COMMUNIST CAMPAIGN AGAINST UNDERDEVELOPED AREA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000600060059-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 23
• Document Creation Date: December 14, 2016
• Document Release Date: March 12, 2003
• Sequence Number: 59
• Publication Date: November 14, 1955
• Content Type: BRIEF

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Common ter have, lauriChed major
f
of ort `in a ppaSrt o their poi 1.11,0
jective to : intervene o en `
P y ::~~ ~ WtSIrI
atfa 1rs, ~ ',
A. Most dramatic move is sw "uF3
attention to Middle ast.Rawd
1. given a.a Moscow was si it ng at
Rest 1 st spring, it was nakiugh
arms offers to the Arabs
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Asia-
r' the world's P0pula?tio
~..._._ _ j..
;, 'CJ ANGE IN CLA68, 0
Gl ,PLQi 8IflED
OtS'u. CHANGED TOj Y8
' T JEV1EW.DATE :
B. A coordinated Bloc effr~rt 'ba an+ grain,
Gasoline pipeline, f rou.'..Soviet
border still under ` diaouseion..
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bakery, and road fix 11.4 ing projects all
*torage`lacilitiee ,flour- fill and
coapleted.,
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1. Reports persist of more Soviet !.r
offers.
a. These. include hospita, ?.uuf-
versity teachers and equipment
and water systems.
'E. Former president Helmancl Valley Author
ity says USSR has offered
take over this large irrigation and
power project, finish construction,
and pay off US loan.
1. Morrison-Knudsen (US contractor)
ha.s been asked bring all equipment.
in through USSR.
2. This may be beginning harassing
campaign and American companies.,
and-personnel.
3. However, since Afghans themselves
deeply committed in Helmand Valley
project, they may not turn it over
to anyone.
F. Other tier, with Bloc are direct result
with akistLA r..
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1. Improvement of roads leading to
USSR being rushed.
2 Oxus : river entry port being-
developed?
3. West German-Aigha.n trade passing.
both ways transiting USSR.
a. Cost same or less than old
route through-Pakistan.
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4 Der '~pol icy . act ion a 4 ;u~
'~ Afghan overunieat,
A+1 ~~
Grand Asse.bly of .Tr;ibea I ae
J rga :~~+i1rast >since 1a4 --j?Mae ng
to, endorse Daud's Fnahtoontatan
policy.
2. Sing Zahir Shah's recent letters
to'President Eisenhower, Turkleh
president, and Queen Elizabeth
point up effort to elicit Western
intentions.
3. -Sven formal approval.Deud's policy
entails need more military strength
and less dependence on Pakistan
trade routes.
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Daud. is mare pro-,$oviet and
Pakistani than other.. Afghan die*eatL
suggest heel .cel4zlnatic as rrealh
as skill and speed in countering Western
influence.
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Uc'ourage aergeace_ox aeutral-
t.et, bloc. which.: would givo.B1
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Soviet offers are attractive because
of their easy terms, because recipi-
ents can see no visible strings, and
because other sources of aid seem to
be drying up or less suited to local
conditions.
1. Most Bloc offers are at nominal
interest rates (2-2k percent) with
easy payments in local currencies
or traditional exports.
2. Governments are not asked for
political or military commitments.
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Iitt16 a. 1t
E. While underdeve "aped 'natldi*edve
foreign exchange","'the, USSR-? Hilda u
credits 'lb smft.."c re#~d#od
10 This wit cbeet nay-J)6 used-&$ as the
country.
Besides arms deal,a..wi;th Arabs ad strong
push against India 4nd Afghanista .,' CoSMu-
nist effort can be seen throughout Middle
t., AsiR, and Latin America.
-15-
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irYjr' #4 e T . $o~scow showed ins.
twr` elt ii., helping Turkish firm
trade now with USSR-an increase of
85 percent in first half 1955 over
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Lebanon. Czechs now negotiating to
supply. '7 factories--procelain,. crystal
glass, sugar, and electrical materials.
I, Payments in kind over 7
one-half Burmese export rice sur-
1. Bloc is committed this year to buy
agricultural. aid.
factories, hydro-electric plants, and
machinery, rice mill equipment, textile
technicians are to study industrial
development in Burma. USSR offered
ment.with USSR signed July, Soviet
pltis. Only new market available
to Burma.
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offered sympathetic -oonsidezation.
tiis month.
Rumanian mission. to visit Burma
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mill equipnie it. Chinese
technicians now in Burm.a.on
survey.
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2 v 60 German technicians o: the job.
5. Hungary to build hydro-electric
equip canvas plant.
Czechs to give technical aid and
food research lab in Djakarta.
machinery factory, and establish
Rumanians to build cement plant,
Czechs to build radio factory,.-
pharmaceutical plant, agricultural
drill for oil and exploit minerals.
Latin America. Bloc meeting consider-
able success expanding both diplomatic
and commercial relations.
1, Latin American trade with bloc in
19114 increased by 4U0 percent over
11953-.
2. Hungary seeking to c:pen network
drilling for oil at Atjeh.~r'
and diesel plants.
6. Rumanians and East Germans now
Ak WON IMFL ".
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3. Poland wants to expand trade with
Brazil to $25 million each way.
5. Soviet export drive aimed at'
Argentina to reduce Moscow's
larE;e deficit.
1. Czech Technical Directorate representa
tives have been touring Near East and
Southh.east* Asia, This organ:zu Lion
t~r~~,t1E o,) its rr,iIitary equipment.
c.utfit behind Guatemalan
deal and in Egyptian arms deal.
2 . To date, arms merchants have
visited India, Iraq, Burma, Egypt,
and Afghanistan.
i I . S ir.c e 1946 to date the USSR has extended
: !mns t $1.7 bi?,l iou in economic (non-
.r l i t.ar_y) credits to other Sino-Soviet
ries,
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$430 million.
C. Interest rate averages about 2 percent
ranging from 1 percent in case of
China to 3 percent in the case of
Rumania.
D. USSR is still owed about $600 million
on these credits which sould be paid
in full by 1965.
E. These credits are in addition to
Soviet gift of $100 million and
Chinese gift of $340 million to
North Korea.
F. None of. the above includes further
military and
to Communist
between $500
economic aid from USSR
China estimated at
million and $1 billion.
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