www.ukrweekly.com INSIDE:• Leadership Conference follow-up — pages 4-5. • Election-eve congressional scorecard — page 6. • Letters, letters, letters — pages 7-9. Published by the Ukrainian National Association Inc., a fraternal non-profit association Vol. LXIV HE No.KRAINIAN 43 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 27, 1996 EEKLY$1.25/$2 in Ukraine PrimeT Minister LazarenkoU predicts Foreign MinisterW Udovenko cites similarity Ukraine’s economic revival in 1997 in U.S. and Ukrainian positions on NATO by Roman Woronowycz vigorated Ukraine as well as on immedi- by Yaro Bihun reviewed these and other issues with Kyiv Press Bureau ate problems that need to be resolved. Special to The Ukrainian Weekly Secretary of State Warren Christopher and He underscored the still serious eco- Deputy Secretary Strobe Talbott, Defense KYIV — Prime Minister Pavlo nomic situation in the country, but allud- WASHINGTON — U.S. and Ukrainian Minister William Perry, Deputy National Lazarenko on October 15 appeared before ed to the possibility of economic revival government positions on NATO expan- Security Advisor Samuel Berger and other a packed session of the Verkhovna Rada in 1997. sion, “while not identical, coincide in Clinton administration officials here on of Ukraine, with President Leonid “In the last period, productivity has many respects,” Ukrainian Foreign Affairs October 21-22. Kuchma in attendance, and gave a 40- been slowed, inflation is under control, a Minister Hennadiy Udovenko said on With the obvious intent of easing minute presentation on the budgetary plan national monetary unit has been intro- October 22, following talks here with Ukraine’s concern as well as the con- of the Cabinet of Ministers for 1997. duced which helps to establish certain senior Clinton administration officials. cerns of those Eastern European coun- It was the first comprehensive policy financial stability,” said Mr. Lazarenko. Later that same day, President Bill tries that want to join NATO but will be speech by a government leader on the However, he said Ukraine’s economic Clinton announced his plans for the left out of the first group, President goals for next year, which the Ukrainian situation “remains complex and danger- expansion of NATO, which would bring Clinton made the following promise: government has said will be the first year ous.” He cited the continued fall in man- the first group of East European coun- “I also pledge, for my part and I believe of economic revival in Ukraine. ufacturing and agricultural production. tries into the alliance in 1999. for NATO’s part as well, that NATO’s For all practical purposes, it sounded “A major part of the industrial establish- Speaking in Detroit, Mr. Clinton did doors will not close behind its first new more like a state of the nation address, ment is either closed or on the verge of not indicate which countries would be in members. NATO should remain open to with the prime minister going beyond bankruptcy and closing ... in the last five the first group to join NATO. He said all of Europe’s emerging democracies simple budgetary and financial matters to years the area of land under cultivation they would be selected by NATO in who are ready to shoulder the responsibili- expound upon a future policy for a rein- has been reduced by a third, while the 1997 and would become full-fledged ties of membership. No nation will be annual harvest and heads of cattle have members in 1999, NATO’s 50th anniver- automatically excluded. No country out- fallen by a third.” sary year and the 10th anniversary of the side NATO will have a veto. He said an oppressive tax policy has fall of the Berlin Wall. “We will work to deepen our coopera- led to unforeseen budget deficits because Ukraine has repeatedly stated that, as a tion, meanwhile, with all the nations in the Kuchma and Yeltsin revenues and taxes are not coming into neutral country, it has no intention of Partnership for Peace. A gray zone of inse- state coffers, and to the creation of a joining NATO or any other bloc, but nei- curity must not re-emerge in Europe.” huge gray economy — fully 40 percent ther does it oppose acceptance of its Responding to Mr. Clinton’s announce- hold working meeting neighbors into the Western alliance. The by Roman Woronowycz of Ukraine’s total gross domestic product ment, his Republican opponent in this (GDP). Ukrainian government, however, has rec- year’s presidential election, Bob Dole, Kyiv Press Bureau ommended certain conditions for NATO Mr. Lazarenko zeroed in on seven accused the administration of “foot drag- expansion: that it unite rather than divide KYIV — Ukraine’s President areas the government will address in ging.” Europe and that it take into account Leonid Kuchma and Russia’s ailing 1997 to stimulate the economy: mone- “The time to begin expansion for Ukraine’s security concerns. leader Boris Yeltsin met on October tary reform and financial stabilization; Foreign Affairs Minister Udovenko (Continued on page 2) 24 in Moscow in what was sched- implementation of radical tax reform; uled to be a “working meeting” restructuring of the budget system; with an open agenda. It turned into reform of national production; privatiza- a high-level discussion on how to tion of state property; stabilization of the resolve the latest Sevastopol crisis agro-industrial sector; and reform of and resulted in what appears to existing social policy. finally be agreement on a friendship The prime minister said the hryvnia treaty. must remain stable vis-à-vis Western In recent weeks the Russian currencies and that the goal is to trans- Parliament, the Duma, Moscow’s form it into a “basic instrument for pay- influential Mayor Yuri Luzhkov and ments and capital creation.” recently fired National Security He said the banking system must Advisor Alexander Lebed have all develop procedures similar to Western declared that the Crimean city of banking norms, that it must become less Sevastopol, which is the home of the speculative in its investment plans. He Black Sea Fleet and within the terri- added that the National Bank of Ukraine torial confines of Ukraine, is part of must develop means to assure that Russia. It is an issue that has stirred money stays within the banking system controversy and distrust between and that long-term credit rates increase. Ukraine and Russia virtually since He criticized international financial the Soviet Union fell apart in 1991. institutions for not increasing their aid to President Yeltsin’s press Ukraine but then suggested that it is time spokesman, Sergey Yastrzhembsky, Ukraine attracted private banking institu- said that at the meeting at the tions. “One has to increase the presence Barvikha Sanitarium, where Mr. of the most important private banks in Yeltsin is hospitalized, the two Ukraine by developing large banking leaders agreed that all the issues joint ventures, for instance.” regarding a treaty of friendship He identified taxation as one of the between the two countries had been main reasons for the development of resolved and that “the big treaty Ukraine’s shadow economy and called between the two states is complete- for complete tax reform. However, he ly ready.” defended the largest industrial firms, He stated that it would be signed stating that “they do not escape taxation after Mr. Yeltsin has recuperated because they have no objective possibili- Yaro Bihun ty to hide in the shadow economy.” (Continued on page 3) Secretary of State Warren Christopher (right) welcomes Ukrainian Foreign (Continued on page 3) Affairs Minister Hennadiy Udovenko. 2 THE UKRAINIAN WEEKLY SUNDAY, OCTOBER 27, 1996 No. 43 Kentucky company in partnership NEWSBRIEFSNEWSBRIEFS with Ukrainian electric company Constitutional Court is sworn in killed 133 people this year. More than by Albert H. Skeath opment of its employees on international 2,300 people have fallen ill from mush- relationships. KYIV — Sixteen members of the room poisoning this year. Of the 133 WASHINGTON — The Kentucky Both companies volunteer their time, Constitutional Court of Ukraine were Utilities Co., with headquarters in who died, 48 were children, said Oleh use of facilities and access to information sworn in on October 18 in the Parliament Bykov, spokesman for Ukraine’s Lexington, Ky., signed a cooperative at no cost to the program. The USEA, Chamber. Following their swearing-in, the Emergency Situations Ministry. Police agreement with Dniproenergo back in through its contract with USAID, pro- court elected 57-year-old Ivan Tymchenko July, signaling the start of an energy checkpoints were to be set up outside vides funding for all travel, lodging, as the chairman. Judge Tymchenko, who industry partnership program under the forests, and officers will search visitors’ meals, interpretation and out-of-pocket hails from Dnipropetrovsk, served as sponsorship of the U.S. Energy belongings and destroy any mushrooms expenses. President Leonid Kuchma’s top legal Association (USEA) and the U.S. they find. A few poisonings occur every This is the third such partnership adviser until his appointment to the court. Agency for International Development year, but officials say this season has between U.S. electric companies and Vasyl Nimchenko and Vitaliy Rozenko (USAID). been the deadliest to date. They added counterparts in Ukraine. The first was were elected deputy chairmen. Earlier this Under this agreement a series of exec- that most poisonings have been among between Kyivenergo and Pennsylvania month, the Verkhovna Rada had elected utive exchange visits, internship pro- inexperienced mushroom-pickers. Power and Light Co. (PP&L) based in four judges to the court: Mykhailo grams, advisory missions and seminars (Associated Press) Allentown, Pa. During the past three Kostytsky, Oleksander Myronenko, will be conducted to assist the personnel years, 36 officials from Kyivenergo have Stanislav Yatsenko and Mr.