TRADE WITH LATIN AMERICA
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP82-00047R000100150007-6
Release Decision:
RIPPUB
Original Classification:
S
Document Page Count:
6
Document Creation Date:
December 15, 2016
Document Release Date:
June 20, 2003
Sequence Number:
7
Case Number:
Publication Date:
December 29, 1951
Content Type:
REPORT
File:
Attachment | Size |
---|---|
CIA-RDP82-00047R000100150007-6.pdf | 465.81 KB |
Body:
Approv6W R6lAeTa1 12031 6 : CIA-RDP82-00047R00
CENTRAL INTELLIGENCE AGENCY 25 1
INFORMATION REPORT
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COUNTRY Czechoslovakia
SUBJECT Trade with Latin America
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PLACE
ACQUIRED
DATE
ACQUIRED
NFORMATION
TNI! DOCUMENT CONTAIN! IN/O RMATION All EGTI MO THE NATIONAL DEFENSE
01 TNL UNITED !T"ATES, WITHIN THE ME AN IMO 0I TI TLE IS, SECTIONS 7S~
AND 7.4, 01 THE U.S. CODLI AS AMENDED. ITS TRANSMISSION ON PETE.
LOTION 01 It CONTENTS TO ON RECEIPT ST AN UNAUTHORIZERYOM IS
I TE D.
PEOHIEITLD ST LAS. TNL REPRODUCTION 01 THIS FORM It P:."
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rP
l0/
DATE DISTR. Dec 1951
NO. OF PAGES 6
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
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i. Co dities of particular interest to Czechoslovakia, in its
trade with Latin America include cotton, copper, lead,
industrial. diamond-i (smuggled from Brazil), coffee, cocoa
beans, sisal, henequen and hides. Sisal from Brazil is of
particular importance, an it is needed for binding crops
Henequen is important for the same purpose, but is less
desirable. Hides are still imported, but are apparently of
decreasing importance in Czechoslovakia's foreign trade.
The following figures indicate raw materials which
Czechoslovakia received from Latin America during '1950:
Commodity
Volume in
Cotton
2,000,000
Hides
20.,000,000
Copper Ingots (from US via trans-
shipment)
Sisal
1,000,000
Wax
1,000,000
Coffee
5,000,000
Cocoa Butter
2,500,000
Tanning Material
6,000,000
Special Woods for Musical
200,000
Instruments
.95 i 5L-4D
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2. The volume of Czechoslovakia's trade with Latin America is
material purchases in Latin America, only if she creates her
own balance of, credit through deliveries of her own. But
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constantly on the downgrade and cani be expected
to diminish further. The CSR can buy in Argentina, Brazil
and Uruguay, and these are the main sources of her raw
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since` the governments of these South American countries are
quite reluctant to permit imports, trade is falling off
steadily.: This is particularly true of trade with Argentina
because Czechoslovakia has cut her import of raw hides sharply
25X1 since 1950G Financial accounts outstanding
25X1 in March 1951 were figures are
approximate :
Owed by Czechoslovakia to Argentina US $151-000,000
to Brazil 8,000,000
to Mexico 12000,000
Owed to Czechoslovakia by Ecuador 300,000
for military equipment purchased in 1938.
The 1951 plan for Czechoslovak trade with Latin America was
as follows:
Country
Argentina
Czech Imports:
Hides
Quebracho
Feed meal
Wool.
Volume in US
8,000,000 each way
6,000,ooo
1,000,000
500,000
500,000
Exports: sewing machines, typewriters, small
amount of glass products, cement,
tiles, automobiles, paper products,
small amount of textiles, bicycles,
and minimum amounts of steel con-
struction shapes.
Firms appearing in trade:
IAPI - Argentine Government monopoly
Swift & Co -- Hides
Bunge & Born - Feed Meal
Cofa - General exports
Brazil
Czech Imports:
Cotton
Coffee
10,000,000 each way
(may subsequent)
have been raisedT
75%
Cocoa Beans 25%
Sisal
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Czech Exports: same as to Argentina, plus
chemicals
Firms engaged in trade:
Venezuela
Mexico
Uruguay
Kettelhorn - Hides
Polak, Anton (Czech)
Israel, Leon - Coffee
Exports to Venezuela-2,000,000
Imports from Venezuela--2O0,000
Czech Imports: cocoa beans, coffee
Czech Exports: military equipment, tires, textiles,
shoes and some machinery, consumers'
goods
2,000,000 each way,
plus additional
Czech exports to
clear up debt
(US$1,00o,00o).
The obligation is
being fulfilled only
about 50%.
Czech Imports: henequen, aax, coffee, lead, and
zinc (minimum quantities) No
copper shipped.
Czech Exports : Same as to Argentina
500,000 each way,
to be raised to
1,000,000 if Czech-
oslovakia gets wool
Czech Imports: Feed meal, hides and possibly wool
Czech Exports: Same as to Argentina
200,000 each way
Czech Imports: mainly flax
Czech Exports: Same as to Argentina
Colombia & Ecuador
Chile
Czech Exports: 400,000 - Very few
imports
50-1t-,C,'QO each
Wine exchanged for Czech glass. All trade Is
through compensation deals,
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Paraguay 100,000 each way
Czech Imports: quebracho, leather, tobacco,
vegetable oils (not linseed)
Czech Exports: light industry products
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Czech Imports: only coffee
Czech Exports: 200,000
Details concerning trade with individual Latin American
countries is contained in the following paragraphs.
In 1948 Czechoslovakia and Argentina concluded a commercial
agreement listing goods for trade. As indicated above, at
the end of 1950, the clearing bill showed a credit for
Argentina. In the years immediately after World War II, trade
between the two countries was vigorous, but it started to slow
down in 1949. The primary reason for the slowdown was
Argentina's reluctance to grant import permits for Czech goods.
It will be interesting to see how things develop after 31 Dec 51,
the date on which Czechoslovakia is supposed to have paid
its debt either in gold or equivalent values. It should be
expected, since it is hardly possible that Czechoslovakia
would pay according to contract, that Argentina will have to
allow a greater import of Czech goods as payment. This would
have to consist of "small" goods, however, since a Prague
directive of Summer 1950 prohibits shipment to the West of
first priority goods unless the exchange value is of extreme
importance. Directives in effect in Summer 1950 did not
accord Argentina favored treatment In delivery of industrial
equipment. despite the drop-off in hide
shipments mentioned above, Czechoslovak-Argentina trade has
increased during recent months ,~ never heard, however,
that the USSR has directed Argen int a communists to desist
from agitating against the Argentina Government because of
Argentina's value as a raw materials supplier.
4. The trade agreement between Czech-
25X1 oslovakia and Brazil was extended in Spring 1950 by adding
new lists of goods. In this extension, the Czech debt was
divided into five parts, Czechoslovakia agreeing to pay the
debt in annual installments of 20%, in goods. Should Czech-
oslovakia break this agreement, the payment of the debt
would have to be made in gold or equivalent "hard" values.
Trade with Brazil is considered more important than with
Argentina since hides, which used to represent 65-70% of the
trade with Argentina, are not so important any more. Like
Argentina, Brazil distributes Czech goods sloiwiv on the. local
market. It is characteristic of Czechoslovakia, when tradi with the West,
especially with Brazil and Argentina, to get hers.eif Into
the convenient position of being deeply in debt as soon as
25X1 possible after the closing of a contract. Except for the
smuggling of industrial diamonds out of Brazil, no illegal
25X1 transactions were carried out in the framework of the Soc.th
~ en, of the Ministry cif,"oroe..gn ra.'.
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There is no trade agreement between Czechoslovakia :,.. i.
Uruguay` business in recent years having been on the baziq of
individual agreements between banks, within 1im1ts of
edit set b both national banks. The last ban;.ing agx~ee-
.went of 1948 should have been-extended for 1949 and 195 ,.
This was not done, however,: and at the end of 1950, the re-.
main.ing exthange of goods arranged in accordance with the
1948 agreement was still on the way. Czechoslovakia was not Ln
'debt at the end of 1950 since the banking. transactions had to
be kept even. Uruguay ships mostly wool and fats,, whereas
Czechoslovakia exports more or less the same items that she
does to Argentina. Czechoslovakia has received Borne wool
(mainly TOPS) since January 1950
1Shipment was direct E
F7
6. The sluggish exchange between Czechoslovakia and Chile is
explained by the interruption of diplomatic relations about.
four years ago,. Since that time only small business trans
actions have taken place. i;.n 194g, Chilean wine was exchanged
25X1 for costume jewelry Chilean copper shipments to Czeeho-
25X1 61ova'kia in 1950 were made through a European country.
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25X1 'Fall 1950k the firm CHIPRAG of Santiago attempted to e iver
25X1 copper to the CSR but its representative got only as far as
Vienna.
25X1 e .pan ago
irm,, Joblinsky & Koblery is especially interested in
25X1 extending Czech-Chilean trade; the Czech Government is assisting
the firm in Its efforts and also receives from it p-olitical
25X1 information.
7% There are no Czech trade agreements with Bolivia and Peru and
almost no trade,, In the summer and fall of 1949, there was.
talk of giving mining equipment to Bolivia in return for non-
ferrous alloys. The negotiations came to nought at that
time because the CSR could not accede to the wishes of the
Bolivians. It should be noted that in case the Czech shortage
of those nonferrous alloys,produced in Bolivia and Peru should
become so great that the political leaders (after consulting
Moscow) should consent to making essential deliveries to
Bolivia or Peru one could assume that an agreement might
25X1 be reached.
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Trade with Peru
has been only In pounds and Peru ha,5 delivered mostly f1.axa
Venezuela and Czechoslovakia have no trade agreement. Prior
to 1950 there was some sort of t?ruodus vivendi8 granting each
other the highest possible advantages. On the initiative
'of the Venezuelan Government, the validity of the arrangement
was abolished In 1951. Czechoslovakia Isun.ders# understandably
interested in Venezuelan trade b~ .. of the dr, r.lars in;-
volved and the turnover in 1.949 1950 was quite large,.
about 90% of the trade going from czechoslovakia to Vez ezu.eia
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1948-49 agreement between Mexico and Czechoslovakia con-
A
tained. an. unlimited, list of goods ; By the end of .1950,
Czechoslovakia had a considerable debt to Mexico; the sum
has not changed, as the Czech National Bank accepts free
dollars for goods sent abroad and the Mexican National: Bank
has no means of persuading the independent businessmen to.
pay through the final clearing bill. The yearly turnover
is not significant: Mexico recently has exported only small
quantities of vegetables, wax and other very small.items;:and
Czech delivery is limited to such traditional light industry
items'as cars, glass and costume jewelry.
10. There are trade agreements between Czechoslovakia and Colombia,
Ecuador and the Central American republics; trade is very
weak, though Czechoslovakia should be interested in gaining
these markets.
11. Czechoslovakia has no trade agreement with Paraguay and business
is through compensation deals. .1 .1
12. Shipment to and from Latin American countries was in Polish
ships wherever possible, and otherwise by cheapest carrier.
The-Brazilian agreement provides for the use of Brazilian
vessels,for exports, but the agreement is not closely
followed in this respect.
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