--------------F95A780CF0001E124D5117C4 Kohl and Obuchi Back Yeltsin TOKYO -- (Reuters) German Chancellor Helmut Kohl and Japanese Prime Minister Keizo Obuchi agreed on Tuesday to back Russian President Boris Yeltsin's efforts to stabilize his country's tattered economy, a Japanese spokesman said. "Russia needs continued economic reform efforts, and we must support such reform efforts (by Yeltsin)," the Japanese prime minister's spokesman quoted Kohl as telling Obuchi in a 15-minute telephone conversation. Obuchi told Kohl: "I agree. Let us continue to exchange views on Russia." The spokesman said Kohl set up the call with Obuchi two weeks ago. He said the conversation was not connected with a warning by Russia's top debt negotiator, Anatoly Chubais, that government indecision following the sacking of Sergei Kiriyenko as prime minister on Sunday could lead to grave new economic dangers for the country. Yeltsin replaced Kiriyenko with acting Prime Minister Victor Chernomyrdin who is rushing to put together a new government. Chernomyrdin, resurrected from a brief spell in the political wilderness, on Tuesday promised to refocus economic reforms as he sought to win parliamentary approval and form a government. "It's unlikely that we need to remodel completely," he said in an newspaper interview published on Tuesday as he returned to the job he held from 1992 until March this year. "However, we must deal with a lot of things." On Tuesday the Russian ruble suffered its worst fall in nearly four years, dropping 10 percent. Kohl and Obuchi also discussed the financial crisis in Asia, particularly involving Indonesia, and the effect of floods on China. The spokesman said when Kohl asked for Obuchi's assessment of the devastating Chinese floods, the Japanese prime minister replied: "I am worried about the negative impact of the floods on the Chinese economy." Voicing concern over Indonesia, Obuchi said Japan would continue to help Jakarta pull out of its financial crisis. "The Indonesian economy is in a severe condition with rising inflation," Obuch said. Obuchi urged Kohl to extend help to Indonesia. Obuchi, struggling to pull Japan out of its worst recession since World War II, said he accepted that Japan's recovery was necessary to ensure the reconstruction of the Asian economy. Earlier on Tuesday, Obuchi told parliament Japan's basic policies on Russia would not be affected by political uncertainty following Yeltsin's shock dismissal of Kiriyenko. "Japan has no intention of changing the current course of Japanese-Russian relations," Obuchi told the lower house. He did not expect changes in Russian policies toward Japan. Russian political uncertainty stems from "internal causes reflecting the confusion of Russia's economic and financial situations," said Obuchi, who visits Russia in November. But a senior Foreign Ministry official was quoted by Kyodo News Service as saying: "The instability in Russia's domestic political situation is not favorable for negotiations for concluding a peace treaty between Japan and Russia." Tokyo and Moscow are working to solve a World War II territorial dispute over ownership of Russian-held islands off Hokkaido as a way toward concluding a peace treaty by 2000. The disputed islands -- Etorofu, Kunashiri, Shikotan islands and the Habomai group of islets -- were seized by Soviet troops at the end of World War II but are claimed by Japan. Japan and Russia have yet to conclude a peace treaty because of the dispute. -- Gregory Schwartz Dept. of Political Science York University 4700 Keele St. Toronto, Ontario M3J 1P3 Canada Tel: (416) 736-5265 Fax: (416) 736-5686 Web: http://www.yorku.ca/dept/polisci --------------F95A780CF0001E124D5117C4 <HTML> <FONT SIZE=+2>Kohl and Obuchi Back Yeltsin</FONT> <P>TOKYO -- (Reuters) German Chancellor Helmut Kohl and Japanese Prime Minister Keizo Obuchi agreed on Tuesday to back Russian President Boris Yeltsin's efforts to stabilize his country's tattered economy, a Japanese spokesman said. <P>"Russia needs continued economic reform efforts, and we must support such reform efforts (by Yeltsin)," the Japanese prime minister's spokesman quoted Kohl as telling Obuchi in a 15-minute telephone conversation. <P>Obuchi told Kohl: "I agree. Let us continue to exchange views on Russia." <P>The spokesman said Kohl set up the call with Obuchi two weeks ago. <P>He said the conversation was not connected with a warning by Russia's top debt negotiator, Anatoly Chubais, that government indecision following the sacking of Sergei Kiriyenko as prime minister on Sunday could lead to grave new economic dangers for the country. <P>Yeltsin replaced Kiriyenko with acting Prime Minister Victor Chernomyrdin who is rushing to put together a new government. <P>Chernomyrdin, resurrected from a brief spell in the political wilderness, on Tuesday promised to refocus economic reforms as he sought to win parliamentary approval and form a government. <P>"It's unlikely that we need to remodel completely," he said in an newspaper interview published on Tuesday as he returned to the job he held from 1992 until March this year. "However, we must deal with a lot of things." <P>On Tuesday the Russian ruble suffered its worst fall in nearly four years, dropping 10 percent. <P>Kohl and Obuchi also discussed the financial crisis in Asia, particularly involving Indonesia, and the effect of floods on China. <P>The spokesman said when Kohl asked for Obuchi's assessment of the devastating Chinese floods, the Japanese prime minister replied: "I am worried about the negative impact of the floods on the Chinese economy." <P>Voicing concern over Indonesia, Obuchi said Japan would continue to help Jakarta pull out of its financial crisis. <P>"The Indonesian economy is in a severe condition with rising inflation," Obuch said. Obuchi urged Kohl to extend help to Indonesia. <P>Obuchi, struggling to pull Japan out of its worst recession since World War II, said he accepted that Japan's recovery was necessary to ensure the reconstruction of the Asian economy. <P>Earlier on Tuesday, Obuchi told parliament Japan's basic policies on Russia would not be affected by political uncertainty following Yeltsin's shock dismissal of Kiriyenko. <P>"Japan has no intention of changing the current course of Japanese-Russian relations," Obuchi told the lower house. <P>He did not expect changes in Russian policies toward Japan. <P>Russian political uncertainty stems from "internal causes reflecting the confusion of Russia's economic and financial situations," said Obuchi, who visits Russia in November. <P>But a senior Foreign Ministry official was quoted by Kyodo News Service as saying: <P>"The instability in Russia's domestic political situation is not favorable for negotiations for concluding a peace treaty between Japan and Russia." <P>Tokyo and Moscow are working to solve a World War II territorial dispute over ownership of Russian-held islands off Hokkaido as a way toward concluding a peace treaty by 2000. <P>The disputed islands -- Etorofu, Kunashiri, Shikotan islands and the Habomai group of islets -- were seized by Soviet troops at the end of World War II but are claimed by Japan. Japan and Russia have yet to conclude a peace treaty because of the dispute. <P>-- <BR>Gregory Schwartz <BR>Dept. of Political Science <BR>York University <BR>4700 Keele St. <BR>Toronto, Ontario <BR>M3J 1P3 <BR>Canada <P>Tel: (416) 736-5265 <BR>Fax: (416) 736-5686 <BR>Web: <A HREF="http://www.yorku.ca/dept/polisci">http://www.yorku.ca/dept/polisci</A> <BR> </HTML> --------------F95A780CF0001E124D5117C4--
