Business Notes Soviet Investment

As parts of the splintering Soviet Union lurched uncertainly toward free enterprise last week, some U.S. firms rushed to set up shop. After three years of negotiation, Kellogg said it will build a plant in newly independent Latvia to produce cornflakes and Frosted Flakes. Kellogg plans to market the brands in the Baltics and the Soviet Union. "Whatever form the Soviet Union takes, we believe the republics are headed in the right direction," a Kellogg spokesman said.

Other U.S. firms apparently agree. AT&T said that it will install a $6 million long-distance switch in the republic of Armenia next month and that it was discussing the sale of similar switches to other republics.

Meanwhile, talks between U.S. food firms and Soviet buyers have "absolutely mushroomed in the past few weeks," according to John Musselman, a director of Omaha-based Summit Ltd., which represents major food-processing and food- machinery companies. He adds, "There's now a feeling that you can do business with the Soviet Union."