MORE SOVIET GRAIN BUYING FROM U.S. TIED TO PRICE

  Whether the Soviet Union will fulfill
  its buying obligations under the U.S./USSR grains agreement
  depends entirely on the United States, a Soviet trade official
  told Reuters.
      "How can I tell that we are ready to fulfill the agreement
  if the United States does not want to offer us grain at
  competitive prices?" said Albert Melnikov, deputy trade
  representative of the Soviet Union to the United States.
      "We are in the market for grains, but it is up to the
  United States to be the seller ... to offer Soviets competitive
  prices," he said in an interview.
      Melnikov said that the United States has not lived up the
  agreement by failing to make available to Moscow U.S. grain at
  prevailing market prices.
      "We are being accused of not implementing this agreement.
  We do not consider we are at fault," Melnikov said.
      Article I in the agreement states that "purchases/sales of
  commodities under this Agreement will be made at the market
  price prevailing for these products at the time of
  purchase/sale and in accordance with normal commercial terms."
      "The United States should supply to the Soviet Union
  definite quantities of grain at competitive prices ... Is the
  United States ready to supply this?" he said.
      The Soviet official said that near-term corn demand has
  been met by the recent Soviet purchases of U.S. corn, which he
  confirmed at 1.5 mln tonnes, but said that if U.S. corn prices
  remain competitive, the Soviets will buy more if they need it.
      Wheat buying, however, is a different story, Melnikov said.
      "If the United States is interested in selling its wheat,
  then they must offer competitive prices, and it's up to the
  United States to decide how these competitive prices will be
  offered," he said.
      Last year's U.S. offer of subsidized wheat to the Soviets
  was rejected because of an insufficient subsidy, Melnikov said.
  He said that at the time of the 13 dlr per tonne subsidy offer,
  U.S. wheat prices were 26 dlrs over world levels.
  

