SOVIET AND CHINESE ACTIVITIES IN THE WORLD WHEAT MARKET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000400140023-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 14, 2016
• Document Release Date: August 1, 2003
• Sequence Number: 23
• Publication Date: August 1, 1966
• Content Type: MF

Approved For Release 2003/08/05 : CIA-RDP80B01676R000400140023-A___
-, 4341f,
lanomble Dean k ..:
eoxeta of to
Soviet and 'fusee Aeti t
the World Wheat fret
The attached paper in
p po ,e to keep you adrieed
jcI P' - . '. PS
Eichard fialm
Dire
Attach*nt - 1
Subject parr
OD/ORR:WNMorell, Jr. (29 July 66)
Rewritten: Richard Helms ecd - 66
Distribution: Orig & 1 - addressee
} - DCI ER
1 - DDT
2 - OD/ORR (1 withheld)
1 -
1 -
pproved For Release 2003/6$1(5 N ClA-RDPSOBO167 0400140023-0
STA
STAT
 Approved For Release 2003/08/05: CIA-RDP80B01676R000400140023-0
7he orable Dean Busk
The retery of state
Soviet and Chinese Activities in the World
%beat market
attached paper is in response ;to your concern about Soviet
and Chinese activities in the world eat market. I probe to
keep you advised periodically in tom;" Vie.
Richard Fuels
Director
AM Hacbmen V :
Subject Paper
Distribution: (5-1960)
Orig. & 1 - Addressee
4 - DCI
1 - ER
1 - DDI
2 - OD/ORR (1 withheld)
OD/ORR:WW7NMore11,Jr. (29 Jul 66)
25X1
Approved For Release 2003/08/05 : CIA-RDP80B01676R0004Q0140023-0
 Approved For Release 20g3L08/Q5 ,, CIA-RDP80BO1676R000400140023-0
been no indications or Soviet activities in the
rket since the agreement with Canada announced on
20 Am 1966. Soviet purchases of i World wheat for delivery
during the next twelve aroaths now total almost 4 Idiijon tons
300 million -- tbree-quarters from Coda and
for a good Soviet wheat crop this year, recent
months of about 9 million tons. Given the
France. This compares with deliveries over
probably made to assure adequate grain supplies
ral years rather than to met anticipated
Communist China, with aueother for wheat crop in prospect,
will oc=tjnua to be in the market for additional wheat imports
during the coming months. We have no evidence, however, that
t Soviet curs are designed to pre-eept Chinese grain por`
.ted Soviet gold and foreign *=Asn~p reserves would
don extremely Unlunly.
Several reasons bablyF underlie Soviet curs for 1966167
acne : the soviet purchase agree nt with Canada for deliveries of
ion 6 million tons of wheat over the period add -1967 to
Recognition by the Soviets that their buge invest-
mant program in agriculture, which rune through 1970, is
ly to pay off for several years.
b. Concern over supply and price treads in the world
market over the next few years in view of Soviet
ence on imports in the event of serious shortfalls
in domestic production such as occurred in 1963 and 1965.
to replenish depleted grain reserves.
d. A desire to achieve savings in shipping costs by
arresngi deliveries to the Soviet For lit from Canada
by sea opposed to expensive overland its from
man . Savings will also accrue from
deliveries of Cemadian grain to Cuba to meet met
commitments -
Approved For Release 2003/08/05 : CIA-RDP80BO1676R000400140023-0
 Approved For Release 2003/08/05 : CIA-RDP80BO1676R000400140023-0
The world wheat supply situation Currently is tight. Prospects
point, how"er', to a record 1:966 world wheat crop. The buwper
Canadian crop in prospect will largely offset the rec exist forecast
of a US mat crop only slightly above av . In Australia and
Ax anti where harvests begin in , record wheat acreages
are off to a good start with favorable noistuze
ice, the other maJor Free World eXporter, acreage
down,, but recent weather points to high yields.
Chinese egreements for picbaae of Free old grain for the
period 1966/67 (July-J ) now total. only 3.3 million toss, coal 1.
with an average aumial is t in recent years of a3~aersst 6 million
tons. Faced with reduced doestie production of meat because of
dr +, t in the North China Plain a unfavorable prospects for the
-arly rice crop as a- result of flooding in the south, the Chinese
have been actively seeking to perches,, a ditional quaaatitieae of
Delivery contracts shed thus far all call for stets
of this year,, and-kamm efforts to purchuer aemi-
the need, for delivery during this
so' efforts, fir, China has recently sold.
geatine meat to the UA R, appaivntly for delivery
by y 1966. China undoubtedly believes that even thot*gh the
re4 tight over the next tow aw ,,
tonal grain can be procured tro- abroad to tide the
until new supp"l.ies become available in early 1967.
Approved For Release 2003/08/0`5: CIA-RDP80BO1676R000400140023-0
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