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The preliminary outlook for 1993 suggests oilseed production in the former 

 Soviet Union may increase slightly, but processing and distribution problems 

 currently reflected in internal food market supply and price reports are 

 expected to cause import and credit needs to continue. 



Eventually, if reform and a private agriculture take shape in Russia and 

 the rest of the FSU, the countries will be more self-sufficient. Russia's 

 climate and soil conditions should enable it to import somewhat less wheat, 

 even if import levels of feed grains and oilseeds rebound. 



We believe, however, that Russia will remain a major, if changing, market 

 for the United States. Over time, it will be a market for many new 

 commodities if reform succeeds and stimulates growth. American steaks and 

 California wines are already sold in up-scale Moscow hotels. 



We, in USDA, are assisting Russia's agricultural restructuring not only 

 because its success is in the general American interest, but because we 

 believe a healthy Russian agriculture is critical to Russia's eventual return 

 to cash-customer status, even if the mix of U.S. commodities purchased 

 changes. This has been the pattern in our successful and mutually beneficial 

 agricultural trade in Japan, Korea, Taiwan, Mexico, and many other 

 agricultural markets. 



