130610 Time - Artikel Veit Dengler

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  • 7/28/2019 130610 Time - Artikel Veit Dengler


    .M. General Secd ecla red , 'Theour demands are

    anChamber claimedand two-thirds ofcontinued to, theleast $2.2 million ano strike funds.And re

    b u d g ~ [n theend .to much the same of-days before: imand holiday pay but15 ' ( to 23.4' ( .

    . employers canare not working: al. the stri kers


    breaking their conismissals in the past,een taken back.have apparentlyinkmanship does notthe past two yearsmike weapon to gains from the mining:: hamber was bent onsalary hikes can bee bargaining table.years . the Chamberck mineworkers hasf1ation ( to an averaget including room andcontended that itslerage of on Iy $170 a) learned that theaid aas Steenkamp.1mber after the finalion has learned that:t limits and stick toW. Nelan/ Johannesburg

    Unsafe SkiesPoland grounds Soviel planesAs t he summer-vacation seasonreached its climax last week. the Polish air-travel system was in disarray . Thereason: the nation 's air carrier. LOT Polish Airlines. had grounded more than halfits fleet ofSoviet-built airpla nes af ter concluding that the planes were not safeenough to fty. lL was a remarkable movefor a member of the Soviet bloc. whosegovernments and official press have longrefused to engage in public discussions ofaircraft safety.The grounding stranded hundreds oftravelers, some of whom were forced tospend an evening on chair s and f100rs in thedepartur e hall at Warsaw's Okecie International Airport. Downtown at the VictoriaIntercontinental hotel. dozens ofpassengersgathered in the hope of exchanging theirtickets on canceled LOT f1ights for seats onPan Am planes out ofWarsaw. Said Katarzyna Tomaszewska. director of Pan Am'sWarsawoffice: " [ hate tosay toall these peopie that there will be no seats tomorrow northe day after tomorrow."Polish authorities took the Sovietplanes out ofservice after conducting testsaf their entire commercial fleet. Tnvestigators had recommended the tests following study of the crash last May of a LOTI1yushin Il -62M shortly after takeoff.which killed all 183 people aboard theew York- bound ftight. Governmentappointed experts traced the accident to adamaged metal bearing in one of (he jet'sfour engines. which, Lhey said, led to thedestruction of the inside left engine duringflight. As that engine disintegrated. hotmeta I shards ripped into the neighboringoutside engine and punched holes in theplane's fuse lage . Th e investigators alsofaul ted the plane's design. parti cularly theplacement of its four engines at the rear ofthe fuselage near critical control lines forthe plane's e levator. The fleet inspectionsled LOT Lo ground five of iLS six longrange lIyushin 11-62Ms. eight of its ninellyushin 11-18 turboprops. and at leasteleven of 26 smaller Tupolev and Antonov planes used for shorter f1ights .P rivately, Polish authorities say theybelieve that Soviet negligence was responsible for the crash . since engine maintenance is conducted in the Soviet Union.There have been no repOrlS on the LOTgrounding in the Soviet press. and Moscow reportedly disputes Poland's conclusion. Poland's underground periodicalKos stated this summer that Soviet officials flew to Warsaw after the crash and"tried to intimidate the Polish side. shouting that all Polish mechanics and pi lotsshould be put on trial." Jn response, saidKos. "all LOT employees threatened tostrike." Another underground publication. Tygodl/ik Mazowsze . has chargedthat LOT routinely had to cannibalize itsplanes when replacement parts wereneeded. since the Soviets failed to shipsufficient spares. Thundered Tygodllik

    TIM E. CPTCMBI::R 7. 1987

    Mazowsze: "There is no doubt thatthe Soviets are responsible for the crash ."The dispute reflects widespread dissatisfaction with Soviet-made aircraftwithin the Warsaw Pact nations. Citinginadequate acc ident-reporting practices.the Montreal-based lnternational AirTransport Asso iation does not compileofficial accident statistics for the Eastbloc. It is known. however. lhat at leastni ne Ilyushin [1-62Ms have crashed since1972, killing 1.097. Western analysts believe that unreported accidents involvingSoviet-built planes number in the dozensand estimate that the rate of plane crashesper passenger mile in the East is roughlytr i pie that ofairli nes in the West. In theirview, subs tandard tec h no logy , agingequipment an d s hoddy mainlenancepraclices are Lo biarne.

    Stranded travelers seek tickets in Warsaw"No seals tOlllorrow or file day after."

    Central to plans for modernizingEasL bloc ai r lines is the long-range Ilyushin Il-96-300, still in the testing stage.Yet they doubt the new Soviet-builtplane. a four-engine craft with seatingcapacity of some 300, will be ready aspromised by 1990. Most East bloc pilolS.moreover , would prefer to fly the morereliable aircraft manufactured in theWest. "Tl would be better , naturally.'said a LOT employee last week , "but inour situation , this is wishful thinking."Nor would the introduction of We ternbuilt craft in itself solve Eastern Europe's air-sa fety problems. Rumania operates Tarom airlines with six Boeing707s and an assortment of eleven Britishplanes. Owing to inadequate maintenence. however. Ta rom s ac cident rate isreportedly more than ten times the average in the West. - By Kenneth M. Pierce.Reported by Veit Dengler/ Vienna and TadeuszKucharski/Warsaw

    TIM E. SEPTEMBER 7. 1987

    Economy ~LongHotIsraelis want aT ension mounted Iweek as tal ks overcontract affecting 451pubLic sec tor ente redtheSoltam munitionsrael. 1,000 workers a lgered by plans for a fatruee company offichours. ln Tel Aviv. Reof lhe Civil Servants"war until the bitter Ithat his members wouto secure better contranance Ministry. whicnegoliations on beha.1Histadrul. Tsrael's labened to remove itselftract talks.a move thaernmenl to bargainseparate unions, repnworkers as telephonevants and airplane mfnot only complicate SIas one trade unionist cthe government a 101 rUnderlying therest is the governmenterity program. whicreducing the annualto its present le'20 C:C. The most volatisummer's round of coer, has been labor'stions in the six-dayworkweek . a mainsta:omy since the a t i o nHistadrut has soworkweek for adeca.sUlprise. therefore , wnance Moshe issimed the Cabinet to badTsrael's 450.000 putwho presently work lSunday through Fri

  • 7/28/2019 130610 Time - Artikel Veit Dengler


    farmers who drove their cattle into citystreets and blocked trafik. In Montreal itself, hundreds of agrodemonstrators rallied near the Palais des Congres, wherethe 90 ministers and 892 other delegateswere assembled.There were glints of hope amid thegloom. Before the meeting officiallyopened, the gathering came to an agreement on a relatively minor aspect of global agricultural policy. Industrial and developing countries, including E. C .members, the US ., Japan, Bram andMexico, agreed to lower tariffs on a wideselection of tropical products worth $25billion to $30 billion a year. Among them:bananas, cocoa, rattan and litchi nuts.While farm-policy debates overshadowed other discussions in Montreal, delegates were able to adopt a framework forfurther negotiations on bolstering freetrade in service industries. Services, including transportation, finance, communications, insurance and tourism, constitutethe most rapidly growing portion of theworld economy- about 30% of all trade-and were valued at $960 billion last year.In most countries they are protected bymultiple layers of nontariff barriers.Ministers remained stymied ,however, on the US .-sponsored subject of protecting intellectual property rights likepatents, copyrights and licenses. Washington estimates that pirating of such goods astape cassettes and computer software costUS. firms alone more than $40 billion ayear. West European companies face similar problems. India, supported by other developing countries, resisted the US. campaign, eager as New Delhi is to restrictprotection for "lifesaving" technology thatis needed in the Third World.Before the review began, fears werevoiced that failure of the UruguayRound might lead to the demise of themultilateral GATT system. that countriesmight in turn negotiate more bilateralor regional pacts with only a few trading partners. Japan is particularly concemed about such agreements. Said aJapanese diplomat: "We are very worried. We are facing a uni ted Europe in1992 and the new US .-Canada freetrade zone. That makes us the odd manout. GATT may be the one way to prevent us from being frozen out."In the end, disappointment in Montreal did not lead to dramatic rupture;no one is quite ready to abandon GATT.Said Bill Martin, chief economist ofPhillips & Drew, a leading London brokerage firm: "There's not great hopethat GATT can achieve much in the wayof further trade liberalization. But GAITis a very important bulwark against galloping protectionism ." An importantbulwark , but an increasingly leakyone.- By Bamara Rudolph. Reported by Gise laBolte/ Montreal andAdam Zagorin/ Bt1Issels


    Keep Your Hands Off, Comrades!Czechoslovakia ignites an East bloc shopping warF r years the Kotva department store inPrague has been something of a meccafor East Europeans seeking much prizedconsumer goods. The store offers five fioorsof products that range from Portuguesesardines to Russian samovars to Chinesecolor-television sets. So many foreignerscrowd Kotva that they have become an inspiration to Czech quipsters. Question:Why do Kotva's managers play the national anthems of other East bloc countries every half-hour? Answer: So Czech customers can get to the salesclerks while theforeigners ar e standing at attention.Now all the joking has come to an end ,and something akin to a trade war is fiaring in the East. While representatives ofthe Council for Mutual Econornic Assistance (Comecon), the bloc 's counterpart ofthe European Cornmunity, were discussingthe first steps toward an integrated marketlast J une in Prague, the Czech govemmentdecreed that most consumer merchandisecould not be exported from the nationalterritory. In a move labeled "market protection," the regime posted lists of some 80embargoed products. Included were mostfoodstuffs , household appliances, buildingmaterials, bicycle and auto parts, diapers,toothpaste and toilet paper. Big-ticketiterns like television sets, veRs and personal computers can henceforth be taken out-side the country only with a license andwill be subject to ,export duties of 100%.

    The protectionist measures were adopted to ensure that Czechs will not find barestore shelves when the Christmas shoppingseason swings into full gear. Strict enforcement caused long lines of stalled traffic atborder crossings and train delays of up tofive hours, as customs inspectors checkedthe luggage ofvirtually every departing for -

    eigner. As the discomfort grew, angrywords began to fiy among bloc countries.Czech consumers were also subject tothe restrictions, refiecting acute shortagesof some vital cornmodities. Under the newlirnitations, shoppers can purchase nomore than two items of most products, suchas toiletries, socks and underwear. A shortage of sanitary napkins triggered protestsby female workers that almost shut downproduction lines at several textile factoriesin northem Bohernia.Czech officials explained that thecrackdown on foreign shop pers was causedby the inadeq uacies of neighboring economies. Thousands of Soviets, East Germansand , in particular, Poles have been crossinginto Czechoslovakia to buy articles that arescarce or unavailable at horne. By contrast,Czech citizens, whose Cornmunist Partyrulers have bestowed almost none ofthe po-liticallibera1ization spread by Mikhail Gorbachev's glasnost policies, live in relativecomfort. Says Daniel Thorniley, a Viennabased expert on Eastem Europe: "Since1968 , the Czech consumer supply has always been very good , in foodstuffs excellent, in order to placate the population andmake up for the political freeze."Within days after Prague posted itsembargo lists, East Germany issued itsown rundown of no-go items. Poland. thecountry most affected by Prague's protectionism, accused the Czechs of "unfair discrirnination" and also imposed export reg-ulations. With austerity looming, Prague'sRude Pnivo, the party daily, injected someunintended hilarity into the situation. "Wehave enough goods," noted an article supporting the government's restrictions. "Justtoo many customers." - By Michaels. Serrill.Reportedby Veit V. Dengter/ Viema

    Kotva department s tore: fro m Portuguese sardines to Chinese television setsPreventing the neighborsjrom stripping the shelveso/Christmas goodies.

    TIME, DECEMBER 19, 1988

  • 7/28/2019 130610 Time - Artikel Veit Dengler


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    Playing by Old RulesIn doing business with the East, barter is the name of he gameBy KENNETHw.BANTALONDON HOW A SWAP M IGHT WORK

    When the Soviet Commission of Agriculture andProcurement agreed withPepsiCo Inc. this monthon a $3 billion deal to seilmore Pepsi-Cola to theSoviet Union, the contractwas seen as evidence ofMoscow's genuine openness to Western investment. But for Western investors rushing toward therapidly liberalizing economies of the Soviet Union

    1 The Polish Canit Co. wants to buy $1 million worth of canning machinery fromWestgoods Inc. Since the zloty is nonconvertible and Can it has little hard currency,it offers to barter tomato paste, pickled vegetables, plastic sandals and some cash .

    and Eastern Europe, the PepsiCo venturealso demonstrated how little has changedin the region's rudimentary patterns of doing business. The largest trade agreementever signed between Moscow and a U.S.company, the accord calls for PepsiCo toincrease its bottling capacity in the SovietUnion from 24 to 50 plants and to opentwo Pizza Hut restaurants in Moscow.Instead o f settling accounts in dollars,however, chronically cash-short Moscowcut an old-fashioned bart er deal. It agreedto trade ten tankers and freighters andhuge shipments of Stolichnaya vodka forPepsiCo's soft drinks and pizza. PepsiCowill dispose of the ships through complexsale and leasing arrangements and will reseil the vodka in the West. Says RedmondDill, an expert on East European trade atLondon's Barclays Bank: "This is theshape of many deals to come. Barter was atthe core of trade with the East in the past,and it will be there in the future."Forward-looking leaders in Moscowand Eastern Europe would like to thinkotherwise, hoping to put trade on a hardcurrency footing and predicting a glowingfuture for joint ventures and other Western investments. But the combination ofunderdeveIoped industries,. a continuingshortfall of foreign exchange and relianceon nonconvertible currencies means thatEast European economies cannot expectto avoid the world's oldest form of commerce in the foreseeable future. Whilemany East-West deals involve cash, in virtually all cases a barter element is the


    linchpin that makes the transactionpossible. Barter business al readyaccounts for more than 20 %...