GEORGIA CONSENTS TO FEDERALIZATION.

Elaborating on Georgianpresident Eduard Shevardnadze’s recent remarks, Tbilisi’s ambassadorin Moscow Vazha Lodkipanidze told Russian journalists July 6 thatGeorgia is now prepared to negotiate federal arrangements withAbkhazia and South Ossetia. He said that Tbilisi was preparedto give Abkhazia broader powers than the various subjects of theRussian Federation now enjoy, but cannot agree to Abkhazian demandsfor a confederation. Lodkipanidze said that Tbilisi believes thecurrent conflicts within Georgia can be solved only with Russia’sactive involvement and through the tighter political and economicintegration of the two countries. The ambassador’s remarks reflectthe exhaustion of Tbilisi’s options after Russian military supportallowed Abkhazia and South Ossetia to secede de facto from Georgia.

Tashkent Puts Conditions on Joining Russian-led Customs Union.