Weapons of Mass Destruction (WMD)

EUROPE

RUSSIA: "Concern For Continuity Of Power"

Aleksandr Privalov commented on page one of reformist Izvestiya (8/25): "The Kiriyenko cabinet could not last long. Everyone knew that. But nobody expected it to go so fast. The timing does not seem good. It looks like swapping horses in the middle of a stream. Worse still, it is like swapping parachutes in mid-air."

"It Couldn't Be Worse"

Tatyana Koshkareva and Rustam Narzikulov wrote in centrist Nezavisimaya Gazeta (8/25): "It couldn't be worse. Facing a real economic catastrophe, Russia has been left without a government, a program of action, and hope. Politicians seem to have lost all authority, and that goes for the president, too. He excites neither fear nor respect."

"Chernomyrdin Omnipotent"

According to Natalia Timakova of reformist, business-oriented Kommersant Daily (8/25): "It is absolutely clear that Russia has neither government nor president. Not even when the president was on the operating table did Chernomyrdin have so much power as today. He did not take advantage of it in the fall of 1996, but he is sure not to miss his chance now."

"Russia To Turn Away from Reform"

Elmar Murtazayev and Semyon Novoprudsky opined on page one of reformist Russkiy Telegraf (8/25): "Chernormyrdin's comeback is quite symptomatic. The 'old new' premier, calling for change, may lead this country away from liberal reform to stagnation. This appointment shows the road Russia will follow in the next two to three years."

"Yeltsin Not To Run For Presidency Again"

Editor Viktor Linnik wrote in neo-communist Pravda on page one (8/25): "Chernomyrdin's return to power means that the president will not run for office in 2000. It also reflects the Kremlin's desperate attempts to regain a foothold as Russia is rocking under the impact of a financial hurricane. Unlike Kiriyenko, Chernomyrdin has a political base, authority among oligarchs, and friends in the opposition.... Obviously, Chernomyrdin will not solve the country's economic problems. The 'red director' is notorious for an intellect which about equals his linguistic potential. Yeltsin needs him to patch up his flayed relations with the Duma and to ensure his family's safety after 2000."

"Yeltsin Loses Political Weight"

Andrei Bagrov commented on page one of reformist, business-oriented Kommersant Daily (8/22): "Should Boris Yeltsin decide to fire the (Kiriyenko) cabinet, he would have to accept the Duma's proposal on a coalition government. The president has lost much of his political weight, and his opponents refuse to bear with him any more. So he may find himself fighting alone against the entire political elite. The intensity of power struggles has reached a five-year high. The reasons are obvious. Kiriyenko has done whatever 'dirty' work there was to get this country out of its debt 'pit.' Now he is an easy target for charges of wrongdoing."

"The Worst Still Ahead"

Lev Makarevich of a Russian bank association stated in the Finansoviye Izvestiya supplement to reformist daily Izvestiya (8/20): "The August 17 crash is not a real crisis but a prologue to it.

The worst is still ahead, both at home and abroad.... It is naive to think that the joint measures announced by the government and the Central Bank will improve the balance of payments and prevent further devaluation, including the help of another tranche from the IMF. That money, due in September, will be 'eaten up' as quickly as the previous loans. The problem is that the Kremlin and the [Russian] White House do not enjoy much support at home to implement the proposed measures. Oligarchs, the bank pool and the companies that are behind them, clearly, are not enough, as a support base. The current economic and political model does not work any more and has to be replaced. There is an urgent need for the State Duma, the Federation Council, regions, local bodies of government, industries and trade unions to get back to budgeting and decision-making."

"Faulty Method Of Economic Management"

Editor Viktor Linnik of neo-communist Pravda said (8/20): "The simple truth is that, when there is no production, there is no hard money. Somehow, we can't get it through our heads. Even today we have fewer private producers than at the start of the1992 reform. Another simple truth the Kremlin has just 'discovered' is that the government must play an important role in the economy, whether socialist or market. The collapse of the ruble was a bad shock, but it would be wrong to blame it on people. The cause is a faulty method of economic management."

"Who Believes The Government?"

Aleksandr Privalov said in reformist daily Izvestiya (8/19): "The government and the Central Bank, in their joint statement, promise support for home producers, banks, budget-financed industries and pensioners. To hear them say that would have been absolutely delightful, had they not promised the same for the ruble a few days ago."

GERMANY: "Yeltsin's Mistakes"

Hans-Guenter Krause commented on regional radio station Westdeutscher Rundfunk of Cologne (8/24): "It was a great mistake to have fired Chernomyrdin in March...but Yeltsin is now able to correct his mistakes.... But what is even more important is that Yeltsin is now proposing Chernomyrdin as his successor--which means that the president plans to set the course beyond the year 2000. The chances of the ultra-right wing, the communists, or even of Alexander Lebed to become Russia's president have declined."

"Yeltsin's Miscalculation"

Werner Adam stated in right-of-center Frankfurter Allgemeine (8/25): "But while Yeltsin has so far acted like a czar with a divine right who holds others responsible for mismanagement and never puts any blame on himself, the current change of government, for the first time, makes it seem that he is receiving orders from someone else. The president has given in to pressure from the gas and oil industry with which Chernomyrdin has close ties, and even more to the financial oligarchs which have gained enormous amounts of money and influence by means of a questionable privatization policy."

"Chernomyrdin Not A Man For The Future"

Right-of-center Die Welt of Berlin (8/25) noted: "At the moment, [Chernomyrdin] may seem to be a kind of anchor of stability for the West, because he is predictable, but he is not a man for the future."

"It Will Remain A Mystery"

Right-of-center Suedkurier of Constance noted (8/24): "For the time being, it will remain a

mystery what may have moved Boris Yeltsin to dismiss Premier Kiriyenko, since the premier personified the type of politician whom people had trusted with making a new beginning in these difficult times for Russia. But it was his handicap that he did not find the necessary backing in the power apparatus in the Kremlin.... However, it is surprising that Yeltsin has now again appointed Viktor Chernomyrdin as an interim premier. It was Chernomyrdin whom Yeltsin fired in March and whom he described as a failure in economic politics. Indeed, it remains a mystery how Boris Yeltsin wants to find a way out of the crisis of the country in view of the financial chaos, corruption, and economic difficulties."

"Dismissal Is A Tragedy For Russia"

Centrist Koelner Stadt-Anzeiger held (8/24): "Again, Boris Yeltsin sacrificed someone in order to save his own neck. This time it is Sergei Kiriyenko. His dismissal is a tragedy for Russia. Since the Gaidar reform government, he was the first to consistently prescribed the right medicine to the sick Russian patient. Kiriyenko's predecessor and successor is likely to be quickly confirmed by the Russian parliament. But during his more than five years in office Chernomyrdin showed only one thing: That he is neither willing nor capable of resolving Russia's problems. This is why Chernomyrdin's appointment is in the end Boris Yeltsin's political declaration of bankruptcy."

"The Abyss"

National television channel ARD-TV's "Tagesthemen" said (8/23): "Yeltsin has now ruined his personal credibility as president. Russia is standing at an abyss: socially, politically, and economically--and together with the country, the president is also standing at this abyss."

"He Let Heads Roll"

National television channel ZDF-TV's "Heute" opined (8/23): "Yeltsin has now done what he always did when he faced a great problem: He let heads roll. But the fact that he dismisses the young Premier Kiriyenko and summoned back Viktor Chernomyrdin, whom he fiercely criticized before, shows that Yeltsin is at his wit's end. Obviously Yeltsin no longer has the power and the will to back his controversial premier.... I do not think that this is the end of the course of reforms, but this decision does not bode well for the reforms."

"Under Pressure"

Werner Adam wrote in right-of-center Frankfurter Allgemeine (8/19): "Those people who continue to think that the summit meeting between Boris Yeltsin and Bill Clinton in Moscow will produce something significant must be incorrigible optimists. The U.S. president is morally embattled, the Russian president and the ruble have been politically devalued. In this situation, we can really not speak of a meeting of the most powerful politicians in the world. For the leader in the Kremlin, this view is not new, but now the financial crisis in his country has resulted in the loss of the rest of confidence and credibility. The public wonders whether Yeltsin himself should not step down."

"Russia Without Yeltsin?"

Right-of-center Maerkische Oderzeitung of Frankfurt on the Oder opined (8/18): "In the past, the West was always frightened when it thought of Russia without Yeltsin. But at the latest since yesterday, we must raise the question what else must happen before the West rethinks its position."

BRITAIN: "The Decline And Fall Of Tsar Boris"

The centrist Independent observed (8/25): "The reign of 'Tsar' Boris Yeltsin has entered its twilight. His television appearance to explain why he had reappointed a prime minister whom he fired only five months ago was not quite as humiliating as a prime-time confession to an affair with an intern. But it was bad enough. His choice of Viktor Chernomyrdin, who is widely disliked, and whose name is associated with fudge, economic decline and cronyism, is a personal defeat... There are many who hope that the old man's aides will now gently tap him on the shoulder and point to the door."

"Who Rules Russia?"

The conservative Times editorialized (8/25): "Is it still correct to assume that Mr. Yeltsin is still in control of the SS Russia, or was his hand forced?... If he has been pushed, it is because he chose to be. He had no need to yield. In the name of 'stability' he has thrust Russia back into political limbo, just when economic disaster can be staved off only by rapid and tough decisions. In the fullest sense, it is an irresponsible act."

"Russia's Anguish"

The conservative Daily Telegraph had this lead editorial (8/25): "Russia's malady cannot be cured by foreign surgery. It is an illness caused by 70 years of Soviet brutality. During those bleak decades, civic society was systematically dismantled.... However grim the future, the West must not give in to the temptation to intervene. We cannot save Russia; it can only reform itself."

"The End Of Yeltsin"

The liberal Guardian had this lead editorial (8/25): "Boris Yeltsin has given Russia its best news for a long time. In praising his reappointed Prime Minister Viktor Chernomyrdin yesterday as a man whose virtues will be 'decisive' in the presidential elections of 2000, he was signalling that he will not run again. The risk that he would provoke yet another constitutional crisis by trying for a third term in power falls away. Russia can breathe again. Mr. Yeltsin long ago outlived his usefulness."

"Mr. Yeltsin Strikes Back"

Independent Financial Times concluded (8/24): "It is easy to dismiss Boris Yeltsin as a drunken and erratic despot. That would be an error. He has repeatedly proven himself a bold and successful tactician.... Unfortunately, his tactical brilliance is more than outweighed by his strategic failings. With Russia drowning in a financial crisis that Mr. Chernomyrdin's short-sightedness and Mr. Yeltsin's inconsistency have done so much to create, hopes for reform must be close to dead.... An obvious question is whether this is more or less the end of the line for Mr. Yeltsin. But the biggest concern must be Russi0a itself. Can reform survive the collapse of the ruble peg, the government's creditworthiness and the government itself? Only a bold optimist would answer yes."

"Russia Is Bankrupt"

The conservative Daily Telegraph had this editorial view (8/18): "The collapse of the Russian ruble is no ordinary devaluation.... There is now a real danger that the economy will spiral out of control, with some risk of a military putsch or a splintering of the political order into nationalist extremes of left and right. At this late stage there is almost nothing that the West can do about it. Events must run their course."

FRANCE: "Every Man For Himself"

In left-of-center Liberation's editorial, Jacques Amalric wrote (8/25): "Is it really the beginning of the end of Boris Yeltsin? Apparently yes. It is all set. Scalded and made ridiculous by the Kiriyenko episode, Yeltsin had to make amends, to call back the same Chernomyrdin he had expelled five months before, to give him a free hand so he can save what still can be saved, and to bless his victory in the year 2000 election. The scenario looks perfect on paper. The making-up is more risky because its author is known for his unpredictability and his thirst for power."

"Europeans, Americans Helplsess"

Pierre Haski observed in left-of-center Liberation (8/25): "Although they have financially helped Russia, Europeans and Americans are the powerless witnesses of the collapse of the country.... Nobody in the West wants to be designated as the country that did not help Russia. The risk today is that despite the help, there will be chaos after the crisis, a chaos for which Russians are responsible, and the only saviors."

"Capitulations"

Francoise Crouigneau opined in centrist Les Echos (8/25): "Yeltsin has surrendered in one week. He has devalued the ruble, buried Kiriyenko's experiment, given up the dream of a candidacy in the year 2000 election. This political animal, on whom the West had put all its hopes, had to introduce his old rival, Chernomyrdin, as his successor.... The new head of the government can indeed rely on strong networks in the industrial and political fields. But his pragmatism is as legendary as his lack of charisma."

"The Confession Of Powerlessness Of A Man Who is At The End"

Left-of-center Liberation claimed (8/24): "The advantage for Yeltsin to chose Chernomyrdin is that the man, who wants to run for the 2000 presidential election, has no charisma at all and less ability than the two main candidates: the mayor of Moscow, Yuri Luzhkov and General Lebed."

"Kiriyenko Goes, Chernomyrdin Comes Back"

Right-of-center Le Figaro commented (8/24): "This is a fiasco for Yeltsin.... The departure of Kiriyenko is a failure for the president.... Yeltsin wanted a prime minister he could control. There he is with a rival who will remember that he was once humiliated.... This is not good for the country. A dull but reassuring man, whom the Westerners listen to, Chernomyrdin has never shown economic efficiency, nor has he ever been a political figure.... An unpopular man who never had more than 5% in the polls. Maybe he is not the ideal 'captain' to face the tempest."

"Something Pathetic In The Clinton/Yeltsin Meeting"

Left-of-center Liberation speculated (8/24): "There will be something pathetic in the Clinton/Yeltsin meeting in Moscow. Yeltsin will indeed play the most overwhelming part: The role of an old man, diminished by illness and an obsession for power, who fails in everything he undertakes and leads the country to ruin.... Clinton, unlike the dollar but like the ruble, is devalued and discredited, ridiculous too. This position is far from being ideal to negotiate with a partner who has nothing to lose and who shrewdly blackmails, threatening chaos, and at the same time plays his last trump: his capacity to meddle in foreign policy, in ex-Yugoslavia, in Iraq or even in the struggle against terrorism."

"Russia In A State Of Shock, Yeltsin Goes On Vacation"

Left-of-center Liberation wrote (8/19): "In the end, the only winners of the devaluation will be the big oil and gas industrial groups; as a Western expert comments, 'With the oil prices falling, sale prices hardly covered the costs. As the first ones are in dollars, and the second ones in rubles, the devaluation will bring more oxygen. But for how long?"

"Yeltsin Looking for Scapegoats"

Isabelle Lasserre, right-of-center Le Figaro's correspondent in Moscow, judged (8/18): "The de facto devaluation of the ruble may have a serious political impact on Russia.... Sergei Kirienko's government could be weakened by this test, which throws light on its relative failure since the end of April. The stability of the ruble was actually one of the few recent achievements and the government's creed.... But the most pessimistic (think) that the financial earthquake could even reach Boris Yeltsin.... Some think there could be an Indonesian scenario. Rumors of a putsch have also shaken Moscow.... The change in monetary policy in Russia gives Yeltsin's opponents an opportunity to express themselves."

ITALY: "Chaotic Stability"

Prominent foreign affairs commentator Enzo Bettiza opined in centrist, influential La Stampa (8/25) "The association between the two leading and astute old men of Russian politics will certainly guarantee to Russia, and, consequently, to the West, stability and basic security at least until the 2000 presidential elections.... Let's not cross bridges before we come to them: Let's at least consider the possibility that some benefits may come as a result of the 'Chernomyrdin effect.'"

"Diminished Summit"

Maddalena Tulanti commented in PDS (leading government party) L'Unita' (8/25): "The summit of summits promises to be more than diminished, since it appears to have become ridiculous. Who are the two leaders representing at this point, in fact? Certainly, one is still the boss of the only superpower on earth; and the other still governs the largest and perhaps most troubled country in the world. But both have lost their...elan vital.... Yet they will talk and will seek agreements until the final communique is issued, which will say that everybody is happy and that the summit was a success. But when they will appear on television to inform us about that, we will have every right to think: poor America, poor Russia."

"Halved Boris"

Centrist, top-circulation Corriere della Sera remarked (8/24): "If some logical line still exists in the storm turning Russia upside down, Kirienko's firing and Chernormydin's comeback can be interpreted in only one way: Boris Yeltsin had to acknowledge his political death.... Now Chernormydin has the path open to the year 2000 presidential elections and, if necessary, he might step in even earlier. Now Czar Boris is kept hostage and will have very little room for his traditional coups de theater. Now, in theory, from this morning, markets and creditors should rediscover confidence. In theory...since the Russian crisis is too deep ."

"The Somersault Of A Czar On The Wane "

Left-leaning, influential La Repubblica claimed (8/24): "We cannot delude ourselves. The Russian crisis might become even worse.... In the meantime, Clinton's visit to Moscow at the beginning of September gets closer. It will be a memorable meeting. An American president crippled by scandals with a Russian president who cannot control the helm of his country anymore. But, for sure, it will not be a meaningless meeting. America and the West need to

understand where Russia is heading...because Russia...has something that other countries don't have: 10,000 nuclear warheads."

"Europe Lost In Moscow"

Left-leaning, influential La Repubblica contended (8/24): "Europe left the whole management of the Asian and Russian crises to the IMF, even though it knew very well that this body...is very sensitive to America's geo-strategic interests. European abdication of its own responsibilities continues. The first world leader who will go to Moscow in a week is Bill Clinton. Russia, together with the former COMECON, might have become for us what Mexico is for the United States.... Instead all fears prevailed...as the fear of irritating the American ally. The EU did not express any major plan to lead post-Communist Russia's changes and today risks losing it, as it lost Germany after WW2."

"Al Capone Capitalism Is Back"

Leading rightist opposition daily Il Giornale pondered (8/24): "Is Russia going back to square one? It might seem so: Strategies are winding, but many decisions are obliged. Kirienko was on the verge of being removed by the Duma.... So Yeltsin did better to send an old fox into the field, who at least has chances of disentangling himself in parliament. The next step, that of resolving the crisis, needs a miracle instead.... Neither Chernormydin nor Clinton has a magic wand. Our friends arrive, but Russia is not a western movie."

"The Weak Ruble Is Our Business"

Economist Paolo Leon said in PDS (leading government party) daily L'Unita (8/19): "The devaluation of the ruble will have a positive impact on Russia only if the creditor countries find an agreement to lower the burden of its foreign debt.... If all governments from the rich countries do not rapidly intervene to support Russia, there is the risk that speculation will attack the weaker currencies of the Euro.... Bearing in mind the risks that the Euro poses to the dollar in international transactions, I have no doubt that the American government will be strongly attracted by a 'benign negligence' in relation to the Russian difficulties, in order to put the monetary union at risk. However, in the meantime, the U.S. cannot allow the total disruption of Russia.... As usual...Europe will wait and see."

CANADA: "Boris The Devalued"

Montreal's French-language, centrist La Presse told its readers (8/25): "With the ruble's devaluation...it is mostly the credibility of President Boris Yeltsin that is taking a blow. And now that Prime Minister Sergei Kiriyenko has been dismissed, the monetary crisis has become a political crisis.... Mr. Chernomyrdin does not have the knowledge of his young rival, but he has his own political base and he is able to talk with the opposition. Russian politics will therefore be more conservative and will take the silent majority outside great cities more into account.... The rhythm of economic reforms and of Russia's Westernization will probably slow down, but they will probably be less superficial and more popular, which could in turn be more promising for the future of this country."

BELGIUM: "Viktor Chernomyrdin Is Already A Successor"

Pol Mathil commented in independent Le Soir (8/24): "A guillotine has never succeeded in changing a balance-sheet and will neither be able this time to decrease the magnitude of the crisis nor to stop the deterioration of the Russian political climate. As long as Boris Yeltsin controls 20,000 nuclear warheads, the West will be forced to keep helping him. But the West will finally have to ask the essential question: 'Is there a pilot in that aircraft?' And it will perhaps begin to think about an alternate solution. As accustomed as he is to turnabouts,

Boris Yeltsin has perhaps made one move too many. Sergei Kiriyenko was perhaps a fall guy. Viktor Chernomyrdin is already a successor."

"Kiriyenko Pays For Boris Yeltsin"

Independent Catholic De Standaard wrote (8/24): "To restore the much debated confidence and to get out of the crisis, much more than the umpteenth Kremlin intrigue will be needed. In the U.S. and at the IMF these last days, the conviction grows in every way that there is no sense any more in undertaking an umpteenth expensive rescue operation."

FINLAND: "Autocratic Government Reshuffle"

Independent Aamulehti decided (8/25): "Once again, the Russian President autocratically carried out a government reshuffle. Once again, he hurried to make a televised appeal to his people for support. Once again, the leading Western countries will turn necessity into virtue--they want to believe that Chernomyrdin's return will help stabilize Russia's economy and calm down the political situation. Yeltsin's dramatic turnaround is a turn back. One liberal politician said in Moscow: A man who could not get anything done in five months was replaced by a man who could not get anything done in five years."

"Kiriyenko Was Needed Just As A Scapegoat"

Leftist Kansan Uutiset reported (8/25): "Russian communists may be right: The economic and political crisis cannott be resolved before Yeltsin leaves. He has always been an impulsive and unpredictable politician. These characteristics are becoming more marked as he grows older. Yeltsin has repeatedly said that he will not seek a third term as president. On Monday, he indicated that he would favor Chernomyrdin as his successor. Perhaps this provides a little logic to the very illogical chain of events. Perhaps Kiriyenko was needed just as a scapegoat, to devalue the ruble."

"The Alarm Signal"

Business newspaper Taloussanomat remarked (8/20): "The devaluation of the Russian currency may be the alarm signal that the country's economic development needed. Russian capitalists must recognize that foreign capital and investments will flow in only if the Russian economy is under control. The sooner the healing process begins, the smaller the damages from the crisis will be. Building a sustainable economy will require the elimination of the existing system that has proven unoperational. The fluctuation of the currency may be the final blow to the transition-period economy that has operated on the brink of illegality."

HUNGARY: "Yeltsin's Failure"

Peter Barabas held in second-largest circulation Nepszava (8/25): "Boris Yeltsin is now in a flurry. Four mounts after he forced the appointment of his man, Kiriyenko, through the Duma, he now has sacked the 36-year-old prime minister. This is not the failure of an unexperienced politician but that of the Russian president. Because it was Yeltsin who placed all of his trust with Kiriyenko. Yeltsin cannot be satisfied with himself. He has not only admitted the failure of his earlier choice, but has put one of his keenest political opponents onto the throne--because Chernomyrdin pledged right after his dismissal earlier this March that he was running for the post of prime minister in the next general election due in two years. But Yeltsin did not to want to consider it yet, not in March. But now, that even the Duma has been calling for his departure, the still acting Russian president seems to go with the unavoidable, with the knowledge that he has to pass on the torch to somebody else."

"Kiriyenko Gone, But What Comes Next?"

Top circulation Nepszabadsag wrote (8/24): "The domestic investors, who, if not having seen the flames, but have long time been smelling the smoke, have reacted relatively fast. With one of their watching eyes on the Western investors, who slowly but surely started to pull out from the Russian markets, and partly as a consequence of the shaking Asian stock markets, they (the domestic investors) have started to withdraw their assets from the state bonds. The most worrying thing here might be the political consequences of the Russian economic crisis: The no-confidence for the Russian government is complete in each group of the political elite. There we have a presidential republic with a lonely, unpopular president, who is getting to be blamed now in a wider and wider cirlce for almost everything that has happened. There isn't practically a government in Russia. The financial sector is paralyzed. The situation is close to an explosion."

"The Ball Is In The Russian President's Court"

Influential daily Magyar Hirlap declared that (8/24): "The resignation of the Kiriyenko cabinet does not mean too big of a change because the serving prime minister, who spent most of his time in office trying to get the Duma to approve his austerity package, cannot really be blamed for the situation that he anyway inherited from the Chernomyrdin cabinet. The Russian president, who made mistakes one after each other, had to finally 'throw' something to the Duma, to the panel that, for the first time since its existence, went in united fashion against the Russian president. In this political stand-off situation, the ball is in the Russian president's court...the question is whether he can do something with it."

KAZAKHSTAN: "Kirienko Has Ruined The Russian Economy"

Independent TV Rakhat (8/24) interviewed a senior reporter with independent Argumenty i Faky who related: "For four months, Kirienko has ruined the Russian economy. Now everyone wants to make sure that Chernomyrdin is again a major figure in Russia. We [Kazakhstan] often copy Russian policy. Now we ourselves have a lot of young ministers and officials in our Government. They think not about the State but about themselves. I think that by this autumn they will have been replaced."

"Yeltsin Was Scared"

Official TV Khabar insisted (8/24): "Kirienko released critical financial information about the Russian economy which Chernomyrdyn always hid during his term as prime minister. Yeltsin and those around him were scared for country, for its economy, but most of all, for themselves. They were afraid of strikes and new problems in the Duma."

"Hopeless"

Independent weekly Delovaya Nedeylya opined (8/21): "According to experts, the devaluation of the ruble will reflect on the international image of the state [Russia] and will undermine the trust on the part of investors. Devaluation of the ruble will be also negatively reflect on Kazakhstan. First of all because Russia is exporting almost the same goods as we do. Russia's raw material will become cheaper than Kazakhstan's and again we will lose part of our income from exports as it happened as a result of the crisis in South East Asia."

THE NETHERLANDS: "Only Hope Is Yeltsin Departure"

Calvinist Trouw held (8/25): "The chaos in Russia is complete.... The only hope in this Russian mess is the possible departure of Yeltsin. By naming a successor, he seems to be the only one on earth who does not realize that Russia might not be worse off without him."

"Russian Crisis"

Centrist Algemeen Dagbladinside editorialized (8/19): "One month after the IMF made more than 20 billion guilders available to Russia, the Russian Central Bank ceased support for the ruble.... This is not very good news for the millions of Russians. However, the current crisis could well be a blessing for the country.... Letting the ruble go could cause short-term inflation but eventually it would be better if the value of the currency is determined by the market rather than by the Central Bank.... The Russian government is now under extra pressure to take necessary measures, such as streamlining the state finances and other reforms.... The current crisis could create a situation which will increase support for such reforms."

"There Is A Chance Of Social Unrest"

Influential independent NRC Handelsblad remarked (8/17): "The Russian government gave in.... The measures buy time but this time needs to be used to take other reform measures.... Russia is facing tremendous domestic problems. There is a chance of social unrest."

POLAND: "Two Steps Back"

Slawomir Popowski observed in centrist Rzeczpospolita (8/25): "Yeltsin gave Chernomyrdin vast powers, including both forming a new cabinet and shaping its policy. Does that mean that the president ultimately decided to share power? This is very unlikely. Yeltsin could accept such a move only if he considered his earlier retirement from the Kremlin--for instance, due to health reasons.... On the other hand, if Boris Yeltsin intends to survive until the end of his tenure, then a new conflict between the ambitious prime minister and the president appears inevitable. This stems from the sheer logic of the political system conceived by Yeltsin and tailored to his needs. This system does not tolerate two centers of power--if they ever came to exist, on the very next day patrons of the 'old president would start to move in large numbers to the 'future' one.... It is very likely, thus, that the president will first try one more time to calm the situation, and then will strive to regain his old influence--provided he is still fit enough."

"Operator Of The Guillotine"

Liberal daily Gazeta Wyborcza declared (8/24): "It is a great pity that Boris Yeltsin himself cannot be dismissed. Actually, he should be the one to leave. His decision to sack Kiriyenko and bring back Chernomyrdin is the most acute act of self-denial of his presidency in recent years. It means political suicide. Yeltsin confirmed one more time that he can only rule with the guillotine, which, as it is well known, is not a good measure even for a revolution. For a country on the verge of collapse, it is a catastrophe."

"Chernomyrdin Back In Favor"

Center-left daily Zycie Warszawy commented (8/24): "The slump in the Moscow stock exchange and the collapse of the ruble forced Yeltsin to try to save his skin from the infuriated Duma. Victor Chernomyrdin, a man of power monopolies, guarantees that reforms will not go too fast. The West, while asking itself whether the Duma knows what is good for Russia, hurriedly voices declarations to fully cooperate with a new government."

SPAIN: "Yeltsin Must Resign"

Dario Valcarcel concluded in conservative ABC (8/25): "To end the crisis, Yeltsin must resign and call for immediate presidential elections.... Yeltsin represents a system that has grown increasingly corrupt in a country endowed with vast natural resources. Russia could gradually become a respectable, second-class world economy within 10 to 12 years, even more perhaps, if it were to impose strict order and commit to great sacrifices. None of this is conceivable,

however, while a capricious, incompetent and arbitrary despot remains in office.... Nor can the West any longer throw good money down this rathole."

"Russian Musical Chairs"

Barcelona's centrist La Vanguardia noted (8/24): "Russian President Boris Yeltsin yesterday removed Sergei Kiriyenko and his government, and provisionally named Viktor Chernomyrdin to replace him.... While it is understandable, given Russia's predicament, that the president would want to change his cabinet, what he has done is disconcerting inasmuch as it reverses what was done only five months ago.... Since last Monday when the ruble was devalued and a debt repayment moratorium was declared, the sensation of an impending debacle has deepened, the markets have plummeted, and a political firestorm has erupted. In these circumstances, Yeltsin has grabbed the rudder, but one wonders in which direction he is steering the ship of state, and whether he will avoid the shoals that it has hit before. Yelstin is unpredictable and inexplicable; what is more, one is always left to wonder whether his actions are in accordance with a strategy or merely the result of improvisation."

"Russia: Back To The Future"

Conservative ABC opined (8/24): "Kiriyenko has been swept away by a catastrophe, and has been replaced by Chernomyrdin who has been restored to his former office in a 'back-to-the-future' shuffle. Perhaps Yeltsin can bring the Duma, which had repeated its call for his resignation, into line with this move. Anything to gain some time while concurrently prolonging his own agony. The question is: What does Russia gain by it all?"

"Yeltsin: Fiasco"

Independent El Mundo held (8/24): "Weaker than ever, with his treasury empty, and facing a social upheaval caused by devaluation-induced hyperinflation, Yeltsin has again reached out to Chernomyrdin, a political animal, more or less loyal and acceptable to the Duma, which had unsuccessfully attempted to block Kiriyenko's accession to office. Chernomyrdin, however, is not the solution, but rather a big part of the problem. Today's crisis is, in large measure, his legacy. In the final analysis, both he and Kiriyenko are mere instrumentalities of reforms that have been exhausted and have now failed. Those were Yeltsin's reforms, and his final throes, if they prove to be traumatic, could compromise the stability of Europe and the entire world."

EAST ASIA & PACIFIC

JAPAN: "Russia Must Overcome Economic Crisis Quickly"

Top-circulation, moderate Yomiuri said (8/25): "In the end, Yeltsin's misjudgment and misgovernment will undoubtedly lead to the fall of his leadership and his prestige will plummet at home and abroad. The dismissal of the Kiriyenko cabinet could be seen as the beginning of the Yeltsin government's final chapter. It is believed that various responsibilities will gradually be transferred from Yeltsin to Chernomyrdin over the coming months. Considering his past achievements, there are concerns around the world that Chernomyrdin may lack the will or desire to undertake the drastic economic reforms that his country requires. What is feared most is that Russia will act too slowly in overcoming its economic crisis."

AUSTRALIA: "Russian Roulette"

The liberal Sydney Morning Herald editorialized (8/25): "Next week the U.S. president...travels to Moscow for an important summit meeting. At issue are questions such as how best the West can support Russia's spluttering emergence from communism, and where Russia will side on increasingly prickly issues including the war in Kosovo and the U.S.-led campaign against

international terrorism. Russians cannot afford someone gambling with their future. Neither can the West. It is time for Mr. Yeltsin to put up--or step down."

"Russia Gives World Cause For Concern"

The conservative Brisbane Courier Mail (8/25) asserted, "If the United States -- which fostered and promoted the break-up of the Soviet Union--had responded by leading an international investment drive in the Confederation of Independent States, instead of allowing banks to lend good money after bad to often corrupt Russian nomenklatura,...there might have been some hope. Next week a lame-duck President Bill Clinton will visit the now lame-duck President Yeltsin. At a time when the world desperately needs international leadership, there is none to be seen. What was probably little more than a photo opportunity for these two diminished leaders now assumes a dramatic importance. We can only watch events with mounting concern."

"Russia's Crisis Could Shake The World"

The national conservative Australian editorialized (8/24): "International support for the reforms may have little effect on internal politics but is still imperative. Russia demands attention, whether it is deserving or not, because of its strategic importance. Political and social stability is critical, particularly given its store of nuclear and other weaponry that already supplies a thriving international black market. The economic spillover of the Russian currency collapse would be only the most immediate of a series of potential problems."

CHINA: "Russian Financial Crisis Triggers Government Reshuffle"

Official Beijing Municipal Beijing Daily declared (8/25): "Despite the impact of the recent financial crisis, the trigger for the reshuffle is the Duma's dissatisfaction with the Kiriyenko government and its demand for Yeltsin's voluntary resignation. The prospects for a quick rebound in the financial situation are gloomy indeed, let alone achieving overall success in combatting the ongoing political, economic and social crisis in Russia."

"Turbulence Recurs In Russian Financial Market"

Liu Gang noted in official Communist Party People's Daily (Renmin Ribao, 8/18): "Tensions in international financial market...contributed to the Russian financial tremor.... This tremor can be described as `the fifth apoplexy' of the financial market. According to medical knowledge, if the frequency of apopleptic episodes increases, paralysis is just around the corner.... However, all hope that the Russian economy will recover soon and acquire absolute immunity to apoplexy."

INDONESIA: "Called Back After Kiriyenko Fails To Organize Economy"

Leading independent Kompas noted (8/25): "It is still too early to ascertain Yeltsin's political future. Continuing foreign aid and a forthcoming summit with Clinton may create a turning point for Yeltsin, especially sinceYeltsin is recognized for his ability to survive political crises."

"Russian Monetary Crisis Increasingly Affects Political Field"

Leading independent Kompas noted (8/24): "Based upon the experiences of a number of Asian countries, we view the IMF aid package by itself as unable to overcome the monetary and economic crisis. The effort to overcome the crisis indeed must be a comprehensive approach, incorporating the areas of politics and [public] attitude.

SOUTH KOREA: "Russia's Economic Solution Unlikely To Come Soon"

The independent Hankyoreh Shinmun commented (8/25): "President Yeltsin put forward another surprising political show by suddenly dismissing Sergei Kiriyenko and reinstating Viktor Chernomyrdin as prime minister. While Chernomyrdin's reinstatement is being interpreted as indicating that the economic reformers have lost the battle, others are speculating that his reappearance will hasten President Yeltsin's becoming a political lame duck.... Picked as the new prime minister despite the widespread belief that he is responsible for the current economic woes, Chernomyrdin may in fact turn out to be one more bad choice by Yeltsin.... Russia now faces a radical modification in how to deal with the economic crisis. With Chernomyrdin unable to tackle difficult challenges right away, it will take much longer before Russia sees any possibility in solving its economic difficulties."

"Public Calls for Yeltsin's Ouster"

Pro-business Joong-Ang Ilbo commented (8/19): "With the ruble devalued and a debt moratorium declared, Russia now faces a challenge on three major issues: the government's reform policy, its experiment with capitalism, and the fate of the Yeltsin presidency. If the president fails to bring the situation under control soon, he may face a serious threat to his presidency."

"Ruble Shock And The World's Financial Market"

Conservative Chosun Ilbo told its readers (8/18): "Whether Russia can escape from its current woes all depends on how much the G-7 countries will help. The extent of assistance will likely be decided before September, before President Clinton's visit to Russia. If financial assistance does not come Russia's way, Russia may be lost to the enemies of President Yeltsin, who has been pro-Western so far."

"Danger Signals From Russia"

According to onservative Segye Ilbo (8/18): "President Yeltsin's leadership has revealed its limitations.... Since state employees are still not being paid, and Russia's congress is not properly functioning, all these unstable factors could easily lead to serious rioting. It all points to the view that the Russian economy will not recover easily."

SOUTH ASIA

INDIA: "Playing To The Gallery Of Communists"

The nationalist Hindustan Times commented (8/25): "The wily [President Yeltsin] is obviously playing to the gallery of the Communist Duma deputies by bringing back the conservative Chernomyrdin, who is probably the best bet at the moment to stop Russia's political and economic slide. For one thing, the president had never doubted Mr. Chernomyrdin's loyalty: The more obvious reason now for recalling the latter is probably Mr. Chernomyrdin's excellent equations (sic) with the Communists who find his idea of 'national reconciliation' quite attractive. At a time when the hardliners are baying for Mr. Yeltsin's blood, the presence of Mr. Chernomyrdin could make life a lot easier for the beleaguered president."

LATIN AMERICA

BRAZIL: "Russia Is Another Victim Of The Mermaid Singing"

Liberal Folha de Sao Paulo stated (8/20): "Russia is too big (and also too well armed) to be left to its own luck by the G-7 group and by the entities for multilateral credit. But the cases of

Russia and the problematic nations of East Asia, clearly show the exhaustion of the emergency schemes that are being planned to extinguish the international financial fires. The countries of the G-7 group seem not to have political and financial conditions to sponsor new intervention in favor of the problematic countries and its foreign creditors and investors. Russia is another victim of the mermaid singing of international finances. The Russian collapse confirms, maybe in a specially dramatic way, what other recent crises have been demonstrating during the '90s: Financial liberalization and the extension of international capital flows went too far."

"No Assistance Program Will Be Sufficient"

The lead editorial in center-right O Estado de Sao Paulo said (8/18): "The most foreseeable consequence of the Russian crisis for Brazil and other emerging economies is expeced to be a reduction in international credit. The 90-day moratorium, at this moment, can hardly be considered the most important issue for the financial market. Such a movement was predictable. The most important question now is how quickly Russia can recover from its current crisis.... No assistance program will be sufficient to reestablish the confidence of the money lenders and investors, without significant internal adjustments. It must reorganize public spending, and broaden its tax reform system... A devaluation of China's currency would probably have a greater impact on international markets than a modification of the Russian exchange policy. But the Chinese capability to stay the course is subject to the development of the Japanese scenario. The Russian crisis, in one sense, makes the adoption of a more cooperative policy by the Japanese government more urgent. If the world's second largest economy starts to grow and import again, it could with the United States', help to overcome of the world's economic difficulties much more quickly.

For more information, please contact:

U.S. Information Agency

Office of Public Liaison

Telephone: (202) 619-4355

8/25/98

# # #