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dairy processing cooperative. And the program that I was referring 

 to earlier addresses front loading the system for this private coop- 

 erative to compete against some of the larger monopolies. 



The one — ^regarding some of the larger monopolies, I would agree 

 with Dr. Johnson that it is probably not in our best interests to try 

 to dismantle these in the near future. 



However, I also believe that I think it is very — ^it will be a very 

 difficult sell to get American companies to go in with inexperienced 

 fledghng entrepreneurial groups that are going to compete against 

 these monopolies, because, quite frankly, the support by the Rus- 

 sian Government is not yet there for these private enterprises. And 

 even with all the technical assistance or the technical support from 

 the U.S. Government, it still is not going to make it attractive for 

 American businesses to go in and establish joint ventures with the 

 emerging entrepreneurs and especially if they are going up against 

 some of the larger monopolies. 



I really beUeve that it is important to not discriminate against 

 the monopolies but certainly at the same time be very proactive as 

 far as providing some sort of incentive for American companies and 

 for emerging Russian entrepreneurs in making sure that the Rus- 

 sian Government provides some safeguards, some reasonable safe- 

 guards and helps establish a more level plajdng field so that there 

 is an ability to compete here. 



Mr. Barlow. Don't we have an advantage, though, in that we are 

 ahead of them in marketing and in packaging and in developing 

 niche markets? Some of these entrepreneurs might have an idea 

 that we could pick up. And, with Land O'Lakes, say, help them just 

 carve out small niches and then not be in the position of taking on 

 the state-owned co-ops. 



Ms. C ASHMAN. In fact, that is exactly what we are doing in the 

 Venev co-op. We are working with the private farmers who have 

 purchased from the center a processing facility, and we have, in 

 fact, donated a Vint Hill butter press, for example, and some 

 cheese-making and ice cream-making equipment. 



Initially, it will be to service the Vinopleon consumer population, 

 but the discussions have been carried on with other American com- 

 panies that are involved in the restaurant business in Russia, and 

 the object is to look for an outlet for these products and establish 

 a high-quality branded product that then moves into, be it McDon- 

 ald's or Pizza Hut or whatever, but that is what the objective is. 



Mr. Barlow. Is advertising developing? And the literature and 

 TV and so forth? And radio? I don't even know if they have com- 

 mercial radio stations in the Soviet Union. 



Ms. Cashman. Yes. 



Mr. Barlow. Are you all tying these enterprises to advertising 

 outreach? 



Ms. Cashman. Yes, we are, but we are very careful not to over- 

 extend the ability to manufacture and produce what consumer de- 

 mand will be. So advertising is fairly limited. 



I would say that in the development of the Russian branded label 

 we have relied primarily on United States advertising companies 

 simply because the — a lot of the thinking, as far as what is an ac- 

 ceptable advertising model, tends to go back a few decades with 

 some of the companies that we have worked with in Russia. Maybe 



