[Mohoender]

All around the Warsaw Pact, the political change initiated in the Soviet Union doesn’t go with no consequences. In a speech given on January 1, Anatoly Lukyanov announces the end of Glasnost and a deep revision of Perestroika. Within the weeks following that declaration, KGB conducts numerous arrests of opponents all over Soviet Union and several medias are closed down. Moreover, KGB troops are taking position in several cities conducting thorrow controls over the population. When it comes to Perestroika, Lukyanov makes a second speech in March where he announces the modifications that are to take place. Perestroika is now to become what it should have been from the beginning: a deep economic reform. As a result, the Law on Cooperatives is confirmed and expended. Private property is to be allowed in agriculture, more emphasize will be placed on light industry and foreign investment will be facilitated. Price control, however, will be maintained but only to a certain level in order to fulfill two goals: giving more freedom of action to Soviet entrepreneurs and avoid a dangerous inflation. At last, military expenditures and policies are to be reviewed. Fleet Admiral Vladimir N. Chernavin declares that the Soviet Union doesn’t intend anymore to compete with the US Navy as this had been a task beyond reasonable reach. He adds that a strong deep water navy remains a necessity but overambitious ship building programs will be cancelled as priority is to be given to a modernization policy starting with a full refit of the four Kiev-class linked to further developments of modern designs. Older ships will be retired to be scrapped with some joining the newly created reserve fleets. It is also annouced that during peace time the strength of the land force will progressively be reduced. Several units will have their equipments put in storage while their personnels will pass to the reserve to be called under arms only in the case of threat. Then, modernization of the Air Force should accelerate as, given the large size of the Soviet Union, it is seen as instrumental in the control of airspace. This will be done by introducing new models but older aircrafts, such as Mig-21, Mig-23 and Su-17, should go through some extensive modernizations. At last, it is stated that the strategic forces will be reduced while discussions over further arms control treaties will continue.

Inside Soviet Union itself, as the new political line appears, growing civil unrest and ethnic strife result in demonstrations and riots. In Nagorno-Karabakh, a conflict had started over in 1988 but by January the Red Army has been ordered to restore order, a move welcomed by most Armenians. In Georgia, on April, MVD troops break up a peaceful demonstration at the government building in Tbilisi. Six Georgians are killed and dozens wounded but the worse has been avoided and negociations start between the communists and a Georgian opposition hotile to central rule. On the other side of the Caspian Sea, communist strongmen are fully put back in power, several thousands demonstrators are arrested and stability is mostly maintained. The situation is more confused in the Baltic Republics where a move toward independence was initiated last year in Estonia. This move continues and, to most surprise, is tolerated by the Supreme Soviet even when similar movements seem to spread to Lithuania. Finally, on August 23 that Latvia catches up when, in order to draw the world's attention to the fate of the Baltic nations, Latvians, Lithuanians and Estonians joined hands in a human chain that stretched 600 kilometres from Tallinn, to Riga, to Vilnius. The human chain is called the Baltic Way and again, unlike what had happened in the Caucasus and Central Asia, the Red Army doesn’t move.

Outside USSR, aid to foreign nations is reduced with the exception of Mongolia, Cuba and Afghanistan. By mid-February, soviet troops had left Afghanistan and Najibullah’s regime remains alone to face the Mujahideen. Nevertheless, despite withdrawal, Moscow grants financial support and the communists government is able to retain power and even regain the initiative.

Meanwhile, all across Warsaw Pact, pro-democracy demonstrations, often peaceful, are held as the communist grip over Eastern Europe loosen. Indeed, the Soviets are concentrating on their domestic problems and let Warsaw Pact members engage in a path toward freedom. Hungary slowly remove border restrictions and the Hungarian Republic is officially declared in October. Poland legalize Solidarnosç and, on August 19, president Wojciech Jaruzelski nominates Solidarity activist Tadeusz Mazowiecki to be Prime Minister. Czechoslovakian velvet revolution results in the fall of communist rule on December 29 while Bulgaria moves away from hardline communism. Romania is stroke by a full fledge revolution that starts in Timisoara and ends with the execution of Nicolae Ceausescu and his wife Elena on December 25. Then, the most striking blow came from East Germany, on October 16, at Leipzig where 120,000 had shown up. Military units that had been held on stand-by in the vicinity refuse to battle the demonstrators protesting the regime. Lukyanov refuses to let Soviet troops become engaged, and so, the entire single party system in East Germany collapses. The Berlin Wall becomes history on November 9. In the meantime, almost all over Eastern Europe, a number of German ethnic organizations form in response to West Germany's policy of accepting as a German citizen anyone who can prove themselves of Germanic descent (it is rumored that membership in ethnic clubs is good enough). Outside the Warsaw Pact, communist rule survives but it is greatly weakened as in Yugoslavia and Albania.

Elsewhere, the situation varies and a number of events occurs. However, most are not seen as significant. Iran breaks off diplomatic relations with United Kingdom over Salman Rushdie's The Satanic Verses. Christian General Michel Aoun declares a 'War of Liberation' to rid Lebanon of Syrian forces and their allies. An attempted coup against President Aquino of the Philippines is foiled (with the help of American air cover). In Venezuela, the Caracazo, a popular uprising,occured in february but is crushed by security forces killing up to 3000. The republic of Panama is invaded by the U.S. to remove the government of Manuel Noriega.

Then, a most important event takes place in China, on June 4, when the political reform movement is brutally crushed by government military forces at Tien An Men. As this becomes a symbol, Deng Xiaoping retires from public view and power is slowly passed onto a third generation of leadership led by Jiang Zemin. Nevertheless, China is again isolated as the Western countries treats it as an international pariah and issue a number of foreign trade embargo. Hardliners had taken over the government and begin reigning in free enterprise, also attempting to revive Maoist propaganda and ideological campaigns. However, the public largely treates this with apathy and, in practice, the changes of the last decade made it impossible to ever truly return to the ways of Mao's time. Despite retreating into its shell, China's government continues to state that it welcomes foreign business and investment but economy slows down as Beijing now has little partner to deal with. The situation favors USSR own opening policy which welcome more foregin business partners over the last six months of the year.