CO6696321 FIED U.S. DepartmentofState Case No. F-2017-13804 Doc No.

C06696321 Date: 03/29/2019

' POEMS Automated Telegram Handler-B26 05/06/94 11:39 am Page: 1

Item Subject: ACTING SECRETARY DISCUSSES RUSSIA, CEE, OTHER

RELEASE IN FULL
PAGE 01 STATE 119497 060151Z MAY 94

DECLASSIFIED -
SUBJECT: ACTING SECRETARY DISCUSSES RUSSIA, CEE, OTHER
ISSUES WITH SIR LEON BRITTAN

1. CONFIDENTIAL, ENTIRE TEXT.

2. SUMMARY. THE ACTING SECRETARY MET WITH EU

COMMISSIONER SIR LEON BRITTAN APRIL 25, AND DISCUSSED
RUSSIA, THE G-7 SUMMIT, UKRAINE, SLOVAKIA CHINA/GATT, AND
DRIFTNETS. JOINING BRITTAN WERE AMBASSADOR VAN AGT AND
DCM JAMES CURRIE FROM THE LOCAL DELEGATION, DAVID WRIGHT
(BRITTAN'S CABINET), AND OVE-JUUL JURGENSON (DG-1). ON
THE U.S. SIDE WERE U/S JOAN SPERO, A/S DANIEL TARULLO, DAS
THOMAS WESTON, JOHN WITHERS (D STAFF), AND WENDELL
ALBRIGHT (EUR/RPE NOTETAKER). END SUMMARY.

EU-NIS: RECENT DEVELOPMENTS

3. BRITTAN GAVE AN UPDATE ON EVENTS IN EU-NIS RELATIONS

SINCE THE ACTING SECRETARY MET WITH EU COMMISSIONER VAN
DEN BROEK 10 DAYS AGO. THE MAIN THING, BRITTAN SAID, WAS
MOVEMENT ON THE EU-RUSSIA PARTNERSHIP AND COOPERATION

AGREEMENT; SHOKHIN IS ANXIOUS TO FINALIZE IT, AND THERE IS

A REAL CHANCE OF CONCLUDING THIS SOON. THE TWO MAIN
ISSUES ARE TRADE IN NUCLEAR MATERIALS AND FINANCIAL
SERVICES. SHOKHIN IS ANXIOUS TO INCLUDE NUCLEAR MATERIALS
IN THE PCA, AND WE HOPE TO DO SO, AND TO ALSO EXCHANGE
LETTERS CONFIRMING RUSSIA WILL NOT DISRUPT EXISTING TRADE
(THIS IS. TO SATISFY FRENCH CONCERNS). THE EU WILL ALSO
NOW AIM HALF OF ITS TACIS ASSISTANCE TO RUSSIA AT REGIONAL
BODIES; THIS WAY, PROGRESS CAN BE MADE REGARDLESS OF WHAT
HAPPENS AT THE CENTER.

4. BRITTAN INDICATED TWO MAJOR PROPOSALS ARE BEING

DEVELOPED FOR EVENTUAL COMMISSION AND COUNCIL APPROVAL.
ONE IS AN EU COMMITMENT TO HELP BUILD MODERN NUCLEAR POWER
PLANTS IN UKRAINE IN EXCHANGE FOR A SOLID GOU COMMITMENT
TO CLOSE DOWN CHERNOBYL. THE SECOND, WHICH BRITTAN SAID
MIGHT BE DIFFICULT TO GET APPROVED, WAS TO USE EU
AGRICULTURAL CREDITS TO ALLOW UKRAINE TO BUY AGRICULTURAL
INPUTS SUCH AS FARM EQUIPMENT. IN RESPONSE TO THE ACTING
SECRETARY'S QUESTION, BRITTAN SAID IN HIS PERSONAL VIEW
THAT THE Itarf s RECENT RELEASE OF A SECOND TRANCHE FOR
RUSSIA WAS A BOLD AND RISKY DECISION THAT WAS "JUST ABOUT
JUSTIFIED." THE ACTING SECRETARY AGREED; IT WAS
"ECONOMICALLY DUBIOUS, BUT POLITICALLY JUSTIFIED."

DECLASSIFICATION AUTHORITY: Geoffrey W. Chapman, Senior Reviewer, AIGISIIPS

3/26/2019

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Item Subject: ACTING SECRETARY DISCUSSES RUSSIA, CEE, OTHER

5. CONVERSATION TURNED TO PERSONALITIES IN RUSSIAN

POLITICS. THE. ACTING SECRETARY.SAID WE ARE MOVING TO A
NEW ERA IN RUSSIAN POLITICS, IN WHICH CHERNOMYRDIN WILL
PLAY A LARGE ROLE. WE HAVE QUIETLY CULTIVATED THE VICE
PRESIDENT'S RELATIONSHIP WITH CHERNOMYRD/N. IT IS
IMPORTANT FOR REFORMERS LIKE GAYDAR TO UNDERSTAND THE
POLITICAL.DIMENSION OF ECONOMICREFORM. CHUBAYS IS
IMPRESSIVE, BUT HIS EMPHASIS ON IMMEDIATE AND TOTAL
PRIVATIZATION WITHOUT TAKING COMMENSUAATE STEPS TO ALLAY
POLITICAL/SOCIAL CONSEQUENCES CONTRIBUTED TO THE BACKLASH
IN THE DECEMBER ELECTIONS. BRITTAN DID NOT DISAGREE ON
THIS LAST POINT, BUT NOTED THAT PERHAPS CHUBAYS SAW A VERY
NARROW WINDOW OF OPPORTUNITY HE HAD TO TAKE ADVANTAGE OF;
IT WAS MORE IMPORTANT TO PRIVATIZE QUICKLY AND DEAL WITH
THE CONSEQUENCES LATER.

SOVAKIA

6. THE ACTING SECRETARY MENTIONED THAT, DURING HIS RECENT

VISIT TO BRATISLAVA, THE SLOVAKS EXPRESSED THEIR CONCERN
AT BEING THE ODD MAN OUT IN VISEGRAD. BRITTAN NOTED THAT
PROGRESS FOR THE SLOVAKS DEPENDED LARGELY ON MECIAR'S NOT •

RETURNING TO POWER (THE ACTING SECRETARY AGREED). CZECH

MINISTER OF INDUSTRY DLOUHI TOLD BRITTAN IN MARRAKECH THAT
THE CZECHS WERE TRYING TO P-LAY DOWN THEIR DIFFERENCES IN
SLOVAKIA. DLOUHI THOUGHT IF MECIAR WERE NOT RETURNED TO
OFFICE THAT SLOVAK REFORM WOULD CONTINUE AT A REASONABLE
PACE. THE ACTING SECRETARY NOTED THAT THE USG WOULD TREAT
THE CURRENT SLOVAK GOVERNMENT AS MORE THAN JUST AN INTERIM
GOVERNMENT, AND-WOULD SEND DELEGATIONS TO SLOVAKIA
(INCLUDING SOME HIGH-VISIBILITY VISITS) AND WORK WITH THE
GOS TO MAKE SLOVAKIA MORE_ATTRACTIVE TO U.S. TRADE AND
INVESTMENT. BRITTAN AGREED IT WAS IMPORTANT TO HELP
SLOVAKIA, AND SAID HE WOULD REFLECT ON WHAT SORT OF
GESTURES THE EU MIGHT BE ABLE TO MAKE BEFORE THE SLOVAK
ELECTIONS. "WE OUGHT TO TRY" TO DO SOMETHING.

G-7 AND RUSSIA

7. THE ACTING SECRETARY BROUGHT BRITTAN UP TO DATE ON

PLANS FOR RUSSIAN PARTICIPATION IN THE G-7 SUMMIT, WITH
RUSSIAN PARTICIPATION IN A "G-7" PLUS ONE MEETING THE DAY
AFTER THE G-7 SUMMIT, AND SEPARATE G-7 DECLARATION AND A
CHAIRMAN'S STATEMENT FROM THE "G-7" PLUS ONE MEETING. U/S
SPERO NOTED SHE HAD HEARD SHOKHIN SPEAK THIS MORNING AT
THE IMF, AND HE DISCUSSED EMPLOYMENT, PRIVATIZATION IN
ITALY -- BUT NOT A WORD ABOUT RUSSIA. BRITTAN AGREED WITH
THE INTERPRETATION MRS. SPERO OFFERED, THAT THIS WAS

UNCLASSIFIED U.S. Department of State Case No. F-2017-13804 Doc No. C06696321 Date: 03/29/2019
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Item Subject: ACTING SECRETARY DISCUSSES RUSSIA, CEE, OTHER

SHOKHIN'S ATTEMPT TO BEHAVE LIKE A G-7 ECONOMIC POWER.

CHINA/GATT AND DRIFTNETS

8. THE ACTING SECRETARY NOTED USG CONCERNS ABOUT EU

ACTIONS ON DRIFTNETS, AND ON CONDITIONS'FOR CHINESE
ACCESSION TO THE GAT AND WORLD TRADE ORGANIZATION (WTO).
MRS. SPERO EMPHASIZED WE SUPPORT CHINESE ACCESSION, BUT IT
SHOULD BE DONE RIGHT ON FAIR ECONOMIC AND TRADE GROUNDS.
BRITTAN SAID THE EU WOULD LIKE TO DO IT QUICKER. THE EU
THINKS WE CAN EXTRACT MORE CONCESSIONS FROM CHINA DUE TO
ITS DESIRE TO BE A FOUNDING WTO MEMBER, AND THE COMMISSION
HAS HAD POSITIVE REPLIES FROM THE CHINESE. WE SHOULD PUSH
THE CHINESE AS FAR AS POSSIBLE, THEN ADMIT THEM AND USE
SAFEGUARDS AS NECESSARY WHILE THEY COMPLETE THE REST OF
THE STEPS NECESSARY TO BE GATT COMPLIANT. MRS. SPERO SAID
THIS LAST POINT IS WHERE EU AND U.S. APPROACHES DIFFER.
CHRISTOPHER

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ORIGIN EUR-01

INFO LOG-00 AGRE-00 AID-01 AMAD-01 CEA-01 CIAE-00 COME-00

CTME-00 C-01 OASY-00 DINT-01 DODE-00 DOEE-00 ANHR-01
EAP-01 EB-01 EXIM-01 E-01 - FO=01 FRB"01 HA-09
H-01 TEDE-00 INR-00 ITC-01 L-01 ADS-00 NSAE-00
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TRSE-00 T-00 USIE-00 SA-01 =alls-oa "NISCO2. PM.B00-
/043R - -

DRAFTED BY:EUR/RPE:WALBRIGHT:WIA
APPROVED BY:THE ACTING SECRETARY
E;JESERO EB:DKTARULLO
EUR:TGWESTON S/S-0:RLWILSON

UNCLASSIFIED U.S. Department of State Case No. F-2017-13804 Doc No. C06696321 Date: 03/29/2019
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43D277 060540Z /38

P 060151Z MAY 94
FM SECSTATE WASHDC
TO USEC BRUSSELS PRIORITY
INFO ALL EUROPEAN UNION POST COLLECTIVE PRIORITY
AMEMBASSY MOSCOW 7205-
AMEMBASSY BRATISLAVA 0887-
AMEMBASSY PRAGUE 0898-0899 PRIORITY
AMEMBASSY KIEV
AMEMBASSY WARSAW 5735-
AMEMBASSY BUDAPEST 2796-
AMEMBASSY VIENNA 8543-
AMEMBASSY BEIJING 2163—

CONFIDBNTIALSTATE 119497

E.O. 12356: DECL: OADR

TAGS: PREL, EUN, ETRD, EFIS, RS, UP, LO, CH

•, •Pc' .1.•

';'1•17- •
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UNCLASSIFIED U.S. Department of State Case No. F-2017-13804 Doc No. C06696321 Date: 03/29/2019