-Caveat Lector-
"Secretary of State Madeleine Albright, in an unusual meeting with
Export-Import Bank bank chairman James Harmon, at first tried to persuade the
bank, an independent federal agency, to do as the Clinton administration
wished. Later, she formally invoked an obscure law that allows the
administration to intervene in the Bank's decisions."
US Gov't Bank Blocks Russian Loans
By DAVID BRISCOE
.c The Associated Press
WASHINGTON (AP) - The Clinton administration is blocking $500 million in
loans to an oil company partially owned by the Russian government. Proceeds
would have gone directly to American companies.
With U.S. officials expressing concern about dealings of Russia's Tyumen Oil
Co. and about maintaining ``the rule of law'' in Russia, Secretary of State
Madeleine Albright invoked a provision late Tuesday that compelled the U.S.
Export-Import Bank to temporarily reject guarantees for the loans.
The Russian Fuel and Energy Ministry declined to comment today on the move.
Administration officials denied her decision was related to strong U.S.
objections to Russian military actions in Chechnya, although it came amid
calls for a halt to such loans over Chechnya from members of Congress and
Democratic presidential hopeful Bill Bradley.
``He welcomes the State Department decision,'' Bradley spokesman Eric Hauser
said, noting that for several weeks the candidate has been saying it is
inappropriate to give assistance to Russia while it is engaged in ``the
brutal war in Chechnya.''
Rep. Carolyn Maloney, D-N.Y., had called for the bank to stop the loans to
Tyumen because of reports it forced a company with partial American ownership
into bankruptcy to obtain its oil fields.
She also praised Tuesday's decision, saying it will allow ``scrutiny of the
report of manipulation of bankruptcy law involving this company.''
Albright, in an unusual meeting with bank chairman James Harmon, at first
tried to persuade the bank, an independent federal agency, to act on its own
Tuesday.
Later, she sent a letter to the bank, formally invoking a law that allows the
administration to intervene in its decisions.
``The State Department has determined that it is in the national interest and
would advance U.S. policy with Russia not to approve the loan guarantees for
the time being,'' said Alan Larson, undersecretary of state for economic
affairs.
Bank officials said the loan guarantees would not be approved until the State
Department withdraws its objections.
Loan proceeds, to be extended by private banks with the Ex-Im bank
guarantees, would have gone to Halliburton Co. of Dallas and 24 other U.S.
companies in payment for U.S.-made oil and gas equipment and services to be
purchased by the Russians.
``All money authorized remains in the United States,'' the bank said.
Bank officials insist they are required to consider transactions based only
on ``commercial reasons and creditworthiness and their positive impact in
creating or sustaining U.S. jobs.''
The bank staff had recommended approval of two loans for Tyumen to bolster
Russia's oil industry: $295 million for oil field services and $203 million
in engineering services and equipment for upgrading a refinery.
State Department spokesman James Foley said the department has been concerned
with Tyumen over issues of openness, management of bankruptcy proceedings and
protection of the rights of shareholders and creditors.
These issues are related to a larger goal of ``promoting the rule of law in
Russia,'' he said.
He also noted that Tyumen Oil was changing the makeup of its ownership
Tuesday, requiring further examination by the bank before approving the
loans.
In the past, U.S. officials have resisted pressure to impose sanctions
against Russia, and Albright and others have said they do not want to do
anything that would impede Russian economic progress.
On that issue, a senior administration official, briefing reporters on
condition of anonymity after the decision, said the department eventually
hopes to support the loans.
``We certainly hope it will be possible for this project to go forward under
the right conditions,'' the official said, adding that it would improve
Russian oil fields and benefit U.S. suppliers.
``It has economic advantages on both sides,'' the official said. ``At the
same time, the establishment of the rule of law is really fundamental to any
kind of long-term economic progress.''
DECLARATION & DISCLAIMER
==========
CTRL is a discussion and informational exchange list. Proselyzting propagandic
screeds are not allowed. Substance—not soapboxing! These are sordid matters
and 'conspiracy theory', with its many half-truths, misdirections and outright
frauds is used politically by different groups with major and minor effects
spread throughout the spectrum of time and thought. That being said, CTRL
gives no endorsement to the validity of posts, and always suggests to readers;
be wary of what you read. CTRL gives no credeence to Holocaust denial and
nazi's need not apply.
Let us please be civil and as always, Caveat Lector.
========================================================================
Archives Available at:
http://home.ease.lsoft.com/archives/CTRL.html
http:[EMAIL PROTECTED]/
========================================================================
To subscribe to Conspiracy Theory Research List[CTRL] send email:
SUBSCRIBE CTRL [to:] [EMAIL PROTECTED]
To UNsubscribe to Conspiracy Theory Research List[CTRL] send email:
SIGNOFF CTRL [to:] [EMAIL PROTECTED]
Om
