Documents / FOIA release

Takeall-- Saratov Oblast's Reform Plans Explained

Central Intelligence Agency · 1993-08-13 · 3 pages · text by GLM-OCR

This Central Intelligence Agency translation, dated 13 August 1993, is an Izvestiya article by Aleksandr Kislov on economic reform plans in Saratov Oblast. It explains a proposal by aviation plant director Aleksandr Yermishin, approved by Premier Viktor Chernomyrdin, for a US and Russian backed conversion and privatization fund that would draw in private investment. The only UFO link is a passing description of a new aircraft design that looks like a "flying saucer".

Read from the scan by GLM-OCR; expect the odd misread word.

0175461ists have informed me, circulating in the United States. Second: When people have money 'burning holes' in their pockets, it endenders criminal situations. And finally, there is a third route. Turning money into property, into means of production, so that it works here, in Russia. Legally. With profits for the country of their owner. If the law enforcement organs tell me that someone is untrustworthy, I will have nothing to do with him. However, I will not carry out an investigation into where an investor's money comes from.

"I took part in a top-level conversation in the General Prosecutor's Office. I say: A rule-of-criminal-law [ugolovno-pravovoye] state has already been built in the country. The period of initial accumulation is ending; capital has formed in certain sectors, and everyone knows this. What remains? Either to allow these tendencies to develop further, in the same direction, or it is time to summon up the courage and admit that the shadow method of accumulating capital is not always criminal. There are market structures which possess a great deal of money. They are actually asking themselves the question: What next? Those who wanted to go abroad have done so. Obviously, it is necessary to create conditions in which money works for society.

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[Text] "On the whole they agreed with me. Organized crime has a serious economic component. Why not try to diffuse this situation by legislative and economic measures? It is more comfortable for someone to work in a normal, rather than a shadow environment.

"Our plan also provides for a civilized mechanism for lobbying for reforms. This is what the experiment is for -- in order to have an opportunity to freely go to the government or parliament and give first-hand information on the progress of transformations and make proposals as to where the 'rules of the game' need to be changed. For example, it is already clear that there is no use even thinking about developing reforms unless the Criminal Code and tax legislation are amended and the draft laws on private ownership of land and on mortgages [zalog] are dug out from parliament's backlog. You politicians can argue all you want to, but let people produce their goods, bake their bread, and milk their cows."

Politicians claim that, in the current situation of dyarchy, a decisive role could be played by an alliance of politicians who support the president and pragmatists representing Russia's business circles. In this case reforms would receive the powerful social base they so badly need. In conditions of relative equilibrium of the forces clinging to power on the political stage in Moscow, practical leaders and the collectives standing behind them would ensure that the reformers prevail and, most importantly, would confirm the inevitability of transformations with weighty economic arguments. (endall) 13 aug 24/1156z aug WC 255

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About this file

FOIA release, from the cia-readingroom collection. The PDF is mirrored here; the original link is above. The text was read from the page images by GLM-OCR; expect the odd misread word. 3 pages are in the text index: search them above, or from the library's search.