BLOC ASSISTANCE FOR AGRICULTURAL DEVELOPEMENT IN UNDERDEVELOPED COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A001000160004-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 10
• Document Creation Date: November 16, 2016
• Document Release Date: April 27, 2000
• Sequence Number: 4
• Publication Date: March 16, 1961
• Content Type: BRIEF

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CIA/RR CB-61-16 Copy No. 120
16 March 1961
CURRENT SUPPORT BRIEF
BLOC ASSISTANCE FOR AGRICULTURAL DEVELOPMENT
IN UNDERDEVELOPED COUNTRIES
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.
W-A-R-N-I-N-G
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.
C-O-N--F- I-D-E-N-T- I-A-L
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llilkMED4ATEiY AFTER USE
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BLOC ASSISTANCE FOR AGRICULTURAL DEVELOPMENT
DE PE T I
While officials of the Sino-Soviet Bloc continue to emphasize
industrialization as the chief means by which underdeveloped coun-
tries can eliminate "colonial domination," they also recognize the
importance of the agricultural sector in the economic development
of these countries. The Soviet attitude toward agricultural de-
velopment in these areas, for example, was defined in a speech by
the chief Soviet delegate at the Afro-Asian Conference in.Cairo in
December 1957:
25X1A
"When speaking about the need for a comprehen-
sive development of the manufacturing industry
we by no means consider that the underdeveloped
countries should give up or slacken expansion
of the mining industry or agriculture. On the 25X1A
contrary, . . agriculture and extracting indus-
try may become the basis for developing many
other branches of the economy and a source o
foreign exchange
Assistance for:agricuiture accounts for more than one-quarter
of the total*6bligations under economic credits thus far extended
by the Bloc. Bloc financial and technical assistance for agricul-
ture, most of which has been extended by the USSR, totals about $640
million, Approximately 95 percent of this has been allocated for
large multi-purpose projects in which expected benefits to agricul-
ture, both direct and indirect, constitute the primary justification,
Agricultural Assistance Obligated.Under Bloc Credits
In Millions of U.5. dollars)
Total Obligated for
Amount Obligated for
All Economic Projects
Agricultural Projects
Afghanistan
1
7
Burma
12
1
Cambodia
55
12
Ceylon
27
17
Ethiopia
48
1
Ghana
10
8
Guinea
31
30
India
778
2
Indonesia
218
63
Iraq
55
20
Tunisia
6
6
UAR - Egypt
552
325
UAR - Syria
177
104
Yemen
39
5
2,222
641
16 March 1961
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Multi-Purpose Projects
Most Bloc aid to agriculture consists of large multi-purpose
projects whose chief purpose is to provide irrigation, reclamation,
hydroelectric power and flood control facilities and expand the a-
mount of cultivable land available to the recipient country. A mini-
mum of about $-520 million has been obligated for such projects. This
total will be much larger when a number of surveys presently underway
is completed, and additional funds are obligated for similar projects.
The largest single project in this category is the Aswan High
Dam (Sadd-El-Aaii Project), for which the USSR extended credit a-
mounting to $325 million, one half of the total aid for agricultural
development. The completion of this project will contribute sub-
stantially to the development of agriculture in the Egyptian Region.
Cultivable land will increase by 1.3 million acres and 700,000 acres
will be converted from basin to perennial irrigation As a result,
the area under cultivation will be increased by 30 percent and na-
tional income by an estimated 35 percent.WIn the Syrian Region, the
USSR provided credits totalling $85 million for a number of projects
which will bring under cultivation about 1.6 million.acres of land,
thereby increasing the area under cultivation by 13 percent.
Technical Assistance
Technical assistance, which has become an important feature
of Bloc economic aid to the underdeveloped countries, frequently
includes surveys of agricultural requirements, soil research, the
establishment of state farms, the development of new crops, and the
provision of technical training.
About $73 million has been obli-
gated
by the Bloc specifically for technical assistance to agricul-
ture,
with the USSR and Communist China accounting for about 90 per-
cent
of this sum.
It is estimated that, during the last six months of 1960, 865
Bloc technicians were working on agricultural development projects
in underdeveloped countries. The number so engaged represented. a-
bout 15 percent of all Bloc economic technicians in these countries.
Approximately 85 percent of all Bloc technicians employed on projects
related to agricultural development during the last half of 1960 were
employed in the UAR and Afghanistan. In the case of the UAR, more
than half of all Bloc economic 'technicians present were so assigned.
Miscellaneous Projects
P 1;5
Approximately $60 million has been obligated for projects
designed to contribute immediately to the development of agricul-
ture. Almost all of these projects involve the construction of
grain storage facilities, fertilizer plants, and agricultural equip-
ment plants,
16 March 1961 CIA/RR CB-61-16
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sistance for Multi-Purpose Projects
ions o U.S. dot ars
Recipient and Bloc Countries
Value of
Agreement
Pro j ect
Afghanistan-USSR
22.4
Jalalabad Dam
r.qI~~ M C- aci ties to irrigate
GAF ~~ Z~~ Go 77,000 acres and install
Ova 11 , 000 kw capacity,
20,0 Naghlu Hydroelectric Sta- /
N~
t ion
I-F
e 51ate flow to d'ala-
labad Dam and provide 60, -
A ~
'
/,.
000 kw capacity.
~~
3.6
Pul-i-Khumri II Hydro-
7i RS
- lectric Project
Installation o 9 '000
kw capacity.
Cambodia-Communist China
USSR Ste, PP, t ~' s9, N. A. /
Ceylon-USSR
N.A./',
Ghana-USSR '54 CCAo.
D 135, -9Ndv-io, C.,
N.A.
Guinea-USSR S~kq 0 + AM,
N.A. /
Indonesia-USSR
50x0 /
.$+r,.".
,D so s, S q>r.(o ly
16 March 1961 CIA/RR CB-61-16
C O N F I D E N T I A L
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General development re-
lated to agriculture.
Surveys of two multi-
purpose projects.
Kelani Ganga Basin
Irrigation and hydro-
electric facilities.
Malawatu Ova Irrigation
Dam
Design of project.
Bui Hydroelectric Station
stirnate' tote cost of
project is $71.4 million.
Konkoure River Develop-
ment
~ompiex includes irri-
gation, reclamation, and
hydroelectric power.
Asahan Complex
Dam, hydroelectric and
irrigation facilities.
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Table 2
(Continued)
Bloc Assistance for Multi-Purpose Projects
(In millions
o . of ars
Recipient and Bloc Countries
Iraq-USSR
VO_RTZ) lJo, ! 1, ao (a" 40) Zl."
Vo-Q .ice' , No . (o) (z Fse~.- (Q o) U.
Poland ML Ebb i 5 6a)`U~.
Tunisia-USSR
IT 9oo) 3)0 ri(a13C.
Value of
Agreement
0.5
(Cost of
surveys for
location of
2 dams)
0.8 /
6.0 /
UAR - Egypt-USSR 325.0 /
''1k
ITAR - Syria-USSR
131 I 1 S~,~?
TOTAL. 521.1
16 March 1961 CIA/RR CB-61-16
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Project
Dev&Fl9pment of. Tigris and
{Eu} hr4te9-R :ver .:Basin8
Development of irriga-
tion and hydroelectric
facilities. Drainage sys-
tem system presently being
designed with a 310 mile
canal to remove salivated
water and improve soil of
7.4 million.acres.
Land Reclamation Scheme
To reclaim about 700,000
acres.
Construction of dams at
.Kessab, Sadjane, and
Djoumine.
Aswan High Dam
Increase cultivable
land by 1.3 million acres;
conversion of 700,000
acres from Basin to per-
ennial irrigation; hydro-
electric power capacity
of 2.1 million kw.
Euphrates River Project
Irrigation f ac.ilities
for 1.5 million acres,
construct ion of hydro;
electric power facili-
ties with 100,000 kw,
eventually to be increased
to 550,000 kw.
.Orontes, E1-Kebin, Barada,
RE-abur , an Yarmuk
Projects
1rrigat -on facilities
for about 105,000 acres;
construction of hydro-
electric power facilities
with 257, 000 kw capacity,
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Bloc Technical Assistance for the Development of Agriculture
n millions of U.S. dollars
Value of
Recipient and Bloc Countries Agreement.
25X1A
S+r".ie\&f~ D 441 !G Coo) U,.
cultivation of new crops;
establishment of an experi-
mental farm, a forestry
station, and three live-
stock breeding centers.
N.A. Reorganization of pro-
ducer cooperatives; im-
S - ., Pe I T ZS9) 2? 60,11, provement of rice culti-
vation; and introduction
of new crops such as grapes
and tea,
Ceylon-USSR ^"'O
4 438
Ethiopia-Czechoslovakia
'D 3 4S
and one sugar state farm.
Establishment of two
state rice farms, one cot-
ton farm, and one maize
farm, each consisting of
5,928 acres; survey of water
',,resources; technical train-
`ing for state farms.
16 March 1961 CIA/RR CB-61-16
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Development of sugar cane
and cotton acreage.
10 / Establish one cotton
Project.
0.6 Between 1956 and 1960,
several teams of special-
ists surveyed Burmese cultural requirements and
provided assistance for
classification of soil,
establishment of agricul-
tural engineering and agro-
nomy projects, determi-
nation of irrigation proj-
ects and establishment of
a machine tractor station
and a state cotton farm.
2.4 / Studies of soil erosion;
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Table 3
;* (Continued )
Bloc Technical Assistance for the Development of Agriculture
In millions of U. dollars)
Value of
Recipient and Bloc Countries Agreement
Ghana-East Germany, Poland
and USSR N.A.
L ! Q.-
Guinea-Communist China 25.0
UAT 2-0 5 U O
16 ~
Uss~$. (#5.
India-USSR
V?...
Indonesia-CzechoslQvakia
C
Iran-USSR
FPtS
FBlS,t &. *30,
1'4 FAO--(Q ) 00 0
Iraq-USSR
\/Z, No , S
N.A. //
( P_%T>, VoATr) NU9. c ) F.e1G-4?
16 March 1961
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Project
Development of agricul-
tural producer cooperatives,
Machinery, equipment and
technical services for gen-
eral agricultural develop-
ment; establishment of a
rice farm.
Development of a.~7,000
acre rice farm and several
dairy farms.
Suratgahr 30,000 acre
experimental farm.
Development.of:irrigation
facilities in Brantas River
area.
Establishment of two
mechanized rice farms.
Two state rice farms
totalling 24,700 acres.
Survey of agricultural
cooperative system in
Indonesia.
Assistance to eliminate
locust problem.
Experimental state farms
for sugar beets, cotton,
rice, grain, and medicinal
herbs encompassing 50,635
acres.
Machine tractor stations
at Kirkuk, Mosul and Kut.
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Table 3
(Continued)
Bloc Technical Assistance for the Development of Agriculture
(In millions of U.S. dollars)
Value of
Recipient and Bloc Countries Agreement
Morocco-Communist China N.A.
IT 190
gR.QSzia~Qt)
1-11
UAR - Egypt-USSR 0.3
No.Io_" 0C,!-4-q
UAR - Syria-USSR N.A.
Bts,M[53.We 0')-11 30 rq, u vo
N A
9~Z,111
C2.5
TOTAL .73:..l
lei March 1961 CIA/RR CB-61-16
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Project
Study to determine feasi-
bility of growing tea in
Meknes area.
Survey of Yemen's agri-
cultural development needs
and equipment for certain
projects; study of plant
and pest control.
Establishment of six.sta-
tions to service agricul-
tural equipment.
Survey of underground
water resources.
Study of cotton pest
problem.
Survey of problems re-
lated to irrigation, cot-
ton production and de-
velopment of forest re-
sources.
Survey, of underground
water resources; construc-
tion of grain storage fa-
cilities.
Establishment of an
agricultural research.
laboratory.
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Table 4
Miscellaneous Agricultural Development Projects
In Millions o U. N. ollars
Recipient and Bloc Countries
Afghanistan-USSR
Cambodia-Communist China
Czechoslovakia
Ceylon-Communist China
Ghana-USSR
Indonesia-USSR
Iran-USSR
Iraq-USSR
Project
Grain silo, Pul-i-Khumri
Small farm implements
.-Plant. Ste, PP IT 7.T9,;.?7xu:,(=
Tractor assembly plant;
capacity of 600 units
annually. SF~e, eP, Ida. IOg
__ , . . _ _ fa ~ (pJIk.
75 R -, R
b
u
ber
VZ'4) 2Jr4c4o)`~
54 .Dim,
V '503r
plant.
Fertilizer plant; annual
capacity of 100,000 tons.
Grain silo at Shiraz.
iv
S
II
Agricultural machinery
sv plant; annual capacity
~n of 17
0
Fa is, mr,--2,w. ' 3z) 116F,0^4-, 1.3
000
- Syria-Bulgaria 5 f I.ac. 1 0
.1J 2.O5 27 ocA-st
15.1"
PAf
1o1~ )_50a4 a, C.
TOTAL 55.9
16 March 1961
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N-O-F-O-R-N C-O_N-T-I-N-U-E-D C_0 N-T.-R-40-L
Value of
Agreement
0
8.0`i
,
00 tons.
Fertilizer plant; annual
production of 60,000
tons of ammonia,
Two grain elevators;
capacity of 12,000 tons
each.
Grain elevator, Latakia;
30,000 tons capacity.
Fertilizer plant; annual
capacity of 55,000 metric
tons by 1963, eventually
to be expanded to 110,000
metric tons.
program., Sdb. I k1m
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25X1A
The information contained in this Brief was derived from a
variety of sources. These sources are :.available in the Trade and
Finance Branch, Soviet Penetration Section, of the Economic Research
Area, ORR. .
Analyst:
Sources:
16 March 1961 CIA/RR CB-61-16
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