Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: MONDAY, July 2, 1990                   TAG: 9007020239
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A/1   EDITION: EVENING 
SOURCE: Associated Press
DATELINE: MOSCOW                                LENGTH: Medium

GORBACHEV DEFENDS HIS REFORM POLICIES

The president and party leader seemed to have succeeded in averting a possible challenge to his leadership by hard-liners and the threat of a walkout by radical reformers.

"Voices are being heard that all of our present problems should be blamed on perestroika," Gorbachev told the delegates to the 28th Soviet Communist Party Congress in a keynote speech.

He acknowledged that the party's top leaders had made mistakes, especially in ethnic relations where "we did not see the dangers."

Hundreds of people have been killed in recent waves of ethnic violence in Armenia and Azerbaijan, central Asian cities, and other places. Also, the three Baltic republics are trying to secede.

In today's speech, though, Gorbachev laid much blame for the nation's pressing problems - including the economic crisis - on the "heavy legacy" of previous leaders dating to Josef Stalin.

Gorbachev also attacked the Soviet Union's vast bureaucracy, saying many functionaries only cared about protecting their own power and privileges.

Radical reform is vital, he insisted, because "the U.S.S.R. is rapidly becoming a second-rate power."

He offered few specifics but said Communists must:

"Stop the brain and talent drain abroad."

Pass legislation ending the government monopoly on the manufacture of farm machinery "to provide for an influx of foreign capital in this area."

Quickly make the Soviet currency convertible on the world market.

Negotiate a new treaty uniting the 15 Soviet republics on a looser basis while preserving the nation.

In the days leading up the party congress, it appeared the Soviet leader might face a challenge from hard-liners for the top party leadership post, and that radical reformers might walk out and split the party.

But today, Gorbachev seemed successful in his exhortations for unity among party reformers and moderates. Members of the radical Democratic Platform said they had dropped plans to walk out of the congress to form their own party.

Also, hard-liners who last month demanded that Gorbachev give up his post as Communist Party general secretary said they planned to support him, although they might use the new policy of openness to criticize some policies. Public opinion polls indicate the people's trust in the party - until Gorbachev's tenure the country's sole political force - has waned significantly as it fails to cope with mounting discontent.