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This report outlines the problems faced by Saratov Aviation Plant (SAP) in its efforts to create an employee-owned joint-stock company in present-day Russia. Many of these problems are technical in nature and are consequences of the underdeveloped legal regime. Perhaps more troubling in the long run are the difficulties of the SAP managers and workers in understanding this new ownership form and their tendency to view it as somehow threatening to them. Complicating the situation further is the persistence of the problems of the old command-administrative system, such as the absence of a stable supply network, an aging capital stock, and a high level of labor turnover.

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CISAC
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In August 1991, the people of Moscow and Leningrad demonstrated to the world that democracy is an idea whose time had come for the Soviet Union. As a result, the Soviet
government received a mandate for political reform. This reform, if successful, will result in a political system that will be very different from any that the people in the Soviet Union have ever known-a government of the people, by the people, and for the people.

Hand in hand with political reform, the Union and its republics will be attempting sweeping economic reforms. While recognizing how difficult it will be for the Soviet Union to achieve economic reform, it is also important to observe that it is at least conceivable now. A critically important component of economic reform in the Soviet Union is the conversion of their defense industry from a centrally managed monolith to a collection of independent, privately owned enterprises, producing civil products.

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CISAC
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William J. Perry
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Operational arms control can take many forms, and one of the most important is direct military-to-military talks. The 1989 Dangerous Military Activities agreement, in which military officers headed negotiations for the first time, should not be considered the final step in improving U.S.-Soviet military-to-military relations.  It should be seen instead as a major step forward toward a much deeper and wider network of discussions and agreements which reduce the likelihood of misunderstandings and potential incidents between the militaries of the two states.

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Scott D. Sagan
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This conference report contains papers presented September 14-16, 1990, at a symposium at Stanford University, sponsored by the Institute of Far Eastern Studies (IFES) of the Soviet Academy of Sciences and the Center for International Security and Arms Control (CISAC).

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After eight years of marathon negotiations, the United States and the Soviet Union are finally close to concluding a strategic-arms-reduction treaty (START). At the 1990 Washington summit, U.S. president George Bush and Soviet president Mikhail Gorbachev signed a communique concerning the reduction of strategic nuclear arms. Although the agreement is not the long-awaited START, the two presidents reaffirmed their determination to have the treaty completed and ready for signature by the end of 1990. The marked progress toward nuclear disarmament by the two superpowers has once again caused vast repercussions. While hailing progress, many people show more concern for the implications of the treaty for the future of arms control.

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