Talbott in Ukraine to strengthen ties (07/21/96)

Talbott in Ukraine to strengthen ties

by Marta Kolomayets
Kyiv Press Bureau

KYIV - Calling his working day in Kyiv "very intense, productive and satisfying," U.S. Deputy Secretary of State Strobe Talbott told reporters on July 17 that the over-all purpose of his brief visit was to discuss "ways of strengthening what is already an extremely strong bilateral relationship."

"And I feel that we have accomplished this," he noted, during a 40-minute news conference at Kyiv's America House, an information arm of the U.S. Embassy in Ukraine, before departing for the United States.

Arriving from Moscow that morning, Mr. Talbott and his delegation, which included Ambassador at Large for the New Independent States James Collins, Ambassador and Coordinator for Assistance to the NIS Richard Morningstar and National Security Council Director for Russian and Ukrainian Affairs Carlos Pascual, met with Ukrainian leaders, including President Leonid Kuchma, Prime Minister Pavlo Lazarenko, Parliament Chairman Oleksander Moroz, Foreign Minister Hennadiy Udovenko and National Security Advisor Volodymyr Horbulin.

Mr. Talbott said that discussions were wide-ranging and penetrating, but highlighted three areas, including the newly adopted Constitution and Ukraine's ongoing integration into European, regional and global institutions. The subject that dominated conversations he said, was the economy.

Prime Minister Lazarenko said Ukraine's grim financial situation necessitates a search for new sources of budget revenues, noting that of credits from the National Bank of Ukraine and well as domestic loans against the government, securities have already been exhausted.

He added that "Ukraine will adhere strictly to its commitments, in particular to the terms of agreements with the International Monetary Fund and the World Bank."

Mr. Talbott told Ukrainian leaders that the U.S. government is examining Ukraine's recent request for $400 million to cover the deficit of funds needed to repay wages and pensions in Ukraine. He stressed that the U.S. has played a leadership role in the G-7 and international financial institutions to mobilize support for Ukraine's economic reform. "Our intention is not only to continue that effort but intensify it," he noted.

Ambassador Morningstar told reporters that this year the U.S. has given Ukraine more direct assistance than any other former Soviet state.

He said this amounts to a total of $1 billion, including $330 million in direct grant assistance, which includes work relating to privatization as well as nuclear safety.

Credits for trade and investment add up to another $700 million this year, and $350 million of that has been designated for commodities and technical equipment.

During meetings with Ukrainian leaders, Mr. Talbott congratulated them on the recent adoption of the nation's first post-Soviet Constitution, calling the event "a victory for all branches of power in the state." Parliament Chairman Moroz presented Mr. Talbott with a copy of the Constitution.

President Kuchma, in turn, thanked the American official for supporting Ukraine's economic and political course. He discussed Ukrainian-Russian relations with Mr. Talbott and noted that he hopes Ukraine and Russia will sign a large-scale treaty on friendship and cooperation in the near future.

Speaking about Ukraine's role in Europe, Mr. Talbott hailed its integration into such organizations as the Council of Europe, the Central European Initiative, the Organization for Security and Cooperation in Europe, and NATO's Partnership for Peace, and its developing connections with the European Union, as well as its participation in NATO's peacekeeping operations in the former Yugoslavia.

"President Clinton has a strategic vision for an undivided and increasingly integrated Europe. Ukraine, as a major European country, is an absolute key to that vision coming true," he said.

Regarding future plans on NATO enlargement, Mr. Talbott noted that "as the alliance expands, the benefits of that process will extend not only to those countries which will be joining the alliance in the relatively near future," but will have a positive effect on security of other states also.

He said that Ukraine should be actively involved in the process of developing an all-European security model.

"One Cold War and one Iron Curtain are plenty for the history of mankind," said Mr. Talbott, noting that the U.S. and Ukraine should work together "to make sure blocs are a thing of the past."

Mr. Talbott mentioned that both sides spoke about the creation of a Kuchma-Gore Commission, along the lines of the Gore-Chernomyrdin Commission, but said that he would let the U.S. vice-president and the Ukrainian president announce the creation of such a body and give details of its work at a later date.

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