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The Soviet Union may be offered export subsidies.

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Senate Majority Leader Bob Dole (R-Kan.) said the Reagan Administration appears willing to offer grain export subsidies to the Soviets to bolster sagging farm sales overseas and to boost chances of a Reagan-Gorbachev summit. Such a decision would be a sharp policy reversal for the Administration, which has long contended that it is wrong to offer to subsidize sales to the Soviets and to other “unfriendly” countries. Agriculture Secretary Richard E. Lyng advanced the idea at a Cabinet-level meeting of the Economic Policy Council last week at which he also described the bleak outlook for U.S. farm exports.

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