Bush Would Add $645 Million to Republics’ Aid

President Bush offered a $645-million increase in American assistance to the former Soviet republics Wednesday, but Japan said that it will not provide more help until it settles a territorial dispute with Moscow left over from World War II.

Opening a 47-nation conference on aid to the former Soviet Union, Bush called on the world community to show the newly independent states that it “cares about them and supports their hard struggle to build new societies on the ruins of communism.”

He said that he will ask Congress to approve $645 million in outright grants for food, medicine and other humanitarian assistance. If approved, the aid will boost the American commitment to more than $5 billion, most of that sum in loans to finance the purchase of U.S. agricultural products.

Although most nations at the conference paid at least lip service to the need for more assistance, Japanese press spokesman Seiji Morimoto said that Tokyo “is not in a situation at the moment to embark on large-scale assistance to these republics.” He said that Japan, the world leader in foreign aid, first wants to regain four islands seized by Soviet troops in the closing days of World War II.

“As you know, we have a territorial issue with the former Soviet Union, the Russian republic,” Morimoto said. He added that Japan is not ruling out “emergency and humanitarian aid” to the republics but rejects any large-scale aid programs.

A senior State Department official said there seems to be no movement between the Japanese and Russians toward settling the dispute over the islands, which Japan calls the Northern Territories and Russia sees as part of the Kuril Islands. “I don’t think the Japanese have figured out who to deal with in Moscow,” he said. “And the Japanese are not quick to act, anyway.”

Japan provided the only hint of controversy as the two-day conference opened. In recent weeks, Germany and some European Community partners had questioned Washington’s right to convene the conference because the Europeans have provided the bulk of the aid. But that dispute was settled--or at least papered over--before foreign ministers assembled in the State Department’s ornate Benjamin Franklin room.

Asked about disagreement between the United States and the EC, British Foreign Secretary Douglas Hurd remarked dryly: “I haven’t detected one. I read about it a good bit.” Hurd said that total pledges of aid--both grants and loans--totaled $20 billion, which he said could make a big difference, if sent to areas of greatest need.

Delegates agreed to meet again before the end of June in Lisbon to review the situation.

In his welcoming remarks, Bush praised Germany and the EC for their contributions, then told the other participants: “The challenges before us require efforts, not just from Europe, but from other regions and countries, as well. Japan has made important commitments and will be crucial to this effort.”

Secretary of State James A. Baker III said the situation is grave and getting worse: “In the last few months, life in Russia and the other independent states has deteriorated at a dangerously accelerating pace. The collapse of the Soviet Union has left the rubble of communism everywhere and we need to help lift communism’s dead weight so that these new democracies have a chance to grow and have a chance to take hold.”

Later, at a conference for private groups working on humanitarian aid to the former Soviet republics, Bush acknowledged that the presidential campaign has forced him to spend more time on domestic concerns. But he promised to follow through on his pledge of help for Russia.

“We are in a funny, kind of tough year now in terms of priorities,” Bush said. “But I must not and I will not neglect my responsibilities to do what I can do, as the President of this great country, in mobilizing others . . . to help where governments can.”

The former Soviet republics were not invited to the conference. But, in a letter read by Baker, Russian President Boris N. Yeltsin said that his country “has to pay dearly for past mistakes and delusions.” Mindful of repeated reports of waste, spoilage and theft that have hampered relief efforts, Yeltsin promised to “take all measures that are necessary” to ensure proper delivery and distribution.

Representatives of Hungary, Poland and Czechoslovakia, whose post-Communist economies are too weak to permit substantial aid, suggested that donor nations buy goods and services in their three countries for donation to the former Soviet Union. Other conference participants generally praised the plan as a way to double up on their aid contributions.

Times staff writer Doyle McManus contributed to this story.

A Compendium on Aid

Government aid offered to the former Soviet Union recently:

EUROPEAN COMMUNITY: The 12 EC nations in December approved about $260 million in emergency food shipments, on top of gifts worth $320 million earlier in the year.

GERMANY: Has provided 57% of the $260 million in EC aid, according to EC officials. Germany also said it is providing 90% of all private aid.

BRITAIN: Total British aid is worth about $144 million.

ITALY: Last week, the Italian State Export Credit Insurance Agency approved $1.25 billion in export credits to Russia.

JAPAN: Pledged $2.5 billion in emergency aid, of which $1.8 billion was to ensure exports, imports and investments.

UNITED STATES: Has pledged $4.1 billion, mostly in agricultural credits. Of this, $3.75 billion is in credits for foodstuffs.