DATE=9/17/98
TYPE=CORRESPONDENT REPORT
NUMBER=2-238826
TITLE=TALBOTT/RUSSIA (L)
BYLINE=NICK SIMEONE
DATELINE=WASHINGTON 
CONTENT=
VOICED AT: 

INTRO:  TWO TOP CLINTON ADMINISTRATION OFFICIALS ARE DELIVERING 
STRONG WARNINGS ABOUT RUSSIA'S POLITICAL AND ECONOMIC FUTURE.  
CORRESPONDENT NICK SIMEONE HAS DETAILS.    

TEXT:   WITH PAST ECONOMIC ADVICE GIVEN TO MOSCOW SEEMING TO LEAD
TO NOTHING BUT MORE HARDSHIP FOR THE AVERAGE RUSSIAN, DEPUTY 
SECRETARY OF STATE STROBE TALBOTT TOLD A CONGRESSIONAL HEARING 
THURSDAY THAT THE GOVERNMENT OF PRESIDENT BORIS YELTSIN IS GOING 
TO BE UNDER INCREASING PRESSURE FROM THE COMMUNIST-DOMINATED 
PARLIAMENT TO GO ITS OWN WAY.  THAT, IN TURN, WARNS MR. TALBOTT, 
COULD PUT A NUCLEAR-ARMED NATION, ONE CAREENING TOWARD FULL 
ECONOMIC COLLAPSE, BEYOND THE WESTERN SPHERE OF INFLUENCE.      

                        // TALBOTT ACT //

         HELPING RUSSIA TO HELP ITSELF IN THE ECONOMY WILL, FROM 
         OUR STANDPOINT, GO FROM BEING MERELY VERY, VERY 
         DIFFICULT TO BEING ABSOLUTELY IMPOSSIBLE.  AND SECOND, 
         THE KIND OF DRIFT OR TREND THAT WE HAVE TO CONSIDER IN 
         RUSSIAN FOREIGN POLICY WOULD BE CONTRARY TO RUSSIA'S OWN
         INTERESTS.  IT WOULD PUT OUT OF REACH THE SOLUTION TO 
         PROBLEMS THAT RUSSIA DESPERATELY NEEDS TO FIND.

                          // END ACT //

TO MANY RUSSIANS, ECONOMIC REFORM HAS BECOME A DIRTY WORD,  AS 
AMBASSADOR TALBOTT PUT IT, WITH THE RUBLE PLUNGING AND THE COST 
OF LIVING RISING.   LAWRENCE SUMMERS, HIS COUNTERPART AT THE 
TREASURY DEPARTMENT, TOLD LAWMAKERS THAT MOSCOW ISN'T LIKELY TO 
RECEIVE ANY NEW HELP FROM THE WEST -- INCLUDING MONEY FROM THE 
I-M-F -- UNTIL IT ADOPTS A TRANSPARENT, TAX COLLECTING BUDGET AND
BEGINS TO ATTACK CORRUPTION.

                        // SUMMERS ACT //

         THE ECONOMIC FRAMEWORK IN WHICH RUSSIA HAD BEEN 
         OPERATING, AS I SAID, HAS COLLAPSED.  AND SO FOR THE 
         I-M-F TO BE IN A POSITION TO MAKE A FURTHER 
         DISBURSEMENT, IT WOULD HAVE TO BE REBUILT ON A BASIS 
         THAT REFLECTS CURRENT REALITY.  

                          // END ACT //

WHAT THAT CURRENT REALITY IS DEPENDS ON ONE'S PERSPECTIVE.  
RUSSIA'S NEW GOVERNMENT SAYS IT IS WELL ON ITS WAY TO RESOLVING 
ITS ECONOMIC CRISIS.  BUT MR. SUMMERS ADMITS THE RUSSIAN 
SITUATION IS IN SUCH A STATE OF FLUX THAT ANY ACCURATE PREDICTION
IS DIFFICULT.   (SIGNED)

NEB/NJS/GE

17-Sep-98 3:48 PM EDT (1948 UTC)
NNNN

Source: Voice of America
.