U.S.S.R. PRESSING FOR AID FROM MIDDLE EAST

The Soviet Union is trying to cash in some of the IOUs it feels it earned by opposing Iraq's invasion of Kuwait last year.

Moscow wants credits, investment, and increased trade from members of the Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. It believes those countries will soon be accumulating enough oil profits to enable them to assist the ailing Soviet economy more than some industrialized nations that likely will remain financially strapped because of domestic deficits.

The U.S.S.R.'s Ministry of Foreign Economic Relations notes that the first bilateral trade and economic agreements have been signed with the U.A.E. and Qatar. Full diplomatic relations were restored with Saudi Arabia last September and have been established with Bahrain.

Moscow explains that the Arab states in the council "are not only among the few countries independently financing their own development but also among the world's largest exporters of capital. Total volume of foreign capital investment by these nations reached $350 billion by 1990."

The Soviet ministry expressed special interest in boosting business with Qatar. At present, the U.S.S.R.'s share in Qatar's total trade is less than 0.5%.

Moscow officials said, "Technical and economic cooperation in contract based construction of various economic projects in Qatar and third countries by Soviet organizations with financial participation by Qatari firms can be large scale and mutually beneficial."

NORTH GAS FIELD

But the U.S.S.R.'s most ambitious proposal for stronger economic ties with Qatar, involving the Persian Gulf's supergiant North gas field, may be far-fetched.

The Soviet trade ministry describes North field as the world's largest gas reservoir even bigger than western Siberia's enormous Urengoi field. It puts in-place North field reserves at 9-12 trillion cu m (318-424 tcf), considerably higher than most western estimates of about 150 tcf.

After describing North field development plans, projected construction of export pipelines to the U.A.E., Saudi Arabia, and Bahrain, and building of a gas liquefaction plant, the Soviet trade ministry referred to a long term proposal involving the laying of a pipeline via Turkey to western Europe.

It then asserted, "Qatari officials evince great interest in an alternative, use of the U.S.S.R.'s gas transmission system to deliver Qatar's gas to western Europe.

"This would involve construction of a relatively short pipeline along the bottom of the Persian Gulf from Qatar to the Iranian coast. From there Qatari gas could be transported to western Europe via the existing system through Iran and the U.S.S.R.

"if such an understanding is reached, Soviet specialized foreign economic organizations will be able to participate in construction and modernization of gas pipelines and supplying appropriate equipment."

The Soviet trade ministry added that Qatar is also interested in direct export of natural gas to the U.S.S.R. It said Qatar's minister of economy and commerce during a visit to Moscow showed an interest in using the U.S.S.R.'s experience and technology in processing and industrial use of natural gas.

"Qatar's investments in the Soviet economy can be one of the spheres of the two countries' cooperation," the ministry said.

"In particular, Qatar's private business and financial circles are showing interest in projects to reconstruct Soviet oil refineries and in developing capacities for deep oil refining.

"Companies will be set up to carry out these projects.

Negotiations with industrial associations of the U.S.S.R. Ministry of the Oil and Gas Industry are under way."