DATE=05/03/02

TYPE=CORRESPONDENT REPORT 2-

TITLE= U-S-RUSSIA ARMS (S)

NUMBER=2-289411

BYLINE=DAVID GOLLUST

DATELINE=STATE DEPARTMENT

CONTENT=

VOICED AT:

INTRO: Russian Foreign Minister Igor Ivanov held a day of meetings in Washington Friday with President Bush and Secretary of State Colin Powell in an effort to have a nuclear arms reduction deal ready for the Bush summit visit to Russia in three weeks. Progress was reported, but there is still no final accord. V-O-A's David Gollust reports from the State Department.

TEXT: The two sides agree in principle on sweeping weapons cuts that would reduce their nuclear arsenals by more than two-thirds over the next decade. But there have been lingering disagreements over, among other things, whether some retired warheads might be kept in storage as the Bush administration wants or all of them destroyed as sought by Moscow. Meeting reporters here at the end of the day-long set of talks, Mr. Powell and Foreign Minister Ivanov reported progress. But both also said outstanding issues remain, and the Secretary would not rule out the possibility that an accord will not be ready for the summit:

///POWELL ACTUALITY///

Remaining differences are there, and we need to spend more time working on them and discussing them to see if we can resolve them in time for the Moscow summit. If we can fine, and if we are unable to, the work will continue. But I am encouraged.

///END ACT///

Mr. Powell said it has not been decided yet whether the arms pact will be a treaty or executive agreement. But he said either would meet Moscow's insistence that the weapons cuts be set in a legally-binding document. (Signed)

NEB/DAG/SAB