Weapons of Mass Destruction (WMD)

EUROPE

RUSSIA: "Situation Becomes Critical"

Centrist Nezavisimaya Gazeta (8/27) front-paged this comment by Ruta Konar and Vladislav Kuzmichev: "As if its economic, social, regional and military problems are not enough, Russia has been confronted with a growing political crisis. The powers that be, busy fighting the opposition and holding consultations will all sorts of allies, simply had no time to deal with the numerous crises. The focus now is on Viktor Chernomyrdin. His own future and that of Russia are in his hands. With the financial market all but paralyzed, Russia may lose the instruments and attributes of a market economy any time now. The government has capitulated to the investor's panic and disbelief in the ruble."

"Yeltsin No Longer in Control"

Natalia Timakova said on page one of reformist, business-oriented Kommersant Daily (8/27): "It is clear to all now that Yeltsin is not really in control any more. His role in solving the financial crisis is merely to sign orders as submitted to him or just have them faxed. Members of the (presidential) administration admit almost openly that, aside from dealing with other top priorities, including anti-crisis measures, Chernomyrdin will seek security guarantees for the president in case he decides to quit."

"Crisis is Government's Own Doing"

Andrei Illarionov, director of the Institute of Economic Analysis, predicted in reformist Noviye Izvestiya (8/27): "Unless the Central Bank changes its crediting policy, the ruble may fall so that 1994's 'black Tuesday' would seem like an all-time high for the Russian currency. The government, Central Bank and oligarchs themselves planned and implemented this crisis. It is their own doing. The idea was to get Chernomyrdin back to the premiership and, eventually, have him replace Yeltsin as president."

"Two Options"

Sergei Chugayev pointed out on page one of reformist Izvestiya (8/27): "The two ways to get out of our political predicament are to form a government with extensive powers and support from the parliamentary majority or to disband the Duma and face the consequences."

"Ruble's Fall To Help Chernomyrdin"

Ivan Zhagel remarked on page one of the Finansoviye Izvestiya supplement to reformist Izvestiya (8/27): "The ruble's fall may precipitate Chernomyrdin's approval as prime minister."

"Learning To Walk Backwards"

Almira Kozhakhmetova said on page one of reformist Noviye Izvestiya (8/27): "We have to learn to walk backwards, since what is going on in Russia now is a throwback to 1994. It could be just as well for banks, though. The year 1994 with its runaway inflation was their finest year."

"Yeltsin In Conflict With Himself"

Natalia Konstantinova observed on page one of centrist Nezavisimaya Gazeta (8/27): "Now, contrary to the widespread opinion that a good man is not a profession, Boris Yeltsin thinks that anyone can be a premier as long as he/she is 'decent, honest and thorough.' That is at variance with what the president himself said recently.... By naming Chernomyrdin his

successor, Yeltsin, at least in word, has made it clear that he may resign (he only needs a

plausible and, more importantly, constitutional excuse to do so), safe in the knowledge that Chernomyrdin, a master of compromise, can find common ground with anyone."

"It's Better That They Do Nothing"

Gleb Baranov commented in reformist, business-oriented Kommersant Daily (8/27): "Sometimes it seems that it would be best for Russia if those behind the throne don't take any measures at all. That, incidentally, might be the idea behind the decision to replace Sergei Kiriyenko with Viktor Chernomyrdin, who is less prone to making abrupt motions."

"Moscow Warned Not To Expect Presents"

Vladimir Abarinov said in reformist Russkiy Telegraf (8/26): "As President Clinton is going on a visit to Russia, Washington has warned Moscow against expecting financial presents, referring to Congress' stand. There is still uncertainty about the year 2000, unlikely to be cleared up by the coming visit. The entire financial world is looking forward to hearing an assessment of the Russian 'coalition' governnment's anti-crisis program by the Clinton team."

"Normal Coalition Impossible"

Editor Vitaly Tretyakov of centrist Nezavisimaya Gazeta (8/26) averred on page one: "We cannot have a normal and effective coalition yet. So Chernomyrdin will simply have to make a deal with the Communists, or form a coalition of people, not factions.... Almost two days after his new appointment, Chernomyrdin has not bothered to do anything about the economy yet or at least declare his intention to take control over markets. Sadly, he does not seem to realize how bad the crisis is."

"Abdication"

Leonid Radzikhovskiy wrote in reformist Segodnya (8/26): "Yeltsin forsook the ruble on August 17 and completed the process on August 24, when, by dismissing the last 'presidential' premier and recalling a 'popular-trust premier,' he abdicated de facto. Thus ended the era of an authoritarian presidency in Russia.... It looks as if Yeltsin is ready to step down and will hardly agree (be able?) to have another one and a half years of anguish until June 12, 2000, as a lame president. He will go soon if he goes at all."

"Visit Means Approval of Anything Yeltsin Does"

Nationalist opposition Zavtra reported (8/26): "The Yeltsin group (Chubais, Dyachenko and others) views the Clinton visit as an automatic approval of 'practically any action' which may be taken in the months ahead to 'ruthlessly' suppress the opponents of 'the death budget' and the 'forced' transfer of the controlling interest of Russia's major companies to American banks. The Russian companies that are to be 'cleansed' include GAZPROM, SURGUTNEFTGAZ, YUKOS, LUKOIL, ALROS, SIBNEFT, and SLAVNEFT, to name but a few."

GERMANY: "Lebed's Gloomy Scenario"

H. Doescher commented on national Deutschland Radio of Berlin (8/26): "Alexander Lebed's gloomy scenario...seem to have become reality. It is probably no pure coincidence that the former security advisor is now seen as a savior of the nation. He has waited for a long time for this chance, but the day is coming closer. The price, however, is likely to be even less of a market economy and even less democracy. We may regret this from a Western point of view. But people in Russia feel differently. Many consider themselves victims of the opening to the West and victims of globalization."

"Foreign Investors Will Pay Dearly"

Josef Riedmiller noted in an editorial in centrist Sueddeutsche Zeitung of Munich (8/27): "Even Victor Chernomyrdin will be unable to fulfill simply the wishes of the oligarches. He must show consideration for the wishes of the ordinary people and try at the same time not to spoil the mood of Western donors. With the debt restructuring plan which he worked out together with the president, he will not meet with support anywhere. In the end, the solution will be that (foreign) investors will have to pay dearly for Moscow's previous shortcomings."

"Time Of Oligarchs Has Come"

Centrist Der Tagesspiegel of Berlin (8/27) judged: "The time of the oligarchs and foreign trade speculators has finally come. In the pin-striped suit of alleged market economists, they have subjugated the country and made a fortune with the money of ordinary people. Those who possess dollars need not worry about the fall of the ruble. The $64,000 dollar question is: Who will force these people, the profiteers and tax evaders, to abide by the law? Viktor Chernomyrdin, who knows both sides of the problem, will be unable to master this problem. He will either find powerful political allies who consider their country more important than their private bank accounts or the power of illegitimate violence will force its way."

"IMF Check Bounced"

Right-of-center Thueringer Allgemeine of Erfurt (8/27) had this to say: "The billions that were pumped over the past few years into Russia, have disappeared in the wide open of the country. This was foreseeable, but, nevertheless, nobody stopped the flow of money. The West gave Yeltsin a blank check, hoping for reforms and stability. But now, fresh money is no longer available. Even the IMF no longer has any money after the Asian crisis. Thanks to the misguided policy of its own government, which was supported by the West, Russia is now at a stage which the Eastern European reform countries were faced with at the beginning of the 1990s. The check bounced."

"Dead Men Walking"

Sabine Rosenbladt wrote in a front-page editorial in centrist weekly Die Woche of Hamburg (8/27): "The two gentlemen who will shake hands in the Kremlin next week are the most powerful men in the world, but the Russian and the U.S. presidents are dead men walking. Both are threatened by impeachment proceedings and have just remembered their power and shocked the world: The first with his oath of disclosure and the latter with 80 missiles fired at targets in Sudan and Afghanistan. Russia duped its donors, while the United States disregarded international law. But obviously, they are allowed to do so.... With the exception of a few people, no government leader has raised a warning voice against the two. On the contrary, from the European capitals we hear only the devout choir of 'yea-sayers' Yeltsin, too, need not worry. His friend, Helmut Kohl, will support him, since an election campaign is going on in Germany. However, Bill Clinton's shots from the hip can create even greater damage. Washington now intends to wage the 'war of the future' against the terrorists.... Osama bin Laden can now rub his hands, since, as of today, every U.S. citizen in another country will now have an imaginary tag around his neck saying he/she is an American citizen and can be attacked. Thanks to vigorous U.S. support, Samuel Huntington's prediction of the 'Clash of Civilizations' is now becoming true.... If Europe does not finally realize that it must pursue a foreign policy that is based on its own interests, it will have to be share the consequences ."

"Yeltsin Part Of The Problem"

National radio station Deutschlandfunk of Cologne (8/26) aired the following commentary by P. Soritsch: "Of course, the communists do not have a panacea for coming to terms with the

current crisis either. In the coming months, the printing of new ruble bills would speed up if Chernomyrdin yielded to communist demands. This would then be the preliminary end to Russian reforms. Inflation has never resolved any economic problems. On the contrary, there is only one solution for the Russian state: In the long run, it should not spend more than it takes in. So far, Russia's politicians have failed to do so. In the end, Yeltsin is responsible for this fact. Each time the government made a serious attempt to implement reforms, he fired the government. Once the situation became serious, Yeltsin changed his mind. Yeltsin no longer has the power to resolve the problems of the country. He has become part of the problem."

"Oligarchs Summon Back Chernomyrdin"

Left-of-center Berliner Zeitung (8/26) noted: "Under Chernomyrdin's leadership, Russia succeeded in transforming the economic power of the former communist rulers...into legally protected private property of the same circle of people.... Now these oligarchs succeeded in summoning back Viktor Chernomyrdin to the political arena. Yeltsin's political departure will now follow."

"Chernomyrdin's Return Should Create Confidence"

Centrist Stuttgarter Zeitung (8/26) opined: "Chernomyrdin's return should create confidence in Russia and on the international stage. In the long run, the experienced Chernomyrdin may have greater success than the young Kiriyenko...but for the time being, Chernomyrdin's return signals that panic is dominating in Moscow and in the Kremlin."

"The Fall Into The Abyss"

Right-of-center Mindener Tagblatt declared (8/26): "We should not take at face value the confidence the whole world has now expressed in Yeltsin's personnel management and his ability to stop the fall into the abyss. But with a view to Russia, the leaders of the Western world have little more to stick to than the bankers: hope. They all know the truth: Yeltsin is a chaotic person, and he is surrounded by a dubious cabal. But there is no alternative to Yeltsin on whom the West could pin its hopes. There is no way around it: The West must make arrangements with Yeltsin."

"Political Dinosaurs Who Do Not Realize That Their Time Is Over"

Business newspaper Handelsblatt of Duesseldorf maintained (8/25): "If the situation were not that serious, we would laugh at it. Russia's president is summoning 'heavyweight' Viktor Chernomyrdin and is making him his crown prince--and the German chancellor praises Yeltsin's candidate immediately afterwards as a guarantor of stability. This can be interpreted only as solidarity among political dinosaurs who do not realize that their time is over. Those who continue to wait for Russia's rescue from the tandem Yeltsin/Chernomyrdin must be incorrigible optimists.... Thirteen years after Gorbachev's perestroika, eight years after Yeltsin's election as president, and almost six years after Chernomyrdin's first attempt, Russia is still at the beginning of a modernization of society, state, and the economy. In hindsight, we must say that Moscow used the billions from the West mainly to put off necessary reforms and to idly watch the erosion of the country."

"The Country Is Too Deeply In A Fix"

Right-of-center Saarbruecker Zeitung opined (8/25): "Chernomyrdin must now write a new script, since, otherwise Russia would have lost five months. The country is too deeply in a fix. Chernomyrdin's proximity to the rich and influential people in his country could ensure their cooperation in reshaping the country. And this would urgently be necessary, for as long as the

money only flows out of and is not invested in the country, foreigners will hesitate to make investments in Russia after their previous bitter experience. This requires Chernomyrdin to create confidence among his compatriots and on the international stage. Russia has now the last chance not to waste billions of loans of the international community, mainly from the West."

BRITAIN: "Our Inept Handling Of Post-Communist Russia"

The conservative tabloid Daily Mail had this editorial (8/27): "In the current crisis, who can blame the long-suffering Russian people if they conclude, after seven turbulent and difficult years, that they have been rid of communism's oppressive inefficiency only to be saddled with a caricature of capitalism, which seems no more capable of raising living standards. Our inept handling of post-communist Russia stands in shaming contrast to the generous and far-sighted treatment America accorded Japan and Germany after World War II."

"Crisis-Torn Russia May Reject The West"

The centrist Independent commented (8/27): "Where Russia's apocalyptic financial crisis will end, no one can say. At this chaotic moment, the country is beyond Western help. For the IMF to provide more resources--that is, assuming it has the resources--would be grossly irresponsible, a case simply of throwing good money after bad.... Russia's economic distress is likely to endure for many years. The government that has to cope with it should be as strong and representative as possible.... It must have the support of the communists. This in turn implies a more authoritarian government, probably less friendly to the West. This truth may be harsh, but we would be foolish to ignore it."

"Dealing With A New Russia"

The independent Financial Times had this lead editorial (8/26): "The West must not step in to help again until the Chernomyrdin government can prove that it, too, is following a reformist agenda. Any financial support must be strictly conditional on actions taken--not, as before, on promises to act, which were all too often unfulfilled.... When he visits Moscow next week, President Clinton needs to speak firmly, but without confrontation, about his desire for friendly relations and the circumstances that might make them less so."

FRANCE: "Yeltsin's Deafening Silence"

Laure Mandeville wrote in right-of-center Le Figaro (8/27): "Prime Minister Chernomyrdin is looking for allies and seems to be turning to the governor of the Krasnoyarsk region, Alexander Lebed, whose reputation as a charismatic leader and forceful man could be useful in case the crisis leads to social outbursts.... Chernomyrdin must be feeling very insecure to have decided to ally with the very popular and ambitious governor, who was, not long ago, designated as the man to be bumped off by the political class." About Chernomyrdin's meeting with the IMF's Camdessus, Laure Mandeville added: "Russia, as Chernomyrdin well knows, cannot get out of the situation without the help of the IMF. But Chernomyrdin also knows that the IMF has to participate in the rescue of the Russian economy, because the risks of its spreading are too high."

"Russian Prime Minister Defending His Cause Before IMF Director"

Eric Revel wrote in centrist La Tribune (8/27): "How can Chernomyrdin organize a coalition government with members of the Duma who reject the IMF anti-crisis plan and still convince the IMF to keep helping Russia?... The importance of geopolitics has its reasons that international finance cannot ignore. The support of the West should be reaffirmed by President Clinton when he visits Yeltsin on September 1 and 2. And at the same time, people

are calling louder and louder for Yeltsin's resignation."

"The Planet Grits Its Teeth"

In left-of-center news weekly magazine Nouvel Observateur, news director Bernard Guetta commented (8/27): "The world's largest country, our neighbor, has virtually no political choice but uncouth communists or an iron-handed general named Lebed."

"Boys Of IMF Go, Financial Tycoons Return"

Okba Lamrani wrote in communist Liberation (8/26): "Can the new Russian economic policy bring an answer to the social disrepair? Russians have a right to wonder. Chernomyrdin and his people have controlled the business for approximately five years. Built on the ruins of the Russian economy, the tycoons' interests are mainly today to access foreign currencies via massive exports and bargains on raw materials.... Will Chernomyrdin, even with the support of the Duma, put an end to this?"

"The Collapse Of Ruble Forces Yeltsin To Move Aside"

Maxime Loussine wrote in Catholic La Croix (8/26): "Chernomyrdin's comeback as prime minister announces the end of the Yeltsin's seven-year era.... Weakened by the political crisis, abandoned by his allies, the sick and aging president can no longer resist this offensive. Boris 'the czar' had to accept his new role: being in the shadow of his prime minister."

"Europe's Shyness Is Unforgivable"

Right-of-center Le Figaro opened its columns to Italian journalist Frederico Rampini who wrote (8/26): "Have we lost Russia?... Today, the International Monetary Fund therapies are criticized, even in the United States. It is time for Europe to take on its responsibilities and stop an outbreak that is now reaching our borders.... Four months before the official birth of the Euro, the Russian crisis is calling our 'Euroland' to play its leadership role.... The EBRD is not just an onlooker in the Russian crisis. Europe has put it in the hands of the International Monetary Fund, which is known for caring mainly about Washington's geostrategic interests. Russia could have become for Europe what Mexico is for the U.S.: a reserve for manpower and a big market. For lack of a big motivating plan, the European Union may lose Russia as it lost Germany after the first World War."

ITALY: "A Summit Between Thorns"

A front page commentary by Mario Platero in leading business Il Sole-24 Ore held (8/27): "We are talking about two countries that are in completely different situations. Russia finds itself in a situation of institutional chaos which makes many fear that its economic disaster could lead to political anarchy.... In America, the Lewinsky scandal must be seen in a general perspective of institutional solidity and...unprecedented economic prosperity.... Thus, it is thinking about the continuity of relations between the two nations and the need to keep Russia linked to the West that one understands that Clinton's upcoming trip to Moscow is the most important of the last few years.... Therefore, the stakes in the Clinton-Yeltsin summit are not only financial, but (Clinton and Yeltsin) will also try to preserve the mechanism put in motion by the `peace dividend' after the end of the Cold War, on the basis of which the globalization process itself...grew."

"The Ghosts In The Kremlin"

A commentary by Alberto Pasolini Zanelli in leading rightist opposition Il Giornale (8/27): "What makes us shiver is the prospect that a reinstated Chernomyrdin...could be forced to ask for the

help and support of the communists.... Would the communists guarantee stability? Promising truces and `national unity' is an important part of their never disavowed Leninist heritage.... A return to power by these people, who are members of the only working, well-organized political party...can leave few indifferent."

"Two Presidents In Trouble"

Anna Zafesova wrote from Moscow in centrist, influential La Stampa (8/26): "The man of stability, the 'heavyweight' called upon to save Russia from disaster, seems unable to reassure the country. Viktor Chernomyrdin's third day in office was characterized by a total collapse of the ruble.... The Clinton-Yeltsin summit next week will be a meeting between two presidents in trouble. For the first time in a situation of crisis Yeltsin has given up, disappearing from political life. All Russian commentators agree that the twilight of the Yeltsin era has begun."

"Stable Russia, Happy Markets"

An editorial in provocative, classical liberal Il Foglio (8/26) judged: "Chernomyrdin offers an articulate guarantee of stability, thanks to his relations with the former leaders of the Soviet regime, with industrial technology groups, with the new capitalists, with Yeltsin. This reassures the business world.... It is a wise attitude, but only in the short run. In Russia, as well as in Japan--albeit in different ways--what will be decisive in the end will be the ability to innovate. And Chernomyrdin does not offer guarantees on this front."

"Cannot Further Delay Reforms"

An unsigned report from Washington in leading business daily Il Sole-24 Ore read (8/26): "If Russia intends to emerge from the crisis, it cannot delay the adoption of economic reforms any further. This is the sense of the message sent yesterday to Boris Yeltsin by Bill Clinton during a telephone call."

"Reorganizing The Banking System Is The Test For the Russian Prime Minister"

Leading rightist opposition daily Il Giornale analyzed (8/26): "What has happened in Moscow over the last few days should be seen as the defeat of the renovation process which the young and unlucky Prime Minister Kirienko was carrying out. The international financial community had shown major confidence in investments in Russia, counting on the support of the IMF.... For now, the international community has not shown that it is disturbed by the sudden 'changing of the guard' in Moscow. But we should not fool ourselves.... A banking system which combines unhealthy banks with good banks is like a basket of pears, where the bad ones gradually contaminate the good ones, causing people to lose confidence. The IMF has already made a few mistakes, granting big loans before Moscow had even begun to reorganize its banking system. If Clinton's visit to Moscow next week results in more 'indulgence,' that will set a very bad precedent. Markets have their own rules. The Russians have not learned them yet and they should do so. IMF resources, after several recent interventions, have reached rock-bottom."

CANADA: "Boris The Terrible"

The mid market conservative Ottawa Citizen wrote (8/26): "The European Bank for Reconstruction and Development ranks Russia as the most corrupt of the major economies. Russia has few chances under Mr. Chernomyrdin of regaining international credibility, unless it listens to its friends. Bill Clinton is to visit Moscow Sept. 1.... Assuming there are any businesspeople naive enough to go along on that ride, they...should stress the conditions of honest government necessary for investment to thrive. Without a fundamental change of direction, Russia will remain--at best--an impoverished oligarchy in democracy's clothing."

"Russia's Shakeup Must Deliver Reform"

The liberal Toronto Star commented (8/26): "There is no denying that in Russia today, political stability does need to be reaffirmed, if economic reform is to have a chance. Without the broadest possible consensus Yeltsin and Chernomyrdin will have a hard time making the tough changes needed to stabilize the collapsing ruble.... Both sides must be persuaded that they have to yield, so that the economy can grow, and enrich people generally. Without minimum consensus, reform is doomed. For this, Russia needs a government that does not spend every waking hour lurching form crisis to crisis. Better longer-range planning is key to restoring some of the market confidence needed to attract foreign investment.... For all its frightening weaknesses, Russia is too important to write off. It has political interests far beyond its borders, a huge stockpile of nuclear weapons, and economic clout greater than its GDP.... Few today would regret a change at the top."

BELGIUM: "Two Leaders So Weakened"

Philippe Paquet commented in conservative Catholic La Libre Belgique (8/26): "On one hand, Boris Yeltsin, whom the Russian press, for once unanimous, acknowledges the vacuity.... On the other, Bill Clinton who inspired at least one thousand dirty jokes since the beginning of the year, according to the very serious Washington Center for Media and Public Affairs. A. U.S. president who is not rid of the Zippergate now that Monica Lewinsky reportedly accuses him of having sought with her the means to hide their 'inappropriate' relationship. This is enough to distract Clinton even more from his duties, and further undermine his energy and credibility.... Can two leaders so weakened conduct a bilateral dialogue which is presented as the keystone of the new international order after the Cold War?"

FORMER YUGOSLAV REPUBLIC OF MACEDONIA: "Yeltsin Saves His Skin"

Pro-government daily Nova Makedonija remarked (8/25): "The dismissal of the Kiriyenko government just four months after it was formed, amid great difficulty, is another example of the mistakes that President Yeltsin has made. The Duma hinted that it will try to bring down the government at the beginning of the fall season, but things were 'rushed' and Yeltsin had to do it himself. The president seems to regard the government as his own 'toy,' and forgets that he backed this government with his own integrity, so by dismissing it he has stricken a blow to himself. Viktor Chernomyrdin has every right to ask for untied hands in the forming of this new government. He intends to put professionals in it, but also to take 'good care' of the Duma parties' interests and strength. That means that it is highly possible to have communists sitting next to right-wing radicals in the cabinet."

HUNGARY: "Measuring Partners"

Influential Magyar Hirlap had this op-ed piece by Laszlo N. Sandor (8/27): "The Kremlin's third world policy will hardly change, but it cannot be ruled out at all that Islamic fundamentalism will make U.S. diplomacy form a different opinion about Russia's role. It might mean that the two superpowers, who have been competing with each other in Asia before, might now become partners. And if we look at this from the perspective of the post-Yeltsin and post-Chernomyrdin era, this strategic cooperation can only become stronger.... Moscow's balancing policy might contribute to the emergence of a situation where the scale will be tipped by Russia's straightening out its lines in Central Asia and in the Caucasus, and protecting the rights of its compatriots in the CIS."

"Dead Souls Dancing"

Kremlinologist Agnes Gereben wrote in second highest circulation Nepszava (8/26): "Chernomyrdin has mostly been brought back into power because the government decrees

signed by Kiriyenko on August 17 would have caused enormous losses to Berezovsky and his friends: to the well-trained, skillful, and uninhibited businessmen with billions of interests who now place their own interests before the stability of their country."

"The Weakness Of The Heavyweight"

Centrist-conservative, pro-government Hungarian daily Magyar Nemzet commented (8/26): "It is the sign of [Yeltsin's] weakness that he was, once again, forced to choose the grey, unimaginative man of compromises whom he had replaced in March because he was obviously unable to tackle the ever increasing economic crisis. Unlike him, the weightless young Kiriyenko at least started the reforms. The price of [Chernomyrdin's] compromises is that the Russian economy continues to be lightweight, and even if many are reassured by the momentary quiet, the country itself will keep on marching towards uncertainty."

KAZAKHSTAN: "Yeltsin Was Scared"

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

SPAIN: "Russia, More Of The Same"

Conservative ABC editorialized (8/27): "The problem...doesn't lie in those [reform] measures taken....but rather in the financial markets, in unanimous fall yesterday.... The absence of a government, the almost zero confidence in the government that is being formed, the panic of savers, and the discontent of investors explains the disaster...and there aren't any signs of improvement."

"August Storms In Russia"

Felipe Sahagun opined in independent El Mundo (8/27): "Chernomyrdin renewed his efforts to govern by falling into the same mistakes. He promises to fight for incompatible objectives.... The Duma prefers Chernomyrdin for his experience and poise, but nobody should be deceived. The Duma tried, several times, to throw him out of the Kremlin, and they will try it again. Notwithstanding, Chernomyrdin is condemned, if he wants to succeed Yeltsin, to try to increase his popularity, an objective almost impossible if he doesn't find the money to stabilize the currency and to avoid another hyperinflationary storm that swept away the savings of Russian workers in 1990-92."

"Yeltsin's Fatal Grip On Power"

Conservative ABC noted (8/26): "Russia is effectively without a government...but what is worse, when a new one takes over it will take the form of a coalition that Chernomyrdin is negotiating with retrogrades in the Duma, a government that will not be noted for its economic rigor.... The solution to all this would be if Yeltsin were to call early elections. But everyone knows that he can't let go of power, a fatal grip that will drag him into the abyss."

"Russian Morass"

Barcelona's centrist La Vanguardia editorialized (8/26): "In addition to the economic and political ramifications of last Sunday's surprising change of government, Boris Yeltsin has lost another hank of his charisma, while at the same time handing all his chestnuts to Chernomyrdin to roast. According to a Russian public opinion poll, the popularity of political leaders has hit a new low. Only one in ten citizens has any confidence in the government.... It

remains to be seen, however, whether Yeltsin is not just shifting responsibility for the crisis to Chernomyrdin in order to return to a more market-oriented approach again later if he fails to solve Russia's problems."

EAST ASIA AND PACIFIC

AUSTRALIA: "Russia's Crony Capitalism"

The national business-oriented Australian Financial Review opined (8/26): "The IMF's handling of the Russian crisis may have had its faults. But to argue, as some U.S. legislators have, that the big bear should be left alone to deal with its crisis, is not in the West's self-interests.... Hence, the only solution to Russia's crisis is to proceed with basic institution-building economic reform, including tax reform bills waiting passage by the Duma. As shown by South Korea and Thailand, the IMF package is imperative to Russia because foreign government money could stabilize Russia's international reserves and because implementing it would indicate that Mr. Yeltsin is properly epared to deal with the crisis."

CHINA: "Why Did Yeltsin Re-Appoint Chernomyrdin?"

Li Qingyi wrote in official Chinese Youth Party China Youth Daily (Zhongguo Qingnianbao) (8/27): "Five months ago, Yeltsin surprised the world by appointing Kiriyenko. Now, his re-appointment of Chernomyrdin has once again startled the predictors. According to analysts, Yeltsin's poor health is an important consideration for him. As domestic financial groups play an increasing role in shaping Russian politics, some of Yeltsin's former supporters are becoming estranged. Therefore, to secure support from financial cliques is another of Yeltsin's intentions. That Chernomyrdin has never openly opposed any of Yeltsin's decisions is also a major reason for Yeltsin's support for him."

HONG KONG: "Financial Pestilence Attacks Asia And Spreads Around The World"

Mass circulation, centrist Oriental Daily News had this editorial (8/27): "The Asian financial crisis has become a pestilence which has started to spread around the world. Russian President Yeltsin's economic reforms have suffered a bitter setback, forcing him to disband his cabinet.... Many people believe that the financial crisis is a racial war carefully planned by U.S. political schemers who want to rob wealth from Asia. However, judging from the present situation, if there really is such a plot, the consequences have become too messy to be cleaned up, and even the schemers themselves suffer too."

SINGAPORE: "Best Part Of A Bad Russian Job"

Pro-government Straits Times (8/27) had this editorial: "Mr. Chernomyrdin has already made clear that he will operate within the same broad framework of reform; but enjoying the backing of the so-called Red Directors, the Soviet-era factory bosses who have re-invented themselves as chief executives, he can also rely on the Duma's tacit cooperation. Given Russia's balance of power, this is an inescapable compromise.... But it is still early days, and the new prime minister's experience and maturity might yet bring some redress. Mr. Clinton's presence in Russia next week should help to restore the confidence of foreign investors, and bring in the project funds that Russia needs so desperately. It will also demonstrate support for a leader who, for all his weaknesses, including a record of halfway measures and tolerance of corruption during his earlier incarnation, may be the best that the country can expect at this critical juncture."

SOUTH KOREA: "Is Yeltsin's Ouster Imminent?"

Government-owned Seoul Shinmun (8/27) commented: "From the point of view of

Chernomyrdin, who is looking to the next presidential elections, Yeltsin is no longer a political advantage, but a burden. This is why others predict that Chernomyrdin may soon join the group of people who are in the campaign to have Yeltsin resign."

"Has A Power Shift Begun?"

Pro-business Joong-Ang Ilbo (8/26) commented: "While the acting Prime Minister Chernomyrdin and the opposition camp are moving quickly toward building a coalition, President Yeltsin's political status on the other hand is on the rapid decline. As if to prove this, the president while addressing the nation virtually appointed Chernomyrdin as his successor."

SOUTH ASIA

INDIA: "Bear Necessities"

An editorial in the centrist Telegraph held (8/27): "Mr. Chernomyrdin will have to handle the consequences of the ruble losing a third of its value--a loss of foreign investor confidence, virtual insolvency of Russian banks and inflation.... With Mr. Yeltsin's health heading downhill, the West's handout's proving unable to coverup the state's financial lacunae and both leftwing and rightwing extremism on the rise, the best one can say about Russia's future is that it does not have one.... If it had not been for its rusting nuclear arsenal it would be hard to believe Russia was ever a superpower.... Russia had no civil society, no stable political institutions and none of the entities that ensure capital, labor and technology merge in a virtuous economic cycle.... Mr. Yeltsin, in the manner of a traditional Russian autocrat, has done nothing to build or encourage these institutions. So the vacuum has been filled with rapacious monopolies, thousands of mafia groups and all sorts of political extremists.... The Russian polity is bankrupt, its leadership corrupt and its state moribund: This is as good an epitaph as any for Mr. Yeltsin's reign."

"Massacre In Moscow"

An editorial in the right-of-center Indian Express held (8/26): "If reform was the criterion, Sergei Kiriyenko, the 30-something non-entity who established his reformist credentials in little time, would still be here. Chernomyrdin...is unlikely to risk any radical reform, presidential ambition and the deep unpopularity of reformist economic policies being his prime considerations.... The reappointment of Chernomyrdin saddles Russia with...two unsuitable men at the top."

LATIN AMERICA

ARGENTINA: "The CP's Bet"

Ruben Guillemi, international columnist of leading Clarin held (8/27), "After having governed Russia for over 70 years, and after seven years of absence, Communists have now the opportunity of returning to the Kremlin in an unusual government coalition. The current Russian crisis is related to the sudden transition from a giant and bureaucratic state to savage capitalism....

"The rhetoric used yesterday by Communists, when they said that the government was applying 'a deadly policy under the dictates of the West' reminded one of the Kremlin's old times. But one can hardly think that the return of Communists could mean the return of Soviets. Today's Russian Communism is placed to the right of many leftist parties of the West. Ziuganov's vehement defense of an economic system 'made up of several types of property,' of economic openness and close relations with the U.S. have almost nothing to do with Marxist orthodoxy. But even when Ziuganov's prescriptions would not substantially differ from Yeltsin's,... his majority in the Russian congress is giving Communists the possibility of appearing as a choice.

If the 'shipwreck' has [Yeltsin as] its father, communism can dream again with a return..., a possibility which seems very close."

"After Russia's Downfall, What Next?"

Economist Jose Sierra Sabate commented in business-financial Ambito Financiero (8/26): "Russia's fall resembles the Titanic disaster.... Its collapse--seasoned by Asia's previous fall--has immediately triggered a wave of distrust, regarding investment in emerging countries, which is bigger than the sinking of the Titanic.... The flight of titles from emerging markets is understandable but, in some cases, it appears as if people from other ships which are not sinking are also throwing themselves overboard.... We must mend a pathetic mistake: how can you confuse Russia--a modest vessel, set to sail at the last minute--with the Titanic? The real colossus, the Dow Jones--majestic with its 8,500 points--sails, indifferent yet, amidst icebergs. It is true that it has lost almost 1,000 points.... But Russia sinks after unveiling its evil identity, hastily hoisting its pirate banner and essaying a brutal 'default.' It is not the first time this has happened: the largest bubble bursts last. An intact Dow Jones--which is not the case, because at times it heels dangerously to one side--would be a calvary for emerging markets. Any recovery will be temporary, and will cast the shadow of a new wreckage when Dow Jones finally runs aground."

BRAZIL: "From Moratorium To Depression"

The lead editorial in liberal Folha de Sao Paulo had this perspective (8/27): "The Russian (debt) moratorium makes prospects for the emerging markets even more gloomy. Doubts are added now to the event most feared by investors: a breach of confidence, the declaration of a moratorium on external debts. There is a scenario that could be described as 'the worse, the better.' As the risks of a generalized deflation or even a worldwide depression become more evident, it would diminish the resistance and the bias of governments and central banks in more developed countries.... Unfortunately, in recent years, the richer (countries) mainly have known how to lecture and demand adjustments from the poorer countries. The hope is that the potential risk of a global depression will lead the great superpowers to self criticism as necessary as it is urgent."

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Telephone: (202) 619-4355

8/27/98

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