CRISIS IN THE SOVIET UNION

INTERNAL UPHEAVAL Resignation threat: Soviet President Mikhail S. Gorbachev threatenedto resign unless some form of Soviet unity is preserved. In commentsto the national legislature, Gorbachev emphasized the need for acommon defense and continued economic ties. He told the nationallegislature, "The republics want to have a new set of institutionswhere they will have a presence, and this is something I fullyunderstand. But we have to be responsible, not be totally emotionalabout this, letting passion prevail over reason." Economic cooperation: Gorbachev agreed to begin negotiations on aneconomic cooperation agreement that would be acceptable to all 15republics, even those intent on independence. Feeling uneasy: Leaders of several republics expressed anxiety aboutthe intentions of the Russian republic, which dwarfs its 14 neighborsin area and population. In an attempt to calm such fears, Russianleaders told their neighbors that all border disputes would besettled peacefully. Moldavia independence: Moldavia, which borders Romania, declaredindependence, the fifth republic to do so since the coup and theseventh over all. Easing grip: The new Soviet defense minister, Yevgeny Shaposhnikov,said Lithuanian youths drafted into the Soviet army can go home.Shaposhnikov also told Lithuanian lawmakers the infamous "blackberet" troops blamed for bloody attacks would be withdrawn from theBaltics. Treason charged: Tass news agency said the seven surviving coupleaders could face the death penalty on charges of high treason.Soviet authorities said one of the conspirators, former InteriorMinister Boris Pugo, killed himself after the coup collapsed. Assets frozen: The Soviet central bank froze all Communist Partyaccounts to prevent the party from hiding assets ordered seized. Illegal order: Leaders of KGB commandos said they refused an orderto storm the Russian Parliament during last week's coup attemptbecause it was unlawful, but they could have taken the building "in20-30 minutes," Tass reported. The Parliament building, known as the"White House," became the focal point of the coup's opposition, ledby Russian republic President Boris N. Yeltsin. Tens of thousands ofMuscovites surrounded it for three days to stave off an attack thatnever came. WORLD REACTION EC recognition: The European Community formally recognized theindependence of Lithuania, Latvia and Estonia, joining a growing listof foreign governments granting diplomatic recognition to therepublics or saying they would do so soon. Splitting up: Advisers to President Bush have concluded that thecollapse of the Soviet Union is all but inevitable, administrationofficials told the Los Angeles Times. U.S. hint: Robert Strauss, the new U.S. ambassador to the SovietUnion, strongly hinted that President Bush may extend diplomaticrecognition on Friday to the Baltics. Visit planned: British Prime Minister John Major said he would visitMoscow this weekend for talks on the Soviet Union's future, but heruled out large-scale Western economic aid until an acceptable reformprogram is established. Nuclear arms: The central Soviet government has firm control overthe vast Soviet nuclear arsenal, the Defense and State departmentssaid in Washington. But officials said that because of the quicklyunfolding crisis, the United States has not had time to pursue anoffer from the Soviet military to discuss better controls overnuclear arms. Defense Minister Yevgeny Shaposhnikov also told Germantelevision that Moscow's nuclear weapons were in safe hands duringlast week's attempted coup by hard-line Communists. Technical assistance: The World Bank approved spending $30 millionon technical assistance to help Soviet industry. World Bankspokesman Peter Riddleberger said the money would go to improveSoviet banks and help in other ways to move the Soviet economy into amarket system. He had no information on what other industries wouldbe helped. More aid urged: House Majority Leader Richard A. Gephardt (D-Mo.)said he plans to urge the Bush administration to join Congress inrelaxing federal budget constraints to finance economic aid to theSoviet Union out of funds previously allocated for military purposes.