The World - News from Sept. 21, 1988

Enforcing capitalist-style reforms, the Soviet government is threatening to close 31 state-run enterprises or turn them over to private managers if they do not make a profit within six months, a Soviet newspaper said. Firms declared insolvent in recent months include a timber mill in eastern Siberia that had assets of $5.12 million but debts of $21.1 million, a machine-building plant that was $14.4 million in debt and the giant Kharkov tractor engine factory in the Ukraine, the Socialist Industry newspaper reported. It said the accounts of the 31 firms have been transferred to a special department at state banks. After six months, each firm will either be shut down or handed over to a private cooperative that will operate it on a for-profit basis.