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Comecon goes next month
MOSCOW. May 19 Comecon. the trade group that struggled for 42 years to integrate the economies of the Soviet bloc, will be dissolved next month, reports Reuter.
Trade and economy Ministers from Comccon, the nine-nation Council for Mutual Economic Assistance (CMEA). passed the death sentence on the organisation at a two-day meeting In Moscow.
The burial will take place at a final Comecon meeting In Budapest on June 28. Hungary's International Economic Relations Minister Bela Kadar told a news conference yesterday.
Members will continue to help each other on the difficult road to a market economy and try to revive their flagging trade. The delegations were unanimous that the dissolution.... is not the funeral of cooperation as such." Kadar said.
Comecon will formally expire at the end of September. 90 days after the documents dissolving it are signed. The signing In Budapest will be al tended by the ministers who came to Moscow, not the Prime Ministers who made up the ruling council.
Following the Budapest meeting, a liquidation com mission will discuss sharing out Comecon property, which inchides Its headquarters in a Moscow skyscraper beside the Moskva river.
The main question is its property and there are no identical positions among the delegations." Kadar said
Cooperation between members of Comecon — the Soviet Union. Bulgaria. Czechoslovakia. Hungary. Poland an Romania, and Moscow's Third World allies Cuba. Mongolia and Vietnam — would tn future be bilateral and from mutual advantage. Kadar said.
They would also set up a new consultative body to discuss common problems and exchange economic information.
"It will be a kind of forum enabling certain countries to open up io the world economy and to adapt to a market economy." Kadar said. The new body could also look at regional problems such as the environment and Infrastructure.
Ministers have not yet agreed details of the new body, including whether membership should be limited to Europe or Whether Comecon s Third World countries could participate.
Comccon was founded In 1949 to integrate the economies of the Soviet bloc by harmonising central plans and allowing different countries to specialise indifferent Industries.
The Soviet Union, rich In natural resources but relatively underdeveloped. provided cheap energy and raw materi als to its industrialised allies, who in return supplied it and each other with cheap, but poor-quality, manufactured goods.
Though Comecon succeeded in Its atm of integration — five years ago members conducted 60 per cent of their foreign trade with each other — the system meant members were cut off from the world market and Its competitive influences.
Trade was conducted through a web of interlocking government barter agree ments and deals were bxked in an accounting unit, the transferable rouble — which had no real existence.