37 



Mr. GOLDTHWAIT. If we provide concessional assistance under 

 any of the USD A programs, cargo preference applies. 



Mr. Allard. How is this going to affect our ability to provide 

 that aid to Russia? 



Mr. GOLDTHWAIT. Well, in effect, it makes the cost of doing so 

 considerably higher, and it is a limiting factor 



Mr. Allard. Can you give us some specific figures on how much 

 higher? 



Mr. GOLDTHWAIT. Well, right now for foreign flag vessel ship- 

 ments between gulf ports and Black Sea or Baltic destinations, 

 you're looking at maybe $28 to $30 a ton. The most recent tenders 

 that I've heard about for U.S. flag vessels were about $67 or $68 

 a ton. So you're looking at a difference of between two and three 

 times in cost. 



Mr. Allard. Wow. Now, USDA runs a Polish-American extension 

 project that was created and operated by its Extension Service, and 

 I'm informed that this is a successful program that has helped Pol- 

 ish farmers. Is there any intention to establish a similar program 

 in Russia? 



Mr. GOLDTHWAIT. We have, actually, established a similar pro- 

 gram already in Armenia, and that's in its first year of operation 

 and off to a good start. We are currently looking at whether we 

 would also extend this program to Russia. I can't say at this point 

 that we will with certainty be able to do so. As always in these 

 cases, funding is a question. 



Mr. Allard. Getting back to the Paris Club, if those negotiations 

 get delayed, do you have some alternate plans where we would 

 move ahead with some credit provisions? 



Mr. GOLDTHWAIT. We are looking at steps that we might take on 

 a kind of an interim basis in the event that we are not able to re- 

 sume use of the commercial programs. 



Mr. Allard. Now, those countries that are using barter as a way 

 of negotiating with the Russians right now, are those countries 

 part of that Paris Club? 



Mr. GOLDTHWAIT. The countries except for Ukraine have all as- 

 signed to Russia responsibility for the former Soviet Union's debt. 

 So the Paris Club is focusing at the moment only on Russia and 

 the Ukraine. The other countries are no longer involved in that 

 process. 



Mr. Allard. I see. What about the creditor countries? 



Mr. GOLDTHWAIT. The creditor countries? 



Mr. Allard. Yes. 



Mr. GOLDTHWAIT. There are several of them. Most of the G-7 

 countries are the central players in that. 



Mr. Allard. So France and Canada and Australia 



Mr. GOLDTHWAIT. Germany. 



Mr. Allard. Germany are creditor countries, and they are doing 

 some barter arrangements with the Russians. Why aren't they 

 waiting on the Paris Club negotiations like we supposedly are? 



Mr. GOLDTHWAIT. I think the barter arrangement that the Cana- 

 dians undertook recently, which was a very small one of only about 

 50,000 tons, in effect is very similar to the kind of thing that we're 

 doing under the export enhancement program. That, as I under- 

 stand it, was sold through a Turkish trading company. In point of 



