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Carmany provides a grant to China every year to use in agriculturally 

 related projects. Annual grant: about DM20 million. 



The French have an *Ag Tech Support" Bureau in China, which provides 

 lots of free eguipment, machinery and other gifts. While concentrating 

 on wheat to date as best as we can tell, we have seen their gifts in 

 feed related facilities. Budget unknown, but including expert staff, 

 office and gifts, it must be $1-2 million per year. 



Everywhere we go, we see gifts of free lab equipment, supplies and 

 machinery from the EEC and Japan. Collectively, it would be valued in 

 many hundreds of thousands of dollars. 



The EEC, for certain, and Japan, we suspect, aure providing soft loans 

 for feed and storage equipment, lab instruments, etc. We know of 2-3 

 feedmill lines financed with soft loans by Italy (no principal down, 

 first payment in 10 years 9 2-3% per year). 



Assuming a loan of $1 million/mill and a commercial rate of 8%, these 

 three mills alone would represent a subsidy of $240,000/year over, say 

 five years, in rough numbers. , 



The Australians, the Canadians, and the EEC always seemed to be able to 

 find a cheaper price for their 2-row barley to compete against our 

 6-row. Because of Australia's and Ctmada's barley board system, they 

 have for the last two years been able to negotiate with Ceroils to offer 

 their 2-row below U.S. 6-row. At 750,000mt per year and a conservative 

 $10/mt, that comes to $7.5 million per year. 



MEXICO: Canada is the only country that has a similar program to that 

 of the U.S. CCC (GSH-102 and 6SM-103) programs for feed grains. 



FORMER SOVIET UNION: 1. The Commission of European Communities has 

 an office in Moscow which is responsible for allocating the market 

 development money contributed by the EEC to all of the CIS. Currently 

 the CEC is also working to create a network of offices in the Urals and 

 Siberia as part of its strategy for long-term technical assistance to 

 Russia. 



THIS IS HOW THE PRCXJUAM ffORKSt Each country in the EC contributes a 

 specific amount of money to the Commission. The Commission, 

 headquartered in Brussels, allocates this money to various countries or 

 regions. The office in Moscow is responsible for all of the CIS 

 countries. It is this office which decides on the type and size of 

 projects in the CIS. All various countries or regions. The office in 

 Moscow is responsible for all of the CIS countries. It is this office 

 which decides on the type and size of projects in the CIS. All projects 

 are on a tender basis, and any European company, university or 

 organization can bid. Theoretically, even em American company with a 

 European office can bid. 



NATURE OF PROJECTSt Most of the projects can be described as "technical 

 assistance". Just like the Council, specialist are hired who provide 

 training seminars, demonstrations and individual consulting. 

 SPECIFIC PROJECTS RELATED TO FEED GRAINS: 1) In the Moscow region, the 

 EC is working with a large poultry farm on improved nutrition and 

 management. 2) In St. Petersburg, there is a project to assist a feed 

 manufacturer in improving the production of mixed feed for livestock. 

 Some investment was also made to renovate eq<aipaient in the feedmill. 3) 

 In Saratov the EC is funding a study of the grain milling industry in 

 the region which includes that for food use in addition to feed uses. 

 4) In Samara, the EC will soon launch five projects focusing on 

 extension and Information systems. Some of these will include projects 

 in food distribution and wholesale marketing. 



