Canadian businesses to ignore Cuba blockade
The Canadian government has stepped up measures to prevent Washington from interfering in its trade with Cuba. On January 18, Canadian foreign minister Andre Ouellet ordered Canadian firms, including US subsidiaries in Canada, to ignore Washington's ban on trade with Cuba and to inform Canadian authorities of any US efforts to impede Canadian business ties with the island. At the same time, Canadian justice minister Alan Rock announced the imposition of fines and prison sentences for any managers or executives of firms in Canada that abide by US trade sanctions against Cuba. At least 40 Canadian firms have offices in Havana, while 17 have formed joint ventures with Cuban firms.[From Radio Havana.]
US-Lithuanian military cooperation
Lithuanian national defence deputy minister Valdas Serapinas said on January 15 that the Pentagon increased the aid it is giving to the Lithuanian armed forces from $200,000 in 1995 to $350,000 this year. Two joint Lithuanian-American war exercises, part of the Partnership for Peace program, will be held on Lithuanian territory with Danish and Polish troops.[From Open Media Research Institute, January 16.]
Atomic energy stations to close?
Officials from Ukraine's State Atomic Energy Committee have said that despite a 2.5% increase in electricity generation last year, the agency responsible for the country's five nuclear power plants is owed 98 trillion karbovantsi ($US54 million) by consumers. The agency has only half the funds needed to purchase enough nuclear fuel from Russia to keep its stations operational, let alone repair the Rivne and Pivdennyi plants and replace outmoded equipment at Ukraine's five atomic energy stations.[From Open Media Research Institute, January 18.]
Ukrainian living standards attacked
The Ukrainian 1996 draft budget projects deep cuts in spending on education, scientific research, and health, including cutting expenditure on education from 10% to 6.5% of GDP, leaving the school system short of funds for teachers' wages and student stipends. The government already owes trillions of karbovantsi in back wages and stipends. The budget would cut social spending by 4% and finance only 31% of the basic needs of Ukraine's public health care system. The government has said the cuts are needed to lower the budget deficit to 6% of GDP. Despite these measures, the release of the fourth tranche of the IMF's stand-by credit to Ukraine has been delayed from January until February-March because the IMF and World Bank have said that Ukraine is not making enough progress in its structural economic reforms or in privatisation.[From Open Media Research Institute, January 19.]