US opens summit doors for Yeltsin

“We have chosen to reach outward, not to be afraid of competition, to `embrace the possibilities of the global economy, and to make sure it works for ordinary American citizens,” he said in a speech ahead of the opening of the summit on Friday.

As host of the annual summit of the World’s seven wealthiest democracies, Clinton opened the door to nearly full participation by Russia, despite its weak economy.

Summit officials delivered a prize platform to Boris Yeltsin, asking the Russian President to make opening remarks at a banquet on Friday night that kicks off the three-day summit. The top subject of discussion: the political morass in Bosnia.

Yeltsin, whose country is still trying to shake loose from a Soviet command economy, will gain nearly full entry into the club formally known as the Group of Seven.

They also will touch on economic issues such as aid to Africa and government bribery in which Russia could play a useful role.

Many of the other participants could stand a boost, as well, although not all their citizens are convinced capitalism is the answer.

France, for instance, recently elected a socialist coalition promising to halt cuts in popular social spending programs.

“Europe has gone through a very difficult period,” US treasury secretary Robert E. Rubin noted on the eve of the summit.’

“The continent has unemployment in the 10 per cent or 11 per cent, and I have no doubt we will have discussions, as we always do, about the structural issues that impede economic activity in Europe.”

Clinton said his allies could learn from the US experience of growing its economy, cutting spending and reducing unemployment to its lowest rate in 24 years.

“Every single country can have the same impact but you have to be willing to break through those old myths and old ideas,” he said.

A steady parade of Limousines rushed in and out of Denver international airport beginning on Thursday, whisking presidents and prime ministers into town.

Clinton was first to arrive followed by Japanese Prime Minister Ryutaro Hashimoto.

The two leaders later met alone in talks that were complicated by Japan’s soaring trade surplus. America’s deficit with Japan skyrocketed 5.1 per cent in April to 4.8 billion dollars.

Clinton announced a trade breakthrough reached overnight Thursday that will allow the United States to monitor Japanese deregulation efforts in high-tech industries.

Hashimoto said, “We have no intention of being supervised,” but added, “We are friends so we are ready to discuss matters with the United States.”

Also arriving Thursday were Yeltsin, German chancellor Helmut Kohl, Canadian Prime minister Jean Chretien and Italian Prime Minister Romano Prodi. French President Jacques Chirac and British Prime Minister Tony Blair were due today.

Russia was invited to participate in the 23rd annual summit of leading industrialized nations as a reward for adhering to difficult economic and political reforms, and Yeltsin’s grudging acceptance of NATO expansion.

Yeltsin was unabashedly excited with the breakthrough.

“I want very much for it to be written: Denver conclusively agrees that the G-7 is transformed into a G-8,” he told reporters in Moscow before departing for the summit. Pounding a table for emphasis, he added, “In the future, a G-8 will assemble.”

Russia’s integration poses a challenge.

“If the current attempt at Russian democracy fails, the alternative is going to be an autocratic reign,” German Chancellor Kohl said in Chicago, on his way to the summit. “May be not a relapse of communism,” he said, but a government with emphasis on the military.

Kohl endorsed Yeltsin’s participation, saying “the summit was now the G-8.”