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From: rung@ihuxw.UUCP
Newsgroups: net.politics
Subject: Re: Re: USSR Downs Plane -- What Can We Do? - (nf)
Message-ID: <470@ihuxw.UUCP>
Date: Tue, 6-Sep-83 13:47:43 EDT
Article-I.D.: ihuxw.470
Posted: Tue Sep  6 13:47:43 1983
Date-Received: Thu, 8-Sep-83 06:12:46 EDT
References: <16@tekcad.UUCP>
Organization: BTL Naperville, Il.
Lines: 41

After several days of pondering a US response to this event,
I have come to agree with Frank Adrian on what the ultimate
US response should be (I say ultimate because I don't believe
Reagan played his full hand in lst night's broadcast to the
nation.  I believe (and hope) he's got a better hand of cards).
Having the American government nationalize the debts from
the banks and then forcing them into default would create
a crisis for the Soviet block.  In addition to this, freezing
all future credit to Soviet block contries indefinately would
cripple them.  let's face it, without western loans, the
Soviet block governments would then have to survive on their
own economies and we know they would have serious challenges
doing this.  What would be even more favorable is for the
world community banks in Switzerland, West Germany, etc. to
also follow similar pursuit.

Even if the banks would nationalize the accounts, they surely
could at the minimum freeze any future credit to any Soviet
block country.  Just think, with no working capitial from the
Soviets (previously borrowed from the wester world), Poland,
Cuba, Syria, Afganistan, etc., would be forced to survive on
their own productivity instead of counting on the old Russian bear
for support. (Maybe then they'd have to learn about something
called free enterprises to continue to exist!)

It seems to me that Reagan must have enough clout on the
national level to talk the Rockerfellers and Chase Manhattens
into this type of a sanction.  And if the world leaders in the
banking industry lead with such an example, will the rest of the
world banking community follow?  I don't know. But let's face it,
grain embargos, technology cutoffs, landing restrictions in past
have not impacting the Soviet Union enough to make any difference.
If the US intends to make any dramatic impact, it has to respond
with a dramatic plan of action.  Reagan may have only played
his first hand, but he can't wait too long to complete play if
he intends to win the game(philisophically speaking).

				Pete Rung
				ihuxw!rung
				BTL, Naperville, Ill.