U.S., Soviets to Hold Talks on New Grain Pact

U.S. and Soviet negotiators will meet for another round of grain trade talks in Moscow on Monday and hope to complete a new pact on Soviet purchases by the end of the week, U.S. sources in the Soviet capital said Friday.

“We hope that something will be signed, but we can’t say for sure,” a U.S. official said.

Earlier talks in London this fall stalled when the Soviet side refused to agree to buy as much grain as the U.S. side demanded. The agreements set a minimum amount of purchases for each year. The negotiations bring together the world’s biggest importer and exporter of grain.

Soviet officials could not be reached for comment on the talks. But the U.S. sources said the Soviet side had given them reason for optimism that a deal might be reached shortly.

Would Set Tone

Earlier this week, U.S. officials in Washington said the two sides had tentatively agreed on a two-year revival of a five-year pact that expired in September and required annual Soviet purchases of 9 million metric tons.

A final agreement would follow eight months of difficult negotiations and set the tone for world agricultural trade.

A new grain pact could also trigger a resumption in U.S. commodity export subsidies to Moscow that have been halted as progress in the talks have slowed.

The previous grain agreement, now expired, required the Soviets to buy 4 million metric tons of wheat and corn every year and either 1 million tons of grain or 500,000 tons of soybeans.

Washington has sought another five-year commitment and promises from Moscow to buy more grain. The Soviets, however, wanted more flexibility in its purchase commitments and asked for guarantees of subsidies throughout the terms of the agreement.

The Soviet Union is trying to reduce its dependence on food imports by improving farm productivity.

But progress has been slow despite reforms introduced by Kremlin leader Mikhail S. Gorbachev, and Soviet officials say this year’s grain harvest will be lower than last year’s 211 million tons.

Deputy U.S. Trade Representative Alan Holmer will lead the U.S. delegation to the renewed talks, the officials said. The head of the Soviet delegation will be Deputy Minister of Foreign Economic Relations Yuri Chumakov.

Grain market analysts in London said that the Soviets would likely buy large quantities of grain this year because of a poor harvest and continued efforts to put more meat on Soviet tables.

They said Soviet imports this season could be the highest since 1984-1985, when a disastrous harvest forced the Soviets to import a record 56 million metric tons.