Missing Links: Nasdrovia, Comrades!

Ray Anthony ~ Theme from Dragnet

Paulson to speak at 10:30 today:

U.S. Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben S. Bernanke proposed moving troubled assets from the balance sheets of American financial companies into a new institution.

Congressional leaders who met with Paulson and Bernanke late yesterday in Washington said they aim to pass legislation soon. The initiative is aimed at removing the devalued mortgage- linked assets at the root of the worst credit crisis since the Great Depression. Today, the Treasury announced a $50 billion program to insure the holdings of money-market mutual funds for a year.

The effort is a recognition that Paulson's and Bernanke's earlier efforts failed to revive financial and housing markets. The government took over American International Group Inc., Fannie Mae and Freddie Mac in the past 12 days, a period when Lehman Brothers Holdings Inc. filed for bankruptcy and Americans pulled a record $89 billion from money-market funds.

SNIP!

Democrats respond to Paulson plan:

Speaking to reporters after congressional leaders met with Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, Dodd said he expected Treasury details "sometime over the weekend" and that "based on a bicameral bipartisan basis we will react to it."

But Dodd added that it also could take the Fed and Treasury slightly longer to provide Congress with details and noted his committee is holding a hearing on Tuesday, with the new proposal likely being the main topic.

Dodd added: "I have no idea what it will look like at this point. I can't tell you numbers, volume. This is a very serious moment."

Asked whether he approved of the direction Paulson and Bernanke appeared to be headed with their plan, Dodd offered no specifics. But he said: "You've got to deal with the housing foreclosure issue. I've said that for two straight years on an hourly basis. I think there's finally some recognition of that."

Obama supports US economic recovery efforts
NATURALLY!

FLASHBACK: Monday, Apr. 24, 1972:
Moscow Wants a Deal

AS U.S. Agriculture Secretary Earl Butz left Moscow last week after an unprecedented 90-minute talk with Soviet Party Leader Leonid Brezhnev, he characterized the conversation as "warm, frank and friendly." For once those diplomatic clichés seemed apt. With President Nixon's visit scarcely a month away, Brezhnev, who never before has talked so long with an American official, was making a major gesture of cordiality toward the U.S. He also was emphasizing Moscow's desire for a big increase in trade with the U.S.—a desire that Washington shares.

Butz later predicted that the Soviets might buy as much as $200 million worth of American wheat and feed grains every year for the next decade. That puffy prediction was bound to please American farmers—but how would the Russians raise the money? Butz suggested to Brezhnev that the Soviet Union might consider paying for the grains by exporting its surplus of Siberian natural gas to the U.S. It was, of course, too early to agree on a deal that would cost at least $5 billion for plants, pipelines and ships, with most of the cost borne by the Russians. Nonetheless, Butz left behind a team of experts who are negotiating the terms of a big grain deal, which may be signed, along with an agreement limiting anti-ballistic missiles, during Nixon's visit beginning May 22.

Buying Spree. The U.S. needs to catch up with other non-Communist nations, which find the Soviet Union an expanding and often profitable market. Hoping to modernize outmoded industries, the Russians have bought scores of modern plants and equipment abroad: synthetic-fiber factories from Britain, chemical factories from Japan, and $250 million in equipment from Italy's Fiat for an auto plant, which is now turning out nearly 1,000 cars a day. West Germany last year sold $460 million worth of goods to the Soviets, followed by Japan ($375 million) and Italy and France (each nearly $300 million). But U.S. exports to Russia were only $160 million.

This could be greatly increased because Russian experts profess a preference for U.S. technology, and they are fascinated by the prospect of dealing with powerful American corporations. Moscow is especially keen to buy U.S. oil-drilling and refining processes, chemical plants, automated machine tools, food-packing equipment, and road-building machinery. The Kremlin would like—and will probably get—help from American firms in setting up the long-delayed Kama heavy truck factory. Pittsburgh's Swindell-Dressier Co. has won a $10 million contract for designing the arc furnaces for the plant.

There is progress on some other fronts. Collins Radio has landed a contract to install navigation and communication equipment on every Russian Yak-40 jetliner that is sold in non-Communist countries; the deal is worth $150,000 a plane. Joy Manufacturing Co. has sold several million dollars worth of the latest automated mining equipment. ITT will send a team to Moscow this month to discuss what it might do for the Soviets' underdeveloped communication systems. The Brunswick Corp. is even equipping a 24-lane bowling alley in Moscow.

One big obstacle to trade is that the Russians have had little to market in the U.S.—only $56 million worth last year. Unfortunately their manufactured goods are generally shoddy and not in much demand, even in the East bloc. But Moscow would like to sell jetliners (including the supersonic Tu-144), wristwatches, cameras, pharmaceutical supplies, medical instruments—and the natural gas that Butz bubbled about. Soviet experts have conferred with men from Tenneco and Texas Eastern Transmission about shipping Siberian gas to the U.S. It could be pipelined to Murmansk, liquefied and shipped to the U.S. East Coast in special tankers.

First, however, fundamental issues between the two nations must be resolved. Many of them are hangovers from cold war days when the U.S. believed that trade could aid Communist war-making potential. But the Communists developed a tremendous potential anyhow, and most diplomats now argue that greater trade may help ease political tensions. Among the issues:

LEND-LEASE DEBTS. The Soviets have yet to pay back the first kopeck on the U.S.'s $10.8 billion lend-lease aid provided during World War II. The real issue centers around payment for "civilian" goods, which accounted for one-quarter of the total. The Russians must at least partly clear up this default before Nixon can offer them Government-backed U.S. Export-Import Bank loans. The lend-lease talks were broken off in 1960 but, at Soviet request, talks have just been resumed in Washington. The U.S. has offered to settle for $800 million, but it wants hard Western currency. The Russians are willing to make a payment of $300 million and want it to be in rubles or raw materials. Prospects for a compromise soon seem good.

CREDIT TERMS. On the grain deals, the Soviets seek ten-year credits at an interest rate of 2 or 3% v. the prevailing average U.S. rate of 6%. The Russians are unlikely to get specially low interest rates, but Butz hinted that if they offer to make really big purchases in the U.S., Washington might devise a combination Government-private credit for five to seven years.

M.F.N. STATUS. The Soviets are eager to get back the "most favored nation" trading status with the U.S., which they lost in the cold war. M.F.N. status would cut the tariffs by 50% or more on some Soviet exports. So far the U.S. has granted M.F.N. standing to only two Communist countries, Poland and Yugoslavia. Washington would be wise to extend M.F.N. treatment to all of Eastern Europe, including the Soviet Union, to tear down trade barriers.

Above all, the U.S. must get rid of its old concept that trade is a cold war weapon. It makes no sense to continue to forbid U.S. companies to sell computers and other sophisticated equipment to the Communist countries when the Communists can buy the same sort of equipment through other Western sources. Similarly, it is self-defeating for U.S. businessmen to be forced to fill out reams of questionnaires and licensing applications for trade with Russia when such delays result in lost sales. Minnesota Mining and Manufacturing was a recent victim of U.S. bureaucracy. Though it developed magnetic tape, it lost a substantial sale to the Russians because its export license remained mired for so long in Washington offices that the Soviets took their business to 3M's imitators in Western Europe.

Leningrad ~ Leningrad Cowboys

TODAY:
Morgan Stanley is in talks with a number of potential partners led by US regional bank Wachovia and Chinese sovereign wealth fund China Investment Corporation (CIC)

2007: Chevron to Partner with CNPC on Major Gas Project in China

SEPTEMBER 4 2008: China's CNPC signs $3-billion deal to develop Iraqi oil field

CNPC and Gazprom entered into a strategic partnership in October 2004

2007:

The “new seven sisters,” or the most influential energy companies from countries outside the Organization for Economic Cooperation and Development, have been identified by the Financial Times in consultation with numerous industry executives. They are Saudi Aramco, Russia’s Gazprom, CNPC of China, NIOC of Iran, Venezuela’s PDVSA, Brazil’s Petrobras and Petronas of Malaysia.

SEPTEMBER 2008: China link guarantees Russia oil exports

Konecranes Climbs Most in 12 Years on Goldman Upgrade:

Sept. 19 (Bloomberg) -- Konecranes Oyj, which makes one tenth of the world's cranes, rose the most in 12 years in Helsinki trading after Goldman Sachs Group Inc. upgraded it to ``buy'' from ``neutral.''

SEPTEMBER 2 2008:

Mr Tuomas Saastamoinen sales and marketing director, port cranes at Konecranes said that "The Russian market is one of the world's fastest-growing markets. This order and previous orders from St Petersburg and Baltic ports over recent months confirms our leading position in the area."

"CRANES" magazine, 2002: Russian Revival!

MAY 2008:

Russian Prime Minister Vladimir Putin called on his government to speed up plans for a high-tech national champion specialising in building the vessels and rigs Russia needs to tap its offshore energy deposits.

MAY 2008:

Ukrainian Prime Minister Yulia Tymoshenko accused US natural gas and oil firm Vanco Energy International of secretly planning to sell sensitive Black Sea gas drilling rights to Russian gas monopoly Gazprom.

TWO VANCO - RELATED COMPANIES:

CHEVRON
HALIBURTON


MAY 2008: U.S. criticises Ukraine over Vanco energy deal

JUNE 2008:

The continuing Ukrainian-Russian war of words took on a new twist on June 13, when the Russian Foreign Ministry accused Ukraine of acting jointly with unnamed foreign companies to develop oil and gas fields illegally off the Crimean coast of the Black Sea shelf, claiming that the legal status of the territory had not yet been determined (Interfax, June 13).

"The Russian side,” according to a commentary distributed by the Russian Foreign Ministry on June 13, “is drawing attention to the fact that the said areas are the subject of negotiations between Russia and Ukraine on the delimitation of the continental shelf and the exclusive economic zone in the Black Sea waters. In this connection, we believe that the above-mentioned activity is of an unlawful character and should be ceased" (Interfax, June 13).

The Russian side specified that this activity was taking place in an area named the Structure of Subbotyne and the Rising of Pallas. A source in the Ukrainian Foreign Ministry told Interfax that the Russian claims were “absurd.” "The Subbotyne maritime oil field is located on the territory of the Ukrainian part of the Black Sea shelf, and the prospecting area of Pallas, which is really located both in Russian and Ukrainian territories, is not being developed by anybody," the source told Interfax.

The off-shore drilling conflict appeared to be connected to the dispute between the U.S. energy company Vanco and the Ukrainian government, which lifted Vanco’s license to drill for oil and gas in the Black Sea shelf in the vicinity of the territory being disputed by Russia.

The government of Prime Minister Yulia Tymoshenko claimed that Vanco had broken the Production Sharing Agreement (PSA) by assigning the drilling license it held to an off-shore subsidiary company registered in the British Virgin Islands called Vanco Prykerchynsky.

Tymoshenko stated that the agreements that were concluded with Vanco in 2007 were not transparent, and she accused President Viktor Yushchenko of lobbying for Vanco’s interests. Yushchenko flatly denied the accusation and called on Tymoshenko to review her decision on Vanco. Meanwhile, Vanco has threatened to sue the Ukrainian government (EDM, May 21).

Remember that Russia very quietly and quite effectively took over the Ukraine just the other day.....

...And threatened Poland via the EU, who like hot water and heat:

Europe's competition chief promised on Tuesday she would give urgent consideration to whether new Polish plans to rescue its historic Baltic shipyards meet European Union state aid rules. If Brussels rejects the plans, three Polish shipyards -- including the Gdansk yard where the pro-democracy Solidarity movement was born -- will have to repay aid totalling more than 2.3 billion euros ($3.22 billion), forcing them into bankruptcy.

Soviet Fashion Show
Wendy's Commercial - Early 1980's