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Publication: European Stars and Stripes Sunday, September 1, 1991

You are currently viewing page 74 of: European Stars and Stripes Sunday, September 1, 1991

     European Stars and Stripes (Newspaper) - September 1, 1991, Darmstadt, Hesse                                Page 16 the stars and stripes sunday september 1, 1991 Money matter Russia Ukraine pact full of perils but Deal is seen As key to Market Economy by cynt1ua Mitchell Cox news service Atlanta a Russia s got the Oil. The Ukraine has the food. Trade one for the other and Jahcir 199.8 million residents could survive the cruel Winter without starving or freezing to death. If indeed the soviet Union s two most populous most prosperous republics stick to their new a economic and military Alliance Quot that could be merely the most rudimentary Benefit. Peace. Democracy. The emergence of each Independent country As a prosperous self sufficient economic Force with leading roles in the worlds free markets. These could come. That s the Promise. But the perils Are innumerable. The Russia Ukraine pact reached in Kiev on thursday after several hours of tension filled negotiations could crumble Oer centuries old antagonism be tween the two republics As quickly As the recent hard line Putsch. And even if the two republics can put their animosity aside untying the binds of controls and centralization imposed by . Lenin in 1917 will be an enormously Tricky task. A it improves the chances at least in parts of the country for a free Market a said Marshall Goldman associate director of Harvard University a russian research Center. A i guess this is probably the Best we could Hope  moving to a Narket Economy a a is going a to to very disruptive and there will be a lot of difficulty a he added. Unlike the smaller soviet republics Russia and the Ukraine Are relatively More balanced in their mix of industries and agriculture. When the bolsheviks took Over abolishing All private land holding their Basic strategy was to distribute economic activity As evenly As possible. So they granted whole monopolies to each geographic Region ostensibly taking advantage of each republics assets Georgia produced Tea Moldavia grapes for instance. The Ukraine was considered the breadbasket producing the Grain. Together the two republics Are far and away the economic behemoths of the soviet republics boasting hot Only the most people but also the  natural resources the most Industry and the most they have produced 75.2 percent of the soviet unions Gross National product account for 81.2 percent of the natural Gas and 92.1 percent of the crude Oil mine More than three fourths of the Coal and generate More than three fourths of the electricity. International economists and soviet watchers widely View Russia and the Ukraine As the Only two republics capable of going it alone. According to one Federal study the russian Economy would be the fourth largest Economy in the world if its production were converted to dollars and the Ukraine would be the seventh largest. The most optimistic View of what could ultimately transpire comes from ukrainian business digest a monthly newsletter launched by Richard h. Shriver assistant Secretary of Quot defense under president Gerald Ford and assistant Secretary of the Treasury in president Ronald Reagan a first term. A a it will work. It will be an economic Miracle a said Shriver. His associate publisher is ukrainian and gathers news via a network of stringers scattered across the  can order Burger while filling tank Chicago apr you can order your Burger while you fill your tank and pay one Bill at a combined Gas station and fast food restaurant that brings new meaning to the term gastronomy. Amoco corp. Of Chicago and Burger King corp. Of Miami teamed up to open the $1.5 million Complex on a Busy Corner in suburban Westchester last week just in Lime to see How the idea plays with labor Day travellers. Fast food restaurants and gasoline companies that offer Side by Side service at Highway exits Are not uncommon but Amoco and Burger King say this is the first operation where motorists can pump Gas while ordering food. As customers fill their tanks at one of four self service islands they can order their whopper and Fries by intercom from a menu posted above the pumps. A recorded message tells customers How to order and hypes the food. Customers can pay for their gasoline and food orders inside the restaurant. Prices were about the same As those in other fast food restaurants. Amoco s marketing department has been working on the idea for several years and approached Burger King said Howard Miller an area adviser for Amoco. A this is really the Pilot station Quot Miller said. A if there seems to be a lot of consumer interest in the idea in a sure there will be some More somewhere Down the  Burger King built and runs the restaurant and Amoco paid for installation of the gasoline islands. Each company keeps profits from its Side of the operation although Amoco pays Burger King for staffing the Cash Register and in turn gets a Small percentage of Burger King s Gross profits. Miller said. The idea was a new one to Oil and food Industry analysts who had some reservations. A personally if i happened to need gasoline its not going to convince me to go in and buy a Burger and Fries a said Frank Knuettel an Oil company analyst for Prudential securities inc. In new York. A but in a just one person. 1 May not be representative of the  Kelly Fleming of Algonquin ilk flus up her car at a fast food restaurant and gasoline station in Westchester ii Ron Paul a restaurant consultant said the idea sounds like a logical Experiment in the evolution of the gasoline station. Oil companies have become the leaders in the convenience store Industry expanding their fare to include Basic groceries As a Way to entice More gasoline customers said Paul president of techno mics inc., a Chicago based restaurant consulting firm. And fast food restaurants will try almost anything to build business in a recession gripped Economy he said. For example Mcdonald a corp. Announced last week that it will be opening an indoor playground called leaps amp Bounds in the Chicago suburb of Naperville. The Pilot business will emphasize physical fitness and not Mcdonald a food. As far the Burger King Amoco store goes Paul sees at least one drawback. A now the problem is Are you going to Wash your hands after pumping Gas or Are you going to eat your Burger with High test a he  German Economy climbs 4.8 percent Bonn Germany up1 a the Economy of Western Germany continued to Boom in the second Quarter of the year growing by 4.8 percent the Federal statistics office reported Friday. But it is widely expected to slow Down because of the High Cost of German unification. In the first Quarter of 1991, Western Germany s Gross National product expanded by 4.5 percent after an annual growth rate of 4.5 percent in 1990, the statistics office said. The second Quarter growth was boosted by a 4.5 percent increase in Domestic demand with equipment investments soaring 11 percent compared with the same Quarter last year the report said. Investments in fixed assets Rose by 8.8 percent building investments by 6.2 percent and private consumption by 3.4 percent in the april june period compared with the same period a year ago while government spending dropped slightly the report said. But Western Germany a overheated Economy is expected to Cool off in the third and fourth quarters this year and in 1992, because higher taxes fees and interest rates will begin depressing Domestic demand. Economics minister Jurgen Molle Mann recently forecast Western Germany a Gnu growth at 3 percent to 3.5 percent for 1990 and at 2 percent to 2.5 percent in 1992. The German government raised personal and corporate income taxes by 7.5 percent in july limited to one year and boosted gasoline levies and Telephone fees to pay for the mounting costs of switching Eastern Germany to a free Market Economy. In addition the Western German rate of inflation jumped to 4.4 percent in july the highest rate in 10 years. This jump caused the Bundesbank to raise a key lending rate As a warning to the government against soaring inflation and a growing National deficit. The statistics report said that Western German unemployment fell by 3 percent in the second Quarter Public income Rose by 8.4 percent and available income in private households grew by 7.3 percent  
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