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: 
AttachmentSize
PDF icon CIA-RDP82-00047R000100150007-6.pdf465.81 KB
Body: 
Approv6W R6lAeTa1 12031 6 : CIA-RDP82-00047R00 CENTRAL INTELLIGENCE AGENCY 25 1 INFORMATION REPORT 25X1 COUNTRY Czechoslovakia SUBJECT Trade with Latin America 25X1 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:." 25X1 rP l0/ DATE DISTR. Dec 1951 NO. OF PAGES 6 NO. OF ENCLS. (LISTED BELOW) SUPPLEMENT TO REPORT NO. 25X1 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 25X1 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 25X1 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 CLASSIFICATION S CRL-.r X E OFLR DIS UTION -~- Approved For Release 2003/08/06 : CIA-RDP82-00047R000100150007-6 'j 25X1 T IRA& Approved For Rele awla" /08/06: CIA-RDP82-00047 0 6 25X1 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 SECRET 25X1 SECRETI Approved For Release 2003/08/06 : CIA-RDP82-00047R000100150007-6 25X1 cc~~' 25X1 Approved For ReI5N5 03/08/06: CIA-RDP82-000 7R09~1W07 6 -j- 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, SECRET 25X1 5ECFET Approved For Release 2003/08/06 : CIA-RDP82-00047R000100150007-6 25X1 ,25X1 V P" Approved For Re - - T100 50007-6 4- Paraguay 100,000 each way Czech Imports: quebracho, leather, tobacco, vegetable oils (not linseed) Czech Exports: light industry products 25X1 25X1 25X1 25X1 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.'. SECRET 25X1 Approved For Release 2003/08/06 : CIA-RDP82-00047R000100150007-6 25X1 Approved For Relq 25X1 25X1 25X1 7R00S OR{017-6 25X1 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. 25X1 25X1 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. 25X1 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 SECRET) 25X1 SECRET Approved For Release 2003/08/06 : CIA-RDP82-00047R000100150007-6 25X1 25X1 Approved For Rely " .-CiA-RD1382-61 ~JJQDDrfl 507-6~ . A._ -6- 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. SECRET 25X1 SECP ET Approved For Release 2003/08/06 : CIA-RDP82-00047R00010.Q1500Q7-6,.,.,.