NORTH KOREA'S FOREIGN TRADE
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP70B00338R000200010052-8
Release Decision:
RIFPUB
Original Classification:
S
Document Page Count:
10
Document Creation Date:
December 9, 2016
Document Release Date:
June 8, 2001
Sequence Number:
52
Case Number:
Publication Date:
January 26, 1968
Content Type:
IM
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Approved For Release 2001/08/27 : CIA-RDP70B00338R000200010052-8
Secret
DIRECTORATE OF
INTELLIGENCE
Intelligence Memorandum
North Korea's Foreign Trade
Secret
Copy No.
ER IM 68-10
January 1968
Approved For Release 2001/08/27 : CIA-RDP70B00338R000200010052-8
Approved For Release 2001/08/27 : CIA-RDP70B00338R000200010052-8
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
GROUP I
EXCLUDED FROM AUTOMATIC
DOWNGRADING AND
DECI.AANIFICATION
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CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
26 January 1968
INTELLIGENCE MEMORANDUM
North Korea's Foreign Trade
Summary
North Korea's foreign trade is oriented strongly
to other Communist countries. During 1966, these
countries accounted for 87 percent of total trade
of about $445 million, and the USSR and Communist
China in combination made up 75 percent of the
total. Almost one-half of North Korea's non-
Communist trade with Free World countries was with
Japan.
With the exception of trade in bulk commodities
almost all trade with the USSR and Communist China
moves by overland transport routes. North Korean
trade with other countries, including all Free
World nations moves entirely by sea.
Note: This memorandum was produced by CIA. It
was prepared by the Office of Economic Research.
This memorandum is a preliminary analysis of
North Korean trade data. A more detailed study
will be published on the completion of further
analysis of trade and shipping data.
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1. North Korea's foreign trade, most of which
is with other Communist countries, has been of
great importance to the development of the economy.
The value of North Korea's foreign trade in 1966
was about $445 million, compared with $429 million
in 1965. Imports had consistently exceeded exports,
until in 1966 when North Korea achieved an export
surplus with both the Free World and the Communist
countries.
2. Exports, which have increased steadily
since 1964, totaled about $236 million in 1966, an
increase of 13 percent, and imports totaled $208
million, a decline of 5 percent, as shown in the
following tabulation:
Million US $
Total Imports Exports Total
Total a/ 429 220 209 445
Free World 57 34 23 59
Communist 373 187 186 386
Imports
Exports
208
236
26
33
183
203
a. Because of rounding, components may not add to the totals
shown.
3. North Korea is dependent on imports of
coking coal, petroleum products, rubber, chemicals
(especially fertilizers), and a wide range of
machinery and equipment, including complete plant
installations. Also, wheat and sugar have been
imported in recent years. North Korea's exports
are chiefly ferrous and nonferrous metals and
minerals. Other important export commodities
include rice, fish, and chemicals.
Trade with Communist Countries
4. About 87 percent of North Korea's trade
in 1966 was with other Communist countries. This
share has been relatively constant since 1964.
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The Soviet Union and Communist China, the
principal trading partners, together accounted
for about three-fourths of North Korea's total
trade in 1966. In 1966, as in the past, machinery,
equipment, and petroleum products accounted for
about one-half of North Korea's imports from the
Soviet Union. The remaining imports from the
Soviet Union consisted mostly of wheat, cotton,
steel, chemicals, and wood products. North Korea's
most important import from Communist China was
coking coal, followed by minerals, ferrous metals,
steel products, rubber, chemicals, cotton, and
sugar. Imports from the Eastern European Communist
countries consist mainly of machinery and equipment
and chemical products.
Trade with the Free World
5. North Korea's trade with the Free World has
been expanding steadily since 1962, but is still
less than 15 percent of total trade. Japan is
North Korea's largest non-Communist trading partner,
accounting for almost one-half of North Korea's
trade with the Free World in 1966. Japan is the
major Free World customer for North Korean exports
of ores and semimanufactures of iron, zinc, and
lead. North Korea imports machinery, equipment,
and chemicals from Japan and Western Europe.
Wheat is also imported from France, Greece,
Australia, and Argentina.
6. The largest share of North Korea's trade
with the USSR and Communist China moves overland,
although trade in bulk commodities such as ore and
cement moves by sea. North Korean trade with all
Free World countries and with Communist countries
other than the USSR and Communist China moves
entirely by sea. Analysis of calls by merchant
ships at North Korean ports in 1967 reveals that
Japanese ships made 34 percent of the calls,
Soviet ships 33 percent, Polish and British ships
8 percent each, Greek ships 5 percent, and an
assortment of Free World and Communist ships the
remaining 12 percent.
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~pproev d For Release 2001/08/27 : CIA-RDP70B00338R000200010052-8
Secret
Approved For Release 2001/08/27 : CIA-RDP70B00338R000200010052-8