Center Joins Senators Roth And Bradley In Opposing Western Taxpayer Aid To Soviets

The Center for Security Policy today strongly applauded Senators William Roth (R-DE) and Bill Bradley (D-NJ) and 16 other members of the U.S. Senate for their firm opposition to the multi-billion dollar aid package for Moscow slated for consideration at the upcoming NATO and Houston summits.

Yesterday, these legislators delivered a letter to President Bush which said, in part, that, "We urge you to oppose Western assistance to the Soviet government, and particularly any U.S. government or taxpayer participation in a major aid package, at this time….A Western bail-out package could even be counterproductive, as it would permit Mr. Gorbachev to delay further making the hard choices associated with fundamental economic reform." (Emphasis added. The full text of the Senators’ letter to the President is attached.)

The Center today also released its own, detailed analysis of the proposal to provide taxpayer assistance to the Soviet Union which is expected to be the centerpiece issue of the Houston economic summit. This analysis — entitled Read the President’s Lips: ‘No U.S. Taxpayer Aid to Gorbachev‘ — dissects the serious strategic, economic and commercial risks involved in this ill-considered enterprise and reveals the high probability that, notwithstanding current presidential disclaimers, the United States will shortly become party to it.

"This fall, we will almost surely be told by the Bush Administration that Eximbank and Commodity Credit Corporation loan guarantees are needed for U.S. firms and banks to compete with our allies in the Soviet market," noted Roger W. Robinson, Jr., former chief economist at the National Security Council and a member of the Center’s Board of Advisors. "The question is: Compete for what — to see whose taxpayers can take the greatest losses?"

Robinson added, "Regrettably, it seems likely that the Administration will seek later this year to transfer sharply increasing Soviet credit risk onto the shoulders of the American people — taxpayers already overburdened by the budget deficit and the S&L debacle."

Frank J. Gaffney, Jr., the Center’s director noted that, "The West seems poised to engage in an accelerating and publicly funded campaign to protect Gorbachev from genuine democratic decentralization and economic reform while concealing from Western taxpayers the burden they will be asked to bear. Should the Bush Administration become party to this enterprise — even on a unilateral, ostensibly trade-related basis — it would abdicate its leadership role and betray the public trust."

Copies of the Center’s paper Read the President’s Lips: ‘No U.S. Taxpayer Aid to Gorbachev’ may be obtained by contacting the Center.