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Monday, April 5, 1999

`US-Russia food aid pact not soon' 

Barbara Hagenbaugh  
Washington: Although the US traders and farmers are anxiously awaiting word on a new US food aid package for Russia, such a decision is not expected any time soon, an agriculture department trade official of the country said."We want to see how the first shipments go and that they reach the right target," said Dr Isi Siddiqui, who last month took the post as agriculture secretary Dan Glickman's special adviser on trade.

"I would imagine that as we get the first tranche completed then we will discuss the request for more food aid," he said. Siddiqui assured that an announcement for additional food aid to Russia will not come in the next several weeks.

Other USDA officials, including Glickman, for months have said they want to wait until the initial food aid package, estimated at nearly $1 billion, reaches the needy in Russia. There was a concern from lawmakers and others that the food would end up in the wrong hands, including the Russian mafia.But rumours have circulated on the US commodity trading floorsfor weeks that an announcement on another package is coming soon. The rumours were further fuelled after Russian deputy Prime Minister Gennady Kulik last week asked Glickman for additional aid.

USDA officials are pondering another package and are considering a request by the US soybean growers to boost the amount of soybeans and soy products included in a future aid pact, Siddiqui said.

Siddiqui said the USDA has been satisfied with how the initial tranche is going so far. Last week, the agricultural attache from the US embassy in Moscow requested additional resources to monitor the food aid when he came to Washington. The USDA is working on fulfiling his request, Siddiqui said. As far as concerns that US food aid to Russia could be stalled due to rising tensions between the countries over the NATO bombing campaign in Yugoslavia, Siddiqui said such a decision would come from the state department, not from the agriculture department.

Siddiqui and other officials said that there are no plans to halt thehumanitarian package, which in addition to aiding the Russian people is also helping to decrease a massive oversupply of US grain and meat. Under the first aid package, the US is donating 1.5 million tonnes of wheat and 50,000 tonnes of meat.

The US will also provide low-interest, long-term loans to provide for the sale of 5,00,000 tonnes of corn, 3,00,000 tonnes of soybean meal, 2,00,000 tonnes of soybeans, 2,00,000 tonnes of wheat, 1,00,000 tonnes of rice, 1,20,000 tonnes of meat, 50,000 tonnes of poultry and 30,000 tonnes of nonfat dry milk. Another 1,00,000 tonnes of food will be donated to private voluntary organisations in Russia.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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