Title:  "Clinton Hints at Deal with Russia on High Tech Exports." President Clinton says he made progress in discussions with Russian President Boris Yeltsin on limiting missile technology exports to India and Libya. (930712)

Author:  SCHAFFER, JON (USIA STAFF WRITER)
Date:  19930712

Text:
CLINTON HINTS AT DEAL WITH RUSSIA ON HIGH TECH EXPORTS

(U.S. president to visit Russia) (1090) By Jon Schaffer USIA Economics Correspondent Tokyo -- President Clinton says he made progress in discussions with Russian President Boris Yeltsin on limiting missile technology exports to India and Libya.

"We agreed to continue the negotiations intensely and immediately and I think you might have an answer on the ongoing status of the negotiations next week," Clinton told reporters July 10.

Separately, Secretary of the Treasury Lloyd Bentsen said there is a "building of cooperation" between the United States and Russia on the dispersal of high technology goods.

U.S. officials would provide no further details. Clinton met for about one hour with Yeltsin early July 10 before flying to Korea. Four days of talks in Tokyo with leaders of the Group of Seven (G-7) and separately with Japanese leaders have produced a major tariff reduction accord on manufactured goods, an agreement with Japan on a framework for reducing external imbalances and resolving sectoral disputes, a new program of assistance to Russia and a renewed commitment among the G-7 to implement domestic policies that promote growth and employment.

Yeltsin, briefing along with Clinton, said that progress had been made on about 25 bilateral and international issues, including a discussion of policy options should North Korea withdraw from the nuclear non-proliferation regime.

"I think we have forged a remarkable partnership," Clinton said. "We think it is working in the interest of the people of Russia and the people of the United States and we intend to keep it going."

"I'm happy with our meeting here," Yeltsin responded. "And I think our partnership and our friendship is strengthening day by day."

Clinton said he accepted an invitation to meet with Yeltsin in Russia, possibly later this year.

Among the issues discussed were political and nuclear non-proliferation developments in the Ukraine.

Yeltsin announced the possibility of a trilateral agreement -- U.S., Russia and Ukraine -- on the issue of nuclear non-proliferation.

"I think you are going to see an intensified effort" between the United States, Russia and the Ukraine on the issue of nuclear non-proliferation, Bentsen acknowledged following the Clinton-Yeltsin briefing.

"I hope there will be a non-nuclear Ukraine, that the commitments that the government has made will be kept," Clinton said. "And I hope the United States can be engaged with Ukraine in a positive way so that they will feel that it is very much in their interest to do that."

Clinton said he was working intensely with Congress to remove obsolete Cold War restrictions that impede trade, scientific and cultural contacts.

He said he expects most of those to be removed this year. "There is a strong base of support in both political parties in the United States Congress to remove those laws," he said. "As soon as I go home, we will begin to put in motion the process of removing many of those statutes."

Clinton also said that he and Yeltsin reached an agreement on how to proceed with some outstanding issues that will allow Russia to obtain most-favored-nation tariff status with the United States unencumbered by current "Jackson-Vanik" provisions of U.S. law originally designed to induce relaxation of Soviet emigration restrictions.

Russia will be invited to meet with the Group of Seven industrial countries following the Economic Summit next year in Naples, Italy, but will not be attending as a full participant in the summit discussions.

"I'm in no hurry" to join, Yeltsin said July 9 in a separate briefing following his meeting with the G-7. "Time is on our side. We're bound to be part of the Group of Eight and I'm convinced of this."

"I think that there will come a time when Russia will probably join this group when there is a consensus that that time has come," Clinton said. "I do believe that you will see him here every time we meet as long as he is president of Russia, which I think will be quite a while."

"Russia has already moved quite a bit towards what is clearly everybody's goal, and that is that it be a full-fledged member of the community of nations represented by the G-7 itself," a senior official said.

The official said that in many ways Russia is now "a bridge" between the European and Asian members of the G-7.

"And that makes up a possible closer political and economic cooperation throughout the world," he said.

Yeltsin leaves Tokyo without obtaining everything he wanted, but certainly a substantial package.

The G-7 agreed to a new $3,000-million fund to help in the privatization of middle and large-scale Russian state-owned enterprises.

Russia also will be getting $1,500 million from the International Monetary Fund (IMF) under its new Systemic Transformation Facility, and another $1,500 million in the autumn if Yeltsin's government continues the reform process.

The G-7 urged Russia to intensify economic reforms that would trigger access to another $4,100 million in a standard IMF standby loan.

Progress on economic reforms later this year possibly could trigger yet additional resources -- some $6,000 million to stabilize the value of the Russian ruble.

Meanwhile, the World Bank is proceeding with some $3,400 million in loans to support development of Russia's energy and agricultural sectors and policy reforms in such areas as privatization of state-owned enterprises. Additionally, the industrial nations are providing some $10,000 million in direct export credits and guarantees.

Clinton said he expects to get congressional approval later this summer for $1,800 million in new U.S. bilateral aid, of which $1,300 million would be targeted to support initiatives in energy, nuclear power safety, environmental protection, housing for military officers, small business creation, trade and investment initiatives.

Clinton said that Yeltsin told the G-7 members during their meeting with the Russian leader July 9 that Russia has nearly completed the task of taking out of operation its older nuclear plants to eliminate the risk of another Chernobyl.

Yeltsin said that if the other states of the former Soviet Union wanted technical help to decommission nuclear plants, Russia would lend its assistance.

He also welcomed G-7 plans to set up an office in Moscow to monitor aid flows to Russia.

Yeltsin said that he would address the issue of Russia's territorial dispute with Japan over the Kuril Islands when he visits Tokyo in October.

NNNN