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Western aid an illusion

KGB chief accuses CIA of plotting to subvert Soviet economy
MOSCOW. June 26: KGB chief Vladimir Kryuchkov has accused the US Central Intelligence Agency (CIA) of plotting to subvert the Soviet economy, describing promises of Western aid as an illusion. Leningrad television reported, reports Reuter.
The channel showed recorded excerpts of a speech by Kryuchkov to a closed session of the Soviet parliament last week.
He linked his assessment of the current situation in the Soviet Union to a CIA plan allegedly adopted in 1977.
"The US CIA in recent times...has been working on plans for optimising hostile activities aimed at the breakup of Soviet society and disorganisation of the socialist economy", he said
Apparently referring to a suggestion that Western aid should be linked to a radical economic reform plan prepared by Russian economist Grigory Yavllnksy and a group of US academics. Kryuchkov said
"We have reliable Informa Uon on credits. Talk that we might be granted credits In the order of 250 billion or 150 billion (dollars) is fairy tale< an illusion. It is either self-de ception or deception of others.'
Leningrad television said tt was "not important' how the tape of Kryuchkov's remarks was obtained. Hardline Defence Minister Dmitry Yazov and Interior Minister Boris Pugo spoke during the same closed session.
Kryuchkov, who has previously warned of Western economic subversion plots, was addressing parliamentarians as they waged a heated debate on ways to revive the economy with market-oriented reforms.
Hardline deputies attacked Yavlinsky's radical reform package on Tuesday but President Mikhail Gorbachev, who is due to argue his case for Western financial support at a meeting of top industrial nations next month, defended it
The Yavlinsky plan, aimed at introducing a market economy and integrating it with the West, might involve an injection of aid of 30 billion dollars a year for five years, according to some Western estimates.
The KGB chief said the CIA sought to influence the Soviet economy by recruiting people who might hold powerful positions and an important aspect of this plan involved economic management.
He said the country was on the brink of catastrophe and reforms linked to what he called vague promises of aid were being dictated from abroad.
The USA and some other Western countries consider the collapse of the Soviet Union to be a foregone conclusion". he said.
Gorbachev has repeatedly stressed the need for Western aid to support his perestroika reforms.