WASHINGTON, D.C. -
Secretary of Agriculture John R.
Block said today he is “extremely
pleased that the Soviet Union has
returned to the U.S. market for
corn the first Soviet purchase of
U.S. grain since President Reagan
lifted the embargo April 24.”
Private exporters reported sales
of 450,000 tons of U.S. corn for
delivery after September 30.
“These purchases are consistent
with the U.S.-USSR consulation
held in London June 8-9, when it
was agreed that the Soviets could
make additional purchases under
the existing long-term agreement
both before and after the
agreement expires September 30.
“The United States has worked
>cm
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USSR resumes U.S. grain purchases
hard to develop the Soviet market,
as well as to expand farm product
sales in other parts of the world,”
Block said. “American farmers
have invested their own labor and
capital in producing for export. It
is right and fair that they have the
opportunity to compete for those
markets, including the Soviet
Union, and to benefit in terms of
income. The resumption of grain
sales to the USSR is most
gratifying. This gives me reason to
be very optimistic that the door
has been opened on additional
gram sales.”
The present five-year
agreement, which became ef
fective October 1, 1976, provided
for purchases by the USSR of a
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minimum of 6 million tons of U.S.
corn and wheat each year, with
purchases above 8 million tons
requiring prior consultation bet
ween the two governments. The
Soviets bought 6.1 million tons the
first year of the agreement, 14.6
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In October 1979, after a short
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million tons commitment on com
and wheat. As a result, shipments
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By April of this year, the Soviets
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permitted in the fifth and final
year of the agreement. Without
further consultations between the
governments, no additional pur
chases would have been permitted
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However, at the June 8-9 con
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United States agreed the Soviets
could purchase without further
consultation up to 3 million tons of
U.S. com and 3 million tons of U.S.
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wheat for delivery before October
It was also agreed that the USSR
could proceed to purchase
“reasonable quantities” for
delivery on or after October 1. The
understanding is that if these
purchases approach 3 million tons
of wheat and/or 3 million tons of
corn, the United States will
communicate further with Soviet
authorities.
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