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Russia frees U.S. engineer accused of spying

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U.S. had warned of economic consequences

December 6, 1997
Web posted at: 12:19 p.m. EST (1719 GMT)

MOSCOW (CNN) -- The U.S. telecommunications engineer accused by Russia of spying was released from custody without bail Saturday, but the charges against him were not dropped, Russian officials said.

Richard Bliss, 29, was detained November 25 in the Black Sea city of Rostov-on-Don. Russia formally charged Bliss Friday with espionage -- the first such case against an American since the end of the Cold War.

His release followed protests from the United States and warnings that his continued detention could damage economic relations between the two countries.

Bliss, an employee of San Diego-based Qualcomm Inc., was making land surveys in southern Russia to install a cellular phone system. Qualcomm has a contract with a Russian firm, Elektrosvyaz, to set up a cellular phone system in Rostov-on-Don, a major city near the Black Sea.

Russian authorities had originally set Bliss' bail at $5 million, which Qualcomm had said it would be willing to pay. Qualcomm assured Russian officials in a written statement that Bliss would remain in Rostov until the matter was resolved.

Russian intelligence agents accused Bliss of surveying so-far unspecified sensitive sites using hand-held satellite receivers brought into Russia illegally. Bliss admitted surveying as part of the installation job, but he and Qualcomm said he is innocent of espionage.

Earlier Saturday, Federal Security Service (FSB) chief Nikolai Kovalyov provided no details on why Bliss' release was being considered, or whether such an action might have conditions.

Robert Holt, a Qualcomm employee in Rostov, had told CNN that the company was prepared to pay the $5 million bail needed to free Bliss.

U.S. officials warned Russia on Friday that if it keeps pursuing the case, the action could damage Russian-American relations at a time when the Russians need more U.S. economic aid.

Bliss' attorney was discussing his possible release with prosecutors in Rostov, but if the matter was not resolved Saturday, the lawyer planned to fly to Moscow to meet with Russia's prosecutor general, Holt told CNN.

Bliss admits customs violation

FSB officials contend Bliss failed to list the satellite device he was using, known as a global positioning system, on his customs declaration, an infraction Bliss admitted.

A statement from the FSB said Bliss denied being involved in espionage.

"These explanations (from Bliss) were contradicted by other materials which the investigative officers have," the statement said.

Qualcomm officials have assured the U.S. government that they had the appropriate licenses for the equipment Bliss was using.

"Interfering with those pursuing legitimate commercial activities, who are employed by enterprises doing legitimate business in Russia, sends a very bad signal and could put a chilling effect on commercial relations that are important to future economic prosperity in Russia," said White House spokesman Mike McCurry.

Russian aid could be threatened

The wrangling over Bliss's arrest has reached the highest diplomatic levels. On Friday, U.S. Vice President Al Gore discussed the matter directly by phone with Russian Prime Minister Victor Chernomyrdin, warning the Russian government to back off on the charges.

In Washington, Russian Ambassador Yuli Vorontsov was summoned to the U.S. State Department on Friday to receive a formal demand for Bliss's release. On Thursday, Secretary of State Madeleine Albright raised the issue with Russian Deputy Foreign Minister Georgy Mamedov at a meeting in Washington.

U.S. officials told CNN they fear Russia is boxing itself in by making such a public stir over the Bliss case. They warned that investments by American businesses could be affected, if Russia is perceived as mistreating U.S. workers.

Members Congress, already angry about Russian arms deals with Iran, could pull the plug on additional economic aid, including pledges to pay for dismantling Russia's leftover nuclear weapons.

In Longview, Washington, Bliss' relatives are worried. If convicted of espionage, he could face 10 to 20 years in prison.

"We are deeply devastated by these absurd allegations," his brother, John Bliss, said. "To suggest that he was in any way involved in espionage or any form of spying is completely preposterous."

Correspondents Ralph Begleiter and Jill Dougherty and Reuters contributed to this report.

 
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