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Both leaders focused on the draft of the Constitutional Act of the Union State and efforts to strengthen Union State legislation as regards elections to the Russian-Belarusian Parliament.

Mr Putin discussed some highly important Russian proposals on establishing the Union State and proposed two models of bilateral integration.

The first model stipulates nationwide referendums in May 2003, elections to the Russian-Belarusian Parliament in December 2003 and elections of the Union State’s President in March 2004.

The second model, which is based on EU experience, implies that all decisions of the Russian-Belarusian Parliament must conform to national legislations.

Mr Putin also proposed using the Russian rouble as a common currency starting on January 1, 2004, which is one year earlier than planned.

President Putin said after his talks with President Lukashenko that both countries could become completely integrated, that most people wanted this to happen, and that political elites had reached a consensus on this issue.

Mr Putin said Russia advocated a federative Union State, but that other options were possible in that sphere.