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5 

 referring to the sociological aspect of the package. Understandably, we would overlook this in a 

 business deal because we look only at the market economics of an opportunity. Or, here we 

 consider only the economics of the situation in doing business. But in Russia the social needs - 

 housing, schools, health care, etc. - come into the equation. The importance of this was pointed out 

 again recently when the Russian Deputy Prime Minister in charge of agriculture, Aleksandr 

 Zaveiyukha, whom I have known for about 10 years, was quoted in the press as saying it is essential 

 that the government make good on its commitment that 15 percent of the budget for agriculture go 

 to meet social needs. 



Yes, the need to address social needs directly and in a financial way is foreign to American business. 

 But when one considers even for a minute that the State provided everything - work, housing, 

 education, health care, etc. - for the Russians as long as he can remember - and that he has no 

 e]q)erience or means to provide for himself in these matters • it is only natural that he expect it 

 today. We simply have to look at this as another and different aspect of doing business in Russia. 



How should we approach doing business in Russia? Former Ambassador Robert Strauss told the 

 audience at the National Press Club last fall, "Look for a fellow who shares the same values as you, 

 and work with him.* That's not an easy thing, especially if you don't know the country or the 

 language or the peofrie, but it makes sense. Dr. Logvin Overchuk, former Soviet and Russian 

 Agricultural Attadie here in Washington, asked the audience at an AID-sponsored conference, "How 

 difiScult is it to be successful to start a new business here in your own country ^ere you know the 

 language and the system and have all the information you need available to you?" Unfortunately, 

 I did not detect a glimmer of appreciation or understanding of Dr. Overchuk's question in that 



