European Stars and Stripes (Newspaper) - November 07, 1994, Darmstadt, Hesse                                Italian Premier Silvio Berlusconi concedes Point during debate in the chamber of deputies Garffer this year. Things beginning to go Berlusconi s Way by William Drozdiak the Washington Post t a recent dinner hosted by Fiat s chairman Gianni Agnelli a dozen of Italy s most powerful entrepreneurs were telling prime minister Silvio Berlusconi that the time had come for his government to pass from words into action on a serious economic Reform program. The tycoon turned politician slumped in his chair and poured out his frustrations to his fellow moguls. According to a participant he described How difficult it is to achieve consensus among his squabbling coalition partners. He moaned about working 20 hours a Day for $2,000 a month a fraction of the Fortune he amassed As director of the Fin invest communications Empire. But As the dinner party broke up the trademark smile returned to. Berlusconi s face. You have to understand that he is determined not to give up a Friend said describing his shifting moods. He s bitten by the Bug of political Power and he wants to succeed at a Challenge that none of those other businessmen would Ever dare to take  the transition from running a $7 billion a year business to running the government of the world s fifth largest Industrial democracy has been More difficult than he imagined his aides say. They acknowledge having underestimated the enormous resistance to change by Italy s entrenched bureaucracy and what they my a monday november 7,1994 Call the legacy of corrupt patronage from four decades of Christian democratic and socialist government that ended with Berlusconi s Ascendancy in last Spring s elections. Moreover Berlusconi has been distracted by hostile attacks from the Media and judiciary Over his failure to remove potential conflicts of interests arising from his vast holdings including Italy s three private television channels which account for nearly half of the National audience. V but after a Rocky beginning there Are signs he is slowly making headway toward some of his legislative goals. In october to  of Many he secured approval within his coalition of a Tough austerity budget that is to slash the deficit by $32 billion next year. Even though he must still Shepherd the budget through parliament and had to face Down Union opposition to it during a general strike last month Berlusconi has earned Strong support from economists for attacking sacred cows such As Italy s pension and health care systems whose costs have driven the National debt to More than $1 trillion. To seeking to rally support for his austerity Call Berlusconi is trying to go Over the Heads of Union leaders by appealing for a sense of National sacrifice to pull Italy out of its economic mess. This is not the time to go out into the piazzas he told workers. This is when everybody should be pulling in the same  opinion polls show that Berlusconi s message is backed by much of the electorate. They also indicate that he has not been harmed by the dispute Over what to do about potential. Conflicts of interest Between his business holdings and his government decisions. Friends say that Berlusconi has settled Down in office and no longer allows himself to be rattled by contradictory tendencies of his ruling coalition which besides his own free Market oriented forza italia party includes the separatist minded Northern league and the Neo fascist National Alliance. Worried about the taint of his government Berlusconi has prodded National Alliance Leader Cianfrano Fini to abandon ties with one time supporters of former dictator Benito Mussolini who formed the italian social movement in 1946 that produced much of the Core support for Fini s entry into politics. Similarly Umberto Bossi the fiery Leader of the Northern league has been forced to Swallow his personal animosity toward Berlusconi and toe the government line on crucial vote. If Early elections Are held Berlusconi might translate his popularity into a More sweeping win for his forza italia at the expense of the Northern league. As a result aides say Berlusconi has become much More comfortable with their relationship knowing that Boss cannot afford to stray too far in antagonizing him. He has also been aided by the disarray afflicting the democratic party of the left the former communists. Their standing has dropped so Low that they fear they could suffer a More grievous defeat if Early elections Are held a situation that has made them much More compliant. Short subject London real estate turns rubles into Gold Bymon Queel Faizy the associated press russian pop music blares. Burty badly dressed men dance with bodies pressed against Beautiful women in breathlessly Short skirts. The talk under the music is of Money and life Back in Russia. Welcome to the yacht a new hot spot tied up on the River thames where Well heeled russians go to play each Friday night. London has Long been a Center of Money laundering the Art of making dirty Money clean by running it through Legal transactions. These Days Many of the practitioners Are russians who get their Money from stealing natural resources trading illegally or otherwise plundering a chaotic Economy. The growth of such financial dealings and several murders of russians in Britain sen Talbert Pacey head of the National criminal intelligence service to Moscow to discuss the potential threat from russian crime. I was told there was 20 billions of dollars of Ruble notes Are leaving Russia by the billions. Capital flight from their country to other countries Pacey said. He said police and customs officials Are investigating at least 200 cases of alleged Money laundering by russians through British financial institutions. The sums involved ranged from several Hundred thousand dollars to several million. So far none of the 200 investigations has Ted to a prosecution. According to Pacey s Agency it is difficult to get proof from Russia that the Money was obtained illegally. Such proof is needed to prosecute in Britain. Londoners whose business brings them into Contact with russians often Are reluctant to talk about it because of fear. One lawyer said russian clients brought guns to one meeting. There Are european consultants who. Are very frightened and who have been approached by their so called clients their erstwhile clients and their erstwhile clients have threatened them in no Uncertain terms said Rowan Bosworth Davies co author of a Book on Money laundering. The suspicion is that a lot of russian Money is going to London for laundering. Buying real estate is a common method. Bosworth Davies said one russian told him that the usual procedure is to set up an offshore company in which the names tall principals Are secret use it to buy a building use the building As collateral for a mortgage Transfer the borrowed Money to Switzerland and buy Gold. Because All the transactions Are carried out by reputable Law or accounting firms no one of them is Likely to arouse suspicion. The stars and stripes 15