Mayak Radio Network

July 25, 1997

[translation for personal use only]

Russian First Deputy Defense Minister Andrey Kokoshin has given an exclusive interview to our political observer Viktor Levin. Commenting on the role destined for the military-industrial complex in military reform, Andrey Afanasyevich [Kokoshin] said:

[Begin recording] [Kokoshin] The reform of the military- industrial complex is an integral part of the overall military reform. This matter, as indeed the reform of the armed forces, has been neglected for far too long and many problems demand urgent attention. We in the Defense Ministry have tackled many of these problems by adopting the state arms program. This program defines ways of appointing long-term contractors for state defense procurement. But the program is not confined to this. It is essential that we define the policy for the defense industry on a state level. It is obvious for everyone today that the expansion of arms exports is not enough to develop and even to save those branches of industry and research which will be essential for our rearmament in the future, when we have more money. We have to find other solutions. I mean first of all an aggressive export policy regarding high-tech industries, such as aircraft, missile and space industries, and super high-frequency electronics. It

is perfectly possible for us to be competitive in these spheres, and as a result to accumulate funds to renew our equipment and to get further investment. This is the only way to rearm our industry and to reform it in such a way that it enters the 21st century capable of making full use of the research and technical facilities which I hope we will have accumulated by then. This is a most difficult task. The state of most segments of the industry is far from unproblematical.

[Correspondent] What is the main obstacle that should be overcome for our industry to start working again?

[Kokoshin] Well, it is working. Against the unfavorable background, many managers have adapted to new conditions. And even more than that. They have found new avenues for their output and are increasing production levels and fighting for every little corner of the market, both here and abroad. They have learned to bare their teeth in the struggle with foreign competitors, and I am very glad about this. But I believe the most sad thing is that the spark of inspiration has gone out of our industry and there is a lack of national will to carry out a massive industrial expansion. Some time ago, we did carry out a reform of our industry, but what we got was an industry unwanted by the end user. As a result, the national spirit may have been broken down. If we do not act now, then all the massive investments by previous generations will depreciate and we will get a huge national trauma. That is why I believe that this is not a matter just for industrialists, but for society as a whole. It should pay more a

ttention to high-tech industry, civilian mostly, but also to dual-purpose technologies which will permit us to maintain our defence capability.

[Correspondent] Can you be certain that the military reform programs which are being designed will get full funding?

[Kokoshin] I think that our nearest programs will be carried out. And what happens then--it will be up to the state leadership and to the leadership of the Defense Ministry to see that these programs are carried out. But at least the mood that I see now is much more serious and promising than what I used to see before.

[Correspondent] Whose mood do you mean?

[Kokoshin] Everyone's. I can see that the issue of reforming our armed forces and of strengthening our defense capability occupies a much higher place in public awareness than was the case two or three years ago.

[end recording]

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Johnson's Russia List

#1099

30 July 1997

djohnson@cdi.org