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December 9, 2016
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March 20, 2001
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November 1, 1965
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Approved For Ieleasell2001104/47:-Ct1o9CQ.220001-0 7-1 OIts.f RR..GB 65- November 1961,5 copy No. 17h INTELLIGENCE ,BRIEF _ SOVIET MERCHANT TLZ T E) P "ND NG WIN I Eft ` I P 7c a R CTIC INTO MOVT EAL IRECTO ATE. OF IN y CE Officee of Research and Reports CONFID#!1`fr$'lAid, Approved For, Release 2001104/- IT : CIA.RDP79.TO1003A00240Q.220001.=0 ~xglud"edf; fro ti= automatk downgrading and dedas%ification 4. Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Sees. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 2001/04/17 : CIA-RDP79TO1003AO02400220001-0 Approved For Release 200110 /1 I PPJ?P11RQ3 2 0 220001-0 SOVIET MERCHANT FLEET EXPANDING WINTER SHIPPING SERVICE INTO MONTREAL"' The USSR may reap substantial benefits from the recent opening of Montreal as a year-round seaport because it is one of the few nations in the world with ships in its merchant fleet that are reinforced for navigation through ice. Winter trade out of Montreal offers hard cur- rency earnings to Soviet ships p.t a time of the year when the USSR has ship tonnage to spare. Three Soviet ships called at Montreal during the 1964/65 winter season, and at least 14 are expected during the 1965/66 seasond If experience shows that winter operations into Montreal are consistently feasible, the USSR has a sufficient number of ships with ice reinforcement to dominate the trade. 1. Current Status of Montreal as a Year-round Port Until the 1963/64 winter season, Montreal, the leading seaport in Canada, was closed by ice for an average of three to four months of each year, usually between mid-December and mid-April. During the winter, many Canadian foreign trade cargoes that would otherwise move through Montreal are diverted to either St. Johns, New Brunswick, or Halifax, Nova Scotia. These ports are understandably jealous of their winter business and have thus far been able to exert sufficient influence on the Canadian Parliament to prevent the use of Canadian government ice- breakers to maintain a channel into Montreal during the winter months. During the 1963/64 winter season, however, the Lauritzen Line, a Danish steamship company, inaugurated. a winter cargo line between Western Europe and Montreal using ships with ice reinforcement and thereby reduced the period of winter closure in Montreal to eleven days. 2. Soviet Participation in Winter Shipping to Montreal In 1964 the USSR decided to open a winter liner service between Western Europe and Montreal. This decision marked an important change in Soviet shipping policy. Previously the USSR had established cargo lines only on routes where there were substantial volumes of Soviet foreign trade cargoes to move. Most of the cargoes moving * The estimates and conclusions in this brief represent the best judgment of this Office as of 24 November 1965. Approved For Release 2001/061b:RAFR4P~9T~1_3f1042A00~20001-0 Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 C-O-N-F-I-D-E-N-T-I-A-L on this new line will be non-Soviet. Because it is a liner service, most of the cargoes to be carried will be general rather than bulk. There are excellent reasons for the Soviet decision to open this line. As a result of its wheat purchases from Canada, the USSR carries a huge deficit in its balance of payments with Canada, which imports almost nothing from the USSR. The establishment of a suc- cessful liner service into Montreal during the winter months should contribute in a small way to a reduction in this trade deficit. The line appears to have a good business potential. It is economically advantageous for Canadian shippers to use Montreal rather than St. Johns or Halifax when they can, and there is a good balance be- tween westbound and eastbound cargoes on the route between Western Europe and Montreal. Seasonal Availability of Soviet Ships The expansion of the Soviet merchant fleet during recent years has attracted worldwide attention. One result of this expansion is that during the 1964/65 winter season the USSR had a seasonal surplus of dry cargo tonnage for the first time in its history. Many of these ships were made available to Free World shippers on a time charter basis; three were assigned to the winter line into Montreal. Whether hired but to foreign charterers or put into liner service, surplus ships such as these can play an important role as earners of foreign exchange for the Soviet economy. A Unique Soviet Advance The Soviet merchant fleet condacts extensive operations in the ice-filled waters of the Northern Sea Route each summer and maintains shipping services into many frozen northern ports during the winter with the assistance of icebreakers. For this reason the Soviet dry cargo fleet includes more than 100 ships that are reinforced for navigation through ice. Because the Soviet merchant fleet is one of the few in the world that include such ships, the USSR has a distinct advantage over most Free World steamship companies in competing for winter cargoes out of Montreal. Approved For Re ea a /04/ 7 CI 9T0 003A002400220001-0 Approved For Release 2001/0~/1b_RAFRQPl7j901~03,10fk2~0( 220001-0 3. Prospects for the 196.5/66 Winter Season Port officials in Montreal expect more than 50 calls by ships during the 1965/66 winter season. Both. the Danish Lauritzen Line and the Soviet Northern Steampship Company will play major roles. Canadian Pacific, Finn Lines, Ltd. , and Canada Steamship Lines, Ltd. , will also participate, using ice-reinforced ships. The Cunard Steamship Company has plans to take part in this winter movement eventually but has yet to acquire or charter ice-reinforced ships. The USSR has announced that 14 of its ships will participate in the St. Lawrence. winter service during the 1965/66 season, but the number of calls each will make is uncertain. The ports in Western Europe to be served by these ships are Hamburg, Bremen, Rotterdam, Antwerp, and Le Havre. The St.Lawrence Ports to be served are Montreal, Three Rivers, and Quebec. The ships will include 7, 000- DWT icebreaker cargo ships of the Amguema and Lena classes and 5, 000-DWT dry cargo ships of the Dnepro-GES and Povenets classes. Ships in the Amguema and Lena classes belong to the highest category of ice-reinforced ships in the Soviet fleet (see the chart). Such ships are designed from the keel up for ice navigation and should be able to handle all ice conditions encountered in the St. Lawrence without assistance. Ships in the Dnepro-GES and Povenets classes belong to the second highest category of ice-reinforced ships, which normally would have difficulty in handling extreme ice conditions on the St. Lawrence without assistance from either an icebreaker or an icebreaker cargo ship. Most ships in the second highest ice- reinforcement category -- which numbers about 100 -- are conventional dry cargo ships that were built with special features for navigation through ice. These features include icebreaker bows as well as supple- mental framing and hull plating. During the 1964/65 winter season the departure of a Soviet dry cargo ship in this category was delayed at Montreal for three weeks as the result of difficult ice conditions. Soviet ships scheduled to call at Montreal during the 1965/66 winter season will arrive and depart in pairs to avoid a repetition of ::this occurrence. Each of the two pairs of ships scheduled for calls in January includes one ship in the highest ice-reinforcement category and one in the second highest category. The pairs scheduled thus far for arrival in December and February include . only ships in the second highest category. If Montreal officials fail to overcome the political obstacles to the use of Approved For Release 2001/04/17 : CIA-R P 9 01003A002400220001-0 -N-F- - - -N-T-I-A-L Approved For Release 2001/04/17 : CIA-RDP79TO1003AO02400220001-0 C-p-N-F-I-D-E-N-T-I-A-L icebreakers in facilitating winter navigation into Montreal and if Soviet attempts to use ships in the second highest ice-reinforcement category continue to fail, the USSR may be restricted in its future winter opera- tions in the St. Lawrence to the use of ships in the highest category of ice-reinforcement and accompanying ships in the second highest cate- gory. There are, however, at least eight Soviet ships in the highest category, which, if they are available, could assure Soviet domination of the Montreal winter trade. - 4 - Approved For Release 2001/04/17 : CIA-RDP79TO1003AO02400220001-0 G-O-N-F-I-D-E-N-T-I-A-L Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 Co H w V CL ~- a -t V W O 4) S _ a) a ?- CL CL CA 0 w L V L 0 N v m Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 C-O-N-F-I-D-E-N-T-I-A-L Analyst 25X1A Approved For Release 2001/ 4/87 - C -RD 7 T 0 3A002400220001-0 -1V- -I- - - - -I-A.-L Approved For Release 2001/04/17: I6-fffhTP1QQ QQ02400220001-0 Approved For Release 2001/04/17 :'C~=RflP 1`CN1~OOJA002400220001-0 CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION 25X1A SERIES NUMBER CIA/RR CB 65-72 CLASSIFICATION OF REPORT CONFIDENTIAL DISTRIBUTION TO RC 50 DATE OF DOCUMENT November 1965 NUMBER OF COPIES 290 NUMBER IN RC COPY RECIPIENT DATE NO.(S) SENT RETURNED 176-24 Rec!_d in St/P/C 2 Dec 65 176 SA/RR II 177 St/P 178 CGS/HR/OPS 179 OCR 25X1A 180 181 25X1A 182-24 Filed in St/P/C 2 Dec 65 D Z - 6D 4) b 1 25X 1A 5 1111 Ot2~ G1 _ y y" MEN- / / { ~j S I ' ~!0 25X1A 25X1A A proved For Release 2001/04/17 CIA-RDP79TO1003AO0240 220001-0 Analyst: T/IS (Project 34. 5288) Approved For Release 2001/04/17 : CIA-RDP79TO1003AO02400220001-0 FORM 2353 (13) 2.65 COPAoP r ved For Release 2001/04/11 (J~-RDP79T01003A NO. ~7P'I EN - Approved For Release 2001/04/17: CIA-RDP79TO1003 t. N! - Approved For Release 2001/04/17 : CIA-RDP79T01003A002400220001-0 St/A/DS Distribution of Current Support Brief No. 45>7`", Soviet MerchAnt Fleet Expanding Winter Shipping Service Into Montreal -~- November 1965 (CONFIDENTIAL) Copy No. Recipient 1 5 O/DDI, Room 7E32, Hq. 6 O/DDI:, 25X1A 7 D/ORR 8 DD/ORR 9 SA/RR 10 Ch/E 11 13 D/ONE 14 - 19 St/CS 20 St/PR 21 - 27 D/T (1 each branch) 28 - 34 D/R (I each branch) 35 MRA 36 - 40 D/P (I each branch) 41 - 46 D/F (1 each branch) 47 St/PS 48 - 53 D/I (1 each branch) 54 - 58 D/A (1 each branch) 59 - 60 GD/OBI 61 - 62 CD/OBI 63 CD/X/oBI 64 - 69 RID/SS/DS, Unit 4, Room 1B4004, Hq. 70 St/P/A 25X1A 71 St/FM 72 Analyst/B ranch T/IS) 73 GR/CR 74 BR/CR 75 FIB/SR/CR, Room 1G27, Hq. 76 Library/CR 77 IPI/CR 78 Archival File .Records Center 79 Chief, OCR/FDD 80 DCS/SD 81 OCI/SA/R, Room 5G19, Hq. 82 DDI/CGS, Room 7G00, Hq. 83 - 84 DDT./CGS/HR, Room 7G00, Hq. 85 DDI/RS, Room 4G39, Hq. GROUP I C .^ r ,i - Excluded from eutomxtla Approved For Release 2001/0E i fF~70`Q 030 2 Approved For Release 2001/04/17 : lth~A' P T A002400220001-0 Copy No. Recipient 86 - 88 D/OSI 89 D/OBI 25X1A 90 DD/S&T/SpINT 91 - 92 OTR/IS/IP, Room 532, 1000 Glebe (1 - OTR/SIC) 93 NPIC/CSD/REF, Room 15518, 25X1A 94 NSAL, Room 3W136, Ft. Meade via GB31, Hq.) 95 - 103 OCI Internal (via SDS/DD/OCR) 104 - 112 NSA_(via GB31, Hq.) 113 - 114 National Indications Center, Room 1E821, Pentagon 25X1A 115 - 126 State, INR Communications Center, Room 6527, State Dept. Bldg. 127 - 130 USIA, IRS/A, Room 1002, 1750 - Pennsylvania Avenue, N. W., Attn: Warren Phelps 131 - 175 Defense Intelligence Agency, DIAAQ-3, A Building, Arlington Hall Station 176 - 240 St/P/C/RR, Room 4F41, Hq. 241 - 290 Records Center n Approved For Release 2001/04/17: CIA-RDP79T01003A002400220001-0 Approved For Release 2001/04/17 : CIA-RDP79TO1003AO02400220001-0 7 MEMORANDUM FOR: Chief, Dissemination Control. Branch, DD/CR FROM Chief, Publications Staff, ORR SUBJECT Transmittal of Material ember 1965 It is requested that the attached copies of CIA./RR CB 65-72, Soviet Merchant Fleet axidin Winter #aippi Service into Montrea i, November 1965, Conf denti $ be fore r .ed as folows: State, INR Communications Center, Room 6527, State Dept. Bldg. Suggested distribution for Embassies in Bonn, Londonj, I 1ascow, and Ottawa ACTION COMPLETED 25X1 A The dissemination requested by this memorandum has been completeds BY; Attachments: 4 Copies #183 - #186 of C1 6 -72 ce: CG/BB (w th Cow 187 of 65-72 Approved For Release 2001_/04/17 : CIA- RDP79TdiQQ3 '00-00, 220001-0 -Approved For Release 2001/04/17.. CIA_RDP79i 03A002400220001-0 Project No. 34. 5288 November 1965 (CONFIDENTIAL . Report Series CIA/RR CB 65-72 Soviet Merchant Fleet Expanding Winter Shipping Service Into Montreal -- Responsible Responsible Analyst and Branch T/IS RECOMMENDED DISTRIBUTION TO STATE POSTS Berlin, Germany Bangkok, Thailand Mexico Bucharest, Romania Djakarta, Indonesia Guatemala Budapest, Hungary Hong Kong Panama c 1oscow, USSR Rangoon, Burma Brazillia, Brazil Prague, Czechoslovakia Kuala Lumpur, Malaya Buenos Aires, Argentina Sofia, Bulgaria Saigon, Vietnam Bogota, Colombia Warsaw, Poland Seoul, Korea Santigao, Chile Singapore, British Malaya La Paz, Bolivia Europe Taipei, Formosa Montevideo, Uruguay Tokyo, Japan Caracas, Venezuela Belgrade, Yugoslavia Vientiane, Laos Bern, Switzerland Colombo, Ceylon -Bonn, Germany Brussels, Belgium Yaounde, Cameroun Copenhagen, Denmark Leopoldville, Congo Geneva, Switzerland Ankara, Turkey Addis Ababa, Ethopia Helsinki, Finland Athens, Greece Accra, Ghana The Hague, Netherlands Cairo, Egypt Abidjan, Ivory Coast Lisbon, Portugal Damascus, Syria Nairobi, Kenya -London, England Kabul, Afghanistan Monrovia, Liberia Luxembourg, Luxembourg Karachi, Pakistan Tripoli, Libya Madrid, Spain New Delhi, India Rabat, Morocco Oslo, Norway Nicosia, Cyprus Lagos, Nigeria Paris, France Tehran, Iran Mogadiscio, Somal Rome, Italy Baghdad, Iraq Khartoum, Sudan Stockholm, Sweden Tel Aviv, Israel Tunis, Tunisia Vienna, Austria Beirut, Lebanon Pretoria, South Africa Amman, Jordon Algiers, Algeria Jidda, Saudi Arabia Cotonou, Dahomey Dakar, Senegal Wellington, New Zealand Bamako, Mali Manila, Philippines Ottawa, Canada Canberra, Australia Melbourne, Australia i51N t Approved For Release 2001/04/17;, CIA-R,op 01003A002 t~1~~12b "~~`c ,:.,. ......,ten