SHULTZ NOT OPPOSED TO WHEAT SUBSIDY TO SOVIETS Secretary of State George Shultz has decided not to oppose any U.S. wheat subsidy offer to the Soviet Union and has left the final decision on whether to sell subsidized wheat to Moscow up to President Reagan and the Agriculture Department, a State Department official said. "Shultz feels like he fought the battle against a subsidy last summer, and he's not going to the mat again. It's now basically the USDA who has to make their decisions as to what they want to do," the official said. If USDA decides to go ahead with a subsidy offer to the Soviet Union, he said, "Shultz will not wage a vigorous campaign against it. He might not come out in favor of it, but he won't go to the President and voice his objections." In an official statement clarifying Shultz's remarks yesterday to leaders of the National Association of Wheat Growers, the State Department said, "Secretary Shultz expressed his belief that whenever possible, U.S. grain should be competitive on world markets, including the Soviet Union. The Agriculture Department is in the best position to determine whether consideration should be given at this time to extending to the Soviets a subsidy under the Export Enhancement Program." Although Shultz will not oppose a wheat subsidy to the Soviets, there remain obstacles to another subsidy offer to Moscow, the State Department official said. "Everyone in the government agrees that if there is a subsidy to be offered, we would not offer it unless we had a firm commitment from the Soviets that they would buy." USDA does not want a repetition of last summer when the USSR baulked at its offer of four mln tonnes of subsidized wheat, the official, who asked not to be identified, said. The Soviets rejected the U.S. offer then on the grounds that the 13 dlr per tonne subsidy was insufficient to bring U.S. prices down to competitive levels. The Soviets want a higher subsidy offer this time, the State Department source said. "What the Soviets want is something equivalent to the lowest price being paid by anyone in the world," he said. The Soviets argue that they are the best customer of the U.S. and that they are entitled to the best price, he said. Government and commodity sources also said there are elements in the USDA, most notably undersecretary Daniel Amstutz, who remain opposed to a wheat subsidy to the Soviets. "Subsidized wheat to the Soviet Union is still not a foregone conclusion," the State Department official said.