment system and finding cooperative ways to address obligations to private creditors.

So I think beginning with Secretary Albright's speech in Chicago, where she identified very clearly our views on Russia and its evolution, we've stated in a very hard-nosed way what we think is necessary in order for us to be supportive. That is not new, but it is certainly in the context of different decision-making in Russia. Remember, what's changed here is the decision-making in Russia and which directions they're signaling, not so much the American goals.

QUESTION: Just a follow-up - Talbott's speech went well beyond the economic relationship. He talked about chaos in the Soviet Union and a reassessment of the United States' strategic position towards Russia - diplomatic, strategic and military position towards Russia. It was really quite an alarming speech if you read it closely. I mean, is that taking it --

MR. RUBIN: I am a strong advocate of close reading of Deputy Secretary Talbott's speeches.

QUESTION: But he's only the Deputy Secretary; he's not the President, he's not the Secretary of State. I mean, is that --

MR. RUBIN: And I have no reason at this time to quibble with any of the words that he's chosen to describe the situation. Sometimes I think you all may confuse characterizations of the future and possible futures with changes in policy. We have always known that there are possible futures in Russia that are quite alarming. That is simple analysis and careful analysis, and they undergird what it is that we're doing.

So I wouldn't over-interpret the fact that Deputy Secretary Talbott laid out difficulties Russia could face and problems that Russian actions could cause themselves and others. That's been part and parcel of our policy from the beginning. I don't see anything new about that.

QUESTION: Can you just give us a little guidance on how far you would interpret this comment by Talbott; and that is that "the US-backed financial help from the IMF must wait until the Russian Government shows itself willing and able to make the difficult structural adjustments necessary for recovery and growth." Are you saying that you are going to actually vote against IMF actions on behalf of Russia? Are you counseling the IMF to hold off on any further tranches of the current commitment? Are you saying you're not going to vote for loans in the future? Where exactly are you coming down on that?

MR. RUBIN: I'll have to get you - talk to Deputy Secretary Talbott and see how he would like me to characterize that sentence. But there's nothing new about that; that's what I just said to you from here, it's what Secretary Albright said in Chicago, it's what Deputy Secretary of the Treasury, Larry Summers, said today. That has been part and parcel of what we've been doing all along, which is only as the IMF is able to come up with a credible plan has our support been forthcoming. That strikes me as very little different than anything we've said before.

(The briefing concluded at 1:45 P.M.)

[end of document]