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G-7 to help USSR rise from ruins of socialism
BANGKOK. Oct 13 : The seven leading industrial pow ers reached a historic agree merit Sunday to help the Soviet Union rebuild its economy from the ruins of socialism and join the world community, reports AP.
A communique issued by the "Group of Seven” finance ministers after two days of talks with the Soviets made no specific pledges of assistance apart from the billions of dollars in humanitarian aid and technical help already promised.
Grigory Yavlinsky, leader of the Soviet delegation, said. The goals we Jointly want to achieve arc not far from us."
"What we arc seeing here is really for the first time the Soviet Union engaging the West in a level of detail which is unprecedented," US Federal Reserve Board Chairman Alan Greenspan told reporters. 'We arc actively engaged in discussions on a range of issues which will shift a centrally planned economy to a market economy.”
Greenspan said the Bangkok agreement "is not a watershed" out "the beginning ol what is going to be a very long and very detailed process."
The communique said
deputy finance ministers of the seven countries would go to Moscow soon to discuss specific programmes for economic reconstruction.
Several officials said the problem of helping the Soviets was made worse by a lack of detailed Information on the economy and Soviet unfamiliarity with generally accepted economic practices.
"It's like the basic things that we learned as a kid with a paper route, they never have learned, although the Baltic countries have some idea what a market economy is all about," said one senior Canadian finance official, asking that his name not be used.
'They suffered cardiac arrest and they need the whole bloody team of doctors.”
US Treasury Secretary Nicholas Brady refused to set a timetable for rebuilding the Soviet economy. But he added that the United States and the other industrial powers "will be as responsive as we possibly can in the shortest space of time."
G-7 officials stressed, however. that the process of rebuilding will be long and difficult.
German officials said the Soviets did not make clear how they plan to continue re-
paying their debt, estimated at 68 billion dollars, but gave assurances that both Moscow and the breakaway republics were aware of their responsibilities.
'This is not yet a complete solution for the concrete servicing of debts." German Finance Slate Secretary Horst Koehler said.
French Economics Minister Pierre Beregovoy said the Soviets can meet their debt payments for two months. After that, he said, the outlook is uncertain.
Canadian Finance Minister Donald Mazankowski said he was encouraged that the Soviets wanted to restore their economy in a manner Thal will put in place the basic fundamentals for a truly markcl-ori-ented economy."
There was clearly a request on their part lo engage in ongoing dialogue with the Western community and we have undertaken lo do that, and lo work will, them in solving some of the difficult problems that they face, of both an economic and financial nature." Mazankowski said.
Soviet President Mikhail Gorbachev has asked for 10 billion dollars in short-term aid.