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tizing some of our food aid and the creation of perhaps a revolving 

 loan fiind that could help in the democratization process, but also 

 the capitalization process, for developing small entrepreneurs on 

 the grassroots level in the former Soviet Union? In other words, 

 monetizing the food aid so that you can then have a pool that can 

 be utilized as a revolving loan fund for the creation of entre- 

 preneurs in the Russian economy at the grassroots level. 



Mr. Kauzlarich. Mr. Congressman, if I may, I'd really like to 

 sort of defer and get back to you when we're in a position to com- 

 ment more precisely about just what we are going to be going 

 ahead with with the Russians. As I say, I wish the timing were a 

 bit different in this hearing so that I could do that. But we will get 

 back to you with the details on that. 



Mr. Penny. We'd appreciate that. And, of course, the timing of 

 these hearings was set before the timing of the summit. 

 Mr. Kauzlarich. Exactly. 



Mr. Penny. But we understand the dilemma that you're faced 

 with. 

 Mr. Allard. 



Mr. Allard. Mr. Kauzlarich, I just had a news release here in 

 front of me where the President had made some comments that he 

 was considering some form of aid to Russia, and there was some 

 speculation that came out with the news release that he was con- 

 sidering aid that would be of benefit to small business in general, 

 a loan guarantee for housing, some environmental clean-up, and 

 even maybe some nuclear reactor safety clean-up issues. But what 

 struck me was that there was no mention of agriculture. So I just 

 am asking of you and would like to have your comments on a very 

 serious commitment as far as agriculture, because I think that's 

 where we can be of most assistance to the Soviet Union, and I 

 think it benefits the United States as well. Would you comment on 

 that, please? 



Mr. Kauzlarich. I don't think it's fair to say that agriculture is 

 out. I mean, there's going to be a whole package of measures that 

 fall into the area of microeconomic assistance, and agriculture is 

 one of those areas. There are also going to be other measures that 

 will fall into the area of macroeconomic assistance, which will be 

 coordinated with our G— 7 industrial alUes, where we will be look- 

 ing to multilateral institutions to become involved. I would expect 

 that some of their programs as well would fall into the agricultural 

 area. 



So all I can say is I think you'll have to evaluate the summit 

 package as it comes out and reach your own conclusions on that. 

 But agriculture is important in our microeconomic package. 



Mr. Allard. What role will the Secretary of Agriculture play in 

 devising the Russian aid plan? 



Mr. Kauzlarich. Well, in the interagency process that we have 

 underway both for the preparations for the simimit as well as for 

 the future activity, as I described earlier, that Stroke Talbot will 

 be responsible for, USD A is directly and actively involved. They're 

 critical to making this work. They know agriculture, they know the 

 problems in Russia, and they've been very helpful as a full partici- 

 pant in our interagency preparation. 



