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Aid to the Soviet Union: What Next?


Article # : 18277 

Section : CURRENT ISSUES
Issue Date : 10 / 1990  2,100 Words
Author : Kate Holder
Kate Holder is research associate of European studies at the Center for Strategic and International Studies in Washington, D.C.

       Just as the countries of Eastern Europe last year chose the "Sinatra" approach to reform away from Soviet control, so have the Western industrialized states agreed, for now, to aid the Soviet Union each in their own way. Indeed, the July summit of the Group of Seven (G-7) in Houston produced no consensus on immediate steps to aid an economically and politically fractious Soviet Union. (The G-7 includes the United States, Japan, Britain, West Germany, France, Italy and Canada.) In typical summit fashion, the Western leaders agreed to create a joint task force to study the problem when it was clear that negotiations would fall short of concrete proposals.
       
        This lack of Western resolve also clouded the Soviet aid issue at the European Community's (EC) summit of heads of state in June. The EC summit participants commissioned a study of the Soviet economy after Franco-German progressiveness regarding aid predictably clashed with British restraint. That study, due in October, will collaborate with the results of the G-7 task force, whose findings are due by the end of the year. Only then will the allies consider them together in an effort to formulate a collective aid policy.
       
        Western governments are still reeling from the reverberations of East-West strategic change, which began last year. It is little wonder, then, that they hesitate about how to advance economic reform of their heretofore Cold War nemesis. West Germany's enthusiasm to extend aid to the Soviets is compelled by its drive for unification with the German Democratic Republic, while the United States remains tentative due to budget deficits and strategic questions stemming from residual superpower competition. Japan, meanwhile, prefers to aid the Chinese rather than the ... (1994 of 13365 Characters)
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