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Weapons of Mass Destruction (WMD)

September 9, 1999

RUSSIA: MOSCOW'S 'MISHANDLING' OF FINANCES AND WESTERN 'COMPLICITY';

DAGESTAN ACT II

Overseas media continued to chart developments in Russia, with the majority of commentary focused on the financial "scandals" and investigations into alleged government corruption. Several editorials discussed the West's responsibility for that country's economic "crisis," with some holding the U.S. chiefly to blame for its "one-sided, Yeltsin-only policy" and for "forcing the IMF to throw dollars into an empty barrel." A lesser number depicted the West's decision to "maintain the Yeltsin system" as "expensive...but politically defensible." Dagestan also generated a high level of media interest and critical comment, particularly from Moscow. A spate of editorials saw little hope for movement on the U.S.-Russian arms control front, given Russian opposition to "Washington's plans to revise the ABM Treaty." Highlights follow:

'AN OLD GAME TO DISCREDIT AND WEAKEN RUSSIA': Several Moscow analysts contended that "the current scandal" and "the avalanche of stories in the Western press about corruption in Russia" are part of a "dirty anti-Russia campaign" to brand Russians "en masse as mafia and bandits." Some further inferred that its timing was orchestrated by the U.S., which "hates to share its spheres of influence with anyone" and has "decided to dump Yeltsin." Only a couple of reformist papers diverged from this tack, with one stressing that "the U.S. and European press have not invented corruption in Russia's top echelon of power." A Frankfurt paper retorted that it was "absurd...to blame the West for spreading rumors about corruption," adding, "The World Bank and IMF have shown far too much patience...with Russia."

'SHOULD AID TO RUSSIA BE CUT OFF?': As analysts resumed their criticism of Western policy toward Russia--including a Warsaw daily which claimed that the scandal belies the "cherished" U.S. belief that "it takes a handful of dollars to help transform a Soviet Russia into a democratic Russia"--several also debated whether or not additional aid should be curtailed. Papers in Britain and Germany spoke for many in arguing that Western money, having "fueled the growth of a mad, violent kleptocracy," is no longer justified. Suggesting that "such a decision could prove disastrous," a Paris daily concluded that, in any case, "no one dares to take responsibility for cutting the purse strings." Many underscored that Western aid was always about "security, not economics," as did an Italian writer who observed, "The money was given not to save democracy or to establish capitalism, but mainly to give political stability to a former superpower which still has tens of thousands of warheads."

DAGESTAN ACT II: The incursion of Chechen rebels into Dagestan, the second such foray since early August, prompted a new wave of criticism from pundits in Moscow and elsewhere about the Kremlin's handling of the crisis in this southern republic. Nearly all Moscow media worried that "the country faces a new war" due to the "lack of a sensible policy toward the North Caucasus." "It hasn't learned the lessons of Chechnya," lamented reformist Vremya-MN. A London paper saw the latest upsurge in fighting as just "one of several crises which Yeltsin is mishandling" and further proof that he "is unfit to govern."

EDITOR: Katherine L. Starr

EDITOR'S NOTE: This survey is based on 58 reports from 17 countries, September 1-9. The following editorial excerpts are grouped by region; editorials from each country are listed from the most recent date.

To Go Directly To Quotes By Region, Click Below

|  EUROPE  |    |  EAST ASIA AND THE PACIFIC  |    |  WESTERN HEMISPHERE  |

EUROPE

RUSSIA: "Talbott Comes To Clean Up Kremlin"

Reformist, business-oriented Kommersant Daily (9/9) front-paged this comment by Vasily Maksimov on Strobe Talbott's visit to Moscow: "Officially, the talks include arms control, ABM and START III. But the focus, so it appears, is on a search for a solution to the BONY scandal. U.S. plans to modify ABM and the Duma's refusal to ratify START II are indeed among the key issues, but an effective discussion of those two is hardly possible before next summer, after parliamentary and presidential elections in Russia."

"Russian Military Doesn't Trust Americans"

Oleg Getmanenko remarked on page one of reformist Noviye Izvestiya (9/9): "The Russian military does not quite trust the Americans saying that they don't mean their ABM research as something directed against Russia, and that they only respond to a new military threat and seek to protect themselves from unpredictable 'unfriendly regimes.'"

"Ordinary Russians To Suffer Most"

Kira Andreyeva judged in reformist Noviye Izvestiya (9/9): "The U.S. authorities and financial circles are seriously worried over growth in Russian business. An unquestionable global leader, the United States would hate to share its spheres of influence with anyone. The current scandal is only an extension of an old game to discredit and weaken Russia as a nascent financial power. Having Russians branded en masse as mafia and bandits will most hurt ordinary people. Russia will suffer too, as it will be long before it clears itself of a stigma whereby 'cooperation with it is impossible.' In the final analysis, this is also going to hurt the international community which, by putting up with the U.S. hegemony, has de facto agreed that it can impose its views on others and decide who lives by law, including American law, and who doesn't."

"What Are We Waiting For?"

Viktor Pritula wrote in neo-communist Slovo (9/8-9): "There are two main themes in Russia today--war in the Caucasus and corruption in the Kremlin. The Caucasus is serious. As for corruption, we are used to it.... Chechnya, at least de jure, is part of Russia, which means that Moscow has every right to destroy bandits in Chechen territory. So what are we waiting for?"

"Government Connives With Mafia?"

Reformist, business-oriented Kommersant Daily (9/8) remarked editorially: "The West tends to believe that the Russian government connives with the mafia. If that opinion prevails, we will have to forget about Western financial aid."

"While U.S. Investigates, We Stall"

Vladimir Nadein filed from New York for reformist weekly Literaturnaya Gazeta (# 36, 9/8-14): "While the Americans investigate the BONY case to find out how our money got there, our authorities are out to vilify the inquiry.... As Washington, referring to our wrongdoing, makes excuses to the American people for overlooking it, our officials blame it on the United States."

"West Helps Russian Communists"

Reformist Izvestiya (9/8) contended in a piece by Andrei Kolesnikov and Aleksandr Sadchikov: "Russiagate will create a lot of information opportunities for the Communists to keep the public excited for months. Whether or not the Western press publications are true, they have helped the left-wing opposition get out of an ideological crisis. After the abortive attempt to impeach [Yeltsin], the Communists had nothing to offer the electorate until the West extended a helping hand."

"Should Defense Minister Resign?"

Valery Yakov, commenting on President Yeltsin's invectives against the military yesterday, said in reformist Noviye Izvestiya (9/8): "After a bitter attack like that made in public, the defense minister should either resign or stand up for his subordinates who have really been drawn into another bloody mess, a semi-criminal civil war, and left holding the bag."

"Moscow Lacks Will And A Sensible North Caucasus Policy"

Valery Aleksin charged in centrist Nezavisimaya Gazeta (9/8): "The current situation is more evidence that Moscow lacks will and a sensible policy toward the North Caucasus."

"Special Services Fail To Respond Properly"

Igor Korotchenko argued in centrist Nezavisimaya Gazeta (9/8): "The impression is that Russia's special services have not been ready to respond properly to events in Dagestan. Besides, practically all of them...are tied directly to the president who, due to the state of his health, can't provide effective management and coordinate the efforts of the intelligence community."

"Moscow's Stand Hardheaded, Vulnerable"

Andrei Ivanov, writing for reformist, business-oriented Kommersant Daily (9/8), offered this view: "To get Russia to ratify START II, the Americans offer to include it in the ABM THAAD project as compensation. They even suggest that it should talk Beijing into joining the project as well. But Russia does not seem interested, afraid that the Americans might just be after its technological secrets. So, it thinks, it is better that it should stand its ground and criticize the aggressive THAAD plans and insist that Washington give up these plans if it wants START II ratified. Experts think Russia's position is as hardheaded as it is vulnerable. While its heavy missiles rot in their silos, the Americans keep working on their ABM systems, not caring a hoot about angry protests from the strategic Russia-China duo."

"Media Didn't Invent Corruption In Russia"

Vyacheslav Nikonov stated in reformist Izvestiya (9/7): "The U.S. and European press have not invented corruption in Russia's top echelon of power. That which gave rise to an 'anti-Russia flow of information' is located in this country and, sadly, is part of it. The West refused to see that for a long time. Instead, it deluded itself by picturing Russia as a battlefield, with the noble reformers fighting against the evil and venal Communists. Exposes in the press appeared, but not before the West put paid to the Yeltsin team as the only partner, 'immaculate and untouchable.' There are also political considerations behind the scandal, of course. But they don't make it virtual or less damaging. You can't dismiss it just like that. There is nothing Russia can say to justify itself--nobody would believe it. What it can do, however, is take constructive steps...to show its desire to remove the causes of the scandal."

"No Coincidence"

Andrei Kamakin contended on page one of centrist Nezavisimaya Gazeta (9/7): "An avalanche of stories in the Western press about corruption in Russia is no coincidence. It looks as if the West has decided to 'dump' Yeltsin and his big family in favor of other 'bulwarks of democracy.'"

"Chechens Take Initiative"

Yevgeny Krutikov said on page one of reformist Izvestiya (9/7): "The Chechens have taken the initiative. Basayev and Khattab are back in control. It is clear now that Russia may be drawn into a war of many years with uncertain prospects for victory, the reason for the coming tragedy being the generals' lack of military knowledge and experience.... After the bombing of an apartment house in Buinaksk, the war has acquired a new frightening quality. With the feds ready to use the most brutal methods...the fundamentalists are sure to step up terror."

"Lies Used To Cover Up Impotence"

Valery Yakov charged on page one of reformist Noviye Izvestiya (9/7): "Impotence provokes war. The latest events in Dagestan are stark testimony that statements about a reliable blockade and control are as false as earlier reports about a full victory over the rebels. The authorities habitually use these lies to cover up their impotence. As a result, the rebels again triumph and our soldiers die. This country faces a new war."

"Strategy Is Missing"

According to Emil Pain in reformist Vremya-MN (9/7): "As far as the settlement process in the North Caucasus is concerned, Moscow has no strategy, nor does it assess, if only in a primitive way, the possible consequences of what it does. It hasn't learned the lessons of Chechnya."

"Godsend"

Vladimir Nadein filed from New York for reformist weekly Literaturnaya Gazeta (# 35, 9/1-7): "Russia is perhaps the only government the IMF has accused of deliberately doctoring its financial books.... Charges of corruption, extortion, favoritism, the misuse of funds and interference with the process of law, typically, swarm around Russia's top officials. But they don't seem to care. And that goes for the president, too. High-ranking officials never hold open press conferences. Only conversations with trusted reporters. New York's Russiagate is a godsend. This is a big chance for the Russians. It offers great opportunities. At best, we will find out that American newspapers lie, the FBI is venal and impotent, and our leaders, for all their behavioral faults, are honest and decent people."

"Civil War"

Valery Yakov stated in reformist Noviye Izvestiya (9/3): "Russian soldiers, having no idea about complex political and religious relations and antagonisms inside Dagestan, have become cannon fodder in a military and political game. What is it they have to give up their lives and become cripples for? Is it a Wahhabism-free Islam? Or is it the image of tough-guy and 'heir-apparent' Putin? Today, in the midst of an election campaign, nobody cares to answer. The worst thing is that Russia is used to shooting, clean-up operations and hundreds of nameless victims so much, it won't know if another civil war breaks out."

"Summers Does His Bit"

Reformist Izvestiya (9/2), reporting about Secretary Lawrence Summers's statement in USA Today regarding loans for Russia, front-paged a comment by Aleksei Nikolsky and Dmitry Kuznets: "Clouds have been gathering over Russia, unnoticed by its residents. The West must feel nostalgic for the Cold War and Iron Curtain.... Russia and Russian business are targets of a 'dirty' campaign based on suspicions some of which, regrettably, may be justified. That the IMF's money might be misused in Russia is probable. That somebody in the world can prove that is absolutely improbable. But that does not matter now. A new 'iron curtain' has ceased to be a figment of Western reporters' imagination. The American administration has made its first modest contribution to the anti-Russia campaign."

"'Russian Mafia' Replaces 'Soviet Threat' As Fashionable Term"

Editor-in-chief Andrei Vasilyev of reformist, business-oriented Kommersant Daily (9/2) stated on page one: "Of course, this country has organized crime, criminal business and corruption. (The United States does, too.) But we will never agree that Russian mafia and Russian business are one and the same thing. The term 'Soviet threat' has dropped out of the Western political vocabulary.... As fashion in politics changes, 'Russian mafia' has replaced 'Soviet threat.'"

"Instead Of Bearing Grudge Against 'The Damned West'"

Reformist weekly Obshchaya Gazeta (# 35, 9/2) editorialized on page one: "The West does not want another cold war. It does not have to seek compromising materials about the Kremlin. Stuff like that is readily available in amounts proportional to our officials' greed. The Russian elite considers itself free of any moral obligations. That is a challenge to public opinion. Instead of bearing a grudge against 'the damned West,' we should set up a special commission to examine bank accounts in Switzerland, the United States and elsewhere."

"Why Paint All Russians Black?"

Vasily Vitalyev, writing about an 'unprecedented' media campaign in the West over corruption in Russia, inveighed on page one of centrist, trade union Trud (9/1): "We, too, have reported about Mabetex and other cases. So what? This is no cause for calling Russia a gangland and depicting Russian businesspeople as monsters.... Obviously, some people would like to destabilize Russia's home market and, amidst chaos, try to partake of its riches. This may happen if the IMF refuses to give loans, and Russia, failing to get its debts restructured, finds itself in isolation."

"Press Out To Sink Russia"

Centrist Nezavisimaya Gazeta (9/1) charged in a page-one commentary by Dmitry Kosyrev and Viktor Sokolov: "The press not so much reports about the investigation...as attempts to sink Russia as an economic partner, along with Russian companies and possibly the current IMF management and U.S. Democrats, without waiting for the outcome of the investigation."

"U.S. Wants Yeltsin To Go"

Viktor Linnik judged on page one of neo-communist Slovo (9/1-2): "The United States has resolved that Yeltsin should go when his current term expires.... The current information war against the Kremlin only proves that."

BRITAIN: "Yeltsin Is Unfit To Govern"

The liberal Guardian argued in its lead editorial (9/9): "The latest upsurge in fighting in the Caucasus and the tempestuous row in Moscow that ensued have again brought into sharp focus the question of Boris Yeltsin's fitness to govern Russia.... The fighting in Dagestan is but one of several crises which Yeltsin is currently mishandling. His government...has finally been forced to acknowledge that billions of dollars in public money, including much siphoned off from foreign loans, has been embezzled by officials, businessmen and organized crime.... The continuing mismanagement of the economy which lurches from one IMF debt rescheduling to the next; the failure to restructure industry and reform the tax system; and the upsurge in crime are just some of the other issues Yeltsin has flunked. In foreign policy, too, the recent Yeltsin record represents a sad falling off.... Yeltsin's own presidential term runs on to next June. Things could yet become a lot worse."

"Russian Roulette"

The conservative weekly Spectator told its readers (9/3): "Upwards of $100 billion has been corruptly siphoned out of the post-communist Russian economy, according to the chairman of the U.S. House of Representatives Banking Committee, Jim Leach. This is, as he says, 'one of the greatest social robberies in human history', and it is one in which the institutions of the West have been cynical and willing accomplices. A decade of pressure for free-market reform from the IMF, the leaders of the G-7 nations and a chorus of underemployed economics professors has done nothing to improve the living standards of ordinary Russians, or their prospects for a better life. Instead it has fueled the growth of a mad, violent kleptocracy which makes the corruption of sub-Saharan Africa look like petty theft by comparison. The harshness of modern economic life in Russia, before and after the Gorbachev era, never has been caused by a shortage of resources. It was, and is, a tragedy of waste, mismanagement, dishonesty and the demoralization of those who wanted to be honest but lived in a society which offered no reward for honesty.... In these circumstances, there is no justification whatever for lending more money to Russia.... However cruel may be the lessons the Russians have to learn before they join the capitalist world, the least helpful thing the West can do now is to throw more money at them."

"Dodging The Russian Bullet"

The independent weekly Economist noted (9/3): "The question of whether the Clinton administration dealt adequately with the corruption it encountered is an important one, and deserves scrutiny. Administration officials themselves have no illusions about the kind of people they were dealing with. But corruption is a hallmark of many third world officials, and rumors of corruption are not the same as concrete evidence. Refusing to deal with any individual of whom there was any suspicion of corruption could, in some countries, make it hard to find anyone to deal with. The tougher and more important question is how serious the corruption must be, and how clear the proof, before engagement is curtailed."

"A Chilling Friendship"

The independent Financial Times observed (9/3): "Eight years after the collapse of the Soviet Union, relations between the United States and Russia are entering a dangerous new phase. The much vaunted 'strategic partnership' that has nuclear deterrence at its core threatens to unravel. Russia is economically weak, President Yeltsin is ailing, and the country and its leadership is widely seen in the West as crippled by corruption. In both Washington and Moscow, lame-duck administrations struggle to keep the relationship on track. Predicting where that relationship is heading in this environment is impossible, but there are few expectations that much can be salvaged until new administrations are in power in both countries."

FRANCE: "Should Aid To Russia Be Cut Off?"

Pierre Beylau mused in right-of-center weekly Le Point (9/3): "The IMF has neither the means nor the desire to control what happens to its financial aid.... This scandal is nothing new.... But these things are not just coincidence. They are part of Russian maneuvering tactics in the context of the next legislative elections. They also find a feeding ground in the battle between Democrats and Republicans in the United States.... The decision to help Russia is a political and strategic decision by the West. The question still remains about whether to continue helping Russia and the answer is not simple. Finding an honest Russian politician in Russia is an impossible mission. Nevertheless, no one dares to take responsibility for cutting the purse strings. Such a decision, bolstered by excessive virtue, could prove disastrous."

"Eyes Wide Shut"

Pascal Aubert observed in centrist La Tribune (9/2): "Everyday, the mystery of billions disappearing from Russia through the back door gets thicker. Western and Russian politicians, experts at the IMF and bankers alike, are claiming innocence and ignorance.... Who among them all is taking us for the most outrageous ride ever? Is it the Russians who are accusing the West of plotting against them? Or could it be those who insist that Russia can account for every dollar? Then again, could it be the Western leaders who shut their eyes for so long, but who today take on an outraged attitude and ask that this waste must be stopped?"

GERMANY: "Russia In A Jam"

Centrist Maerkische Oderzeitung of Frankfurt (Oder) commented (9/9): "The United States and Russia yesterday resumed efforts to breathe new life into the moribund disarmament talks.... The realists in the Russian government, at least, recognize that the Soviet Union is dead and that Russia must deflate its geostrategic claims. The same circles acknowledge, not without pain, that there is only one superpower left in the world, the United States. However, on the other hand, Washington's plans to revise the AMB Treaty are driving the Kremlin even further into a corner. If the United States really does deploy an effective, seamless missile defense system in the next few years, Russia will have nothing to put up against it. As long as the two sides do not move closer on this issue, there will be no progress made toward strategic disarmament."

"Sympathy Has Its Limits"

Werner Adam front-paged his comment in right-of-center Frankfurter Allgemeine Zeitung (9/3): "The entire West, and not just the United States, continually urged the financial institutions to ignore the situation in Russia as long as it was possible to secure with loans a modicum of political stability and a guarantee that Russian nuclear arsenals were in safe hands. There is no need to keep on repeating that it is in the fundamental interest of the West to integrate Russia into the world economy and into European security structures. And the fact that there bound to be some dislocation on the transition from a command to a market economy goes without saying. But what the West cannot be expected to do is to keep a pious silence in light of the outrage happening in a country that doesn't even stop at accusing its creditors of responsibility for its own failure."

"The Danger Of A Bankrupt Russia"

Right-of-center Mittelbayerisce Zeitung judged (9/3): "Never mind that the situation in the world's second largest nuclear power is ever more reminiscent of an unpredictable dictatorship in Africa, the flow of money from the West is unlikely to dry up. A bankrupt Russia would be a danger for the international financial markets."

"From The Glass House"

Werner Adam opined in right-of-center Frankfurter Allgemeine Zeitung (9/2): "Even if it is true that the role Western credit has played in the unceasing flood of money that has left Russia is marginal or non-existent, it is a fact--confirmed by foreign banks and even investigators in Moscow--that high-ranking and leading circles have robbed the country of billions. So it is absurd that the [Russian] foreign minister should try to blame the West for spreading rumors of corruption and say that the whole thing is an attempt to prevent Russia from becoming a world power again.... The World Bank and the IMF have shown far too much patience and understanding with Russia and its inability to use the funds for necessary reforms."

"The West And The 'Yeltsin System'"

Centrist Berliner Zeitung (9/2) carried a commentary by Stephen Kaufmann: "The wealth of the regime became the one decisive factor in Russia for the government's ability to attract supporters.... With its credits, the West merely managed to maintain the 'Yeltsin system.' The West had no other choice, since it cannot be expected that future Russian leaders, whatever they are called, will change the system. It is clear to all that the struggle for the Russian presidency is the struggle for access to material resources. Thus, the current charges against the government seem to be politically-motivated, directed not against corruption in Russia, which will continue, but against Boris Yeltsin. For the abuse of administrative power is almost the only source of wealth, and the most effective."

ITALY: "Armaments Remains A Key Issue"

Left-leaning, influential La Repubblica (9/9) noted from Moscow: "Yeltsin does not have too many cards left to play in order to regain the confidence that the once protective American superpower seems to be denying him today. The issue of armaments remains a key point in the Russian-American dialogue. The 'Russian' at the State Department--Deputy Secretary Talbott--has been in Moscow since yesterday for tough and difficult negotiations. On the one hand, the United States urges a dismissal of the ABM Treaty.... On the other, Moscow aims at an agreement on the Start III Treaty.... Certainly there is a lot to negotiate about."

"U.S. Won't Change Its Russia Policy"

Leading, business Il Sole 24-Ore noted (9/8): "On the front-line in the Russiagate scandal, U.S. Vice President Gore, racing for the White House, defends the American policy accused of being too 'sympathetic' towards Moscow. In an interview with USA Today, Gore noted that 'Russia still has 30,000 nuclear weapons.'... For this reason, the White House will not change its policy nor will it stop supporting the IMF programs because of the scandals."

"U.S. Priorities For Russia"

Ennio Caretto remarked from Washington in centrist, top-circulation Corriere della Sera (9/8): "After Samuel Berger, Vice President Gore. Little by little the Clinton administration distances itself from Russiagate, softly criticizing Yeltsin, while avoiding weakening him.... As Berger did some days ago, Gore reaffirmed that preventing a return to communism and nuclear rearmament is more important than preventing corruption in Russia."

"Yeltsin No Longer The West's Guarantor"

Writing from Moscow, Fabrizio Dragosei stressed in centrist, top-circulation Corriere della Sera (9/4): "Faced with new revelations from the various fronts of Russiagate, the [Kremlin] line continues to be that of insisting on the plot aimed at hitting not only the present Russian leadership but also its international role....

"The sensation is that for the first time in many years Yeltsin and his gang have realized that they are no longer considered irreplaceable by their international partners.... It is very likely that in the December elections a coalition led by Moscow's mayor...will win. And it is a coalition fully acceptable to the West.... Somehow, in Moscow...the Berlin Wall has fallen again. Fear that the former USSR nuclear arsenal will return to Communist hands has dissipated. Russia is not now a country that 'cannot be lost,' at all costs. Yeltsin is not the guarantor any longer."

"Let's Not Persist With Mistakes Already Made"

A commentary by Piero Sinatti in leading, business Il Sole-24 Ore held (9/3): "The tones used in the West about 'Russiagate' are different: The U.S. administration, whose pro-Yeltsin policy is being questioned, is cautious: 'Let's proceed slowly and let's try to avoid the worst,' suggests one of its key policymakers, Deputy Secretary of State Strobe Talbott. IMF Director Michel Camdessus is instead dramatically self-critical: 'We have created an institutional desert in a culture characterized by lies and an underground economy.' The task ahead should include not persisting with the mistakes we have already made, whether out of optimism or for less noble reasons. Russia definitely should not be isolated--but neither should it be left to the machinations of those who consider it their own unlimited game preserve. Especially now that a few alternatives are emerging, some of which are decent."

"Clinton Administration Finally Intervenes To Check 'Russiagate'"

Referring to the Summers' statement, Washington correspondent Andrea di Robilant asserted in centrist, influential La Stampa (9/2): "The Clinton administration has finally intervened to check 'Russiagate' but has ended up making Moscow furious and confusing things even further.... Even though the various aspects of the operation continue to be confused, strong pressure is already being exerted on the Clinton administration. And, in the wake of Summers' unfortunate statement, it is easy to predict that the fire of the Republicans will now concentrate on the treasury secretary in addition to Al Gore."

"U.S. Administration No Longer Passive"

From New York, centrist, top-circulation Corriere della Sera remarked (9/2): "Notwithstanding the verbal corrections...it is clear that Summers' words are the signal that the Clinton administration, put to the ropes by the scandal, no longer intends to remain passive in the wake of accusations that it has pushed the IMF to grant loans without being too fussy, with the goal of supporting Yeltsin."

"The Main American Mistake"

Enzo Bettiza commented on the front-page of centrist, influential La Stampa (9/1): "The main American mistake was not saying outright, from the very beginning, that the money was given not to save democracy or to establish capitalism, but mainly to give some political stability to a former superpower which still has tens of thousands nuclear warheads."

BELGIUM: "Scandal Reflects U.S.' Giving Up Support For Yeltsin"

In conservative Catholic La Libre Belgique (9/2), Moscow correspondent Boris Toumanov took note of speculation about Washington's decision (sic) to no longer support Boris Yeltsin: "It is increasingly accepted that the scandal of the IMF funds reflects Washington's tacit decision to give up the Clinton administration's support of Boris Yeltsin and his team, even if this means facilitating the arrival at the Kremlin of Primakov, less friendly, but more honest and more predictable. This hypothesis is even more likely in light of Mr. Yeltsin's recent anti-West declarations."

"It Was About Security, Not Economics"

Foreign editor Maroun Labaki commented in independent Le Soir (9/1): "Russia is on the eve of an electoral campaign. So is the United States. Therefore, suddenly, the affair is blown up, fed by opponents' attempts to harm either Yeltsin or Gore. But actually, everybody knew. In the nineties, Russia had become a kleptocracy, a huge tank for doubtful funds. Even the dumbest observer could not but see this. A mafia capitalism had quickly developed on the ruins of a state-controlled economy, and Russia found itself with the worst part of both. The chaos was threatening the entire planet and Western leaders chose to stabilize Russia with armfuls of greenbacks and opted for the lesser evil, the whimsical Yeltsin and his 'family.' This was about security, not economics.... The Red Army had been a threat. But the former Red Army, humiliated and reduced to futile efforts in Central Asia, was equally threatening.... The choice of stabilizing Russia through Yeltsin and his family--and doing this while turning a blind eye and without complaining--was thus politically defensible. Expensive, of course, but defensible. Western politicians--Al Gore to begin with--can proclaim it...without any shame."

CROATIA: "Caucasus And Kosovo"

Mladen Stanicic drew a parallel between the war in Kosovo and clashes in Dagestan in pro-government Vecernji List (9/6): "Even though it seems that we have a Russian internal matter here, the implications of the whole problem have a global importance. It is about a fear that the uncontrollable birth of new small states, based on the indisputable right to self-determination, might jeopardize European stability."

DENMARK: "The West Has Turned A Blind Eye"

Center-right Berlingske Tidende opined (9/2): "Since the fall of communism the West has pumped $20 billion into Russia. So far the West has turned a blind eye to rumors of widespread corruption. But investigations in Europe and the United States suggest that the Russians are guilty of defrauding the IMF. Allegations that up to $10 billion have been misappropriated should be enough to force the West to change its course. New IMF loans ought to be suspended until Moscow can document how former loans were utilized."

GREECE: "U.S. Nourished The Monster"

Writing in pro-government, slightly sensationalist political/economic Exousia, columnist Elias Vergitsis held (9/9): "Not a few people in the United States are requesting the IMF to review the loan regime for Russia, as it appears to be a failure.... A big part of the responsibility for today's situation lies with the Clinton administration and in general with the policy of the West. Through its pressure on the IMF, Washington gave its unreserved backing to a dangerous and authoritarian leader, facilitating the inflow of loans to Moscow without controlling the way they were invested. [It did so] even though it knew that in the end the Russian people would pay the bill. What was important for Washington was to keep Moscow a political hostage and to blackmail it with loans every time that Moscow's policy didn't coincide with Washington's. Now, since it nourished and funded the 'monster,' the United States can squeeze it like a lemon rind and toss it away."

HUNGARY: "The Discrediting Campaign"

Leading Russian foreign policy journalist Vyacheslav Tihonov wrote in right-of-center Napi Magyarorszag (9/8): "It is obvious that the reason for this extensive discrediting campaign is the increase of animosity against Russia, and efforts to stop deals with the country. The strong and blossoming U.S. economy does not want to participate in establishing a competitor. Unfortunately, the Western propaganda machinery is strong enough to convince U.S. taxpayers that they should vote for people not interested in the economic development of Russia."

"Kremlin Quiet And Defensive"

Leading Nepszabadsag (9/2) carried an op piece by Moscow correspondent Laszlo Lengyel: "The Kremlin is trying to win time by remaining quiet and defensive, knowing that there is big money behind those who have an interest in keeping the truth buried."

POLAND: "Second Afghanistan?"

Lukasz Warzecha wrote in right-of-center Zycie (9/6): "The Dagestan militants are the belligerent Islamists who do not conceal that the Dagestan of their dreams would be like the Taleban Afghanistan.... We should give careful consideration to whether it is worth supporting the emergence of another state of militant Islam in the Middle East. Besides, the developments in the Caspian Sea basin cannot be looked upon without looking at the map of natural resources and pipelines there--those already existing and those projected. The region is the world's emerging raw resources field. With whom will the Western concerns find it easier to strike a deal: the Kremlin or the mujaheedins?"

"Illusions Are Gone, Russian Smuta Continues"

Leopold Unger painted this scenario in liberal Gazeta Wyborcza (9/2): "Here are the first victims of the financial typhoon blowing westward from Russia. Namely, gone are two illusions. The first, cherished by the United States, was that it takes a handful of dollars to help transform a Soviet Russia into a democratic Russia.... The second, cherished by Russia, said it was possible to assure welfare and democracy, restore superpower status, and overcome the legacy of 70 years of communism without hard work, paying taxes and great sacrifices on the part of several generations of Russians. Two skeletons have surfaced from the rubble. The first represents the [West's] strategy toward Russia...[which] has not ensured a proper transition of this country to the state of law and market economy. The Western policy of saving Russia from itself at any cost allowed the new class of oligarchy and corrupted dignitaries to employ real blackmail which said: Either us or chaos, that is to say the communists. Naturally...Russia is a special case, and...it should be West's priority to seek ways for Russia--which has thousands of nuclear warheads--to avoid civil war, destabilization, coups, the risk of self-appointees, [new] Rasputins, and the like. But it is also clear to see that upgrading such a policy line to the level of dogma was a failure: [The failure was to stick with] the principle that, because of Russia's nuclear arsenal, one must conceal the truth about its abuses and economic bankruptcy, or, even more, cure subsequent collapses by new injections of funds.... The U.S. policy should long ago have been diverted from the one-sided, Yeltsin-only policy and begun to seek an...alternative."

ROMANIA: "Yeltsin Is No Longer The White House Pet"

Cristian Neches' editorial in opposition, sensationalist Libertatea (9/6) opined: "The Russian president, as with Clinton during Monicagate,' has no shame whatsoever.... But 'Kremlingate' is watched with so much interest from overseas, that [it] does not seem to be so much under investigation by the Americans, as under their control. The outburst of the scandal is a certain clue that, for the people in the West, Yeltsin is no longer the privileged favorite."

EAST ASIA

CHINA: "Dagestan Situation Deteriorates"

Wang Xuejian wrote in the Beijing Morning Post (Beijing Chenbao, 9/8): "If Russia cannot take any effective measures, the situation in Dagestan will spin out of control and Russia will possibly lose Dagestan forever.... Dagestan is another severe challenge faced by the present Russian government."

JAPAN: "Suspicions Rise Over Russian Money-Laundering"

Business-oriented Nihon Keizai editorialized (9/2): "So far, the Russian government has denied any connection with the alleged money-laundering case, while declaring there is no evidence showing that part of the IMF loans had been included in the money-laundering scam. Nevertheless, 'money-related' scandals have been often reported among President Yeltsin's aides. Both Yeltsin and Putin have to take strong measures to stop attempts to channel money out of Russia."

THAILAND: "Russia Must Clean Up Mess With U.S. Help"

The lead editorial in the independent, English-language Nation commented (9/7): "For the West, the mistake of stressing the building of personal relationships with certain Russian leaders instead of building institutions has come back to haunt them. Now they are witnessing dirty money flowing into their banks and polluting their financial systems. Last Friday, the U.S. House of Representatives Banking Committee Chairman Jim Leach called for a moratorium on IMF lending to Russia unless and until firm methodologies for safeguarding funds are established. A moratorium is a good idea.... While Yeltsin's clique may be swept from power there is little reason to believe that government or business will change its ways."

WESTERN HEMISPHERE

ARGENTINA: "Clinton The Corrupter"

Claudio Uriarte, leftist Pagina 12's (9/6) international analyst, claimed that the scandal has become a testimony to "the failure of a policy where the key corrupter was Bill Clinton's administration. As a matter of fact, the United States always knew that Russia was far from facing true economic reform, and that the old Communist 'nomenklatura'...have become an extension of oligarchic groups. But Clinton's foreign policy advisors feared the former USSR's nuclear warheads, and thought that the best way to forget about the issue was sedating Russia with soft loans, while they overlooked what occurred inside. Such policy is showing its first signs [of failure]: Russian capitalism is a dangerous joke, and the Russian Federation...may follow the same road to disintegration of its Soviet predecessor. The first one affected by the unveiling of the situation is Vice President Al Gore, who deliberately ignored warnings by the CIA that the money was being incorrectly used. But those ultimately responsible for are the top-level architects of U.S. foreign policy (Madeleine Albright, Strobe Talbott and Sandy Berger, among others), who forced the IMF to throw dollars into an empty barrel."

BRAZIL: "Russia's Sad State"

Liberal Folha de S. Paulo's international editor argued (9/1): "An explosion near the Kremlin reveals the sad situation being experienced by the Yeltsin regime in its last months.... If the explosion was another chapter in the disputes between Mafia groups, it shows that organized crime now dares to operate next to the Kremlin's walls.... The blast might have been the beginning of a wave of attacks orchestrated by the Kremlin as a means of creating 'instability'...and postponing the December parliamentary elections as well as the presidential ones.... This idea reaffirms the Russian tradition of feeding conspiratory theories and also shows the suspicion that Yeltsin, to prevent investigations of corruption in the Kremlin, would be trying to gain the upper hand by delaying his departure from power. Any of the mentioned hypotheses, if confirmed, serves to illustrate the sad state of Yeltsin's final gasps."

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For more information, please contact:

U.S. Information Agency

Office of Public Liaison

Telephone: (202) 619-4355

9/9/99

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