Lord Kennettasked Her Majesty's Government:
Whether in their view Mr. Yeltsin's "reforms" are in the process of achieving either democracy or the successful operation of "the market" within the Russian Federation.
§ The Minister of State, Foreign and Commonwealth Office (Baroness Chalker of Wallasey)The referendum held on 25th April was a clear example of Russian democracy in action. It was a striking endorsement of President Yeltsin's programme of democratic and economic reforms by the Russian people. The programme includes the President's decision to put forward a new draft constitution to replace the present one dating from the Communist period, as well as progress in overcoming the enormous economic difficulties bequeathed by communism.
Prices have been liberalised; widespread privatisation of small businesses is being carried out and is to be followed by an ambitious programme designed to corporatise and privatise large state enterprises; and foreign investment is being encouraged. These are all essential steps to the creation of a successful market economy.
§ Lord Kennetasked Her Majesty's Government:
Whether, in deciding to commit taxpayers' money to Russia, they have examined the detailed account given on 16th April by Vice President Rutskoi of widespread and massive state corruption, particularly in the sale of state property, in the dispersal of raw materials, and in the disappearance of foreign earnings; whether they have any reason to doubt its accuracy; and what advice is accompanying British aid.
§ Baroness Chalker of WallaseyWe are aware of Vice-President Rutskoi's statements alleging widespread state corruption in Russia. We are not in a position to gauge exactly how accurate his detailed account may be. In administering bilateral aid we are most careful to ensure that it has a proper impact on Russia's efforts to bring about democratic and economic reform. Administration of British assistance is closely monitored and its recipients carefully chosen. Our aid takes the form of support for individual projects and programmes, and payments are made through tightly defined contracts for the delivery of specified services.
§ Lord Kennetasked Her Majesty's Government:
Whether the British academics currently advising Mr. Yeltsin are funded by the British taxpayer (and if not by whom are they funded), how they were selected, with what ends in view, and what is their relationship with the British Government.
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§ Baroness Chalker of WallaseyWe do not fund bilaterally British academics to advise President Yeltsin. However, the European Community's technical assistance fund, TACIS (to which we contribute a substantial amount), funds academics and business people to advise President Yeltsin's government at a senior level through its European Executive Service scheme. One of these academics is Professor Richard Layard of the London School of Economics. Standard TACIS procedures for the award of contracts are followed in selecting these advisers. They do not have any direct relationship with the British Government.
§ Lord Kennetasked Her Majesty's Government:
What was their opinion of Mr. Yeltsin's announcement on Russian television on 20th March that he was about to abrogate the constitution (which embodies the "separation of the powers") and to rule Russia by personal decree, and whether they have expressed an opinion to Mr. Yeltsin.
§ Baroness Chalker of WallaseyPresident Yeltsin has long advocated replacing the communist constitution of 1978 with a new one establishing clearly defined powers for the executive, legislative and judiciary within this framework of a democratic state. Having secured a clear majority in the 25th April referendum in favour of his reform programme, he has now put forward the draft of a new constitution for the consideration by a specially convened conference. We have welcomed the President's commitment to reform, and the popular support for it expressed by the Russian people.
§ Lord Kennetasked Her Majesty's Government:
In their discussions with President Yeltsin on economic matters, including the provision of aid, they have stressed the importance of preserving the provisions of the existing constitution as a contribution towards political stability, and drawn attention to the value of "loyal opposition" in the democratic process.
§ Baroness Chalker of WallaseyWe have welcomed and encouraged the development of democratic institutions and processes in our contacts with President Yeltsin and other Russian leaders. We have not and will not discourage the President from seeking to reform a constitution adopted in 1978, under the former communist regime, which both he and the Russian Parliament believe should be replaced.
§ Lord Kennetasked Her Majesty's Government:
Whether in their view it would be desirable for the Russian Federation to seek to become self-supporting once again in foodstuffs, and whether aid from the British taxpayer is intended to promote such an eventuality.
§ Baroness Chalker of WallaseyWe believe that the people of the Russian Federation should have an efficient food production and distribution system. 43WA Food production and distribution is accordingly a priority sector for technical assistance under our Know How Fund programme to Russia.