Details Emerge of Economic Cooperation Pact Signed By Eight Soviet Republics
MOSCOW — HIGHLIGHTS of the economic cooperation agreement signed by eight Soviet republics last week follow:Basic principles: The member republics will coordinate activity for the three-year life of the treaty in the following areas: enterprise, the market of goods and services, transport and energy, monetary and banking systems, taxes, the capital and securities market, labor, customs, and tariffs and foreign economic relations. Enterprise: "Member states recognize that private ownership, free enterprise, and competition form the basis for economic recovery," the treaty says. The market of goods and services: Goods and services will move free of restrictions, including customs duties, within the territory of member republics. The lifting of current price controls "shall follow coordinated policies." Monetary and banking system: The member republics pledge to form a federal reserve-type system that will include the republican banks of member states, as well as a planned "inter-state emission bank." The ruble will remain the common currency. Members can introduce their own currencies, but only if the ruble isn't undermined. Conditions for issuing currencies shall be specified in an agreement between the particular state and the economic community. Member states will also coordinate monetary and credit policies. Foreign Economic Relations: The economic community guarantees the fulfillment of foreign debt commitments of the former Soviet Union. A special agreement must be worked out to determine the share of the foreign debt each member republic will shoulder.