133 



Mr. Infanger. I have to be — and you will probably appreciate 

 this — I have to be very careful what I say. They are sponsoring me. 



Mr. Allard. Yes. 



Mr. Infanger. I have developed an intense interest in the mone- 

 tization of the humanitarian aid. I see humanitarian aid, as being 

 administered by FAS in Russia at the current time, as a window 

 of opportunity for support for the farmer movement and the reform 

 institution. 



I have worked with several Russian groups at Oblast and na- 

 tional levels, encouraging them to come forward with projects, to 

 try to get the Minister to claim some of the monetized proceeds 

 from this humanitarian aid. The com agreement includes language 

 encouraging, suggesting, cajoling the Russians to come forward 

 with projects that are focused on agricultural reform, processing 

 agricultural credit, education, and training. 



I, unfortunately, have to report — and maybe this is due to my 

 own inabilities — that not a single project has come forward yet. 

 And, in fact, I was pulled aside by one of the Russians within the 

 last week, and he led me to believe that no projects may come for- 

 ward in the very near future. I have a hard time understanding the 

 political dimensions that are operating there. 



The Minister particularly pointed out that he needs a stronger 

 legislative basis for the Ministry to claim ruble proceeds of mone- 

 tized aid. What he means is stronger language in those agreements 

 in order for him to go into the Council of Ministers and lay claim 

 to that monetized aid. He wants to do this, but he is hamstrung 

 at the current time. 



So I am hoping that FAS can assess how this aid is being mone- 

 tized and develop ways for meeting not only the reform objectives — 

 there are other objectives there — ^but using at least a portion of it 

 in direct support of reform. 



Mr. Allard. I appreciate your response. 



We have heard some testimony in this committee about dealing 

 directly with the Russian farmer trying to circumvent the bureauc- 

 racy. Last time it was suggested that you use government agencies 

 for communication and for making contacts, but then, once you are 

 in contact, try and deal with the individuals that would be the free 

 enterprise Russian and have them work with the free enterprise 

 American. 



What is keeping businesses like we had in the previous panel 

 from just going ahead and making their own arrangements, busi- 

 ness arrangements with individuals in Russia? 



Mr. Infanger. Please, I wouldn't want to speak for American 

 business and their problems. 



Some delegations have come to my office and talked to me about 

 problems like the sovereign guarantee repatriation of their dollars, 

 the bureaucracy, the lack of property rights. They go through a 

 laundry list of problems, and some of them are policy related. But 

 I am sure there are other people who can speak more directly to 

 those issues thsm me. 



Mr. Allard. Is it more policy related on the Soviet or the Rus- 

 sian side than on the American side I assume? 



Mr. Infanger. Well, the Russians are eager, intent upon devel- 

 oping joint venture relationships, not only with the Americans but 



