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Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXV HE No.KRAINIAN 43 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 26, 1997 EEKLY$1.25/$2 in Ukraine Kuchma-GoreT CommissionU meets in Kyiv, Kuchma Wsigns election law, U.S. focuses on economic reform program while citing his concerns by Roman Woronowycz Diplomats from both countries met in by Roman Woronowycz that even though I signed the election bill Kyiv Press Bureau Kyiv on October 21-22 to continue the Kyiv Press Bureau into law, I do not consider it an ideal law, work of the U.S.-Ukraine Binational KYIV — After a series of meetings in even with the changes I recommended that Commission, commonly referred to as the KYIV — In an unusual move, President Kyiv lasting two days, the leader of the U.S. the Verkhovna Rada make.” Kuchma-Gore Commission, whose mission Leonid Kuchma went on national television The president explained that he signed team on the Kuchma-Gore Commission is to maintain a dialogue between the two the evening of October 22 to express his said on October 22 that for Ukraine the key the bill, which he referred to in his speech countries on issues regarding economic concerns about the upcoming elections to as “second in importance after the to finishing economic reforms lies in priva- cooperation, trade and investment, security Ukraine’s Verkhovna Rada and to admit he tization, the energy sector and agriculture. Constitution” to avoid further confrontation and foreign policy. The commission was signed a bill he doesn’t like. with the Verkhovna Rada. “I found it nec- Richard Morningstar, U.S. special established in September 1996 and has met The broadcast over the national televi- ambassador to the CIS countries, said essary to take the first step toward compro- three times since then. The first and only sion channel began with the president offi- mise and an understanding with Parliament. Ukraine finally is talking about an econom- session of the entire commission was con- cially signing into law the new election bill ic reform program that the United States Any further debates on this topic could vened on May 16 in Washington with both in his office, followed by a 10-minute have paralyzed the Verkhovna Rada,” said thinks will be effective. “I have never been Ukraine’s President Leonid Kuchma and speech about the dangers of a Ukrainian more confidant that we are speaking the President Kuchma. U.S. Vice-President Al Gore in attendance. Parliament up for election. The president, portraying himself as the same language and that we agree what the Mr. Morningstar said after the Kyiv On October 14 the president had sent the critical issues are,” said Mr. Morningstar, person with the heavy burden of keeping meeting – the second time the commission long-debated election bill, which the civil what many expect to be a crazy elec- speaking to reporters. has met here – that a major portion of the Verkhovna Rada approved on September Maintaining a very positive tone, he list- tion season, said the elections could pro- talks were dedicated to discussing macro- 24, back to the legislative body with a list duce dangerous scenarios in Ukraine. “I ed the most important remaining issues con- economic targets for the economy as a of “recommendations,” which the president fronting Ukraine in its molasses-like move would like to stress here that simply absurd whole, as well as on the importance of made clear had to be approved to avoid a actions have already taken place,” said the towards a free market system, such as: con- presidential veto. National deputies agreed deregulation of the energy and agricultural president. “The budget process has already tinued privatization, and energy and agricul- to all but three of the changes and then industries in Ukraine. broken down. The scenario of the 1997 ture sector reform. He said Ukraine must challenged the president to sign the bill into Ukraine’s Minister of Economic Reform budget is being repeated, in which the bud- deregulate the energy and agricultural sec- law, which many think he is against Serhii Tyhypko agreed that the meetings get was not approved until the middle of the tors and that privatization must be complet- because the election system that it imple- were a success, and announced the forma- year.” ed. Without those moves, he said, small and ments does not favor the president’s politi- tion of a special committee to monitor He also called the passage of certain medium-sized business development would cal organization. Ukraine’s macroeconomic indicators and to laws that are unworkable but popular in an be difficult. He added that Ukrainian offi- On October 22 after signing the bill, the analyze foreign markets for securities. election season “psychotic acts.” He cited cials are in agreement. “I think we finally president still expressed reservations about Since 1990 the U.S. has given almost as an example the increase in the minimum have a basis on which to cooperate,” said the law and the mixed electoral system it payment to pensioners. “Currently the Mr. Morningstar. (Continued on page 12) introduces. “I would like to say outright Pension Fund gets slightly more than 9 bil- lion hrv annually. To insure the new mini- mum pensions that the Verkhovna Rada voted in, that fund must grow to 32 billion Lazarenko stresses threat of Communist comeback hrv,” explained the president. “That is prac- by Khristina Lew who also heads the Yednist (Unity) fac- tically the amount of the whole national tion in Parliament, said Ukraine finds budget. With what are we then to support NEW YORK — Ukraine’s former itself in a critical situation as elections our schools and hospitals, and how are we Prime Minister Pavlo Lazarenko to the Verkhovna Rada draw near. to pay wages?” warned potential American investors “People are suffering, salaries are President Kuchma also suggested that a and members of the Ukrainian low, many haven’t been paid. Ukraine Verkhovna Rada looking to be re-elected American community that if pro-reform has 16 million pensioners who receive could yet pass legislation that would threat- forces do not capture the majority of the equivalent of $25 a month. People en the economic reforms that were so diffi- seats in the upcoming parliamentary don’t believe in government anymore. cult to get through the left-leaning legisla- elections, Ukraine will revert to its The Communists are claiming that if ture. “I am referring to the leveling off of Communist past. they return to power, life will be better, production decline, monetary stability, and Mr. Lazarenko is the head of a new and the pensioners who haven’t gotten the progressive liquidation of wage and political party, Hromada (Community), their pensions believe them,” he noted. pension arrears,” explained the president. and his message to business leaders and Mr. Lazarenko also told investors He said the Verkhovna Rada must avoid Ukrainian Americans alike on the first that 1998 is the optimal time to invest in the “populist habit of promising golden day of his weeklong visit to the United Ukraine because large-scale privatiza- mountains to gain the sympathies of their States was the same: support Hromada’s tion will be completed and all property electorate.” platform and Ukraine will continue its will be privately owned. He under- For their part, national deputies voiced economic reform. scored that when he was prime minister, pleasure and relief that the president signed Hromada’s base is small and medi- he signed seven contracts with Western Khristina Lew the bill. “Finally, we have an end to the bat- um-sized business owners who advo- firms and that he had many friends in Pavlo Lazarenko speaks in New York. tle for position,” said National Deputy Ivan cate the privatization of land. Mr. the business world to whom he could Zayets, a member of the Rukh faction. He Lazarenko told American investors on introduce potential investors. During place of work, leased for 99 years or added that he believes “both sides have October 20 that he personally wants to Mr. Lazarenko’s tenure as prime minis- independently farmed. Ukrainian law safeguarded their interests.” see the continuity of economic reform ter, Ukraine signed joint venture agree- does not permit the sale of land. National Deputy Yuri Orobets, a mem- because he himself is a property owner. ments with John Deere, Case, Monsanto Mr. Lazarenko served as prime minis- ber of the Reforms faction, said the presi- “I have seven hectares of land, and I and Daewoo, among others. ter for one year, one month and six days dent’s signature was “a defeat to the plot- own other things,” he said. According to Mr. Lazarenko, — the longest term of Ukraine’s five ters who would like a Central Asian politi- He emphasized that it was extremely Ukraine has also launched a land cer- prime ministers since independence. He cal variant for Ukraine.” Central Asian important to gain the support of tificate program, a first step to land pri- was ousted in June of this year amid countries like Kazakstan and Uzbekistan investors, bankers and entrepreneurs to vatization. Land certificates entitle the allegations of corrupt business practices are marked by their strong presidencies and combat “those people who support bearer to, on average, five hectares of puppet parliaments. returning to the past.” Mr. Lazarenko, land, which can be turned over to a (Continued on page 12) (Continued on page 12) 2 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 26, 1997 No.