269 



In ay vlaw, thara has baan a vary diract corralatlon batwaan tha 

 Soviet Union's daalsa as a Bllltary thraat and Its Inability to 

 provide an adequate food supply to Its population. Detente began In 

 1072 — the saiM year that the Soviet Union turned to the West to help 

 feed Its people. 



Yes. we won a Bllltary conpetltlon, but we also won an econoalc 

 battle. This was not Just a conpetltion between wlsslle silos, but 

 grain si los as wel I. 



Now. we are at the beginning of this new world. I heartily agree with 

 the remarks delivered by Secretary of State Christopher In Chicago on 

 Uarch 22. Secretary Christopher said that helping the Russian people 

 build a free society and market economy is the greatest strategic 

 challenge of our time. As we bring Russia and the other states of the 

 former Soviet Union (FSU) Into the "family of peaceful nations', we 

 will serve our highest security, moral and economic interests. 



American agriculture has a key role to play In helping Russia and the 

 FSU to successfully accomplish their three simultaneous revolutions, 

 defined by Secretary Christopher. These are: 



— transforming a totalitarian system Into a democracy; 



—transforming a conmand economy Into one based on free markets; 



— transforming an empire Into a modern nation-state. 



In order to achieve these massive reforms, there has to be popular 

 support. The food supply Is one of the most visible and direct issues 

 for the general public. Anyone who has read the history of the 

 Russian revolution understands that fact very well. 



We can help demonstrate to ordinary Russians the tangible and 

 imnedlate benefits of market economics through Improvements In the 

 food system; 



We can help build "stakeholders" in a democratic market system. If we 

 support private farms and businesses ail through the food chain and 

 related industries. These will bring greater quantities of higher 

 quality products to consumers. 



And, we can help officials build agricultural policies that provide 

 the basis for viable coomerclal relations within the borders of the 

 FSU and for Russia's entrance In the GATT multilateral trading 

 system. 



Russia's Role In World and U.S. Agricultural Trade 



There would not have been a real explosion in global export demand 

 over the past 20 years If the Soviet Union had not faced consecutive 

 crop problems starting in 1972 and 1973 and decided to import grain 

 and protein to make up for the short-fail — rather than simply doing 

 without as had been the Soviet government's previous practice. 



