The World - News from March 6, 1988

The Kremlin proposed a major expansion of private enterprise that would encourage direct competition with state-run businesses, according to a draft law announced in the Soviet government newspaper Izvestia. Among other things, the law, subject to approval by the Supreme Soviet, the parliament, would allow cooperatives to conduct business with foreign companies and to receive hard currency as payment and give them the right to own property and hire consultants. The measure is part of Soviet leader Mikhail S. Gorbachev’s effort to encourage more private initiative to stimulate the state-run economy and improve consumer goods and services.