MEMORANDUM FOR THE RECORD
SUBJECT: Distribution ofovember National Intelligence Daily Item to Selected Government Officials
The attachedoviet Grain Offi Alleges No More Purchases Fromppearedonal intelligence Dailyovcmbe
Attachment: As stated
Office of Economic Research Central Intelligence Agency5
SOVIET GRAIN OFFICIAL ALLEGES HO MORE PURCHASES FROM US
The head of the Soviet grain purchasingsaidthe USSR intends to "punish" the
US for tho recent grain embargo by refusing to buy additional grain from the US. Ills statement is aof assertions earlier this fall which were followed, however, by additional contracts for US grain'.' Moscow needs more grain and lacks major supplies outside the US.
Viktor Pcrshin, +he frhairman 'o: the purchasing
in denouncing the embargo and US negotiating tacticsthe discussions leading to the long-term grainannounced onh.
Pershin emphasized that the USSR hah contracted for more thanillion tons of all grains and that Moscow will not be back in the international grain markets until6 at the earliest. He said he would refuse to permit curtain unspecified contracts signed with other countries to be switched to US grain for fulfillment.
The Soviet official noted the congestion at Baltic ports, and that some incoming ships are being diverted
to ports on the Black Sea. Ho also said that tha weevil infestation problem has largely been resolved.
Pershin's comments on the US embargo and theare consistent with other reports. Minister of Foreign Trade Patolichev has said that the USSR istoremium elsewhere rather than buy additional US grain.
Pershin's assertion that tho Soviets have already bought more thanillion tons is not supported by available intelligence, which puts total estimated purchases at5 million tons. Evenillion tons would leave the Soviets far short of meeting their basic requirements for livestock feed.
Although Soviet traders are probably picking up small amounts of grain around the world, Pershin may be trying to depress market prices prior to re-entering the grain markets.
OUTSIDE DISTRIBUTION FOR, "Soviet Grain Official Alleges
No fte Purchases From US"
ffa. DONALD J. f'bvOTNY
Chairman,eed Division Foreign Agriculture Service,S Department of Agriculture
ffa. BRICE MEEKER
Assistant Aetiinistrator for Ccm-cdity ProgramsS, Department of Agriculture
Mr. Hazen Gale, Room i
Department of the Treasury
ffa. Howard Williams
Office of the Special Representative for Trade Negotiations.,
Ms. Barbara Bowie,ational Security Council, EOB
/fa. Eric Robinson,5ew Executive Office Bldg.
Mr. Arnold Donahue^ Assistant Chief International Affairs Division, CPU,5
ffa. Michael P. Boerner, Food Policy Division
GVfice of Fcodrograms, Bireau orusiness Affairsepartment of State
ffa. Lyie P. Schertz, Deputy Administrator, International Economics Roomldg. Department of Agriculture
ffa. Gordcwrazier, Assistant Administrator for International TradeS, FIepartment of Agriculture
ffa. William Horbaly, Assistant Administrator for Agriculture AttachesS, Department of Agriculture
ffa. Frank /'cKnigmt, Associate Generai. Sales Managlr, Export Marketing Service RoomW, Administrativeepartment cf Agriculture
ffa. David Schoonover, Program Leader, Soviet union Program Area, Foreignompetition Division, Economic Research Servicehepartment cf Agriculture
OUTSIDE DISTRIBUTIONoDSoviet Grain Official Alleges Mo Mor'e Purchases From US" (continued)
Mr. Elmer Klumpp, Assistant to the Assistant Secretary
for International Affairs and Commodity Programs Department of, Administrative Bldg.
ndependence Avenue, Department of Agriculture
Mr. G. Stanley Brown, Foreign Agricultural ServiceS, South Bldg. Department of Agriculture
Mr. Charles Pence, Director, Grain Division Room *kW/ Department of Agriculture ;Original document.