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No hard cash for Gorbachev
LONDON. July 19: Soviet President Mikhail Gorbachev left Britain today with an Invitation to join the capitalist chib but no hard cash, just ex pressions of good will and technical assistance to smooth his country s bumpy passage, reports AFP
Leaders of the Group of Seven (0-7) most Industrialised countries turned a deal ear to the billions of dollars Gorbachev asked lor to sta bilise his country's collapsing economy, Judging such spending premature”
His appearance tn London however was a political boost for him. Practically a gatecrasher — he kibbled hard for his invitation — he made sure that Soviet economic reform dominated the three-day summit
Gorbachev's announcement of a summit meeting between himself and US President George Bush at the end of July coupled with an accord on a key Strategic Arms Reduction Treaty (START) put 0-7 leaders into a favourable frame of mind to listen to his pitch for aid.
Fears of the consequences of failure for Gorbachev were whipped up by Soviet officials before the Soviet leader arrived late Tuesday, with warnings of the risk of "uprising-and "turmoil" embroiling the whole world * being thrown about.
The Western leaders who listened to Gorbachev for hours in a historic encounter after the close of their summit on Wednesday . were any well aware that they could not risk rebuffing him haunted as they are by fears of a "conservative” backlash from Soviets who feel only nostalgia for the cold war.
The day before the meeting US Secretary of State James Baker said. "there is no chance of him leaving here empty handed."
Gorbachev's hands as he boarded his plane today for Moscow were perhaps not as full as he might have wished but he came away with a new relationship with the world's money Institutions.
"Special associate" status with the International Monetary Fund and the World Bank will for the time being give access only to technical assistance but he may expect real money to be in the offing if full membership is eventually granted.
British Prime Minister John Major who is current Chairman of the G-7 and who will travel to Moscow before the end of the year, gave a lead Thursday after around four hours of talks with Gorbachev, announcing direct British technical assistance.
He announced the dispatch to Moscow, probably before the end to the month, of Chancellor of the exchequer Norman Lamont to begin talking economic cooperation with the Soviet Union.
He said he would send a senior mission from the depart ment of employment this Sunday to examine small and other business possibilities between the two countries.
Major also announced a doubling to 20 million pounds (32 million dollars) for next year of Britain's so-called "know-how" fund to provide help to small and growing businesses tn the Soviet Union.
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