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The expected Paris Club rescheduling may ease Russia's current liquidity 

 crisis. However, the effect of such a rescheduling on USDA's assessment of 

 Russia's readiness to resume participation in the GSM-102 export credit 

 guarantee program has not been determined. 



Immediate Steps 



There are two things that we can do right away to help the former Soviet 

 Union meet its food needs without knowing the terms of a Paris Club 

 reschedul i ng agreement . 



One step is to expedite food aid shipments. This has been done by 

 accelerating the normal tendering process. 



We are tendering for immediate delivery and booking vessels on the spot 

 market. In addition, we have shortened the response period for bids from 10-14 

 days to seven. 



The second involves a number of transactions to facilitate shipments of the 

 $260 million in connection with GSM-102 sales that have been registered, with 

 respect to which the commodities have not been shipped. USDA stands by its 

 commitments in regard to these transactions, and has signaled that they can 

 move forward as soon as arrangements can be made by exporters, banks and buyers 

 working out financial arrangements that are consistent with program 

 regulations. 



Mr. Chairman, I assure you that we place top priority on resolving the 



