36 



again, we don't yet know exactly what the terms of a rescheduling 

 will be. Further, we would have to look at the overall situation 

 within the Russian economy and its ability to generate foreign ex- 

 change that is not encumbered by previous obligations. 



So we would have to look at all three of those things to make 

 a determination as to what and how much we might return to use 

 of the commercial programs. 



Mr. PE>fNY. What thought has been given to offering credit, prob- 

 ably GSM-103 credit, for sales of agricultural equipment, process- 

 ing equipment? As you heard in the video this morning, that seems 

 to be a key area of demand among the private sector farmers with- 

 in Russia. I think we have authority under GSM-103 to include 

 these types of sales in our offerings. 



Mr. GOLDTHWAIT. We do have that authority. It was given to us 

 in the most recent farm bill, and we have developed a regulation, 

 which was published just a week or two ago, to implement that au- 

 thority. We are in effect ready to start that as soon as we have the 

 question of the arrearages out of the way. 

 Mr. Penny. As soon as you have what? 



Mr. GOLDTHWAIT. The question of the arrearages out of the way. 

 Mr. Penny. I understand. And what's the latest indication in 

 terms of a decision by the Paris Club? 



Mr. GOLDTHWAIT. I do not know. I can't comment in any detail 

 on the timing for a rescheduling. There does appear to have been 

 some movement on some of the questions that are delaying that. 

 I understand there may be some additional meetings scheduled. 

 Mr. Penny. Thank you. 

 Mr. Allard. 



Mr. Allard. Thank you, Mr. Chairman. I'd like to follow up on 

 your Paris Club questions a little bit. 

 What type of questions is it that's holding up rescheduling? 

 Mr. GOLDTHWAIT. Well, one of the principal problems had to do 

 with the difference of views between Russia and the Ukraine on 

 the handling of the debt of the former Soviet Union and whether 

 or not an arrangement could be worked out under which basically 

 one party made the pa5nnents that would be required under the re- 

 scheduling. Again, without being privy to the precise details, I've 

 read in news reports that some visits over the weekend in Kiev did 

 indicate some progress on that issue. 



Mr. Allard. Now, Russia, the Republic, has given us some $15 

 million here recently on interest. Have we received £iny attempt 

 from the Ukraine to pay on any money that they may owe the 

 United States? 



Mr. GOLDTHWAIT. Under the separate GSM- 102 program that 

 was made available to the Ukraine beginning not quite a year ago, 

 the Ukrainians have been making and are fully current with the 

 interest payments that have come due. No principal payments 

 under that programming have yet fallen due. The Ukrainians, to 

 my knowledge, have not made any payments on obligations to the 

 former Soviet Union. 



Mr. Allard. Getting back to the food for aid program, what ef- 

 fect would the cargo preference rules have on assistance to be pro- 

 vided for Russia and the other Republics of the former Soviet 

 Union? 



