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USSR reverting to old economy ?

Firms afraid to sign foreign trade accord
TOKYO, Apr 1: While some countries In East Europe are making rapid economic reforms. the Soviet Union seems to be going back In part to its old system, a top official of the Organisation for Economic Cooperation and Development (OECD) said here, reports Reuter.
Salvatore Zecchlni. the OECD's Assistant Secretary General, said Moscow had been making efforts to reinstate central control to end chaos and avoid collapse of the distribution and production systems.
"They are inadequate to
deal with macroeconomic problems or form the basis of economic recovery and appear to diverge from reforms proposed by a study last year." he said in a lecture.
The study was written by the OECD, the World Bank, the International Monetary Fund and the European Bank for reconstruction of seven major industrial countries — Canada, the United States. France, Italy. Germany. Britain and Japan.
It recommended a drastic reform of the legal, financial and trade systems as well as of agriculture, distribution, en-
ergy and manufacturing. The study said delay in implementation would lead to an even larger and longer decline.
The Soviet Union has tried to introduce a number of reforms but it is hard to say whether they are coherent, consistent and will lead to usable results in the foreseeable future." Zecchlni said.
"It wants to reform the economy, then we are in the realm of considerations presented In that study. Bui. it does not want to reform its economy. I do not see how the west could help Improve the
economic situation of the Soviet Union maintaining all the elements of the system as they are." he said.
Soviet firms are afraid to sign foreign trade agreements because foreign currency regulations are unclear, forcing them to make stop-gap barter agreements that affect deeply the economics of East Europe. Zecchlni said.
He said Hungary and Poland, which had been most ambitious in implementing reforms. might show an improvement in their business climate this year as some reforms start to pay off.
Zecchlni. who is also Director of the OECD's centre for co-operation with European Economies in transl Uon. is in Tokyo to meet government and business leaders.
The OECD groups the 24 major capitalist economies.