Russian Aid Bill Worth Billions Passed by House

Responding to pleas from President Bush and the bipartisan congressional leadership, the House on Thursday apparently overcame its fears of a domestic political backlash and voted 255 to 164 to authorize a multibillion-dollar aid package for Russia and other former Soviet republics.

The bill, similar to legislation adopted by the Senate in July, would authorize $1.2 billion in economic and disarmament assistance and approve a $12-billion U.S. contribution to the International Monetary Fund so it can provide additional aid.

Passage of the bill was regarded as essential to bolster Russian President Boris N. Yeltsin’s effort to carry out economic reforms and move the former Communist adversary toward a free-market democracy.

While proponents compared it to the Marshall Plan that promoted recovery of Western Europe after World War II, the measure passed only after the White House gave assurances that Bush would accept Democratic plans to spend $400 million more for public works jobs this year and provide $2 billion in federal loan guarantees to American cities.

“We ask you to enlist in a constructive experiment,” said House Majority Leader Richard A. Gephardt (D-Mo.). “We ask you to seal for ourselves and our children America’s victory in the Cold War.”

His Republican counterpart, Rep. Robert H. Michel of Illinois, put the case for a ‘yes’ vote in more pragmatic terms: “More jobs, more exports, an end to the fear of nuclear war and a better future.”

While 161 Democrats and 94 Republicans voted for Russian aid, 95 Democrats and 68 GOP lawmakers and one independent opposed it.

The House vote came after the IMF announced a loan of $1.04 billion as its first down payment on aid to Russia, and the World Bank was ready to disclose another $600-million loan to help buy foreign goods.

“The IMF loan is available now--whenever they need it,” said Michel Camdessus, managing director of the fund.

In addition to the Administration, support for the House bill came from farm organizations and others hoping to benefit from grain exports to Russia as well as church groups interested in humanitarian assistance.

One key argument held that providing aid now would save billions in defense spending later if an authoritarian regime takes over from the pro-Western Yeltsin government.

“It is clearly in our interest to forestall chaos in a land with 30,000 nuclear weapons,” said Rep. Les Aspin (D-Wis.), chairman of the House Armed Services Committee.

Despite the appeal to self-interest, however, members of the Congressional Black Caucus and others who opposed the bill said the Bush Administration is doing far more for Russia than it is prepared to do to help hard-pressed American cities or unemployed workers.

“While America is worrying about stabilizing the ruble, the dollar is going to hell,” argued Rep. James A. Traficant Jr. (D-Ohio). “We don’t have a ‘Buy America’ (requirement) on this thing.”

A total of $417 million was earmarked for U.S. aid to the former Soviet Union, with another $790 million authorized for helping Russia disarm its nuclear arsenal and prevent the spread of nuclear technology.

Sponsors of the legislation said about one-third of the $12-billion increase in the U.S. contribution to the International Monetary Fund would be used by the IMF to promote economic change in Russia and other newly independent states.

In addition, the bill would give a congressional stamp of approval to the Administration’s plan to use $3 billion of existing U.S. credits at the IMF to stabilize the ruble once it becomes a convertible currency.

The legislation will now be sent to a conference committee to resolve differences between the Senate and House versions of the landmark measure before it is submitted again to both chambers, then sent to the President for his signature.

But House Majority Whip David E. Bonior (D-Mich.) warned that the bill would not survive unless the White House carried through on understandings to support additional funds for public works jobs and loan guarantees to cities.

Bonior, along with other Democratic leaders, has been negotiating with Robert S. Strauss, ambassador to Moscow, Budget Director Richard G. Darman and Transportation Secretary Andrew H. Card Jr. about increases in domestic spending in return for Democratic support of the Russian aid package.

“If the promises of Mr. Darman and Mr. Card and Mr. Strauss--and the President--prove hollow, there is not a chance this (bill) will get through conference,” Bonior declared. “Not a chance. . . . We’ll pass Russian aid, but only if the President follows through on his commitment to work on aid to America.”

Rep. Maxine Waters (D-Los Angeles) protested that the Democratic leadership refused to allow a vote on her proposal to extend $10 billion in federal loan guarantees to cities over the next five years.

“I don’t understand why my own leadership is responding to the President rather than our own people,” Waters told reporters.

Rep. Charles A. Hayes (D-Ill.), addressing his fellow Democrats, added: “You’re going to rue the day that you send dollars to Russia and ignore people at home--we need jobs.”