Russia’s president Yeltsin militarily seized control from Russia’s elected parliament under Rutskoi. Negotiations are government by consent. By our government’s plan to loan Mr. Yeltsin $1.5 billion, it promotes Yeltsin further. Russia got poor since capitalism emerged, despite more privatization. Loans typically are compounded interest of continual debt, as in Latin America and Poland. Repaying such debt will be harder when foreign nations or companies get any nation’s resources, like 65 percent of North American lumber, including our Northwest’s, that profits Japan at giveaway pricing. That includes the public’s 600- year-old trees from Alaska’s Tsongas National Forest (public land) go at $2/tree to a Japanese firm. The U.S. subsidizes or underprices cattle grazing fee on our federal public land, one-half of the ranchers being Japanese, British and Dutch owners. And in Russia, foreign corporations seek profit by acquiring Russia’s natural resources like its Bakaal prime rain-forests. It is much like our northwestern lumber exports to Japan for processing but sold here, while Japan gets jobs and saves its timber. U.S. loans to Russia should not be extended to entice a president or even a parliament to sell or give away resources to foreign corporate control, if we want democracy globally. A loan timed to empower a Yeltsin means foreign nations or corporations want control of Russia, to profit foreign companies like a lumber business. And like loans to Latin America or Africa. Russia’s living standard will not improve from foreign control for resources if its debt rises as globally, notably in nations with a minor economic base. Commercial banks, U.S. AID, World Bank, IMF do not loan to help any living standard, but rather to advance foreign corporate control of resources and cheap labor. Similarly the North American Free Trade Act (like GATT) unfairly seeks labor so cheap that their living standard will worsen while foreign company profits from exports rise. Like Russia, Mexico and our U.S. will lose their sovereignty. Latin America, Russia stay poor by foreign loans and control, losing democracy. Seek family farming and control of one’s resources like lumber, mines, grain = fair rent of public lands. Best would be banning such exports. Seek fair trade (not free) for global democracy, including Russia.

M. Russell

Economics