George H.W. Bush: “Loan Credit for the Soviet Union June 11, 1991 President Bush has informed President Gorbachev today that the United…”

“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.…”