US outlining new pact for Soviet grain sales

August 3, 1981

The United States will outline its proposal for a new US-Soviet grain pact in Vienna today (Aug. 3). But, not expecting an agreement for some time, administration officials said that if negotiations on a new agreement prove difficult, the solution might be a one-year extension of the current five- year pact expiring Sept. 30.

The US was a primary grain supplier to the Soviet Union until former President Carter slapped a partial embargo on sales in January 1980, after the Soviet intervention in Afghanistan. Moscow then signed long-term agreements with Canada, Argentina, Brazil, and Austra lia.