82 



-27- 



These arrangements typically Involve a party in a third country who 

 purchases goods that the former Soviet Union wants to import and who is also 

 willing to purchase goods exported from the former Soviet Union. The resources 

 to finance the trade are in the third country, not in the countries of the 

 former Soviet Union that are the ultimate destinations. 



Since September, U.S. exporters have sold nearly 1.5 million metric tons of 

 wheat to the former Soviet Union through third country buyers. This is equal 

 to nearly 20 percent of all U.S. wheat exports to the former Soviet Union in 

 fiscal 1992. Exporters have also sold 37 metric tons of milk powder. I would 

 stress that this business is ongoing, albeit on a smaller scale, even while the 

 availability of additional credit guarantees remains suspended. 



The Future 



The Administration is looking at all possible ways of supporting the 

 Russian reform effort, and has indicated its determination to find ways to 

 continue to export those U.S. agricultural commodities which Russia and the 

 other FSU countries continue to import. The long range goal is to promote 

 Russia's capability to remain a substantial commercail market for U.S. 

 agriculture. 



