Mikhail Gorbachev speech to agricultural and business leaders at Minneapolis Radisson Plaza Hotel

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Mikhail Gorbachev, president of the Soviet Union, speaking with leaders in business and agriculture at the Radisson Hotel in Minneapolis. Following speech, Gorbachev answered audience questions. (Gorbachev’s speech and answers were translated) Dwayne Andreas, CEO of Archer Daniels Midland Company, chaired the meeting and introduced President Gorbachev. The meeting at the Radisson Hotel was part of Gorbachev’s one-day visit to the Twin Cities on June 3rd.

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He was an advocate of freedom to worship. freedom to travel freedom to emigrate freedom for the family farm to own land Freedom From Fear freedom of the press to their Everlasting credit President Bush and President Reagan recognize the enormous significance of the arrival of mr. Gorbachev on the global scene during my seven years as chairman of the trade and Economic Council we have observed the activity has led by mr. Gorbachev. And we have found that he has stayed the course. Even though it has become an obstacle course. Has the Messiah of reforms? He has given us as a nation Freedom From Fear. He has given the oxygen bottle to the free-enterprise market-oriented economies of the West. Making it possible for us to redirect our resources to more useful purposes. You make it possible. In fact for us to save the capitalistic system from the ravages of debt and inflation spiced that are the co-partners of Cold War clearly it is in our interest. To help integrate the Soviet economy into the economy and the trade patterns and the politics of our globe. George Bush our president has charged us with this responsibility and will enhance our security and enhance our prosperity mr. President. Mother Teresa a mutual friend of ours has said to me. Please thank him. For the freedom to worship. And please tell him. That although Time Magazine said he's the man of the year. To me Gorbachev is the man of the century. Now say a word about the governor the governor organized this affair. I'm amazed at the commend this amount of talent. He was able to produce to help organize this so you could all be here and all the other events of the day governor. Do you have a word to say you're right on the heels ready to go? I'm going to ask the president if he'll say a few words first, then we're going to give you all a chance to ask questions. Please have questions ready. Just a few hours ago. Mr. President. Mmm President Bush and died. Missed it together at our press conference summed up the result of the Washington Summit. Uh, yeah, I personally believe store that another you to this Summit will go down in history as stretchy as a summit of Hope and optimism. Numa it's graduate Romania, I think that we do need usually two or three days later or two or three weeks later month with Liberty. We will really begin to understand what this meeting has produced. I have tried to waste we ready it's ready to express this thought it would cover and let me repeat that this dick meeting was important not only issue for the important political statements and declarations that were made and that are important in and of themselves when they are made by leaders are Clash Nations such as ours the great Powers such as the Soviet Union and the United States we'd all go actually taco It took us some time a long time and a long road to reach this amazed in our relationship what you're dealing with murder plus 2 to Chad. Kadhai. I don't know sometimes when we express big hopes. We have to knock on wood on black or running the other words and images. But anyway, so boo dude, seriously. Let me say that we do have high hopes. We hope that the there will be very important political and political military consequences of this Summit and also very positive you have consequences in all other spheres are relations between our countries because this has been done by countries such as the Soviet Union and the United States. This is also going to be very beneficial for other countries for the entire world particularly since we have not done anything, that would be That would Prejudice the interests of any other country. Lawrence garage door Eve semi pirogov, or I have to tell you that both in the talks with your president and in my discussions people with other Administration officials and political figures with congressman. broccoli energy In various ways not your gestures at regulus probably address academies because quite often problems relating to our economic cooperation. I saw Ben and particularly. Meet me at the moment of approximately 3 BC. We gave a lot of room to that a lot of importance to that area in our discussions with the president for himself. We tried to understand and our talk with the president would try to understand what happens because that's very important in only start making policies for you. The important question is new video. What kind of the Soviet Union does the president Russia and the US people want to see that the servant does America want to see a Soviet Union that lacks confidence that is not stable that is in turmoil or does America want to see the Soviet Union as a normal Democratic state which Is moving toward new forms of life within the overall framework of humanism and democracy Soviet Union that is working with the entire Global civilization integrated and that Civilization. So this is the alternative and basically the same alternative confronts us. That is to say what kind of the us we want to see. And I've been thinking about this for a long time. And if I and my colleagues who were at the source in is at the source of the policy of perestroika and new thinking if we had not decided for ourselves this main question, then I'm sure that we would still be groping for a way. We would still be uncertain about the path which to follow and we have firmly decided on the basis of realities because in Policymaking and in our policies for the future. It's very important to stand on the basis of realities. So on the basis of reality is we decided for ourselves that if the United States were to field jeopardized as to their security if the United States were to lack trust in as to our policies. Then probably we would hardly be able to hope that we'll have a comfortable World in which to live. World that is not comfortable for the u.s. Is not comfortable for us. So we would like to see the American people. Confidently moving along the path that the American people chose. and we Want to cooperate? with the United States of America in our bilateral relationship and also on the international Arena. So that was something that we decided for ourselves firmly and then the entire concept followed as a result of that choice if you have any free time, I don't know whether you do maybe sometimes. But if you have any Leisure and you tried to take inventory of the specific steps that the Soviet Union has taken over the past few years and domestic and foreign policies. I think you will be persuaded that we have always acted bearing in mind and taking into account. both in the European area and in the Asian and Pacific area where always acted bearing in mind that we have to cooperate with the United States of America that any attempt to isolate America. I want to push America out of some region are futile and would only result in problems. And when we adopted that approach What followed was? solutions to very long-standing and difficult problems the president and I spent several hours together the two of us during this visit our final discussions were in Camp David without neckties and with or an sleeves rolled up and we discussed things in a very intensive way. And I feel that. That as a result. We have a new. degree of confidence and mutual understanding. This is the view of all my colleagues here who have come here on this visit. And I have here in our group many eminent representatives of the Soviet people people who are carrying today on their shoulders the difficult burden of perestroika fundamental changes in our country. We have all we all feel that this is the case those things that were not. That had not happened before in terms of thinking in terms of decisions happened this time. We have an anchor for our relations and I would say more we have recognized that it is necessary to move really toward an era of cooperation. And this is the prospect that I think opens up great opportunities. I think have noted the agreements that we signed with the president as regards economic relations economic cooperation. This is an unprecedented package in our relationship. Finally. We have signed the trade agreement that for decades we were unable to move forward. I would like to thank here. Mr. Andreas, I see here. Mr. Giffen. I see many old friends people who even in the most difficult periods of our relations. showed themselves to be real businessman business people who work on the basis of the realities of life. I see here another friend. Mr. Crystal. To whom I talked many times several times see some other people. Whom I know you you showed yourselves really to be business people and the trade and Economic Council LED for many years by mr. Andrews was able to contribute I think very substantially to the Preparation of this to the development of this new approach new Cooperative approach which I think affected in a very important way the political decision the political decision to signed a trade agreement, which I believe is a major watershed. but let me also say that a lot of credit here belongs to President George Bush. his position I think was decisive in A sharing this result of this whole process the atmosphere in this this major decision was taken was not simple. Yeah and previous to you. Therefore. He showed me the importance are rewarded this decision. Is that much greater? I would like to welcome this joint effort that places us on a new level of cooperation. That's my first point. I thought that was only in the Soviet Union that the economy was so dependent on politics, but I see that in the United States there's a lot of similar dependence economics and politics. I think I can say that now but of course policies politics also depend a lot on the economy, so it's a dialectic. in here There's a better way there we are. Now. My second three-pointer learning is about your cultural specificity to the process of change in our economy about perestroika in our economy. I would like to be briefed about this many of you. I think must have visited if we knew about Moscow or or I don't know maybe he's quite a few have not Logan know many new people. Yeah when I Stumble has good water. Yeah, especially I recently talked to members of the board and Economic Council in the Moscow and I tried to tell them what we intend to do with our economy and how we know and how we can do it five years. Let the ocean is new Brazil Woodland period that the like the last five years is a period that has not been simple for us. We had to sort things out to understand what kind of a society we have during winter food. What are the good things that we were able to do and what are the Mist judgments that we have to abandon we were trying to do that in a very thorough way energy and also in a very tough way to what ourselves and so critical way toward ourselves. No, we need to me in addition to studying ourselves. We were trying also to test certain new elements and new forms of economic management. Didn't think we tried the cost accounting. We tried leaseholds. We tried cooperatives. We tried you so financing and self-management and autonomy efficient production units. We tried quite a few silly that gives LaVine things in order to gain experience and try to place Our e to the we preservation management people and production units into a new situation of Naruto really Gog new conditions or circumstances reaching no and we have seen that the whole process come on move the head fairy with great difficulty why because of that command system that we have they command system and gordita politics and in the economy our economic managers many of them very good people who know how to work in your gourd. We're used to a system of commands to a system of taking orders from above and that really happened to many many years many decades of the and the certain type of individual some type of economic manager evolved and it is very difficult to abandon those old ways particularly for people. Not that young but in the same way the command system worked as regards those who work that actually worked the machines who actually drive the tractors who work in the research Labs all of them do basically that type of individually they of course wanted freedom and economic autonomy, but once they got that they would were afraid they didn't know how to use the hash table with freedom. You probably are so this gives you an idea of the scope of the problems you Bush the world. And this is how we began go that premium in that what is more once we began the process of change and once people you easily stream understood how good economic independence is how many of them they saw that the old planning and command structure is the distribution the structure is those who kept them on a very very short leash. Basically that that system is bad and it has to be dismantled decentralized that whole structure of the economy had to be changed bad planning had to be revamped and subversive filters Voyager. They knew this boy in his videos and but it turns out that it takes a battles mini to achieve that it is with Luigi changing a system in itself means he be changing people that they intelligent. Paper and you can just get your carcass tear that piece of paper you have food system is people people who live people who have their own interests who have their own lives and I'm knew that we have this the conflict of interest and we routinely chili really had a problem trying to move these new economic forms ahead and do we were only able to approach that when we began a political reporter maybe that involved the masses of the people and the political process we had to for some period of time we had to stop for a while with the economic reform process and to begin a political reform process. And this did happen as a result. Our society is one of the most politicized Societies in the world. You're right into things teacher arm. It will continue moving so fast. Yes, you move new beaucoup. Reform economies. Good. God does a Muji that it is the only possible need immediate goal to change things generally for the better if we're successful in our economic reform, but if the economic reform is successful, then people will not need rallies demonstrations. And so on another of course quite a few rallies and demonstrations. I think that are going to happen before we are successful economic reform that is to say we switch lanes are now developing the groundwork the basis for any really new phase in a radical economic reform now adopted laws on property taxes to laws one has been adopted about tax issue individuals and the other law on taxing production units and Facilities also law on leasehold. And a number of other laws that a variety of form create the conditions for moving toward represent a market economy water toward an Economy based on the various forms of economic management. I think that this is the direction and we have now become wiser. We have made mistakes. This is true. There have been quite a few in here. You probably need some damage done to our economy. We've had some problems and management because the old system running the economy has become weaker and the new economic levers the new economic forms of a market economy have not yet evolved properly the entire structure of a market economy is only beginning to evolve. So therefore we need to adopt a number of other laws and Documents that will make it possible for our economy to really work along Market principles Korean group. So I think that we are now at this watershed. When we are ready to move resolutely won't the market to do this is what we're doing. Now. This is I think what will be decisive for the entire perestroika? The future of perestroika be rui-zhi Bellini president my first on your reading material statement that President Amin was about the need for to radicalize when you make anomic reform certain movement public perception was good. People said that you know, this was necessary because people felt the entire economy was out of balance Consumers Market was out of balance. And therefore there was a need for certain measures in order to you know ramune about how to address that problem money overhang Rubble overhang in order to address problems management and really move toward the market. We see in the economy. Can you promise of course surroundings 91 opponent has a candidate is to loosen the kuna prick. We need certain other laws such as anti-monopoly legislation of Entrepreneurship legislation small and medium in your business legislation. Now Newton legislation was in shareholders Society. We need a mechanism specific mechanisms on the web you how to implement those laws. We need a new credit system goes to what we need to do is stock and labor exchange has all of those things that exist and have existed in whether your economy for many many years, but which are totally new for us. So when you pass Judgment of you what we're doing, please understand that certain things that you have had for many decades maybe centuries are very new for us and we are just beginning therefore when you think that we are too cautious that we are Not decisive and I think aggression with a stylus Dome is Adam only eyewitness attack is that is not true because we want to be cautious right on sister. Yeah, we want to be protein because you want success. But if we just make a headlong Rush little renewed and panic and act rashly without thinking that is not good news decisiveness value ruler that will just board which make people say that well those people are unbalanced. They don't know how to act in a balanced way and this fundamental important period of transition if she'll die so, you know that with smoother it is sometimes you can't you look at it from your American Western standpoint, and you may be smiling looking at us. Saying that while the Russians don't know how to do it. Yeah. Well whoever of that escape his weep. Well, I can understand that kind of skepticism and smiles. But still it will mean you know, this is a shape a stage first along the road that we will have to pass imagery to whom we will not risk and therefore I'm not afraid of the fact that people worry that some people even Panic that some people in the west, what would our pessimistic and believe that the whole country is on the verge of collapse wrote the words Billy don't know but result crazy system. I think this is because it's some time that you have you seen a real crisis your generation of your generation of people have basically lived within a system that has had its difficulties, but the move Predictable we are having now a very crucial situation. Yes, we're dealing in which we would like to hope for your carburation and for your understanding. Mr. Andreas and mr. Given know that when we met in law school. I said those who at this meanie who live in that crucial time at this Watership Watershed that will change the Soviet Union that will integrate us and the World Civilization and World economy of the future those who are not with us at this time. He made virtually perspectives that we have a good chance where they promised a good Prospect of Corporations only was more diversity in our great country in our great Market because it was a tremendous no Jive, but those who just stand on the sidelines who do not want to risk who want to wait and see them go and leave me. Don't worry, it's good. Who don't go to risk their dollars? Well, they will remain I think observers who years to come. Those knees jelly. We'll make sure that that is so. You what ya Canada authorial, sir? Stones Gazette, and so when I Was preparing my remarks I asked for Electricity genius give usual certain information here as well as their gift rear una bolita to pits and his doctor. I've been told that he deserves Americans over 1500 joint ventures have been registered or exemption unless they ask about a hundred and fifty of them group Nation. You will have some American participation. The biggest economies project is the project of cooperation between our Soviet foreign economic Consortium, which brings together a couple 22 Soviet organizations in factories, and the US trade consortiums. Also including Sharon Eastman Kodak radm Johnson & Johnson RJR Nabisco and mercado cooperation from 20 to 25 joint ventures will be started in the Soviet Union in areas such as agricultural processing and food processing food production are all Medicine and hygiene power and also computer and information technology on the tourism is the 2nd of June this year residence grocery the first Deputy chairman of the Council of ministers and member of my presidential Council. Mr. Master GAO signed an agreement currently about a joint, you know Venture choices video about a joint venture of the car lava. It sounds in Russian royal but field Nadine system like tank is the Chevron participating. We also hope that the idea of Soviet American Medical Consortium ski here. We will also bear fruit for a very good prospects here. Organizations are negotiating 6 joint ventures to produce medicines Diagnostic and medical equipment and also High genic and prevention products and the others get their trade and Economic Council is actively involved including uranium will produce the yeah. Let me also say that generally the process of Arms Control puts on the agenda a problem of conversion. And this is what we're doing as a result. We have a schedule additional technological and production resources that can be used for civilian purposes. The Europeans have now become very active are competing for the use of those resources. They understand that we have a very good production plant in that sector good Personnel, very competent engineers and research and development. Instead when I was in sverdlovsk lock that was killed. I saw that reputation over there a factory and we are so much used to produce instruments for our defense and space sector is now being converted to civilian uses and they had a financial problem and the Philips Corporation is now beginning cooperation with those with them and very soon. They will be in a couple of years. They will be producing very interesting products consumer products, which I believe have good prospects on the international cute markets. I think I've told some of the people here about this idea that has pierced the problem here is that this used to be a very successful organization than the military sector but they do not have sufficient orders as a result of Arms Control agreements and and the process of disarmament. And financially they were in a very dramatic situation is a Gucci and Phillips understood the situation and as a result, they reached agreement on certain financial assistance and other assistance and now they already have some samples of what they're going to produce soon. I will not watch it say to you now what what those products are Phillips. I think know very well how to create commercial secrets and I think our defense people know that too and so they took me in a special room where they showed those future products and I think that those will be good products. Anyway, we are now developing a national conversion program. What's going to walk with the yeast or you have some experience in that regard as well. I think that we should exchange that experience between you and us how better to use this process of conversion. I'm trying to speak to you. I think also frankly that the aircraft project has good prospects in civilian Aviation time years was more nasty Luna's Hiroshi throw in that area because we ourselves have good potential in aircraft building. And you probably understand that we have already the consent of the government of the administration project is on the way aircraft companies will also participate. So I think that this is this too will be a major figure the media project worth billions have production of my salute to memorials through equation. There is a market for aircraft. We can build aircraft rather. Well, although there are some problems but I think that if we join us well show you the other illness proven that we can make a good product. We also have a lot of underneath the band. It consumers but also the foreigners who work in the Soviet Union when every major projects projects of teachers killing, you probably know that project fiber optic communication like going through the territory of Siberia an international Consortium Bellini by u.s. West is working that domestic civilian needs will also linked by a global communication with the line. AB are only Pacific and Europe. Bruce Rog is but today I am chairman of the Soviet defense. We usually not counsel. And recently we had a discussion about the family needs and that discussion, but we turned into a discussion of current economy and our defense people who are smart and she made proposals that I think it may be possible very soon, which only using the resources that used to make her like, you know, utilized for defense purposes very soon. We will be able to develop a good civilian communication system with Michelle around projects now and I think that this is good first initially when we began conversion the way I cheated - I thought that it is good to reorient to convert email clients that produced tanks and artillery and the plants that produce saucepans and kitchen equipment at the door. We think that that was so and we believe that well if we have to but who do I organize conversion and the better way we have to use the machines and Equipment. Yeah in those factories much better job. Well, I was wrapping up this part of my discussion. But let me just say to you that conversion does open up good opportunities. We are now preparing a national program for long version or watching and although we have problems and quite a few things because our military industrial complex is very influential. It has many him new minion would very powerful but humanity. Is there any way we have an understanding that we need such a program of conversion and I would like you to participate in that Yeah, could you admit it? I would like to note ministers to put Inception associate another achievement levels in the company that is a cooperation between our mobile Ministry of Railways and between the into that great situation involved in North companies in is only bomb in particular bomb great opportunities exist is the you in the development of the economic zone of the baikal-amur Railway. Because that Railway they buy caliber Railway really linked up to Regions to areas where we have enormous researchers in a modernization is CO2 emissions modernization of Soviet Automotive aviation industry also calls, I think for participation of foreign companies. I don't know why but we've had very mixed results in cooperation in this area. It happens that we begin talks We Begin negotiations for example with a floorboard here you can you forward a we don't because that is beneath you came a long way almost until the end of the talks and then suddenly they bowed out. I don't know what happened. They said well, this will not work, but I think this is an area that has potential in the west some people say Why do you want to cooperate in this area? Mostly with the Americans? Why do you focus on cooperation with the United States and the automobile area? Well, I'll tell you maybe it is because when we began the development of our automobile industry in the 1930s American Technology that was used and American Equipment was bought three strands and that has a bearing on our current position and also given the fact that we need very big project for a big country. When we begin such a project we feel that we need American business because it is so big others may not Corporation, but that others may not be enough. So I'm very Frank with you because I want to stand there see Computer technology, I would like to single out two important project collaboration with Control Data that will mean that he could improve the efficiency and safety of our nuclear power industry in William and I understand that will be meeting with people in control. So we have new friend project between IBM and our education committee that world if you're watching for help to computerize our schools there to we have tremendous opportunity opposition to your vice president vice president Quayle, probably up with all who is a fan of with more space for you. I was asking whether he's a fan of outer space for of SDI what he is more Wilshire what is a greater interest to him here and it seems that she is more interested in. Peaceful space exploration we need and let me see that if we combine our efforts because our space programs were somewhat different way. For example, we have good space stations. We have big Rockets carrier Rockets, which I bigger and more powerful than yours you have on the other hand some very important achievements. As Regards space equipment and space instruments as well. So if we combine that and space research and in space technology in the launching of your Satellites by our rockets and also in scientific operation, I think this is another area which it is very promising. So let me say that I am in favor of dependence Mutual dependence of the US and the Soviet Union and of the Soviet Union are the us because currently we are in dependent to Independent. I think it is because we have too many weapons that we have to think about ourselves and think about how to address that problem of too many weapons and that is good that we're addressing. Midwesterners you're also interested about our agricultural relations. Mr. Andrews many times besides that for me. I will say this me. Yes TBC just mildly brief if we were able to solve quickly move work the problems, but you're harvesting the problem of Transportation our Agricultural and processing of our agricultural Commodities. I think that many of you know that very well Pete we could retool more as I can given the current Harvest we could expand our agricultural production by about 25 to 30 percent. There's a tremendous gap between what we can produce and what we can deliver to the people and that's a problem. We lost in the Some of you know, but I do not want to scare you because some of you will say that really you're not worth squat cooperating with but let me give you an example about potatoes how much potatoes we grow and how much we delivered to the people the people and the same figure is as regards the United States. You will see the Gap you will see how how much waste there is in our agricultural system. We combine just what was gained doing we are now should be producing a new that you were Harvester called on which is bought by some Canadian farmers and our own has good reviews a chamber where we use that Harvester the new right? So we have a much better result. I think you've got a good one five tons per hectare support better or what the particularly in the Ukraine and in caban, so our old equipment was really very bad. The new equipment is much better. We have also the need for better processing factories here various sizes. That's more weird example, small farmers small farmers who live in their Farms maybe even in the woods, they need very impressive small sized equipment. They produce very good milk the Alexia milk from grass-fed cows. They could produce cheese the kind of cheese that that we used to make him another decades ago that that was bought avidly in Europe. He needs that kind of equipment equipment to refrigerator. In the process we didn't have any of that jazz. This is an area where there's a great deal remains to be done. What they only useful for now. You must have questions. I've been to be and your first question about stability whether you really want to get involved with the Soviet Union given sure but he wrote this problem of stability don't don't what is the nature of our instability it is because we have dismantled the command system, but we got the market mechanisms have not yet begun to work and not yet in place and our economy is suffering from this kind of turmoil. Our conclusion is that we should move toward the market economy more rapidly and we intend to do so I've been given a note. Let me read the note. It would be a way yet, mr. Business. So this ebook kind of instability is in a way inevitable unavoidable because we are changing a system where changing one model of the economy. Total replacing one model of the economy with another one. Secondly we live in the west and the business Community. There is now some concern about payments by the Soviet Union. Let me say that generally of course our debt compared to your dad is really is really very small. Our is is about 400 billion and yours is about 330 billion there. No, three new nostril streets are a domestic debt is 330 or 400 billion, but yours is I guess about two trillion even worship more than that. We have a premier me. Well, of course, I will never dare you can Omakase new understand to say that because of this the US economy is on the verge of Collapse. By the way, we discussed that with your President yesterday. We too have an installation problems as a result of a major drop in oil prices which resulted or even in a loss of 50 percent foreign currency earnings read in a conditioning product. You play them all so we are now developing certain projects that will make it possible for us to use our oil resources more efficiently. Anyway, you have to I think assume that the payment problems that we have now are temporary and you certainly can be sure that you will not lose your money in the Soviet Union. Yeah, because I see so I would like really to dispel those fears. I don't know although probably at some stage at some phase. There will be a need for us to take your concerns into account. I look at you also, mr. Maxwell and she is aware of the situation what the situation is like slow-mo here was because old Doug. But didn't sell to sum up. I would say this the potential I've seen you as we see it. He said we need for cooperation. And for an interrelationship is enormous. We believe that this political breakthrough that we have seen and that we can note as a result of this visit because he creates volume knob really good conditions more favorable conditions for providing further momentum giving further impetus reliable economic cooperation. I would like to wish you Mitchell e beneficial deals which allowed the teachers deals business links between the Soviet Union and the American Midwest will be successful. So good luck. Thank you very much for those very Frank and and lightning comments. First. I'm going to call on with the MacMillan. He's not only because CEO of a firm who has done more business with the Soviets over the last 20 years than any other but he's National director of our Council been a tower of strength in the u.s. USSR trade and Economic Council for many years a statistic. When they do you have a question? Yes. I do have a question. Mr. President. This is a very local question deals with Minneapolis. And st. Paul you may be aware that we are a closed City for travel Soviet diplomats from Washington and Soviet diplomats are Soviet businessmen from New York City. And at least one company here thinks that puts us at a competitive disadvantage to a company is located in Decatur, Illinois. The question the question is whether you and President Bush discussed this problem of closed cities because there are other closed cities in the United States and in Russia and this question of of travel and if you did not discuss it This trip and Summit. I would hope you would discuss is that the next trip? Well, you sweetness will proceed let me say that indeed. This question was not discussed and you're quite right that this question does exist sverdlovsk the city where that Electronics Factory which I mentioned and there's a closed City but Phillips is working with that formerly defense-oriented Factory in that closed city of sverdlovsk. So I think you see that there is movement there. Let me take note of your suggestion and in order to think about it certain restrictions, I think have to be lifted in our country but probably will have to Discuss that with the American side so that the president to left some restrictions I understand what a closed City means. I know both of us have learned how to close cities. We another question from the floor. Mr. Crystal from Des Moines, Iowa bankers. Time that I've known you, mr. President. I've been disappointed in the agribusiness trade. Although it progresses. I think part of that is the caution of American Business at this moment. Is it possible that the capital invested in the Soviet Union for Just Cause could be repatriated instead of being frozen Soviet leading. That's part one part two the earnings of that investment in the Soviet Union will necessarily until the ruble is convertible the needed to be invested in the Soviet Union. Can that exchange rate be Frozen at the time of earning the most it is a minimal cost. Cut off your well. It's a good question. So because there it's a Peter Hsu approach so far is the first portion of your question is concerned. We are now preparing a document that will assure the protection of investment and also provide for specific procedures to repatriate profits or to reinvest profits in the Soviet Union. For the movement of capital if you abou therefore, I think that will improve the prospects as for your second question. We watching intention is to shame. We are looking very intensively into this question of the week in the community room Ruble convertibility and how to achieve that we were still me William - first thing we are gonna do very soon. We will introduce World Market prices in our Council for Mutual economic assistance of Eastern European countries, whether new breathes deeply, you know Trinity and we also have to introduce prices more closely reflecting World prices in our own country Gloria. Don't say nothing of the need to have a new and more effective economy. That goes without saying if we just you know, open up the Soviet Union right now and introduce convertibility right now, it'll take you just three months to take over the entire shop. We do move to finish new shag you we think that we will begin taking steps in order to give Ruble real content content that we will begin soon and we will move step by step toward full convertibility in the context of the overall change our economy. So we'll be moving along a certain road. We used to think that this will be a very long road now, we believe that we can shorten that road and that we really must do it. Let me say this I forgot to tell you this in my remarks when we invited American companies to compete for bids on our project to improve our light and food processing Industries in the Soviet Union. We found out that many proposals and bids of us companies. Is we're not competitive as compared to the Germans and the Italians and the French. Well, we were both of us engaged in the arms race with the former vanquished defeated countries throwing it away with the country's defeated in the World War II and ask him he worked hard in the civilian sectors and achieved good results. Now you will die they have Good morning, their potential is very good. Yeah, I mean you do them greatness personas in terms of competitiveness from which they figure money for grammar her into Germany tally your the Federal Republic of Germany, Italy and Japan. Thank you very much. All of you for being here. Thank you. Mr. President very very helpful to us.

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