THE IMPLEMENTATION OF THE SOVIET-SYRIAN ECONOMIC AID AGREEMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200120018-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: March 21, 2005
• Sequence Number: 18
• Publication Date: July 28, 1958
• Content Type: REPORT

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CSM No. 596
Copy No..
28 July 1958
CURRENT SUPPORT MEMORANDUM
THE IMPLEMENTATION OF
THE SOVIET-SYRIAN ECONOMIC AID AGREEMENT
OFFICE OF RESEARCH AND REPORTS
CENTRAL INTELLIGENCE AGENCY
This report represents the immediate views of the
originating intelligence components of the Office
of Research and Reports. Comments are solicited.
This document contains information affecting the national defense of
the United States, within the meaning of the espionage laws, Title 18
USC, Sections 793 and 794, the transmission or revelation of which
in any manner to an unauthorized person is prohibited by law.
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THE IMPLEMENTATION OF
THE SOVIET--SYRIAN ECONOMIC AID AGREEMENT
The USSR began rapidly implementing in March the survey phase of
its economic aid agreement with Syria, which was signed on 28 October
1957. As many as 250 Soviet technicians may now be engaging in geo-
logical, agricultural, and irrigation surveys for projects listed under
the agreement. Most of the projects are scheduled for northeastern
Syria, in the triangular area formed by the Euphrates River and the
Syrian-Iraqi border.
Approximately 50 Soviet technicians are preparing a geological
map of Syria, which will entail six months of aerial photography and
17 months of topographic work. 1/ About 60 of the technicians will
soon undertake a five-month survey of the Euphrates, Khabur and
Orontes Rivers. 2/ Smaller groups are employed in surveys relating
to bridge construction, irrigation projects and mineral exploration. 3/
The number of Soviet technicians now engaging in surveys probably will
be supplemented by an even larger number of technicians who will be
required as the projects of the Soviet-Syrian economic agreement are
actually implemented.
The rapid influx of Soviet technicians indicates that the USSR
intends to concentrate on those projects which can be completed rapid-
ly. This is supported by statements of Syrian officials who claim
that, in addition to the numerous surveys in progress, first priority
will be given to the installation of thermoelectric power equipment
in Damascus and Aleppo and the construction of several dams in the
Ghab Valley 4/--projects which can be completed in a relatively .
short time. The USSR, on the other hand, can be expected to proceed
cautiously before agreeing to underwrite such costly projects as the
Latakia-Qamishliye Railroad and the Euphrates irrigation complex.
Syrian officials have stated that if all projects in the agree-
ment are completed the total cost of Syria's development program will
be two billion Syrian pounds* ($560,000,000) of which 30 percent
($168,000,000) will be provided in the form of aid by the USSR. 5/
An analysis of the projects included in the agreement, however, -
does not support statements indicating a program of such magnitude.
Cost estimates of these projects suggest instead that the total cost
of the Syrian development program will be about $392,000,000. (See
Table I)
The need for extensive surveys is in itself an indication that
specific cost estimates have not been determined and that a specific
line of credit has not yet been extended by the USSR. Further,.it is
unlikely that Syrian economy is capable of absorbing a $560,000,000-
development program within the seven years specified in the agreement.
Syria would be required to provide as much as 200 million Syrian
pounds ($56,000,000) annually to cover domestic expenditures. With
about 480 million Syrian pounds ($134,000,000) already in circulation,
the inflationary impact of such large budgetary outlays for economic
development lessens the possibility of promoting so large a program
in seven years.
*#S1 = $US 0.28
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QAQArrrnr. ATrrI A T
The Soviet-Syrian Economic Aid Agreement
(28 October 1957)
Cost Estimate
Project ($US Million)
I. Irrigation and Hydro-
electric Power
1 Euphrates River - 197*
Utilization survey; con-,
struction of dam and power
station to generate 100,-
000 kw; first stages of
irrigation system; provi-
sion of materials, equip-
ment and technicians.
2. Orontes River - 50*
Utilization survey; con-
struction of two power sta-
tions and three dams; pro-
vision of materials,
equipment, and technicians.
3. El-Kebir River - 6*
.Utilization survey; pro-
vision of irrigation equip-
ment.
4. Barada River -
Provision of irrigation
equipment and technicians.
5. Khabur River - 8*
Utiliz on survey.
6. Yarmuk River
Power station with
kw capacity.
3,000
7. Horns Lake -
Power station with 39000
kw capacity.
1.2
II. Transportation Facilities
1. Aleppo-Qamishliye Railroad - 80
About 300 m es; provide roll ng
stock.
Homs-Latakia Railroad -
About 90 miles__.
28 July 1958
Remarks
Potential irrigable area
of 1,000,000 acres. About
10 years to complete en-
tire complex.
Basis for the Ghab drain-
age project. Syrians plan
to reclaim 185,000 acres
and install 21,000 kw of
power capacity. Yugoslavia
undertook initial stages
in 1953. IBRD estimates
completion in 1965.
To irrigate about 8,750
acres and install about
4,000 kw of power capacity.
To irrigate about 37,500
acres and provide 17,000
kw of power capacity.
Potention irrigable area
of about 250,000 acres;
project costing about
$1,200,000 recently com-
pleted.
Estimate of Syria govern-
ment; includes rolling
stock. SEGTRACO, a Bel-
gian firm which surveyed
the project, estimates
$107,500,000 exclusive
of rolling stock.
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Cost Estimate
Project ($US Million) Remarks
2. Reconstruction of .2
two bridges over the
Euphrates River.
Repair of one bridge .1
over the Khabur River. Con- .5
struction of two bridges over
the Khabur River.
3. Extend present oil
facilities at Latakia.
III. Geophysical Surveys
1. Oil prospecting in an 2.5
area of 50,000 km ; drilling
of up to 18 wells to a depth rang-
ing from 1,500 to 6,000 meters;
preparation of a survey map.
2. Mineral survey; prepara- .2
ti2n of two survey2 maps---500
km and 35,000 km ; mining
and drilling to determine
value of ores.
3. Survey and drilling
for underground water re-
sources in an areas of about
10,000,000 acres.
4. A geological map of 1.0 Bulgaria was awarded a
Syria. $1,000,000 contract for
this survey in 1956.
IV. Miscellaneous
1. Thermoelectric power 12.0
stations - 151000 w each
at and Damascus.
2. Nitrate fertilizer 10.0
plant - 44,000 tons of
ammonium nitrate per annum.
3. Agricultural research
Tabora ory. .5
TOTAL 392
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Analyst:
25
X1A9A
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