233 



Ms. McKlNNEY. No thanks, Mr. chairman. 



Mr. Penny. As I expected, we're coming up on a vote on the 

 House floor, but I'd Uke to wrap this panel up and wrap up the 3 

 days of hearings with just a couple of concluding questions. We 

 didn't get much discussion this morning about value-added sales to 

 the Soviet Union and whether that is an area where we ought to 

 apply greater emphasis. I know Mr. McCoy wants to respond to 

 that, but if either of the others wants to respond as well, it would 

 be fine. 



Mr. McCoy. I think it's entirely appropriate that we use all of 

 our assistance and finance tools to promote the sale of all of our 

 products in every market. I think we have to bear in mind that the 

 customer may have some priorities that need to be followed, but 

 certainly there's every indication that there is some interest in pur- 

 chasing pork, for example, or poultry, and there may be some inter- 

 est in dairy products. I'm not all that aware. 



The bottom line is I would imagine that the bulk of our financing 

 tools would continue to go for grain simply because that's the main- 

 stay and has been the mainstay of our relationship and has been 

 indicated to us to be the desire as far as the Russians are con- 

 cerned. 



Ms. Brookins. I agree with what Mr. McCoy says. I would only 

 add that the Russians have very much stated an interest and a 

 need for both soybean meal and soybean oil. This is something they 

 need very badly even right now, and I think it is what is appro- 

 priate to the Russians. Certainly in terms of some of our humani- 

 tarian assistance as well, we can provide some of the value-added 

 food products that could go directly to consumers in specific areas 

 if that is needed. 



Mr. Penny. How do you feel about a monetization approach to 

 that targeted sort of aid? 



Ms. Brookins. The humanitarian aid? 



Mr. Penny. Yes. 



Ms. Brookins. If it can be then used, the money sold, by the 

 PVL, right? 



Mr. Penny. Yes. 



Ms. Brookins. I think monetization has worked in a number of 

 countries. We have to be careful how we use it, and we have to be 

 careful that we approve of the right types of uses for it in terms 

 of the projects that would be implemented from the use of those 

 funds. But if it does give us an additional ability to leverage our 

 resources in helping the Russians make this important trans- 

 formation, I don't have any objection to it. 



Mr. Penny. Carol, I think you mentioned in your testimony that 

 the Europeans are looking at a free-trade arrangement with Russia 

 and the other Republics. What does that really mean in the case 

 of Russia, and how would the United States relate to that issue? 



Ms. Brookins. I think basically what it means, Mr. Chairman, 

 is that the European Community sees Russia as a phenomenally 

 important long-term market. I mean, the European Community is 

 resource-short; Russia has resources. The European Community 

 has major surpluses of grains and other commodities. They see 

 Russia, and particularly the Asian part of Russia, as a source of 



