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<text id=91TT0215>
<title>
Feb. 04, 1991: Soviet Union:The Edge Of Darkness
</title>
<history>
TIME--The Weekly Newsmagazine--1991
Feb. 04, 1991 Stalking Saddam
</history>
<article>
<source>Time Magazine</source>
<hdr>
WORLD, Page 50
SOVIET UNION
The Edge of Darkness
</hdr><body>
<p>If Moscow and the Baltics do not find common ground soon,
perestroika could perish in violence and repression
</p>
<p>By Bruce W. Nelan--Reported by James Carney and John Kohan/
Moscow and J.F.O. McAllister/Washington
</p>
<p> New concrete walls seal off the narrow cobblestone streets
leading to the Latvian parliament in Riga's Old Town. Four
barricades block access to the small square in front of the
building. Milling around bonfires near the parliament's
entrance, wearing combat gear and carrying AK-47 assault
rifles, are militiamen loyal to the republic's separatist
government. At other bonfires in nearby Cathedral Square,
hundreds of Latvians stand vigil through the night, listening
to passionate music and somber poetry blaring from
loudspeakers.
</p>
<p> The scenes suggested a forward outpost of civilization
girding itself for an impending attack by barbarians--and
such an impression would not be far from the truth. Early last
week, without warning, a squad of thuggish special forces from
the Soviet Interior Ministry, known as black berets, attacked
the Latvian Interior Ministry. In a 30-min. exchange of
machine-gun and rifle fire, they killed two Latvian militiamen,
a well-known filmmaker and a bystander.
</p>
<p> The attack in Riga came only seven days after army
paratroops had seized Lithuania's television center in Vilnius,
killing 15 unarmed demonstrators. There too the republican
parliament has been turned into a fortress, with a 10-ft.-high
concrete wall in front and a deep antitank ditch along one
side. Lithuanian President Vytautas Landsbergis has been holed
up in the parliament building since the current crisis began
in mid-January.
</p>
<p> Besieged as they are, these structures are coming to
symbolize the failure of Soviet reform. Latvians and
Lithuanians, along with appalled observers inside and outside
the U.S.S.R., are convinced that the crisis between Moscow and
the republics is not over so long as troops range the cities
and independence-minded legislatures hide behind barricades.
The breakaway republics are under no illusion that they can
defeat the Kremlin, but they still desperately hope that they
can negotiate a peaceful solution.
</p>
<p> That may prove wishful thinking. Although the Soviet
military's bloodletting in the Baltics touched off a
100,000-strong protest march in Moscow and a stream of warnings
from abroad, the Kremlin has not backed down. Its armed forces
continue to rumble through the tiny republics' streets, seizing
buildings and striking threatening attitudes. The Interior and
Defense ministries have announced that the national police and
the army will begin joint patrols next month in all major
cities, apparently including the Baltic capitals. They claimed
the move was intended to fight the increase in violent crime,
but the heavily armed patrols will obviously be available for
any tasks Moscow assigns them.
</p>
<p> In spite of it all, the democratically elected Baltic
governments refuse to compromise on their demands for
independence. A lopsided stalemate is setting in.
</p>
<p> Given the stubbornly peaceful nature of the Balts' defiance,
the next move is up to Moscow. The present face-off is
untenable for President Mikhail Gorbachev, since it leaves him
open to attack from old-line communists for not bringing the
rebels to heel and from reformers for using force to halt
nonviolent political activity. In addition, other potential
defectors from the Union might begin to wonder whether
Gorbachev's government lacks the will to carry through with
military repression.
</p>
<p> How does Gorbachev get out of his dilemma? He can hardly
wave the separatists on their way out of the Union, a course
he has fought for years and one which his army and KGB backers
would veto. But a military overthrow of the elected governments
would bring disaster to his reforms and his own political
future. He, like the Baltic leaders, must be asking himself
whether any compromise solution is still possible.
</p>
<p> One of Gorbachev's biggest concerns is to maintain his
liberal image abroad and the West's willingness to support him
in that role with economic aid and cooperation treaties. Last
week the European Parliament blocked a billion-dollar package
of food aid, and the U.S. Congress passed nonbinding
resolutions calling on President Bush to consider economic
sanctions against Moscow.
</p>
<p> The Soviet President tried to head off actions like those
with a surprise press conference to assure doubters that he has
not changed his mind about perestroika. To underscore the
point, he arrived at the Foreign Ministry press center
accompanied by Alexander Yakovlev and Yevgeni Primakov, two
former advisers noted for their reformist views--although
neither holds an official position any longer.
</p>
<p> Looking tired and tense, Gorbachev offered a strange mixture
of contrition and combativeness. He extended his condolences
to the families of those who had been killed in the Baltics and
pledged the shootings would be "thoroughly investigated." But
he still denied responsibility for the violence and ridiculed
the idea it had resulted from "mythical orders from higher
authorities." His main theme was familiar: nationalist leaders
in the Baltics were persisting in "unlawful acts" that created
a situation in which "these kinds of clashes can flare up."
If the republics are set on secession, he said, they have to
pursue it on the basis of Soviet laws. But appeals to the armed
forces to use force, he declared, are also "inadmissible in the
political struggle."
</p>
<p> The muddled message offered little more than a respite in
the tension. But Gorbachev does have a technically legal means
at hand for breaking the deadlock. Citing a breakdown of public
order, he could impose direct presidential rule from Moscow and
disband the local governments, a move that would, if backed up
by force, deprive the independence movement of an official
voice. This might have been the original scheme behind the
appearance of the black berets and paratroops. Detachments of
the special-purpose militia had been roaming Riga, terrorizing
the citizenry and generating a sense of lawlessness. Last week
Interior Minister Boris Pugo agreed to call them off.
</p>
<p> Now at least a short pause for negotiations could be in the
works. After a "constructive and friendly" meeting with
Gorbachev in the Kremlin, Latvian President Anatolijs Gorbunovs
said "there is no basis for any concern that presidential rule
could be imposed in Latvia today or tomorrow." Gorbachev, he
said, had agreed there was still room for a peaceful solution.
</p>
<p> If so, what might that solution be? All three Baltic states
take the position that they were illegally absorbed into the
U.S.S.R. in 1940 and are not part of the Union. They refuse to
sign Gorbachev's proposed Union Treaty or consider anything
short of full independence. For his part, Gorbachev insists
that the Baltics must accept their current status and start the
secession process on the basis of Soviet law--which
technically permits independence but makes it almost impossible
in practice.
</p>
<p> "The kind of compromise that Gorbachev wants--that we
adhere to the Soviet constitution--is impossible," says
Egidijus Bickauskas, Lithuania's chief representative in
Moscow. "We will not back down on our declaration of
independence." If presidential rule is decreed, adds Valdis
Berzins of the Latvian Foreign Ministry, "the republics won't
follow it. You may not call it a military dictatorship, but
that is what it would be."
</p>
<p> At the same time, Gorbachev must fend off the increasingly
popular stance of Russian President Boris Yeltsin, who warned
last week that the country was being pushed "back toward the
darkest times in recent history." Yeltsin is trying to outflank
and deflate the central authorities in Moscow with his own
alternative to the Union Treaty. Gorbachev's version keeps most
power in the central government's hands and makes no provision
for secession. Yeltsin calls instead for a negotiated union
among four republics--Russia, the Ukraine, Belorussia and
Kazakhstan--containing most of the country's people and
resources. Other republics would be free to join if they wish.
</p>
<p> Still another conflict broke out in the midst of the Baltic
crisis when Gorbachev suddenly decreed that 50-ruble and
100-ruble bank notes were no longer legal tender. Overnight he
managed to distract the nation with a confiscation not seen
since Khrushchev's day. In one swipe, more than one-third of
the 136 billion rubles in circulation were taken out. The idea,
which Western economists regarded as pointless without
accompanying free-market measures, was to soak up part of the
immense "ruble overhang" of billions in savings that are unspent
because there is nothing in the stores to buy. Officials said
the measure was aimed primarily at black marketeers, but
ordinary citizens will bear the brunt. Unless prices are
decontrolled and competition introduced into the market, says
Ed Hewett, a Brookings Institution expert on Soviet economics,
"it makes no sense at all."
</p>
<p> Soviet citizens were given three days to exchange up to
1,000 rubles ($50 to $1,600, depending on the exchange rate)
in big bills for smaller ones, but banks and enterprises had
neither sufficient forms nor manpower to cope with the crush.
Four republics--Russia, Uzbekistan, Kazakhstan and Armenia--announced that they would extend the deadline for several
days. The Soviet State Bank immediately declared the extensions
illegal and threatened to revoke the licenses of the republics'
banks. Said a Muscovite who identified himself only as Alexei:
"Elsewhere people rob banks. This seems to be the only country
where it's the bank that robs the people."
</p>
<p> Such piecemeal "reform" has become the hallmark of
Gorbachev's perestroika. In almost every sphere he has failed
to be decisive or consistent in implementing reform plans. He
has been unwilling to move fully into a free-market economy,
preferring to tinker with the centralized planning machinery
in hopes of making it more efficient. He has been willing to
liberalize the political life of the country but not to allow
any of its separatists to break away. He has alienated not only
the separatists but also the traditionalists, who accuse him of
"betrayal" for failing to completely carry through on crushing
the independence drive in the republics.
</p>
<p> While he is reluctant to force out the Baltic governments
because of the price he would pay abroad, Gorbachev has
accepted the use of the military fist in an attempt to
intimidate them. He is probably under pressure to go much
further by the hardliners who now surround him: his original
perestroika team has been replaced by a Vice President from the
Communist Party hierarchy, a KGB man and a combat general at
the Interior Ministry, and an unreconstructed cold warrior at
the head of the KGB.
</p>
<p> Analysts wonder whether Gorbachev has lost his nerve or
returned to his true roots. Says Yuri Shchekochikhin, a reform
member of parliament: "He should understand that they have
already made a dictator out of him. He has refused to put down
the military-industrial complex, and his popularity has fallen
throughout the country. He should make his final choice. Either
he is an imperialist or a democrat."
</p>
<p> In fact, he has never claimed to be a democrat, preferring
to describe himself as a loyal communist determined to return
to the policies of Lenin. But if he is simply looking for a way
out of his cul-de-sac in the Baltics, there is one he could
use. He could identify them as a special case, republics that
were kidnapped by Stalin, and allow their departure--accompanied by treaties on defense and economic links that
would make them in effect another Finland. He could then say
to other potential secessionists that, as members of the Union
forged by Lenin, they do not meet those conditions. By cutting
his losses with the Baltics, Gorbachev might be able to draw
a firmer line around the Soviet heartland.
</p>
<p> There is little chance that Gorbachev will choose this way
out. Western Sovietologists read him as a leader dedicated to
preserving his empire. It seems to them he has concluded that
if he gives the Balts such an opening, the other rebellious
republics will rush for it as well. And even if the President
could bring himself to accept a little secession, the army and
KGB would not. Now that he has been deserted by the reformers,
he must rely on the men in uniform if he wants to stay in
power. One of his advisers, Georgi Shakhnazarov, warned that
if Gorbachev gave in to separatists he would be overthrown and
replaced by a military dictatorship.
</p>
<p> No matter how much he must depend on the armed forces,
Gorbachev will have to think carefully before turning to
martial law in the republics that defy him. All 15 of the
republics--with giant Russia in the lead--are in some ways
loosening the ties that bind them to Moscow, and despite the
pervasiveness of the security forces, it is not clear they
could hold them all in check at the same time. "If they have
to crack down in lots of places," says an analyst in
Washington, "that could create a revolutionary situation." The
Soviet people can still be frightened by threats from the
Kremlin, but the period of reform has given them new courage.
</p>
<p> Gorbachev's political genius so far has been his ability to
swerve from left to right, to set things up so he is always the
leader between the extremes, the man of moderation. He no doubt
intends to continue that pattern by trying to balance the
Baltics' demand for independence with the dark threat of
violence from the reactionaries. In that effort, the most
ominous question is whether there is any ground in the middle
left for him to stand on.
</p>
<p>Where Have All the Rubles Gone?
</p>
<p> By presidential decree, 50-ruble and 100-ruble bank notes
(a 100-ruble note is worth anywhere from $5 to $160) are no
longer legal tender in the U.S.S.R. In effect, many people's
savings have been confiscated by the government under these
provisions:
</p>
<p>-- Workers have three days to exchange the equivalent of a
month's salary, up to 1,000 rubles, in large-denomination notes
for smaller ones or newly issued large-denomination bank notes.
</p>
<p>-- Pensioners can exchange the equivalent of their monthly
stipends, up to 200 rubles.
</p>
<p>-- Anyone holding larger amounts in big bills must prove
they were acquired legally.
</p>
<p>-- Citizens with bank accounts will be permitted to withdraw
no more than 500 rubles each month.
</p>
</body></article>
</text>