Kuchma vows to forge ahead (01/31/93)

Kuchma vows to forge ahead

by Borys Klymenko

IRPIN, Ukraine - Prime Minister Leonid Kuchma marked his first 100 days as head of Ukraine's government by reasserting his intention to unwaveringly proceed with economic reform.

Speaking at a press conference here in this city some 30 kilometers northwest of Kyyiv, Prime Minister Kuchma said the development of a strong middle class is essential for such reform to succeed. "If a middle class - the basis of any state - does not arise, Ukraine will not survive. We welcome a class of manufacturers/producers," he said, adding that this is the reason his government has adopted a lenient tax policy toward them. "We would like this class to develop as quickly as possible," he said.

At the same time, Mr. Kuchma noted, for reform to succeed in Ukraine, the strong hand of government is necessary. He has become convinced of this, he said, by examining worldwide experience. Thus, the prime minister continued, the next goal of the government should be to create a vertical executive branch - something that does not now exist.

As well, in the very near future, he said, there will be changes in the relationship between the Cabinet of Ministers and directors of state enterprises. He pointed to the positive results in neighboring Belarus, where more than 50 directors of former all-union enterprises are replaced because they had become used to receiving everything via the command economy, and were not quick to learn that they themselves must work in order to be successful.

Commenting on the possibility of assistance from the West, Prime Minister Kuchma said he has no illusions about the West's interests. "I have repeatedly said the West does not care about us. And, the possibility it will accept us is distant from reality. We should seek [economic] integration with all states once part of the USSR, and not just within the CIS," he said.

"I believe in the wisdom and talent of the Ukrainian people," he underlined.

"Since the time perestroika began, and judging by [what has occurred] in the past year, the West has taken so much so cheaply out of Ukraine that Western governments should provide us with multi-billion-dollar credits at little or no interest."

"Today, the government does not even aim to raise production because its main goal is to halt its fall," the prime minister continued. He said he will count on support for his program coming from people of wisdom not from a specific group of parliamentary deputies.

He explained, "The situation in Parliament changes so quickly that it is impossible to understand who is your supporter and who is your opponent. Unfortunately, there is no one political power that one could depend on. I will depend on wisdom. There are always more wise people than is apparent."

As an example of the victory of wisdom over politics in the Parliament, Prime Minister Kuchma cited the recent decision that "the Cabinet of Ministers along with committees of the Supreme Council will examine the matter of social guarantees for the populace." And, since such guarantees will cost close to 2 trillion karbovantsi, it will be very useful for deputies of the Parliament to look for these funds they demand from the government.

In regard to the introduction of the hryvnia as Ukraine's currency, Mr. Kuchma said there are two prerequisites: stabilization of the economy and the existence of a stabilization fund of $2 billion. "We have no gold, no diamonds. What we have left from the USSR is debts only," he said.

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Mr. Kuchma's press conference was held during two days of negotiations on Ukraine's strategic nuclear arms conducted by representatives of Ukraine and Russia. Though he would not comment on the results of those talks, Mr. Kuchma told reporters, "We simply must find a solution to the question." He added that a decision must be made also regarding the tactical nuclear arms already transferred from Ukraine to Russia.

The Ukrainian delegation was led by Minister of the Environment Yuriy Kostenko, the Russian delegation by Ambassador Yuriy Dubinin. The focus of the discussions was on implementing provisions of the START I agreement and guaranteeing the safety of strategic weapons now situated in Ukraine and Russia. Working committees have been charged with studying questions related to the relocation, dismantling and destruction of nuclear weapons and missile complexes located on Ukrainian territory.

The bilateral talks will continue, with the next session slated to take place in Moscow.

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