CURRENT DEVELOPMENTS IN LATIN AMERICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R00890A000700090022-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: December 9, 2016
• Document Release Date: November 13, 2000
• Sequence Number: 22
• Publication Date: September 4, 1956
• Content Type: BRIEF

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= Comrnunis,t activities in Latin America today `fall under two headings
SEPTEMBER :1956
CURRENT DEVELOPMENTS IN LATIN AMERICA
actions .of the S ino-Sciv ie t Bloc towards individual
To deal f iro'; with Bloc
1956 has been marked by a variety of approaches to our
Bern "Goad Neighbors"
bruary of this year, Dmitri Shepilov--who was then the editor o
Pravda--declared that the USSR was now in a position to enter
1, pe,K?
xr::azz~s of world diplomacy. Shepilov pointed out that the Soviet Union
f-ssed ,uff is ient economic resources, and technical personnel, and
of including Latin America among the "new" arenas.
Republics, and the Internal act'?yities of the various
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At present the USSR has diplomatic rPations with only three
Latin American countries--Argentina, Mexico and Uruguay. Since,
January of this year, however, Soviet approaches for the establish-
ment of relations have been made to-five others--Brazil, Peru,
Bolivia, Colombia and-the Dominican Republic--thusfar without
concrete results.
B, The Eastern European Satellites now pave a total of thirteen
diplomatic missions in seven Latin American countries (map):
Argentina (with five), Mexico (with two), Brazil (with two) and
Ecuador, Bolivia, Uruguay and Peru with one each.
C. Czechoslovakia, which leads the other Satellites in diplomatic
representation intthe area, has also exchanged-consuls with
Colombia this year.
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Thusfar,.the Chinese Comtauniets have beep unable to establish
diplomatic relations with any Latin American country.
Latin American-Bloc 'trade in 1955 amounted -to a total of some
$169 million in exports from Latin America and about the same in
imports from the Bloc. 1956 trade figures may be.subst'ntial]ly higher
In comparison, the area's 1955 trade with the US amounted tolsome
$3.3 billion in exports to US and slightly less in purchases from US.
A. Most Latin American countries view trade with the Bloc as a matter
of expediency. Brazil, Argentina and Uruguay, for example, are
short off[ dollars and have large agricultural surpluses.
B. In 1955, Brazil's Bloc trade ($85 million) was double the 1954
figure and the 1956 trade figure should be larger'still. Brazil'
agricultural surpluses--coffee, cocoa and cotton--ha.ve gone to t.h:
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II1 Bloc : frequently on"barter
Alt to .. ? : , , , 3r'a z i
usay, where trade and surplus problems are even more acut'>
t' gat on.
n larch of this year,
worth.: of petroleum
in Aprt1,1`the USS
of 0"11
elsewhere in the area, has been the Latin American nation r 3
responsive to this year's Bloc trade ' dr ive a Three new ? agrees:
wi th` the USSR have been concluded and ?a ;?deal with Commune*s t
is under consideration - 4 -
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terms, in exchange for needed he
alyready"fids trade agreements with Czechoslovn
d i1ungary and is
nova negotiating~ with an East German
Arvent ina re q , 41ted bids" oft $250 aaaill i.f?r
equipment needed for its state'+ oil. mondpoi t
it offered to sell Argentina substantial guar-t.
eq,uipment on long-term low-interest credit (the d-a i
not yet been closed)
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an example of the activity of Bloc trade delegations in the
the early sumier of this year four different,delegations-
om Hunga'ry
J P mt. +..' .f. ~
ar?o t iat ing
I~o'land, C echoslovakia,and East Germany--were
no-Soviet Bloc has also continued its "cultural offensive" in
L;a'tin Amer
tensihly serving to improve relations with the USSR or Various
during 1956.
Elites, exist in the principal cities of Argentina, Mexico,
ca this'year. Nineteen so-called "cultural societies
Uruguay, Brazil, Bolivia and Chile (Map). Seven of these were opened
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Communist China's 80-man "Peking opera"
read :.. Latin America.
bored a
m i ter rd attended the
As for Latin Auer ica's "native'' Communists, the declines
-0-t~-r countries this year have probably been offset by
t F ;
growth oi" the party in Argentina--so that the overall Party stren.;t:,
~
AOvq
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A; In order-6d magnitude, Ian.tin.Aif'8WXXca"e?s"major?Comaunist parties
rank as follows: first, Brazil-an illegal party, numbering
some 60,000, with perhaps 200,000 sympathizers; second, Argentina-
a legal party, numbering some 55,000, with perhaps 100,000
sympathizers; next, Chile--an illegal party, numbering some 30,000,
with no estimate of the number of sympathizers; then Cub?L---an
illegal party, totalling some 25,000 with another 55,000 sympath
then Venezuela--an illegal party, of some 9,000, frith some 4,000
sympathizers; then Peru--an illegal party of some 6,000,with
perhaps 8,000 sympathizers; then Ecuador--a legal party of some
5,000 with :10,000 sympathizers; then Colombia--an illegal party,
5,000 strong, with 6,000 sympathizers and Mexico--legal, but not
a registered party, some 4,500 strong, with perhaps 80,000
SYmpp
1??;
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Q~ZFEDWNZTIAL
inactivity:
Success for "native" Communists this year to date,
n Ch ile , ;this year,
(CUTCH) has shown evidence of reviving strength following a j < l
however, has been in Brazil. There the Communists have been
largely -responsible for-the Government's renunciation of its
agreement to give the US exclusive purchase rights for Brazil.-ii:
atomic ores. The Communists were.also instrumental in enforce-;~.
the Brazilian Government's stand that the nation's oil resouzcts
are to be developed exclusively by the government monopoly
(PETROBRAS).
for 141, _ *) , ,-Y
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