U.S., Soviets to Renew Talks on Grain Pact

The United States and the Soviet Union have agreed to resume efforts in December to negotiate a new long-term grain agreement, agriculture and trade officials announced today.

“A new long-term agreement will help stabilize our trading relationship and hopefully serve as a mechanism for additional sales,” Agriculture Secretary Clayton K. Yeutter told a meeting of the U.S. Feed Grains Council in Chicago.

Negotiators were unsuccessful last year in attempts to fashion a new agreement, and the five-year measure that had been scheduled to end Sept. 30 was extended until Dec. 31, 1990.

Under the current agreement, the Soviet Union has agreed to buy at least 4 million metric tons each of U.S. wheat and corn a year and to make additional purchases totaling at least 1 million metric tons of wheat, corn, soybeans or soybean meal or any combination of those commodities.

The Soviets may also purchase up to 3 million metric tons of additional U.S. wheat and corn under the agreement. A metric ton is equal to about 2,205 pounds.

Yeutter said Deputy U.S. Trade Representative Julius Katz will head the American negotiating team. Preliminary talks are set to start Dec. 4 in Moscow.

U.S. Trade Representative Carla Anderson Hills said in a statement that the “long-term agreement has been beneficial for both nations.”

“We are optimistic that an early start to the negotiations will result in an agreement that will enhance benefits for both sides,” Hills said.