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March 1992 Vol. 2, Number 1 



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Russian Fsr East Naws Is a publication of Iha Alaska Cantar tor IntamaUonal Bualnass and tha WerU Trada Cantar Alaska. 

 UnivarsltY el Alaska Anchortga. Russian Far East Naws Is publlshad In association with tha OWea ol Inlamalkmal Trada" 

 Alaska Dapartmant of Conunarca and Economic Davalopment, and Inlomallon Tachnologlas Lab of Vladivostok. 



Svrorda Into Sawing Uachlnas 



Russian Parliamant memtjer AJexandar Granbarg 

 made it doar to an audianca in Anchorage last month that 

 Americans must help Russian relormars convert the miCta/y 

 industrial complex into something that win create wealth lor 

 the Russian people. Ifs lime to turn swords into sewing 

 machines, whKh is in lact happening at a former munitions 

 laaory near Khabarovsk. 



Trouble is Americans are not enlhusiastk: about 

 ptovHirtg a tot of aid hght now. and poBtkaans know that in 

 an election year helping the former Soviet Union wont win 

 many voles. Alaskans, meanwhie. grow impatient with the 

 speed of relorms in the Russian Far East and with shady 

 business dealings of some Russian entrepreneurs. Deals 

 have soured: and a few Alaskans have taken some lumps. 

 What to do? 



Provide more help. The U.S. spent untold baSons 

 winning the coW war. A will cost lar less to sustain t/w 

 peace. Orxa we convince ourselves ol that we need to 

 convince our rich friends in Saudi Arabia, Kuwait, even 

 Japan. 



Smal Alaskan and other entrepreneurs shouUnt 

 have 10 go It alone. The task ol teaching people how to be 

 good free marketers o enormous, and wont happen over- 

 nighL The state might conskter providing ban pack^es with 

 attractive interest rales lor small businesses investing in the 

 Russian Far East. Insunng a ponton of high risk investments 

 wouU also tie helphji. Japan bef/an provkJing insurance to 

 entrepreneurs when some of their ol refineries n Iran were ' 

 tiombed. 



But partiaps a more appropriate role lor government 

 is providing asxstance in manpower devetopment Russians 

 need to learn how to make and manage money The good 

 oU fashtoned way.' Techntoal assistance should focus now 

 on things that wilt help Russians make money: taxing and 

 tax coOectan. banUng and accounting, entrepnrteurshp. 

 Efforts shouU focus on specXc indattries thai have earning 

 potential: mining, tourism, ol and gas devetopment, tunber. 



Rather than beir)g swatted asHe as irrelevant, 

 Alaska oould be the canter for facStaUng eootwrmc transfer- 

 matton h the region, as federal and other funds flow through 

 here for technical assistance to the Russian Fat East and 

 beyond. Alaskan and other businesses ki ihe Pjdfc North- 

 west wKpton as tong term relabortships devetop between 

 theragkma. 



More signlKantly, we're in a position to play a role 

 in the development of a dynanuc North Asia corridor that one 

 day oould extend fnjm Siberia down through Northern China, 

 UongoHa, the Korean peninsula, at the way id Japatu 



In the future this tvil be our neighborhood. We 

 need to feel at home here. This is no tkne » turn our backs 

 on neigftbors-ineomprehensAle and dificut as they some- 

 times wiBbe. _ ,^ 



TheEdMor 



Independence for the Far East? 



A Ml recanily adopted by Ihe Asioaauon ol Far Eastern 

 Councils would give broad powers to the Far Eastern Eco- 

 nomic Region (FEER) and laalitaie its independence. The bill 

 proposes a special status lor the PEER, which includes 

 Pnmorsky and Khabarovsk regions. Sakhalin, Amursky. 

 Magadan regions and Yakutia Sakha. 



The Association ol Far Eastern Councils wants to form a 

 coordinating committee with speatic authonty and powers, 

 making the commmee in many respects a government lor the 

 Far East This committee wouW lite to receive a portion ol 

 Russian stale taxes and revenues ol local enterprises, and 

 with them lorm a lund lor davekipment ol the regmn. The 

 committee would like to buy the output ol Far Eastern enter- 

 prises (preaous metals excluded) to lorm a special lund lor 

 exchange and export operations. Powers would also include 

 tax pnvileges. and Ihe nght to issue taittls, to determine pnces 

 lor mam loodstulfs. raw materials and other products, and to 

 determine lishing quotas in the econome zone. The bill also 

 stipulates thai the deasions ol the Far Eastern Coordinating 

 Comittee (FECC) would be mandatory lor the region. 



A meeting will be held soon with Bons Yeltein ooncemmg the 

 FEER proposal, as well as the authority ol the region over use 

 ol its own natural resources, and a number ol tax. customs, 

 and other prrvileges. Granting these powers wouW be the lirst 

 important step at creating a tree economic zone in the area. 

 (11/24«1) 



