23 



The NAC is made up of representatives from the Treasury 

 Department, State Department, Commerce Department, Federal 

 Reserve, U.S. Trade Representative, Eximbank and A.I.D. 



Following NAC review, a public einnouncement is made which 

 provides information on the total amount of guaranteed credit as 

 well as the credit lines for individual commodities. If 

 consensus cannot be reached in the RC, a decision memorandum is 

 prepared. Depending on the size of the proposed program, the 

 risk grade and the percentage by which the recommendation exceeds 

 the annual exposure guideline, the decision memo is forwarded to 

 various decision-making levels. In ascending order they are the 

 the General Sales Manager, the Administrator of FAS, the 

 Administrator or ASCS (who is Executive Vice President of CCC) 

 and the Under Secretary for International Affairs and Commodity 

 Programs (who is President of CCC) for their decision. 



According to FAS policy, a country program is suspended as a 

 result of any missed interest or principal payment. Should a 

 country undergo a rescheduling of debt at the Paris Club, and in 

 the event of a bilateral agreement, USDA can consider the country 

 for a new program. 



The United States and Russia have recently signed a bilateral 

 agreement which call for the payment of approximatley $450 

 million by December 31, 1993. Should the Russians repay this 

 amount, USDA could consider a new GSM program for Russia, 

 although it is under no obligation to announce one. 



Higgiston: 720-0732 



CTde lap lane KReynolds Gwhiteman 



/P^ 



