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Give Up Reforms, KGB Chief Urges : Soviet Union: He wants the old, centralized economy restored and dissident voices silenced. And in Cold War rhetoric, he accuses the West of undermining his nation.

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TIMES STAFF WRITER

The head of the Soviet KGB security police, adding his weight to the mounting right-wing pressure on President Mikhail S. Gorbachev, demanded Saturday that the country return to its old, centralized economic system, effectively reversing the reforms of the last five years.

Vladimir A. Kryuchkov, chairman of the Committee for State Security, as the KGB is formally known, also asked the Congress of People’s Deputies, the national Parliament, for legal authority to carry out a crackdown against “destructive political forces” and restore law and order, even at the cost of bloodshed.

And in rhetoric redolent of the Cold War, Kryuchkov accused the West, particularly the CIA, of trying to destabilize the Soviet Union during its current political and economic crisis, contending that the rapprochement between East and West has not reduced this threat of subversion.

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Kryuchkov’s speech, following warnings last week by Foreign Minister Eduard A. Shevardnadze that “reactionary forces” are pushing the country toward a right-wing dictatorship, reflected the deep divisions within Gorbachev’s government.

Some deputies interpreted Kryuchkov’s 25-minute speech as a reflection of Gorbachev’s own views, but others saw it as another move--perhaps the boldest yet--by the right to influence the president’s position in a battle over the country’s future.

Going well beyond the tough language expected even of a KGB chief, Kryuchkov contended that, however noble the original goals of perestroika and whatever its initial achievements, the country is now in such a severe crisis that it can no longer pursue those reforms.

“In these conditions, we cannot avoid restoring the lost connections in the country’s economic life according to the old system,” Kryuchkov declared. “This is envisioned in a (forthcoming) decree of the president. It is a temporary but unavoidable measure on the way to the market.”

But Kryuchkov denounced Gorbachev’s efforts to develop a market economy in terms that made clear his opposition to core elements of the reform program.

With a market economy still in its earliest stages here, Kryuchkov said, “Look at what is happening! The situation is taken advantage of by those wanting unearned income. Why should billions of rubles be transferred from the pockets of honest workers to the pockets of swindlers?

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“These scoundrels have paper money today, but tomorrow they will turn them into valuables,” he continued. “Benefiting from the privatization of state property, they will save sufficient capital to support generation after generation of their relatives.”

The current economic crisis, Kryuchkov argued, is “the result of the destruction of the horizontal and vertical connections” in the old system, which was based on state ownership, central planning and government management. He said the most urgent need is to rebuild them.

Kryuchkov said the KGB is hoping Gorbachev will issue orders in the next few days authorizing its forces to restore order in the Soviet economy.

The KGB’s immediate priorities, he said, would be the restoration of economic links between producers and buyers, particularly of consumer goods; removal of transportation bottlenecks, and a crackdown on speculators profiting from the severe shortages. KGB units are already working to assure the delivery of much needed foodstuffs and prevent their diversion into the black market.

Although Kryuchkov assured deputies that the planned KGB campaign would not be “a revival of the repressions” through which the Soviet Union established and fortified its state-run economy, he declared, “The idea is to establish strict law and order in the economic sphere. This is what we are missing.”

The KGB is also prepared, he said, to move against nationalist groups, including their armed militias, in half a dozen of the Soviet Union’s constituent republics that are threatening to secede, putting the country’s integrity as a state in jeopardy. He warned there is a serious danger of further ethnic violence, especially in Central Asia.

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“While it is preferable to resolve conflicts by political means,” Kryuchkov continued, “how should we act if we face violence, if these or those forces are using submachine guns and terror instead of words and persuasion?

“There is concern that if we undertake decisive actions in establishing order today, we have to assume there will be bloodshed. But don’t we already have blood being shed? Don’t we learn about new human victims, the deaths of innocent people, including women and children, whenever we turn on our TV sets or open our daily papers?

“I do not want to threaten anyone,” Kryuchkov continued, “but the Committee for State Security is convinced that if the situation in our country continues to develop in the same way, we will not avoid more serious and greater political and social upheavals. We are speaking of ways to prevent more victims.”

Although he acknowledged that the roots of the country’s deepening crisis are domestic, Kryuchkov accused the CIA and other foreign intelligence services of trying to exploit it by further undermining the economy and fomenting ethnic conflicts.

Responding to recent Western calls for an accelerated move to a market economy to pull the Soviet Union out of its downward spiral, Kryuchkov characterized the proposals as “doubtful plans and ideas” based on a hidden political agenda.

“Quite often one can see a desire not to strengthen us but their own position in our country,” he said.

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In a sharp rebuke to Shevardnadze, who had described the Soviet Union as finally free from the Cold War’s “eternal, external threat,” Kryuchkov said there are “realities we cannot ignore if we base our policies on the interest of our state. . . . No self-respecting state in the world allows another to interfere in its domestic affairs.”

“Despite the warming of international relations,” he said that some Western intelligence services had increased their efforts to gather information on the Soviet Union’s defenses, its scientific and technological potential, and the size of its strategic reserves of raw materials, fuel, food and foreign currency.

The CIA is continuing to finance a variety of anti-Soviet and nationalist organizations in the West that are infiltrating political movements here, Kryuchkov said, adding that the CIA itself has recently established a special unit to influence the emerging independent labor movement here. The West is also encouraging the emigration of the Soviet Union’s most qualified scientists in a massive “brain drain,” he said.

He also charged Western companies with taking advantage of the turmoil here as well as the inefficient Soviet bureaucracy to sell the country rotting food, outmoded equipment and environmentally harmful material.

“Taking advantage of our carelessness, they supply us with polluted and sometimes infected grain, foodstuffs with high radioactivity and harmful chemical ingredients,” Kryuchkov said, adding that 40% of imported grain is weedy and is usable only as livestock feed, and that 10% is too poor for any use.

Kryuchkov’s comments on the West were widely criticized by radical deputies, who felt that he was attempting to portray them as Western agents to discredit their criticism of the government and proposals for further reform.

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“His speech sounded like one of the Cold War,” said Oleg D. Kalugin, the KGB’s former counterintelligence chief and now a member of the radical opposition in the Congress.

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