August 30, 1998
Russian Pact Appears To Collapse
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Filed at 4:53 p.m. EDT
By The Associated Press
MOSCOW (AP) -- A tentative agreement to approve a new government under
Boris Yeltsin to tackle Russia's economic crisis appeared to collapse within
hours Sunday after the Communists said they would not accept the deal.
The Communist turnabout came just after the government and the opposition
said they had reached a deal following days of tough behind-the-scenes
bargaining to call a political truce to win quick confirmation of Yeltsin's
choice for prime minister.
Communist leader Gennady Zyuganov said the proposed pact was rejected by
a meeting of his party leadership because there was no firm guarantee Yeltsin
would abide by its provisions. He did not rule out further talks.
''So far, the document is not guaranteeing anybody anything,'' he said, adding
that the party would vote Monday against the confirmation of acting Prime
Minister Viktor Chernomyrdin in parliamentary hearings.
The proposed three-page agreement would have given the State Duma,
parliament's lower house, more say in Cabinet appointments, but leave Yeltsin
with substantial power, despite earlier opposition calls for his removal.
In particular, the president would have retained control of the security forces
with the right to fill three key posts -- the defense, foreign and interior
ministries. In exchange, Yeltsin would have agreed to Duma approval of most
Cabinet appointments for the first time, according to lawmakers and media
reports.
The Communists' surprise rejection of the deal could be a prelude to more
bargaining as the opposition seeks further concessions. Russia may face
weeks of political uncertainty if the opposition blocks Chernomyrdin's
confirmation and Yeltsin refuses to withdraw it.
Chernomyrdin said earlier that swift formation of a new government was vital
to tackle the nation's economic crisis.
''We must resolve financial problems. The ruble is hanging by a thread,'' he
said.
In Washington, White House national security spokesman P.J. Crowley
declined to comment on Yeltsin's troubles reaching a deal with the opposition,
on the eve of President Clinton's visit.
''This is a matter for the government of Russia and the people of Russia,''
Crowley said. ''We look forward to working with the new government. We
hope they'll be put into place as quickly as possible.''
Clinton arrives in Moscow on Tuesday for a summit with Russia's troubled
leaders.
Russia was plunged into political and economic crisis when financial markets
and the currency collapsed as the government defaulted on its debts and the
country was hit by the global furor in developing markets. Ordinary Russians
fear they face yet more hardships after years of upheaval, but there have been
few signs of panic on the streets of Moscow and other cities.
The ruble appeared to gain Sunday and exchange points across Moscow were
buying U.S. dollars at an average 8 rubles to the dollar, down from an average
of 8 1/2 rubles to the dollar the day before. The rate had been 6 rubles to the
dollar before the collapse.
There had been no immediate confirmation that Yeltsin would accept the deal,
even though it left him with a firm grip on power. But he appeared reluctant to
accept many of the provisions, according to Russian media.
There was no word on an economic plan that had been discussed with the
opposition to handle the crisis. It called for imposing some Soviet-style
economic controls, but Chernomyrdin said Saturday there was no question of
restoring the Soviet system.
While Yeltsin would have lost some power under the deal, it had appeared to
represent a major step down by the hard-line opposition, which had been
calling for the president's removal and formal power sharing. Yeltsin said last
week he would never resign.
Zyuganov called for unspecified changes to the International Monetary Fund's
terms for extending a $22.6 billion loan to Russia. The Communists also called
for formation of a Constitutional Assembly, a new body that would take over
''if the situation gets out of control'' and tighter controls on Yeltsin's powers
to nominate a prime minister.
Yeltsin brought Chernomyrdin back as prime minister a week ago because he
hoped the familiar figure would restore confidence in the government, badly
damaged by the ruble's sharp decline. |
