RUSSIA - Dec. 10 - Moscow & Washington To Agree Arms Deal.

After meeting Pres. Putin, US State Secretary Powell holds a joint press conference with FM Igor Ivanov, and says Moscow and Washington have agreed to complete negotiations on a new strategic arms control accord to codify a dramatic reductions in offensive weapons even if they do not reach agreement on missile defences. Powell and Ivanov say they are under instructions from both presidents to prepare the arms control accord and have it ready for signing when Pres. Bush makes a state visit to Moscow in mid-2002. Powell says it would carry forward significant provisions of the START-1 and START-2 treaties on "verfication and transparency" protocols to insure that both sides are informed of the capabilities and deployments of nuclear forces.

He adds: "Both of our presidents have charged us to finish this work as soon as possible, and find ways to formalise this agreement at lower levels of strategic offensive numbers and to try to get the work concluded in time. Both of us recognise the need for there to be a codification of the new levels, and we will be discussing the form that will take. It might be the form of a treaty or some other way of codifying it". Powell says he expects to receive from the Kremlin a detailed description of strategic arms reductions Moscow is willing to make. (The US said it would reduce its arsenal of about 6,000 warheads to between 1700 and 2200. Putin spoke of his desire to go as low as 1,500 warheads). Powell and Ivanov agree they have made no progress on the issue of missile defences as the US continues to press forward with plans to conduct a series of tests next spring that would violate the 1972 ABM Treaty. A State Department official travelling with Powell said later that the agreement on reductions in offensive weapons could go forward despite the deadlock over missile defences.