No. 127, 08 July 1991

BALTIC STATES



MORE ON TALLINN-MOSCOW TALKS. Recent reports on the stillborn
meeting between the Estonian and Soviet negotiating teams on
June 27 suggest that the meeting went much more poorly than participants
initially indicated. According to Estonia's chief negotiator
Ulo Nugis, interviewed on June 27 by Estonian Radio, Minister
Without Portfolio responsible for relations with the East Endel
Lippmaa was not given the floor at all. "This was quite unprecedented,"
Nugis said. (Riina Kionka)

WHO REPRESENTS ESTONIA IN THE CPSU? The latest reports from the
CPSU indicate that Enn-Arno Sillari, First Secretary of the independent
ECP, still sits on the CPSU CC Politburo. Rahva Haal reported
on July 6 that both Sillari and Lembit Annus, head of the ECP
(CPSU platform), attended the Politburo meeting in Moscow last
week. Earlier reports indicated that the ECP (CPSU platform)
had disapproved of Sillari's Politburo status last January, and
that the Moscow body had removed him. The Rahva Haal report indicates
that the relationship between Estonia's two Communist parties,
not to mention their tie to headquarters in Moscow, is still
unclear. (Riina Kionka)

NEW LITHUANIAN HOLIDAY CELEBRATED. On July 6 Lithuania for the
first time celebrated the Day of Statehood, a new holiday commemorating
the anniversary of the coronation of Mindaugas as King of Lithuania
in 1253, Radio Independent Lithuania reported that day. A commemorative
Mass was celebrated by Bishop of Vilnius Juozas Tunaitis in the
Vilnius Cathedral and other commemorations were held throughout
the republic. One reason for the holiday was to remind people
that Lithuania had joined Western Europe more than 700 years
ago. (Saulius Girnius)

CHRISTIAN DEMOCRATIC DELEGATION IN LITHUANIA. Representatives
of European Christian Democratic parliamentarians arrived in
Vilnius on July 7, Radio Independent Lithuania reported July
8. The Lithuanian Supreme Council invited the group of Dutch,
German, and Italian Christian Democrats for a series of meetings
with parliament deputies and government ministers. Supreme Council
Chairman Vytautas Landsbergis met the delegation on July 7. Prime
Minister Gediminas Vagnorius and Economics Minister Albertas
Simenas will receive the delegation today. The group will also
meet Lithuanian Cardinal Vincentas Sladkevicius, and discuss
minority issues with the Parliamentary Commission on Civil Rights
and National Minorities before departing July 10. (Gytis Liulevicius)


LETTER DEFENDS OMON. A letter written by the information center
of the Union of Servicemen in the Baltic military district defended
the ongoing OMON actions in Lithuania and accused Soviet President
Mikhail Gorbachev of "doublethink" regarding the operations,
Central TV reported July 6. "The Lithuanian OMON was carrying
out the presidential order of July 25, 1990 on the seizure of
illegally stored weapons." In an ominous tone, the letter complained
that "this operation was not carried out to its logical conclusion,
in a large part thanks to the doublesided policy of the USSR
Interior Ministry." According to the letter, Gorbachev's recently
ordered investigation of the OMON following its seizure of the
Vilnius telephone exchange raised tension both among the OMON
and in Lithuania at large. (Gytis Liulevicius)

ANOTHER CUSTOMS POST ATTACKED IN LATVIA. Radio Riga reported
that earlier today (July 8) "armed bandits" attacked the customs
post at the Riga airport. The unidentified attackers ransacked
the office, seized documents, and took with them confiscated
goods. (Dzintra Bungs)

SPRING CALL-UP IN BALTIC A FAILURE. The Soviet military's spring
draft brought out only 7.3%, 10.9% and 4.7% of the conscripts
expected from Estonia, Latvia and Lithuania, down from 24.5%,
25.3% and 12.5%, respectively, last autumn. The sharp drop in
compliance has fueled speculation that central authorities may
once again try to "enforce the draft" as they did last January.
Baltfax reported the compliance figures on June28. (Riina Kionka)


BRZEZINSKI IN LATVIA AND ESTONIA. Former US national security
adviser Zbigniew Brzezinski told LETA on July 4 in Riga that
independence of the Baltic republics must become a key issue
to further security stabilization and improved relations between
the East and the West. He added: "Western economic aid to the
USSR is the most direct result of the changes in the USSR. A
peaceful resolution to the Baltic question must occur soon. This
in turn will open the door for Russia to participate as a European
member and establish normal relations with the West." Brzezinski
also met with top Latvian government officials. On July 5, he
attended an economic conference in Tallinn and met with Estonian
Prime Minister Edgar Savisaar, reported Rahva Haal that day.
(Dzintra Bungs)



USSR--ALL-UNION TOPICS



CPSU REACTION TO DEMOCRATIC REFORM MOVEMENT. The CPSU CC issued
a statement July 5 on the creation by nine leading Soviet officials
of the "Movement for Democratic Reform." TASS quoted the statement
as saying the Party does not rule out cooperation with the movement,
provided its proclaimed goals are matched by "practical deeds."
The statement said several public movements had claimed to support
perestroika, but "had fallen back on their stated goals."
Meanwhile, Pravda and Sovetskaya Rossiya (July 5) criticized
the founders of the movement. Pravda's first deputy chief editor
and CPSU CC member Gennadii Seleznev expressed doubts about the
founders' sincerity and their ability to reach their stated goals.
The RSFSR CP daily, Sovetskaya Rossiya, said the Communist Party
will have to pay for many years for actions by the movement's
founders. (Vera Tolz)

FURTHER REACTIONS. On July 5, the RSFSR's major opposition group,
Democratic Russia, said it is open to cooperation with the Movement
for Democratic Reforms, but considers it "inexpedient" to participate
in the movement's organizational committee. Democratic Russia
leader Yurii Afanas'ev expressed some concern that his organization
and the new movement could become rivals, TASS reported. Kazakh
President Nursultan Nazarbaev reacted positively to the movement,
saying he agreed with the movement's humanistic goals, Radio
Moscow said July 5. In contrast, an Uzbek opposition leader said
he was skeptical about the movement. Muhammad Salih, chairman
of the "Erk Democratic Party" and an Uzbek Supreme Sovietdeputy,
told RFE/RL July 5 hedoes not particularly trust the new organization
because it is mostly made up of "old Communists" and ad-vocates
the preservation of the Union. (Vera Tolz)

SHEVARDNADZE ON NEW MOVEMENT. A founder of the Movement for Democratic
Reforms, Eduard Shevardnadze, told the latest issue of New Times
that he hoped the movement will act as a "constructive opposition"
to the current Soviet government. In a separate interview with
Komsomol'skaya pravda (July 5), Shevardnadze, who just quit the
CPSU, said he did not urge anyone else to leave the Party, but
he hoped "for mass entries into the ranks of the new movement."
The same day, commenting in The Los Angeles Times on the creation
of the movement and Shevardnadze's break with the Party, chief
editor of Literaturnaya gazeta Fedor Burlatsky said Shevardnadze's
move could lead many others to follow suit. Meanwhile, talking
briefly to reporters on July 5, Shevardnadze said he doubted
that Gorbachev will join him in quitting the CPSU. Shevardnadze
was also quoted by Western agencies as saying that he doubted
that Gorbachev will join the new movement. He said that Gorbachev
will probably continue to "strive to reform the CP." (Vera Tolz)


NPS SUPPORTS MOVEMENT FOR DEMOCRATIC REFORMS. Aleksandr Vladislavlev,
chairman of the executive committee of the Soviet employer's
association, the Scientific-Industrial Union (NPS), was quoted
by Interfax July 2 as saying the NPS supports "all democratic
forces, including the Movement for Democratic Reforms." While
this is not surprising in view of the fact that NPS president
Arkadii Vol'sky is one of the nine founders of the Movement for
Democratic Reforms, it is significant in that the NPS claims
to represent enterprises responsible for 65% of the Soviet Union's
production, including a large number of defense plants. In the
same interview, Vladislavlev reiterated the NPS's determination
to remain a lobbying group and not to turn into a political party.
(Elizabeth Teague)

GORBACHEV SUPPORTS CREATION OF "ENTREPRENEURIAL COUNCIL." NPS
official Vladislavlev was quoted by Radio Moscow July 1 as saying
Gorbachev has given his approval to the proposal, voiced by Leonid
Abalkin at an NPS conference two weeks ago, that a "Council for
Entre-preneurship" be created to advise the USSR President. Vladislavlev
said the NPS will play a major role in the creation of the new body.
(Elizabeth Teague)

NEW MARXIST PARTY AGAINST MARKET ECONOMY. Radio Moscow reported
July 2 on the creation of the Marxist Workers' Party with an
undisclosed number of members in 120 Soviet cities. 80% of the
members are young industrial workers. The party calls for the
setting up of workers' committees at all enterprises and for
workers to run the plants as owners. This demand for workers'
self-management aligns the new party with the Union of Work Collectives
(STK) set up in December 1990, which also advocates self-management
and worker ownership. However, the Marxist Workers' Party opposes
the introduction of a market economy, which it says will lead
the USSR to capitalist dictatorship, whereas the STK supports
market reforms and opposes privatization of state property only
if it leads to the enrichment of the old nomenklatura at the
expense of the working class. (Elizabeth Teague)

FOREIGN INVESTMENT LAW PASSED. On July5, the USSR Supreme Soviet
passed fundamentals of the legislation on foreign investment
by 340 to 11, TASS reported that day. The law permits 100% foreign
ownership of certain Soviet enterprises; grants foreign investors
the right to export and import without licences; frees them from
paying export taxes and customs duties on imports; and guarantees
investors the right to export hard-currency profits and the right
to purchase hard currency with ruble earnings. It excludes ownership
of land, and restricts access to property sold by the state under
the provisions of the new law on privatization. (Keith Bush)


CPSU CC CALLS FOR STRONGER MEASURES AGAINST ECONOMIC CRIMES.
A resolution adopted by the CPSU CC Secretariat, as reported
by TASS July 7, says corruption, bribe-taking, extortion, organized
crime, contraband and illegal hard currency operations are spreading
to all sectors of the economy. A special danger is posed by growing
links between regional and national economic officials and organized
crime, the report said. It also expressed concern that newly-created
commercial banks are operating beyond state control. The banks,
which are involved in large-scale financial and credit transactions
with cooperative and joint-venture enterprises, are committing
severe violations of law, the CC resolution charged. It called
for quick adoption of legislation to address the situation and
for measures to increase the authority of law enforcement agencies.
(Victor Yasmann).

PROSPECTS FOR 1991 GRAIN HARVEST. In an uninformative interview
published in Izvestia July5, the USSR Minister of Agriculture
and Food, Vyacheslav Chernoivanov, declined to estimate the outturn
of this year's grain harvest, except to say it would be below
that of 1990. Prime Minister Valentin Pavlov, who is not so coy,
gave a figure of 205-206 million tons on June 11, but lowered
this to 180-190 million tons on July 2. On July 3, he elaborated
on that latter figure to specify that it represented the estimated
net harvest, i.e., after losses, dockage, and the removal of
excess moisture, according to The Financial Times of July4. (Keith
Bush)

IS ECONOMIC DECLINE CONTINUING? Pavlov has been claiming that
the decline in total Soviet output bottomed out in April-May,
at 6% below April-May 1990 (Izvestia, July 3). Arkadii Vol'skii,
however, in an interview in the same paper on June 28, had professed
to find no encouragement in the May figures. In an interview
on Radio Mayak on July 5, Deputy Prime Minister Vladimir Shcherbakov
quoted Union budget deficit figures for January-May that seemed
marginally better than January-April: an annual rate of 94 billion
rubles, as against one of 125 billion rubles. (Philip Hanson)


DOCKERS GAIN BIG PAY INCREASE. A threatened strike by Leningrad
port workers has been called off, Komsomol'skaya pravda reported
July 6. Their demands made to Prime Minister Pavlov had reportedly
been met, giving them a pay increase of 50%. Only a small number
of workers were involved in this settlement, but the concession
could give a signal to millions of other workers--in the oil
and gas industry, on the railways, and in construction--to put
in their claims. (Keith Bush)

KVITSINSKY: NO "INTERNATIONALIZATION" OF YUGOSLAV CRISIS. First
Deputy Foreign Minister Yulii Kvitsinsky, now special Presidential
envoy to Yugoslavia, was in Belgrad (July 6), Zagreb, and Ljubljana
(July 7), TASS said. Tanjug reported that Kvitsinsky told Federal
Prime Minister Ante Markovic that for Gorbachev, the Yugoslav
crisis is "of direct interest" to the Soviet Union because it
could have repercussions for the USSR. "We support democratic
solutions but not those that threaten European borders," Kvitsinsky
said. He added the USSR opposes the inter-nationalization of
the crisis and will veto any attempt to convene the United Nations
Security Council to discuss the crisis. (Suzanne Crow)

RESULTS OF KOHL VISIT. German Chancellor Helmut Kohl met with
Gorbachev in the Ukrainian town of Mezhigorye outside Kiev on
July 5, TASS reported. Kohl said he backs plans for massive aid
to the Soviet Union, adding, "I'll try to bring my colleagues
to understand that the success of reforms in the Soviet Union
will be important not only for the Soviet people but for all
of us in Europe." Gorbachev stressed "the solidarity of the two
countries," saying "each of our meetings . . . short or long
. . . is another step toward rapprochement, cooperation, and
the intensification of the political dialogue." On July 6 Kohl
called for full Soviet membership in the IMF in the near future.
(Suzanne Crow)

BUSH MESSAGE ON ARMS. US President George Bush sent a personal
message to Gorbachev on July 6 urging Gorbachev to speed up the
Soviet side's work on the START agreement. A July 7 Soviet television
commentary described Western interpretations of the message as
being a warning that no summit will be held until the START agreement
is finished as "curious." The observer noted without comment
that many in the West believe that the Soviet military took advantage
of Shevardnadze's resignation as foreign minister to slow down
the process of arms talks. (Suzanne Crow)

CONCERN OVER RAPID DEPLOYMENT FORCE. Soviet Foreign Ministry
Spokesman Vitalii Churkin has expressed concern over NATO's discussion
of a rapid deployment force. Churkin noted, "it is a question
of a region directly adjacent to borders with the USSR." He said,
"these kinds of operations should be totally supervised by appropriate
UN organs because the presence or activities of foreign forces
on someone else's territory could have undesirable political
and other consequences," TASS reported July 4. TASS's military
observer Vladimir Bogachev wrote on July 3: "the Soviet Union
resolutely opposes interference by a group of countries in other
states' internal affairs." (Suzanne Crow)

ANGOLA SEEKING DEBT FORGIVENESS. Western agencies have cited
the July 3 issue of Jornal de Angola as saying that Angola will
ask the Soviet Union to cancel its military debt and reschedule
its nonmilitary obligations. Soviet sources in Luanda are quoted
as estimated Angola's total debt to the USSR at around $4 billion.
The IMF study of February 1991 (Volume 1, p. 117) put the total
owed to the USSR by developing countries at the end of 1989 at
$67.4 billion. Most of these could be categorized as "nonperforming,"
i.e., the USSR is not likely to get its money back. (Keith Bush)


SOVIET SOLDIERS NOT ANXIOUS TO LEAVE GERMANY. As their return
to the Soviet Union approaches, the number of Soviet soldiers
disappearing from their units for several days at a time--in
order to snap up Western goods--is increasing, according to a
report in the July 4 The Independent. The story claims that black-marketeering
in Soviet army badges, cigarettes and caviar is "booming," even
as troop morale has sunk. One officer said that the troops worried
about what they would find in the Soviet Union upon their return.
The report noted that the DM 400-600 earned by lower-ranking
officers since the German monetary union represents a "small
fortune." (Stephen Foye)

SATELLITE TELECOMMUNICATIONS DEAL. The Japanese Telegraph and
Telephone Corporation and the Soviet "International Telecommunications
of the Far East" agency, together with the regional Vladivostok
office of the USSR Ministry of Communications, have signed a
memorandum of understanding on the creation of a satellite telecommunications
ground station in Vladivostok, Novosti reported July 2. The station
will provide up to 30 digital channels for data communication
and telephone exchanges between Japan and the Soviet Far East;
it will replace the obsolete sea cable that now links the two
countries. (Victor Yasmann)



USSR--IN THE REPUBLICS



POLOZKOV'S NON-RESIGNATION. TASS reported on July 5 that RSFSR
Communist Party First Secretary Ivan Polozkov had resigned, but
just hours later Polozkov himself called TASS to set the record
straight. Polozkov told TASS that he would remain "to unite the
forces in society and the Party in the interest of perestroika."
Polozkov's resignation was reported to TASS by Sergei Baburin,
an RSFSR People's deputy and a member of the conservative "Rossiya"
group. Polozkov, who has served one year of his 5-year term of
office, did admit that some RSFSR CP members were dissatisfied
with his performance, but said his resignation "had not figured
on the agenda at any meeting." (Dawn Mann)

RSFSR CP MEMBERS WANT NEW LEADERSHIP. Twelve members of the RSFSR
CP--ten of whom are also members of the RSFSR Supreme Soviet--circulated
an appeal on July 6 blaming the RSFSR CP leadership for "ruinous
decisions and the actual discrediting of the Party" and "political
deafness," TASS reported the same day. The authors of the appeal
also charged the CPSU Central Committee with "political suicide
and the murder of the Party" and said that Gorbachev is "incapable
of ensuring the observance of the constitution" and "cannot hold
the post of Party leader any longer." (Dawn Mann)

YAKOVLEV TO CHAIR MOSCOW CITY ASSEMBLY. USSR Presidential adviser
Aleksandr Yakovlev has agreed to serve as chairman of the new
Moscow City Assembly, Radio Rossii reported July 5. Gavriil Popov,
the mayor of Moscow, hinted on Moscow Television on July 2 that
Yakovlev might resign as head of Gorbachev's stable of official
advisers. The Moscow City Assembly, a consultative body, will
bring together representatives of a broad cross-section of society
(see Daily Report, No. 118). (Dawn Mann)

KUZBASS MINERS RESOLVE NOT TO STRIKE. Izvestia reported July
1 that a conference of Kemerovo oblast workers' committees on
July 6-7 would decide whether to begin a strike on the following
Thursday. The Postfactum news agency reported July 7 that the
miners, who object to the government's new anti-crisis program
which bans strikes in key areas, had decided against the strike.
Soviet TV attributed this decision to the transfer of many mines
to RSFSR jurisdiction. The miners, however, reserved the right
to reverse their decision if democratic processes were endangered
in the future. (Sarah Ashwin)

UKRAINE TO ELECT PRESIDENT ON DECEMBER1. Ukraine's first multicandidate
election for the newly-created post of President will take place
December 1, 1991, TASS reported July 6. The decision was taken
by the Ukrainian Supreme Soviet on July 5, the final day of parliament's
spring session. The President's duties will include protection
of Ukrainian sovereignty, upholding the laws of Ukraine, and
representation of Ukrainian interests in foreign affairs. Although
not yet formally nominated, it is expected that Supreme Soviet
Chairman Leonid Kravchuk will be a strong presidential candidate.
The opposition, according to TASS, has already nominated two
candidates--Levko Lukyanenko and Larysa Skoryk. (Natalie Melnyczuk)


UKRAINE'S PARLIAMENT PASSES NEW PACKAGE ON PRESIDENCY. On July
6 the Parliament of Ukraine passed a comprehensive package outlining
the criteria, duties, and powers of the new presidency, as reported
by two parliamentary correspondents. The president must meet
a minimum age requirement of 35, may not serve more than two
consecutive terms, and will be elected through direct elections.
Ukraine. While this package regarding the presidency was passed,
heated debate continues on whether or not to create a vice-presidency
which would share the powers of the presidency. The Parliament
is divided as to just how strong the president should be. (Natalie
Melnyczuk)

RENEWED CLASHES ON ARMENIAN-AZERBAIJANI BORDER. Following Gorbachev's
decision to lift in two Azerbaijani raions the state of emergency
in force in Nagorno-Karabakh and adjacent areas since January,
1990, Azerbaijani OMON troops attacked three Armenian villages
in the early morning of July 6, Western news agencies reported
July 7. Armenian Supreme Soviet chairman Levon Ter-Petrossyan
is quoted by Interfax as stating that two Azerbaijanis and one
Armenian were killed in the fighting and fourteen persons injured.
(Liz Fuller)

MOLDAVIA COMMEMORATES JEWISH HOLO-CAUST. On July 4, Moldavia
observed a "Day of Remembrance" for Jewish victims of the holocaust
on the territory of Romania (which included Bessarabia, northern
Bukovina, and Transnistria) during World War II. The observances
were cosponsored by the Moldavian government and the Jewish communities
of Moldavia and Romania. Moldavian government and parliamentary
leaders participated in the observances, which were well publicized
by the Moldavian media but were ignored by Romania's official
media. Unlike Romania, Moldavia has not experienced any outbreaks
of antisemitism in recent years, and the Moldavian political
forces enjoy cordial relations with the Jewish community. (Vladimir
Socor)