DATE=6/9/99
TYPE=CORRESPONDENT REPORT
NUMBER=2-250429
TITLE=AID TO RUSSIA (L-ONLY)
BYLINE=BARRY WOOD
DATELINE=WASHINGTON
CONTENT=
VOICED AT: 

INTRO:   THE U-S HOUSE OF REPRESENTATIVES INTERNATIONAL RELATIONS
COMMITTEE WEDNESDAY HELD HEARINGS ON CONTINUED U-S ASSISTANCE TO 
PROMOTE ECONOMIC REFORM IN RUSSIA.  V-O-A'S BARRY WOOD REPORTS 
MEMBERS ARE CONCERNED THAT AID MONEY IS BEING STOLEN AND THAT 
REFORM ISN'T TAKING HOLD.

TEXT:   COMMITTEE CHAIRMAN BENJAMIN GILMAN ASKED WHEN WILL U-S 
ASSISTANCE TO RUSSIA COME TO AN END ? THE PANEL OF EXPERTS 
SUGGESTED THAT U-S AID WOULD CONTINUE FOR SEVERAL MORE YEARS. 
SINCE 1991 THE U-S GOVERNMENT HAS PROVIDED SIX BILLION DOLLARS OF
AID FOR RUSSIA. THE INTERNATIONAL MONETARY FUND HAS PROVIDED 
LOANS OF ABOUT 20 BILLION DOLLARS.

THE CONSENSUS VIEW IS THAT RUSSIA'S ECONOMY HAS REGISTERED NO 
PROGRESS AND THERE IS LITTLE CHANCE OF EARLY IMPROVEMENT. PETER 
STAVRAKIS IS A POLITICAL SCIENCE PROFESSOR AT THE UNIVERSITY OF 
VERMONT. 

                        //STAVRAKIS ACT//

         IF WE LOOK BACK OVER THE LAST SEVEN YEARS, RUSSIA IS A 
         MESS. EIGHT CONSECUTIVE YEARS OF ECONOMIC CONTRACTION, 
         PERVASIVE CRIMINALIZATION OF STATE AND SOCIETY, DECREPIT
         AND INEFFICIENT STATE INSTITUTIONS,  WIDESPREAD PUBLIC 
         PRIVATION, ENSUING WITHDRAWAL FROM SOCIETY. IT IS A 
         SOCIETY THAT IS FREER BUT CITIZENS ARE LIVING FEWER 
         YEARS TO ENJOY THE BENEFITS OF THAT FREEDOM. AND THE 
         CIRCUMSTANCES OF THEIR EXISTENCE ARE CONSIDERABLY 
         UNHAPPIER ECONOMICALLY. 

                           //END ACT//

MR. STAVRAKIS AND ANOTHER EXPERT, MARSHALL GOLDMAN OF HARVARD 
UNIVERSITY, SAY FOREIGN AID IS PROBABLY DOING MORE HARM THAT 
GOOD.  PRESIDENT BORIS YELTSIN WAS CHARACTERIZED AS AN 
INEFFECTIVE LEADER WHO INCREASINGLY OPPOSES MARKET BASED REFORM. 

DAVID KRAMER OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE 
SAYS THE U-S GOVERNMENT HAS A DILEMMA, NEEDING TO KEEP ENGAGED 
WITH RUSSIA BUT NOT WANTING TO ENRICH CRIMINALS THROUGH ITS 
FOREIGN AID. MR. KRAMER SAYS HE SUPPORTS THE RESUMPTION OF AID TO
RUSSIA BY THE INTERNATIONAL MONETARY FUND BUT HE INSISTS THAT THE
MONEY SHOULD REMAIN UNDER INTERNATIONAL CONTROL.

                         //KRAMER ACT//

         IT SHOULD NOT BE TRANSFERRED TO MOSCOW, WHERE I FEAR IT 
         WOULD VANISH JUST AS LAST SUMMER'S (FOUR BILLION DOLLAR)
         TRANCHE DID. WE SIMPLY NOT RISK THE POSSIBILITY ONCE 
         AGAIN THAT BILLIONS OF DOLLARS WILL ONCE AGAIN DISAPPEAR
         INTO FOREIGN BANK ACCOUNTS AND BE MISUSED BY CORRUPT 
         OFFICIALS.

                           //END ACT//

MEMBERS OF CONGRESS SUGGEST THAT U-S AID WILL CONTINUE BUT THAT 
ITS USE WILL BE MORE CLOSELY SCRUTINIZED.  THE UNIVERSAL VIEW 
AMONG WITNESSES WAS THAT RUSSIA'S ECONOMIC REFORMS HAVE BEEN OFF 
TRACK SINCE LAST AUGUST'S CURRENCY DEVALUATION AND OUSTER OF A 
REFORMIST GOVERNMENT.(SIGNED)

NEB/BDW/PT   



09-Jun-99 3:00 PM EDT (1900 UTC)
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Source: Voice of America
.