62 



-7- 



percent from the previous 5-year average of 24 percent. Other exporters have 

 not gained shares of the FSU's coarse grain import market, as lower U.S. 

 exports have translated into lower total FSU imports. 



Agricultural Situation 



As members of the Subcommittee know, one of the greatest engines that can 

 drive overall economic growth and support democratic reform is agricultural 

 development. Strong agricultural production, marketing, and distribution 

 systems are essential to provide a foundation for economic, political, and 

 social development. 



Without agricultural reform and development, Russia and the other 

 countries of the former Soviet Union are not likely to achieve the status of 

 cash markets for U.S. agricultural products. 



Agricultural reform and development is a key to helping transform the 

 FSU's centrally-planned economies during this time of both economic and 

 political hardship toward a market-oriented economy. 



I would like to speak briefly about the structural problems we have 

 identified, and some of the reforms already undertaken. 



