Rice Worried by Putin's Broad Powers

Rice Criticizes Putin's Concentration of Power, Says It Interferes With Move to Democracy

ABC News reports:


The Russian government under Vladimir Putin has amassed so much central authority that the power-grab may undermine Moscow's commitment to democracy, Secretary of State Condoleezza Rice said Saturday.

"In any country, if you don't have countervailing institutions, the power of any one president is problematic for democratic development," Rice told reporters after meeting with human-rights activists.

"I think there is too much concentration of power in the Kremlin. I have told the Russians that. Everybody has doubts about the full independence of the judiciary. There are clearly questions about the independence of the electronic media and there are, I think, questions about the strength of the Duma," said Rice, referring to the Russian parliament.

Telephone messages left with Kremlin spokesman Dmitry Peskov were not immediately returned Saturday evening.

The top American diplomat encouraged the activists to build institutions of democracy. These would help combat arbitrary state power amid increasing pressure from the Kremlin, she said.

The U.S. is concerned about the centralization of power and democratic backsliding ahead of Russia's legislative and presidential elections in December and March. Putin will step down next year as president. He has said he would lead the ticket of the main pro-Kremlin party in the parliamentary elections and could take the prime minister's job later.

Rice sought opinions and assessments of the situation from eight prominent rights leaders.

"I talked to people about the coming months and how they see the coming months. How these two elections are carried out will have an effect on whether Russia is making the next step on toward democracy," Rice said after the private sessions at Spaso House, the residence of the U.S. ambassador in Moscow.

Rice and Defense Secretary Robert Gates on Friday received a chilly reception from Putin and senior Russian officials on U.S. proposals for cooperating on a missile defense system in Eastern Europe that Russia vehemently opposes.

But as she has in the past, Rice declined comment on Putin's possible political future and said she did not raise the matter in her official discussions.

Although she would not speculate about Putin's ambitions, Rice said there were signs that whatever transition occurs could be smooth.

"To the degree that anyone can predict, it looks like it will be fairly stable," she said. "But, I would just caution that change is change."

Earlier, Rice said she hoped the efforts of rights activists would promote universal values of "the rights of individuals to liberty and freedom, the right to worship as you please, and the right to assembly, the right to not have to deal with the arbitrary power of the state."

In the meeting with business, media and civil society leaders, Rice said she was "especially interested in talking about how you view (the) political evolution of Russia, the economic evolution of Russia."

"Russia is a country that's in transition and that transition is not easy and there are a lot of complications and a lot of challenges," Rice said. "If Russia is to emerge as a democratic country that can fully protect the rights of its people, it is going to emerge over years and you have to be a part of helping the emergence of that Russia."

Participants in the meetings said they outlined their concerns but that she did not offer any judgments about the state of human rights and democracy under Putin.

Lyudmila Alexeyeva of the Moscow Helsinki Group told the Interfax news agency her organization sees "the purposeful construction of an authoritarian society and an onslaught on the people's rights, elections are being turned into farce, and human rights and opposition organizations are experiencing pressure."

Alexander Brod, head of the Moscow Human Rights Bureau, said the discussions touched on "authoritarianism and the crisis of human rights." He said he disagreed with "the opinion that we had a flourishing democracy in the 1990s and that we have a setback now."

"Not all is ideal in America, either. We see protests against the war in Iraq and violations of human rights on the part of security services and violations of human rights in countering terrorism," Brod said.

Vladimir Lukin, the government-appointed human rights ombudsman, was quoted by Interfax as saying he told Rice that human rights should be discussed in a dialogue rather lecturing in a "doomsday" style.

The State Department frequently has criticized what Washington regards as creeping authoritarianism among Putin and other top Russian leaders.

Its most recent human-rights report on Russia notes continuing centralization of power in the Kremlin, a compliant legislature, political pressure on the judiciary, intolerance of ethnic minorities, corruption and selectivity in enforcement of the law, and media restrictions and self-censorship.

Rice and Gates later met with Prime Minister Viktor Zubkov for talks on trade and economic relations, including negotiations for Russia's accession to the World Trade Organization.

Moscow and Washington signed a trade agreement last November that removed the last major obstacle in Moscow's 13-year journey to join the 149-member group. Moscow must still conclude other outstanding bilateral deals and assuage the European Union's concerns about energy supplies.

The Russian government press service said Zubkov also pressed the Americans to work to abolish the Jackson-Vanik amendment. The 1974 measure ties Russia's trade status to whether it freely allows Jewish emigration.

A New Old Faberge Egg

The Associated Press reports:

A previously unrecorded Faberge egg valued at up to $18 million is going up for sale next month, Christie's auction house said Thursday.

The pink enamel-and-gold egg is one of only a dozen designed to the highest standards for clients other than Russia's ruling family. It has been in the Rothschild banking family since 1902, when it was given as an engagement present.

The egg contains a diamond-set cockerel which pops up every hour and flaps its wings, nods its head and opens and closes its beak.

It will go on sale Nov. 28 at Christie's in London, where it is expected to fetch $12 million to $18 million. If it reaches the top price, it will break the existing record for a Russian artwork, the US$9.6 million paid for a Faberge egg in New York in April 2002.

"The discovery of this masterpiece is the most exciting of my 40-year career," said Anthony Philips, International Director of Silver and Russian Works of Art at Christie's. "Although few examples exist, The Faberge egg is known around the world as one of the most impressive and exclusive works of art ever made."

Craftsmen Peter Carl Faberge created more than 50 of the eggs for Russia's imperial family, though not all survive. Czar Alexander III commissioned the first as an anniversary present for his wife, Empress Maria Fedorovna, on Easter Day 1885. The Empress was so enamored of the enameled egg, with a golden yoke, golden hen, miniature diamond crown and ruby egg inside, that the czar ordered that a unique egg be made for her every Easter Day after.

After the Czar died unexpectedly in 1894, his son Nicholas continued the tradition until the Russian Revolution in 1917. Nicholas and his family were executed on July 17, 1918.

After the revolution, the communist government sold off many of Faberge's creations, which found their way into Western collections.

The Rothschild egg was presented as an engagement gift to Edouard de Rothschild and Germaine Halphen, who married in 1905, by Edouard's sister Beatrice Ephrussi.

CIA Hunts Iraq Tie to Soviet Smallpox

For the NYTimes, Judith Miller writes:

The C.I.A. is investigating an informant's accusation that Iraq obtained a particularly virulent strain of smallpox from a Russian scientist who worked in a smallpox lab in Moscow during Soviet times, senior American officials and foreign scientists say.

The officials said several American scientists were told in August that Iraq might have obtained the mysterious strain from Nelja N. Maltseva, a virologist who worked for more than 30 years at the Research Institute for Viral Preparations in Moscow before her death two years ago.

The information came to the American government from an informant whose identity has not been disclosed. The C.I.A. considered the information reliable enough that President Bush was briefed about its implications. The attempt to verify the information is continuing.

Dr. Maltseva is known to have visited Iraq on several occasions. Intelligence officials are trying to determine whether, as the informant told them, she traveled there as recently as 1990, officials said. The institute where she worked housed what Russia said was its entire national collection of 120 strains of smallpox, and some experts fear that she may have provided the Iraqis with a version that could be resistant to vaccines and could be more easily transmitted as a biological weapon.

The possibility that Iraq possesses this strain is one of several factors that has complicated Mr. Bush's decision, expected this week, about how many Americans should be vaccinated against smallpox, a disease that was officially eradicated in 1980.

The White House is expected to announce that despite the risk of vaccine-induced illness and death, it will authorize vaccinating those most at risk in the event of a smallpox outbreak — 500,000 members of the military who could be assigned to the Middle East for a war with Iraq and 500,000 civilian medical workers.

More broadly, the Russian government's refusal to share smallpox and other lethal germ strains for study by the United States, or to answer questions about the fate of such strains, has reinforced American concerns about whether Russia has abandoned what was once the world's most ambitious covert germ weapons program.

A year ago in Crawford, Tex., Mr. Bush and Russia's president, Vladimir V. Putin, issued a statement vowing to enhance cooperation against biological terrorism. But after an initial round of visits and a flurry of optimism, American officials said Russia had resisted repeated American requests for information about the Russian smallpox strains and help in the investigation into the anthrax attacks in the United States in October 2001.

"There is information we would like the Russians to share as a partner of ours," William Winkenwerder Jr., assistant secretary of defense for health affairs, said in an interview. "Because if there are strains that present a unique problem with respect to vaccines and treatment, it is in the interests of all freedom-loving people to have as much information as possible."

Cooperation on biological terrorism was not discussed at the meeting last week between Mr. Bush and Mr. Putin in St. Petersburg, American officials said, mainly because administration officials are not certain just how willing Mr. Putin is to enhance cooperation in this delicate area. They wonder if he is not doing more because of the military's hostility to sharing the information.

"The record so far suggests he is either unable or unwilling to push the military on this front," an administration official said. "We think it may be a little of both, but we're not really sure at this point or what to do about it."

Administration officials said the C.I.A. was still trying to determine whether Dr. Maltseva traveled to Iraq in 1990, and whether she shared a sample of what might be a particularly virulent smallpox strain with Iraqi scientists.

World Health Organization records in Geneva and interviews with scientists who worked with her confirmed that Dr. Maltseva visited Iraq at least twice, in 1972 and 1973, as part of the global campaign to eradicate smallpox.

Formerly secret Soviet records also show that in 1971, she was part of a covert mission to Aralsk, a port city in what was then the Soviet republic of Kazakhstan, north of the Aral Sea, to help stop an epidemic of smallpox. The Soviet Union did not report that outbreak to world health officials, as required by regulations.

Last June, experts from the Monterey Institute of International Studies, drawing on those Kazakh records and interviews with survivors, published a report saying the epidemic was a result of open-air tests of a particularly virulent smallpox strain on Vozrozhdeniye Island in the Aral Sea.

The island, known as Renaissance Island in English, is between Kazakhstan and another Central Asian country, Uzbekistan. The United States recently spent $6 million to help both countries, which are now independent, to decontaminate anthrax that the Soviet military buried in pits on the island.

Alan P. Zelicoff, co-author of the Monterey report and a scientist at Sandia National Laboratories, said the Aralsk outbreak was a watershed because it demonstrated that the smallpox virus was more easily spread than previously thought and that there may be a vaccine-resistant strain.

The organism can indeed be made to travel long distances, city-size perhaps, and there may be a vaccine-resistant strain or one that is more communicable than garden-variety smallpox, he said in an interview.

The Monterey report led American officials to question whether America's smallpox vaccine would be effective against the Aralsk strain or whether new vaccines or drugs might be needed if the strain was used in an attack. American concern increased in recent months after the White House was told that Dr. Maltseva might have shared the Aralsk strain with Iraqi scientists in 1990, administration officials said.

David Kelly, a former United Nations weapons inspector in Iraq, said there was a "resurgence of interest" in smallpox vaccine in Iraq in 1990, "but we have never known why."

A spokesman for the Russian Research Institute for Viral Preparations declined to comment on Dr. Maltseva or her work. Her daughter, a physician in Moscow, said she had no recollection of her mother's ever going to Iraq.

Svetlana Sergeyevna Marennikova, Dr. Maltseva's deputy in the Moscow laboratory, said in an interview that Dr. Maltseva had never gone to Iraq as far as she knew.

"She worked, and then when she got sick, she took a sick leave when she was no longer able to work," she said. "I don't know about Iraq. I didn't know about a trip there. I don't think she was there. I would know."

Donald A. Henderson, a senior adviser to the Department of Health and Human Services and a leader of the smallpox eradication campaign, described Dr. Maltseva as an "outgoing, hard-working scientist." He said she had traveled widely for the W.H.O in the eradication campaign.

While the organization's records show that she visited Iran, Iraq and Syria, Dr. Henderson recalled that he had also sent her to Pakistan to follow up on an outbreak there. "She clearly enjoyed the international travel circuit," he said.

Scientists and American officials have speculated that Iraq may have tried to buy the Aralsk strain from Dr. Maltseva, whose institute, like so many other scientific labs in Russia, has fallen on hard times since the Soviet Union's collapse.

Dr. Henderson said he was deeply disappointed that Dr. Maltseva and other Russian scientists with whom he had worked closely had helped cover up outbreaks of infectious diseases that should have been reported to the W.H.O.

The Russian government has never publicly acknowledged that Aralsk outbreak or that it tested smallpox in the open air. At a World Health Organization meeting in Lyon, France, last August, officials said, Russian virologists argued privately, in response to the Monterey report and news accounts, that there was no reason to believe that the Aralsk incident was anything other than a natural outbreak and that the strain was not particularly virulent — assertions with which some American experts concur.

American officials familiar with discussions about Aralsk said Russians scientists had confirmed that Dr. Maltseva took tissue samples from Aralsk back to her Moscow lab in 1971. But Russians have insisted that the material was destroyed when Russia quietly moved its smallpox strain collection from the Moscow lab to Vector, where the collection is now stored.

Many American scientists and officials, even those who doubt that the Aralsk strain is unusually potent, are deeply skeptical that the strain was destroyed. Former Soviet germ warfare scientists have privately told American officials that the military took control of these strains when the collection was moved.

American health and defense officials have tried without success to press Russia for help in securing a sample of the strain from the Aralsk smallpox outbreak.

The American officials have also been unable to obtain information that they believe could help federal investigators with their stalled inquiry into the anthrax attacks of October 2001, in which 5 people died and at least 17 were infected

Cheney's Halliburton Won $3.8 Billion In Contracts From Government

The Guardian reports:

The oil services company once headed by United States Vice-President Dick Cheney reaped massive rewards in government contracts and bank loans after he took its helm, including one deal with a Russian firm under investigation for mafia connections.

This was disclosed as President George Bush renewed his efforts to stabilise stock markets and distance himself from the wave of accounting scandals afflicting corporate America. Yesterday, Bush urged Congress to punish corporate abuses.

From 1995 to 2000 Cheney was chief executive and chairman of Halliburton, the Dallas-based company that provides products and services to the oil and energy industries, employing 100,000 people worldwide.

Its share value has fallen by two-thirds because of lawsuits over asbestos poisoning and an investigation of accounting changes introduced under Cheney.

Most of Halliburton's government contracts were won by its construction subsidiary, Kellogg, Brown and Root - a company with British origins that was sold to the US parent in the 1970s.

Documents uncovered by a Washington researcher, Knut Royce - formerly with the Centre for Public Integrity - and by The Observer show that government banks loaned or insured loans worth $1.5 billion during the five years that Cheney was chief executive, compared with only $100 million during the previous five years.

The company under Cheney benefited from $3.8bn in government contracts or insured loans. Although Bill Clinton was in the White House, Capitol Hill - where the Appropriations Committee handles government contracts - was controlled by Cheney's Republican Party, to which Halliburton doubled its contributions to $1,212,000 after his arrival.

The most eye-catching contract was for the refurbishment of a Siberian oilfield, Samotlor, for the Tyumen oil company of Russia. The company was loaned $489m in credits by the US Export-Import Bank after lobbying by Halliburton; it was in return to receive $292m for the refurbishments.

The White House and State Department tried to veto the Russian deal. But after intense lobbying by Halliburton the objections were overruled on Capitol Hill. One of Halliburton's top lobbyists was David Gribben, who had been Cheney's chief of staff at the Pentagon.

The State Department's concerns were based on the fact that Tyumen was controlled by a holding conglomerate, the Alfa Group, that had been investigated in Russia for mafia connections.

Alfa strongly denies that it has ever had any criminal connection, describing the allegations as 'nonsense'.

Cheney was highly valued by Halliburton because of connections made in the Arab oil-producing states while Defence Secretary during the war against Iraq under George Bush Snr.

Halliburton denies that Cheney used his position or contacts to win government business. A spokeswoman said: 'Any innuendo that Halliburton or Dick Cheney has acted improperly is false.'

The company's fortunes have flourished during the 'war on terrorism'. It has landed contracts to build the cells for al-Qaeda detainees at Guantanamo Bay.

A Securities and Exchange Commission investigation is under way into accounting changes introduced by Halliburton in 1998, when it inflated its revenue figures by including uncollected debts.