    [Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
    [June 11, 1991]
    [Page 639]
    [From the U.S. Government Publishing Office www.gpo.gov]

    [[Page 639]]

    Statement by Press Secretary Fitzwater on United States Agricultural
    Loan Credit for the Soviet Union
    June 11, 1991

        President Bush has informed President Gorbachev today that the
    United States will meet the Soviet request for up to $1.5 billion in
    credit guarantees toward the purchase of American agricultural products.
    Secretary of Agriculture Ed Madigan will follow up immediately with
    Soviet officials to work out the details of this agreement.
        The President's offer specifies U.S. willingness to make the credit
    guarantees available in three tranches over the next 9 months--$600
    million this month, $500 million in October 1991, and $400 million in
    February 1992. The President made this decision after having received
    the views of the Presidential delegation he sent to the U.S.S.R. in late
    May to study the grain request and the food distribution system there.
        In addition to meeting the Soviet request for credit guarantees, the
    President today also expressed to President Gorbachev his continued
    interest in collaborating on a long-term effort to improve the food
    distribution system in the U.S.S.R., primarily through the introduction
    of market measures. The United States is prepared to form a high-level
    team of Government and private experts to assist the Soviets in this
    effort.
        In making this decision, the President took into consideration the
    record of the Soviet Government in meeting its official obligations. The
    President's decision also followed assurances from the Soviet Government
    that the grains made available through the credit guarantees would be
    fairly distributed among Soviet Republics and the Baltic States. The
    President's decision reflects the administration's desire to promote a
    continued positive evolution in the U.S.-Soviet relationship. In
    particular, we hope that this assistance will help to stabilize the food
    situation in that country.

                        Note: Press Secretary Fitzwater read the statement
                            to reporters at 4:38 p.m. in the Briefing Room
                            at the White House.