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Georgia's Independence Mired in Poverty, Strife

TBILISI, May 28, 2001 -- (Reuters) Georgia defused an
army revolt over pay and conditions hours before the
republic celebrated the 10th anniversary of its
post-Soviet independence on Saturday.

The nation headed by President Eduard Shevardnadze,
the 73-year-old former Soviet foreign minister, still
faces political uncertainty and economic hardship.

So dire is the economic situation that the Defense
Ministry announced it would not be putting soldiers
out on the streets for an anniversary march despite
earlier statements by officials that the parade -- a
Soviet-era tradition -- would take place.

Some troops did walk out of their barracks on Friday
in protest against their conditions of service.

Prompting fears of an attempted coup, around 400 fully
armed men of a national guard battalion quit their
garrison outside Tbilisi and occupied a nearby police
base.

After a day of suspense filled with official
accusations of high treason, Shevardnadze went to
negotiate with the mutineers in person -- only to find
they were claiming 14 months of back wages, new
uniforms and decent wages.

The rebels agreed to return to their garrison in
exchange for a presidential pledge of immunity from
prosecution.

But Shevardnadze seemed far from trying to blame the
troops for their action.

"The state is no less guilty than they are in what has
happened; in normal conditions this would not have
happened," he said after the talks.

The incident was one of the easiest Shevardnadze has
had to deal with since coming to power in 1992.

Shortly after Shevardnadze installed himself in
Tbilisi, Georgian forces suffered a humiliating defeat
from separatist rebels in the breakaway Black Sea
republic of Abkhazia, which remains outside his
control.

Shevardnadze himself survived a coup attempt in 1993
and assassination attempts in 1995 and 1998.

There has also been civil war with separatists in
South Ossetia, in which thousands died.

But the crumbling economy remains by far the biggest
problem for the mountainous republic. The average
monthly wage is just $35 and half the population of
5.5 million live below the poverty line.

Worsened relations with Russia, the main power
supplier, means people live virtually without heating
and electricity blackouts are a daily routine.

Rampant corruption and a decrepit infrastructure offer
little hope of a revival and the International
Monetary Fund this month withheld a loan for want of
visible improvements.

Georgia's star project is a crude oil pipeline from
the Caspian to Turkey which, if accomplished, is due
to cross the republic and give Tbilisi millions of
dollars in transit fees.



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