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In the case of grains and livestock, we need to help Russia establish 

 cash market structures, which would be necessarily operative before 

 major viable futures markets can function. 



Extension Service operations, providing price Information and 

 assisting with the transportation and distribution Infrastructure also 

 need to be a top priority. 



3. Enterprise Funds-We must stop spending money for people who Just 

 want to travel to study the Russian system and then who come back to 

 Washington and tell everyone what's wrong with It. We need to put 

 more of our money that we appropriate to work IN RUSSIA, supporting 

 Russian business and Russian workers and Russian reform. 



We must leverage public funds with private funds. I would like to see 

 as little as possible In our assistance to Russia — apart from 

 humanitarian assistance — administered by AID and as much as possible 

 put into an Enterprise Fund specifically directed to food system 

 development. The Fund could operate as a public/private partnership, 

 providing financing for private businesses in Russia that have 

 American partners, on a percentage basis. It could be set up as a 

 long-term revolving fund. 



We need to make sure that American agribusiness know-how is 

 transferred to Russia, and that the American food system has a real 

 foot hold In this tremendously large and important developing market. 



If we want to build a long-term commercial market In the new Russia 

 for our comnod 1 1 1 es , our technologies, our equipment and our food 

 products, we have to provide the support to our business community 

 that the Europeans and Japanese provide. If we spend all our money 

 and efforts Just educating Russians in the benefits and operations of 

 a market system, we will find our businesses losing out to our 

 competitors who will be able to reap the long-term financial rewards 

 of our cont r I but I on . 



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