Inside Report (3)

The Soviet Union may contract for further purchases of US grain this year. Various Soviet officials, speaking privately, have hinted at such a move despite sizable grain deals in recent months with Argentina, Canada, and Brazil. Foreign diplomats and commercial sources in Moscow say, however, that the Soviets have not formally signaled a desire to buy. Nor have they indicated what duration, volume, or terms might be sought in a grain deal.

If the Soviets come knocking, the diplomats suggest, three factors would probably explain the move: US reliability as a supplier, the quality of US feed grains, and a continued shortfall in Soviet grain pro duction.m