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erties through their university systems. And I am wondering if 

 there are any ways we can foster interchange between Murray 

 State University, because we have got one of the few agricultural 

 schools in the country that gets into soil research and classifica- 

 tions. If you could respond to that some other time I would appre- 

 ciate it. 



Value-added products — in my thinking, value-added products are 

 distinct from the commercial grain production sector. Can we make 

 progress with the value-added products that flow into commerce to 

 your food stores and lend themselves to advertising? Can we make 

 progress in privatization there more rapidly, say, than in dealing 

 with the commercial grain production area? 



Mr. Infanger. I tMnk we have to make more progress with that. 



But, from my perspective, I find it difficult to conclude that the 

 change that is occurring on that score is real change. A lot of these 

 organizations report themselves as joint stock companies or cooper- 

 ative societies now that are doing the processing within the 

 agriprocessing sector, but they still maintain regional monopoHes. 

 Tliey have very close ties with the Government, if not, in fact, re- 

 ceiving Government credit, other kinds of state support. 



So even though they have been reorganized and ostensibly have 

 moved toward a market-oriented organization, I have a difficult 

 time concluding that that is really what is happening. 



Mr. Barlow. Are they selling stock in the corporation? Do you 

 see these articles 



Mr. Infanger. In certain forms they are, but the holders of that 

 stock are all other state organizations or state banks. They are not 

 privatizing to any large extent. 



Some of this is occurring with the use of these vouchers, the sale 

 of the cracker factory and things. Some of it is occiirring, but I 

 mean this is a big country, and the fact that you sold a few shops 

 up in Nizhny Novgorod and a few factories in Moscow doesn't mean 

 that we have real progress towards a more market-oriented proc- 

 essing system. 



Mr. Barlow. Thank you. 



Thank you, Mr. Chairman. 



Mr. Penny. Ms. McKinney. 



Ms. McKinney. Nothing, Mr. Chairman. 



Mr. Penny. Doctor, in your experience, is there a pattern to the 

 joint ventures that have been established so far? I mean, it seems 

 to me that, given the Russian system and the lack of credit, infla- 

 tion rate, et cetera, that we have to be quite creative in setting up 

 a joint venture because their side of the equation may not be, you 

 know, dollar for dollar what we are putting in as an American firm. 



What are some examples of joint ventiu-es that you have seen? 

 And what is the contribution from the Soviet participant in that 

 joint venture or that former Soviet participant in that joint ven- 

 ture? 



Mr. Infanger. Again, my experience is Hmited on this score. But 

 the pattern that I see is that the joint ventures that — some of 

 which I have visited, like the McDonald's joint venture, if you want 

 to call it — the pattern is that the companies have to be in for the 

 long haul. They have to be ready to stand enormous losses at the 

 beginning, to be patient and get a foothold there and expect that 



