DATE=9/21/1999
TYPE=CORRESPONDENT REPORT
TITLE=CONGRESS-RUSSIA (L ONLY)
NUMBER=2-254153
BYLINE=PAULA WOLFSON
DATELINE=CAPITOL HILL
CONTENT=

VOICED AT: 

INTRO:  The Clinton Administration's new Treasury 
Secretary says the United States will continue to help 
Russia, despite allegations of corruption and misuse 
of U-S funds.  As V-O-A's Paula Wolfson reports, 
Laurence Summers says Americans must not turn away.

TEXT:  Secretary Summers says there are deep problems 
in Russia, but they should be put in perspective.

            /// SUMMERS ACT ///

      If not all our goals - or Russia's goals - have 
      been fulfilled, it is certainly equally true 
      that not all the fears for Russia that were 
      common a decade ago have materialized.

            ///END ACT///

Mr. Summers was the first witness as the House of 
Representatives opened its inquiry into possible links 
between Russian organized crime figures and American 
banks.

He told the House Banking committee stronger action 
will be taken to combat the practice of money 
"laundering" - where questionable funds are passed 
through legitimate bank accounts.  

            ///SUMMERS ACT///

      The current allegations involving money 
      laundering through major American financial 
      institutions only re-enforce our realization 
      that widespread corruption in Russia can pose a 
      significant danger to our interests.

            ///END ACT///

Secretary Summers spoke at a hearing notable for its 
lack of rancor - a rarity in this politically charged 
session of Congress.  Banking Committee Chairman James 
Leach set the tone early on.

            ///LEACH ACT///

      This is a hearing designed to help Russia and 
      the Russian people.  It is not a hearing 
      designed to embarrass anyone.

            ///END ACT///

(OPT) The Iowa Republican reinforced his message by 
making a brief statement in slow, halting Russian.

//2ND LEACH ACT///

(In Russian...fades...full Russian tape is available 
at end of actuality feed)

One by one, committee members addressed the problem.  
Not one called for a cut off of assistance.  But all 
agreed with the top Democrat on the panel, New York 
Congressman John LaFalce.

            ///LAFALCE ACT///

      I know that the ultimate payoffs from our 
      continued engagement with Russia are far, far 
      greater than the risks.  But it is time to ask 
      some tough questions, and to get answers that we 
      need to make our policy of engagement work much 
      better.

            ///END ACT//

(OPT) There was a great deal of frustration in the 
hearing room, as lawmakers grappled with how best to 
deal with the situation.  Alabama Republican Spencer 
Bachus (BACK'-US) said what Russia really needs is a 
great leader - - one, perhaps, of Biblical 
proportions.

            ///BATCHES ACT///

      What Russia needs is a Moses.  They are coming 
      from Communism to Democracy.  They need 
      leadership.

            ///END ACT (END OPT)///

The Banking Committee hearings will continue Wednesday 
with planned testimony from a member of the Russian 
parliament (the Duma) and executives of several major 
American banks. (Signed)

NEB/PW/KL




21-Sep-1999 13:44 PM EDT (21-Sep-1999 1744 UTC)
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Source: Voice of America
.