Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, July 12, 1993 TAG: 9309030364
SECTION: EDITORIAL PAGE: A4 EDITION: METRO
SOURCE:
DATELINE: LENGTH: Medium
In agreeing to eliminate or lower tariffs on a range of manufactured goods, the leaders of the United States, Canada, Japan and the European Community acted with a measure of courage. All are standing on, at best, shaky political ground at home. Each protectionist tariff that falls will come at some political cost, since each is created to protect the interests of one group or another.
The agreement is expected to give new life to the long-running negotiations on a General Agreement on Tariffs and Trade, which is supposed to be completed by the end of the year. With the G-7 accord, there now seems to be some prospect that it actually will be, though this is by no means assured.
In addition to this modest success, the G-7 also can be commended for raising its stake in Russian President Boris Yeltsin's efforts to privatize his nation's economy. Members, who had been expected to approve $2 billion in aid, came up with a $3 billion package. This will include $500 million in aid from the G-7 nations for technical assistance and social services that will be needed when state-run enterprises are closed or restructured.
President Clinton, who has been vocal in his calls for the West to back up its rhetoric with monetary support for Russian economic and political reform, had wanted a $4 billion aid package. Toward that end, he had called European leaders last week to do some old-fashioned jawboning. As can be said of the entire summit, he wasn't 100 percent successful, but he wasn't a failure, either.
Perhaps more impressive was the change in attitude shown by Japan, which earlier had labeled the aid package ``preposterous.'' Japan ended up contributing $120 million of the $500 million to be given by G-7 countries, second only to the U.S. contribution of $125 million. The Japanese, historic enemies of the Russian empire, finally have accepted the necessity of extending help to a former foe.
Yeltsin and the Russian people deserve the show of support. The Russian government has made mighty efforts to cut its deficit spending and to slow inflation, which just six months ago was hurtling toward hyperinflation. It has privatized 60,000 small, formerly state-run enterprises. There is a long way to go, but progress has been real.
As the United States has recognized from the start of the anti-communist revolution that has splintered the Soviet Union, the success of a free-market economy is critical to the political stability of Russia. The entire world has a big stake in maintaining that stability.
President Clinton has been moderately successful in getting his own nation to offer fiscal as well as moral support for the effort.
Now Japan, too, seems to have seen the wisdom of that policy. After all, the more fierce the enmity there once was toward the old Soviet empire, the more critical is the success of a new Russia, with a democratic face.
by CNB