[Congressional Record Volume 144, Number 122 (Tuesday, September 15, 1998)]
[House]
[Page H7786]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




              A STABLE RUSSIA OF PRIME INTEREST TO AMERICA

  The SPEAKER pro tempore. Under a previous order of the House, the 
gentleman from California (Mr. Lantos) is recognized for 5 minutes.
  Mr. LANTOS. Mr. Speaker, let me first thank all of those who 
communicated with me today following my comments yesterday about 
Russia, indicating that they share my concern that we focus on some 
critical issues unfolding on this planet, and not be mesmerized and 
preoccupied exclusively with topic number 1.
  Today's New York Times has a headline which I will take as my text: 
``The Kremlin Brings Gorbachev's Economies Back.''
  Now, this statement reminds me of a Soviet era story, Mr. Speaker, 
when on May Day, the tremendous might of the Soviet Union was displayed 
on Red Square. Vast columns of artillery and tanks and missiles rolled 
by, and then suddenly, a half a dozen crumbled, not very well dressed, 
middle-aged men shuffled by. And as the visiting dignitaries were 
standing atop Lenin's mausoleum, Fidel Castro asked, how did these men 
get into this parade of power and might? And the Soviet leader 
responded, they are our economists, and you have no idea how much 
damage they can cause.
  That is what we are seeing today. The new Russian leader Primakov is 
bringing back the discredited Soviet era, Stalin-era economists for 
high-ranking positions in this new government. The man who was in 
charge of central planning in the Soviet Union is now the number 1 
economic power in the new Russia. The former head of the central bank 
is the new head of the central bank, and what we can expect to see is 
the beginning of the operation of the printing presses, hyperinflation, 
the continuing deterioration of the Russian economy with devastating 
consequences for the Russian people.
  Now, the question might be asked, Mr. Speaker, why is that important 
to us? Well, I suggest it is important to us for 2 reasons. Russia 
still has thousands of nuclear weapons, and as the authority of the 
central government erodes, as the various provinces are striking out on 
their own, the likelihood of these nuclear weapons falling into hands 
unfriendly to the United States increases geometrically.
  But we have a second reason to be concerned about the galloping 
deterioration of conditions in Russia. Not too many decades ago, in the 
bemired Republic of Germany, as hyperinflation took hold, fascism 
followed, and so did the Second World War. It is in our prime policy 
interests to attempt to stabilize the Russian economy, and I suspect it 
will be one of the serious and substantive debates of this body during 
the course of coming months to see how we can work with Mr. Primakov to 
stabilize the Russian economy which, at the moment, is in a free-fall. 
Goods are disappearing from the stores. People have no access to their 
bank accounts. Most banks are, in fact, closed. Unemployment is rising. 
Imports are declining because Russia has no foreign exchange. This 
gigantic society, Mr. Speaker, of 150 million people and covering 11 
time zones has in its central bank $12 billion in foreign exchange 
reserves. This would be laughable if it were not so serious.
  Tax collections, which were bad enough last year, are down by 40 
percent, and as the central government in Moscow is unable to collect 
taxes, the tendency of the regions to break away will accelerate. Of 
the 89 provinces of Russia, some 75 have been receiving subsidies from 
Moscow. These subsidies are declining, in many cases disappearing, and 
the danger of Russia becoming a chaotic society has enormous 
ramifications for our own safety and security.
  Mr. Speaker, I will continue this dialogue with my colleagues and 
with the American people tomorrow evening.

                              {time}  2000

  The SPEAKER pro tempore (Mr. Bass). Under a previous order of the 
House, the gentleman from Minnesota (Mr. Minge) is recognized for 5 
minutes.
  (Mr. MINGE addressed the House. His remarks will appear hereafter in 
the Extensions of Remarks.)




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