CONFIDENTIAL
173755
MDHOAN 6095
Broad position not (yet) disastrous:
-
Seems to be emerging consensus in favour of land reform, continuing privatisation. De facto devolution of economic decision-making away from Moscow to the regions: enterprises compelled to improvise to survive, often with striking success. New government has to contend with powerful market dynamics which Gaidar created.
- ALL concerned respecting "constitutionality": eventual referendum in April should allow Russian people to express a view on different reform options - if all goes well this should clarify/Legitimise political alternatives and help consolidate democratic
institution-building.
-
As things were going, risk that the reform cause increasingly discredited because of failings prompted by conservative elements now "centrists" have to face the
music.
However, no grounds for complacency:
HURD
YYYY
ΜΑΙΝ
89
NAD
EAU
ECD (E)
AD (E)
DISTRIBUTION
89
MED
ERD
PS
HKD
FED
EASTERN D
NENAD
SCD
PS/MR LENNOX-BOYD
PS/PUS
SIR J COLES
MR BEAMISH
NNNN
5
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CONFIDENTIAL