[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.