EAST GERMANY: SOVIET PARTNER IN THE LDCS

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CIA-RDP85T00283R000100050009-3
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December 22, 2016
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August 9, 2010
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9
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October 1, 1983
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REPORT
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Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret East Germany: Soviet Partner in the LDCs An Intelligence Assessment State Dept. review completed Secret CI 83-10201S October 1983 Copy 116 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 J Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 National Security Unauthorized Disclosure Information Subject to Criminal Sanctions All material on this page is Unclassified. STAT L Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 East Germany: Soviet Partner in the LDCs An Intelligence Assessment Secret GI 83-10201S October 1983 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 East Germany: Soviet Partner in the LDCs Key Judgments East Germany is an active partner in the USSR's drive to increase Information available Communist presence and influence in the Third World. The East German as 4131 August 1983 programs are small compared with the Soviet effort but have grown in size was used in this report. and scope to the point where East Germany now provides a number of com- plementary services that serve Moscow's foreign policy interests. These services range from traditional military and economic assistance to special- ized activities such as developing local security and intelligence services, establishing party and media links, and providing technical training courses. East Germany has contributed to the establishment or consolida- tion of a number of pro-Soviet regimes, notably in Angola, Mozambique, Ethiopia, South Yemen, and Syria. In addition, East Germany has used links, with LDC Communist parties, media, labor unions, and front organizations to increase Communist presence and influence in the Third World. East German programs are most heavily concentrated in Africa and the Middle East, but recently have become more active in Latin America We believe that the East Germans in some instances act as surrogates performing duties at Soviet request and in other cases carry out programs in general coordination with Moscow but with the specifics left to East Berlin. The kinds of activities that appear to be most closely coordinated are those dealing with intelligence and security, military assistance, and covert support to nonruling leftist and Communist parties. Other activi- ties-such as economic assistance-are apparently conducted much more independently, although with Moscow's knowledge and encouragement. In addition to supporting Moscow's foreign policy goals, East German relations with the Third World have been driven by its desire to enhance its own international prestige, particularly vis-a-vis West Germany, and more recently, by economic necessity, particularly the need to gain access to hard currency and export markets. We expect that the East German interest in the Third World will continue to increase because their activities provide benefits to the USSR and the LDCs as well as East Germany. Of the various East German programs, in- telligence and security assistance and political influence activities are most likely to be expanded and pose the most direct challenge to US interests. While Africa and the Middle East probably will continue to be prime targets, recent East German activities in Nicaragua and Grenada indicate an increasing interest in Latin America and the Caribbean. iii Secret G183-10201S October 1983 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Our knowledge about the size and scope of East German programs comes from Embassy reporting, and East German and LDCs, media agreements were signed with at least six LDCs, and some 300 East German youths were assigned to friendship brigades in nine LDCs. Third World press. We are confident that our data accurately reflect the general size and pattern of East German activities, but we are less confident about the specific details of individual programs. Our data show that the East Germans are active throughout the Third World and that their programs are most heavily concentrated in Sub-Saharan Africa and the Middle East. Programs differ from country to coun- try, but one or more of the following elements are at the heart of East German efforts in each target country: ? Intelligence and Military Advisers. We estimate that in 1982 there were 1,000 to 1,500 East German advisers in LDCs. Most of them were involved in assisting leftist regimes develop their intelligence and security apparatus. Others were employed as weapons instructors, maintenance and repair tech- nicians, logistic specialists, and staff advisers. ? Political Influence Mechanisms. East Germany uses a variety of mechanisms to penetrate or influence key sectors of LDC governments and populations- such as providing political advice and support to Marxist parties; training journalists and supporting leftist newspapers; and exploiting youth, labor, and front organizations. In 1982.friendship exchanges were conducted with fraternal parties in seven Soviet and East German offi- cers reviewing Angolan military ? Military Supply Program. Since the start of its military supply program in 1964, East Germany has signed military sales agreements worth $860 million with about 30 LDCs calling primarily for the supply of vehicles, artillery, small arms, and ammunition. Sales exceeded $300 million in 1982 alone, largely reflecting sales to radical Arab states. ? Economic Assistance. East Germany has signed economic agreements totaling nearly $3 billion with some 50 LDCs since the program began in 1955. A large share of the recent agreements has been trade credits that call for repayment in hard currency or oil. In addition, East Germany had some 5,000 technicians in LDCs in 1982-three times the num- ber in 1978-to help organize and develop govern- ment administration, install and maintain East German equipment, and work on development projects. ? Trade. East Germany's trade with Third World countries amounted to over $2 billion in 1981, accounting for 5 percent of East German foreign trade, as it has since the early, 1960s. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 East Germany: Soviet Partner in the LDCs East German efforts in support of Moscow's foreign policy objectives in the Third World have led to a substantial expansion of relations with LDCs since the early 1970s. Starting essentially as moral support for Third World "progressive" states and "liberation" movements, East German activities in the LDCs are now varied and include government-to-government diplomatic relations, party-to-party ties, cultural and media links, intelligence and security assistance, training programs, military and economic agree- ments, and trade. Although the East German programs are small com- pared with those of the Soviet Union, they comple- ment Soviet programs by concentrating on selected countries and specializing in those areas that have the greatest potential for influence in LDCs. For example: ? By providing intelligence and security assistance to several African countries, the East Germans have been instrumental in helping to secure Moscow's position in the area. ? By developing party-to-party relations, East Berlin has been able to provide support to nonruling leftist and Communist parties in Latin America. ? East Germany's extensive media activities help meet Moscow's goals of broadly disseminating Commu- nist propaganda. ? East Berlin's support of youth movements and trade unions exemplify East German efforts to penetrate key sectors in LDCs in order to secure current and future political advantage for itself and Moscow. ? East Germany's military supply program, while small, is used selectively to help support the needs of Soviet clients and potential clients. In addition to supporting Soviet Third World policies, East Germany's activities in the Third World are apparently also motivated by East Berlin's desire to: ? Enhance East German international visibility and prestige, particularly vis-a-vis West Germany. ? Provide East Germany with needed export markets and hard currency earnings to help finance imports from the West as well as from the Soviet Union and other Warsaw Pact countriesi Support of Soviet Third World Objectives Of the USSR's Warsaw Pact allies, East Germany plays the most active role in support of Soviet objec- tives in the Third World. East Berlin no doubt shares many of Moscow's motives for penetrating Third World countries. East German leaders have frequent- ly stated their support for-and willingness to act as an instrument of-Soviet policy. For example, in a speech to the Parliament in June 1979 on the signing of "friendship and cooperation" treaties with Angola and Mozambique, Foreign Minister Fischer acknowl- edged that the treaties were an expression of the "coordinated foreign policy of the states of the social- ist community." We believe, however, that some of the motivation for East Germany's activities stems not just from shared ideals but also from a desire to enhance its position with Moscow in hopes of increas- ing Soviet support for East German political and economic interests. There are numerous examples of East German activi- ties in the Third World that directly support Soviet objectives: ? East Germans have helped to consolidate pro- Soviet, Marxist-oriented regimes in South Yemen, Mozambique, Ethiopia, and Angola. ? East Berlin responded rapidly and fairly generously to the Sandinista takeover in Nicaragua, offering some $30 million in military equipment and $110 million in economic assistance since late 1979. East Germany has also provided limited aid and training to Guatemalan and Salvadoran insurgents. ? East Germany has provided assistance to the Pales- tine Liberation Organization (PLO), Syria, and Iraq in support of Soviet Middle East policies. East Germany's resupply of Iraq in the early days of the Iran-Iraq war preceded Moscow's own shift to supporting Baghdad, while Moscow was still trying to solidify its relations with Tehran. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Through its involvement in Third World media, East Germany has had some success in casting events in a pro-East, anti-West light. Such involvement includes training journalists, providing news services, support- ing party newspapers, and facilitating clandestine radiobroadcasting. Journalist Training The Solidarity School run by East Germany's Jour- nalist Union was established by the International Organization of Journalists, one of the 10 major Soviet front groups. The school has been largely used to train journalists from African countries such as Ethiopia,. Tanzania, and Zambia. News Services The East German news agency, ADN, is increasingly active in the Third World. The East Germans regu- larly supply material to Tanzania's government press service and local Tanzanian newspapers, and the East Germans along with the Soviets regularly plant sto- ries hostile to the West in the Zambian media. ADN pieces are frequently printed in the Ethiopian press and Ghana is reported to receive free wire service from East Germany. East German involvement in the media of other countries has been less detectable, but ADN has recently signed agreements with news services in such countries as Burma, Cyprus, Greece, South Yemen, and Syria. In India, East Germany continues to be active in the media, conducting broadcasts in both English and Hindi and maintaining a bureau in New Delhi. Support to Party Newspapers East Germany also provides printing equipment and supplies to a number offriendly Third World govern- ments and to nonruling Communist and leftist parties for their party newspapers: ? Grenada recently received a GDR grant for printing equipment for its Free West Indian newspaper. ? According to press reports, East Germany covertly provided financial assistance to the publishing house of the pro-Soviet Greek Communist Party through a front company in Luxembourg. Clandestine Radiobroadcasts East Germany has also provided broadcasting facili- ties to a number of Western and Third World Com- munist movements including Iran's Tudeh Party and the Greek Communist Party. In most cases, the listeners were led to believe that the broadcasts originated in the target country. The only clandestine stations still operating from Eastern Europe are' two that broadcast in Turkish from. East Germany: "Voice of the Turkish Communist Party" and "Our Radio. " Broadcasts generally follow the Soviet line in commenting on Turkish foreign policy and empha- size themes designed to discredit the United States, NATO, and the West. On many issues, moreover, these broadcasts have been much more critical than the more cautious official Soviet and East German 25X1 25X1 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret Ethiopian journalists being taught by East German instruc- ? East Germany has been among the most active Warsaw Pact countries in assisting leftist insurgent groups. It has provided support to the South-West Africa People's Organization, the African National Congress, and members of the PLO. These groups also have official representation in East Berlin. ? East Germany provides printing equipment and supplies to pro-Soviet leftist newspapers as well as news services to a number of Third World countries. ? East Germany is also an active participant in inter- national Communist front organizations such as the World Peace Council and the Afro-Asian People's Solidarity Organization. It has representatives on the executive committees or secretariats of nine out of the 10 major Soviet fronts, and one of the fronts-the Women's International Democratic Federation-is headquartered in East Berlin. East Germany has also established friendship societies in countries throughout the Third World and has used these as well as cultural and sports activities as vehicles for promoting Soviet views. ? East Germany has several training programs for LDC personnel that complement Soviet and War- saw Pact training programs. We believe that more than 1,000 trainees from LDCs-mainly from Ethi- opia, Zambia, and Mozambique underwent mili- tary and paramilitary instruction in East Germany between 1978 and 1982. Some 18,000 students from LDCs have also received academic training in East Germany. ? East Germany's Communist Party, the Socialist Unity Party (SED), has continued to develop and maintain direct links with leftist and Communist parties in Africa, South Asia, and Latin America. SED officials frequently attend party congresses and have been involved in organizing and training party cadre as well as providing advice and other support. For instance, an agreement was signed with the Congolese Labor Party calling for closer ties with the SED, including continued training of Congolese party cadre. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Figure 1 East Germany: Military Sales to LDCs 1964-77 Total: $150 million Coordination of Activities There appears to be coordination and some specializa- tion of activities between the USSR and East Germa- ny in the Third World. The degree of coordination apparently varies depending partly on geopolitical interests, but, in general, Soviet-East German coordi- nation appears to be most prevalent in activities dealing with arms sales, intelligence and military technical assistance, party cadre development, and support to liberation movements More coordination and specialization-particularly between the USSR, East Germany, and, in some instances, Cuba-is evident in Sub-Saharan Africa and Latin America than in other regions. In Ethiopia and Angola, for example, Moscow has provided the bulk of the Bloc military and economic aid, Cuba has supplied combat troops, while the East Germans have concentrated on strengthening and reorganizing local intelligence and security services 1978-82 Total: $710 million Latin America North Africa 2.5 In Latin America-particularly in Nicaragua-a stronger East German effort in the area seems to have followed party leader Honecker's visit to Cuba in early 1980. The visit culminated in the signing of a 25-year friendship and cooperation treaty, the first of its kind signed by Cuba with a Warsaw Pact state. East Germany now has a contingent of military and economic technicians in Nicaragua. The Soviets, reportedly also look to East Germany as the vanguard for the Warsaw Pact in relations with the Communist parties and leftist groups in Latin America Arms Sales. Warsaw Pact arms sales are coordinated with and, in some instances, orchestrated by Mos- cow-the amount of Soviet control varying with the size of the order, the type of equipment involved, and the political importance Moscow attaches to the client/supplier relationship. East Germany's military 25X1 25X1 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret Table 1 East Germany: Military Relations With Non-Communist LDCs, 1964-82 Total 860 590 Sub-Saharan Africa 210 210 North Africa 20 Middle East 600 Asia Table 2 East Germany: Intelligence and Military Advisers in LDCs, 1982 a Total 1,000-1,500 Africa 650-900 Middle East 300-550 Latin America 50 equipment sales account for less than 3 percent of total Warsaw Pact sales to the Third World. As is the case with other Warsaw Pact suppliers, sales are mostly concentrated in the radical Arab states, south- ern African, and, more recently, Nicaragua Intelligence and Technical Assistance. There is evi- dence that. some of East Germany's intelligence and security assistance, specialized technical training, and provision of advisers to Third World countries is done at Soviet request or in close coordination with Mos- cow Party Relations. The East Germans also play a role in helping the Soviets develop and maintain relations with Third World Communist and leftist parties.F_ Support of Liberation Movements. East Germany's support of liberation and revolutionary movements has also closely paralleled that of the Soviet Union. For example, the East Germans joined the Soviets in backing Mozambique's FRELIMO and Angola's MPLA long before these regimes came to power. On some occasions, the East Germans appear to have been used to establish contact with a movement when it was politically inopportune for Moscow to do so. For example, East Berlin established close relations with the PLO when Moscow officially treated it with caution 25X1 25X1 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 ilonecker meeting with YAR Vice President Abdul Aziz In addition to backing Moscow, East German activi- ties in the Third World also support two of East Berlin's most important foreign policy objectives: ? The East German desire for international recogni- tion and prestige comparable to West Germany. ? More recently, the need for increased earnings of hard currency or opportunities to barter with LDC raw materials for East German goods or services.F The International Prestige Factor The desire to attain recognition as a legitimate sover- eign state is not the driving force it once was, as most states now recognize East Germany. Nevertheless, we believe that the rivalry with West Germany for prestige and influence in the Third World remains strong. With this in mind, the East Germans have paid special attention to liberation movements and new regimes in Africa and the Middle East. In agreements signed with Third World countries, the East Germans try to insert references to the inviola- bility of the inter-German frontier and to seek ac- knowledgment that West Berlin is not part of West Germany. East Berlin uses the image of increased prestige it has gained in the Third World to bolster the legitimacy of the East German Government with its own people. Support of foreign revolutionary causes is justified to the East German populace as a necessary contribution of the "ultimate victory" of Communism over imperialism. East German Communist Party leader Honecker and other high-level East German officials have made frequent visits to Africa, the Middle East, and other Third World regions. These visits as well as those of Third World governments and party leaders to East Germany are well publicized in the East German and Bloc media. 25X1 East Germany's investment has paid off well in gains in international recognition and prestige. At the be- ginning of 1970, East Germany was recognized by only seven non-Communist countries. Today it has formal relations with over 130 and assistance agree- ments with 50. It has gained influence and respect, particularly in Africa and the Middle East where it has established close relations with a number of countries as well as with many of the leading African revolutionary movements and the PLO. It has signed treaties of friendship and cooperation with Angola, Mozambique, Ethiopia, South Yemen, and .Afghani- stan and a joint declaration of friendship and coopera- tion with Syria. Its influence also appears to be increasing in other countries such as Zambia and 25X1 Nicaragua. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret East German supplies being un- loaded in Mozambique. The East Germans, nevertheless, have also suffered some setbacks. East German police advisers in Soma- lia were sent home in 1981 when Mogadishu refused to renew their contracts, presumably a reflection of Somalia's distancing itself from the Soviet Bloc. The East Germans also experienced a setback in Zimba- bwe that they now appear to be reversing. East Germany, along with Czechoslovakia and the USSR, backed the ZAPU which lost out to Mugabe's Zimba- bwe African National Union (ZANU). Only after reportedly agreeing to sever all ties with ZAPU was East Germany able to establish diplomatic relations with the new Zimbabwean Government in November 1980. Prime Minister Mugabe's visit to East Germa- ny, Czechoslovakia, and Hungary in 1983 is indica- tive of the improvement in relations Economic Considerations Although East Germany's economic and military programs in the Third World were at first motivated more by political and ideological considerations, Fast Germany began to increase its emphasis on economic considerations in the mid-1970s. At that time, eco- nomic constraints began impinging on East Berlin's ability to provide financial aid to Third World coun- tries. This forced East Germany to look toward LDCs to expand its equipment and services exports in hopes of increasing hard currency earnings Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Figure 2 East Germany: Economic Agreements With LDCs 1955-77 Total: $1.3 billion New measures during the past five years to increase economic returns from LDC relationships have included: ? Opening new markets for East German equipment by expanding the size and scope of credits provided under trade agreements. Of the $1.7 billion in economic agreements signed in 1978-82, $1.3 billion were trade credits, usually carrying 10-year repay- ment terms at 4.5- to 9-percent interest. Only countries with good credit records are being allowed deferred payment terms. ? Focusing on agreements with countries that can pay in hard currency or in needed raw materials such as oil. This pattern has become more pronounced in both military and economic agreements over the past five years. Three-fourths of the $1.7 billion in economic agreements is repayable in hard currency, oil, or other raw materials. Seventy percent of the $710 million in East German military agreements with non-Communist LDCs over the past five years have been with Middle Eastern oil producers, pay- able in oil or hard currency. 1978-82 Total: $1.7 billion ? Raising charges for technical services and requiring payment in hard currency. Because of the heavy concentration of personnel in countries that had been targeted for ideological purposes, East Germa- ny had not enjoyed the same hard currency returns that other East European countries had been earn- ing on their technical services programs. In 1980 East Germany began to demand salaries based on Western pay scales for technicians, with payment at least partly in hard currency Thus far the East German economic initiatives in Third World countries have had limited results. Total. exports to LDCs amounted to only $1 billion in 1981-down slightly from 1980-with the LDC share of East German trade steady at 5 percent since the early 1960s. We have not been able to quantify the hard currency earnings from the trade. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret Table 3 East Germany: Economic Aid to Non-Communist LDCs, 1955-82 Extended Drawn Extended Drawn Total a 2,976 959 Philippines 30 2 North Africa 402 135 Latin America 505 119 Algeria 377 127 Bolivia' 15 3 Tunisia 25 8 Brazil 219 19 Sub-Saharan Africa 687 189 Chile 20 15 Angola 20 16 Colombia 60 5 Burundi NEGL NEGL Grenada 16 5 Cape Verde 7 4 Guyana 36 17 Congo 27 23 Mexico 20 4 Ethiopia 235 32 Nicaragua 112 45 Ghana 64 15 Uruguay 6 6 Guinea 24 24 Middle East 800 390 Guinea-Bissau 5 5 Egypt 264 170 Madagascar 9 1 Iran 100 Mali NEGL NEGL Iraq 84 55 Mozambique 104 41 North Yemen 10 10 Sao Tome and Principe 5 South Yemen 42 32 Somalia 1 1 Syria 250 122 Sudan 46 18 Turkey 50 Tanzania 19 5 South Asia 166 81 Uganda 24 1 Afghanistan 42 15 Zambia 96 2 Bangladesh 25 12 East Asia 195 40 India 2 2 8 8 Pakistan 35 10 Indonesia 144 29 Sri Lanka - 62 42 Kampuchea 12 NEGL Other 220 5 Laos 1 1 a Because of rounding, components may not add to totals shown. Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Table 4 East Germany: Economic Technicians in Non-Communist LDCs, 1982 Total 4,835 North Africa 700 Algeria 250 Libya 400 Tunisia 50 Sub-Saharan Africa 2,510 Angola 750 Ethiopia 500 Guinea 200 800 100 Nicaragua 50 Other 30 Middle East 1,405 Egypt 100 Iraq 350 500 Syria 350 Other 105 South Asia 115 100 15 a Number present for one month or more, rounded to the nearest 5. We believe that most East German programs will continue to grow over the next several years. In our view, economic aid and trade agreements will grow only slightly-the emphasis being on hard currency earnings-and will have little direct impact on the United States. In contrast, East Germany probably will make increased use of its intelligence and security training programs and its political influence mecha- nisms, activities that affect US interests more direct- ly. In addition, East Berlin's military supply program, Table 5 East Germany: Trade With Major LDC Partners Total 947 2,295 2,041 North Africa 43 352 243 Algeria 21 163 76 Libya 4 152 150 Morocco 14 19 12 Tunisia 4 18 5 Sub-Saharan Africa 17 259 257 Angola 83 60 Congo NEGL 1 4 Ethiopia NEGL 40 19 Ghana 4 15 14 Mozambique 83 112 Nigeria 1 14 45 Sudan 10 8 2 Tanzania 2 15 1 East Asia 13 48 43 Indonesia 6 22 28 Malaysia 7 26 15 Latin America 139 389 412 Brazil 75 182 200 Colombia 11 67 43 Mexico 10 64 80 Peru 35 10 17 526 927 711 Egypt 183 93 89 Iran 18 166 184 Iraq 218 455 216 Kuwait 9 11 12 Lebanon 17 33 38 60 118 130 21 51 42 113 145 189 100 134 180 5 6 4 8 5 5 Europe 96 175 186 Cyprus 2 11 9 Greece 52 105 82 Portugal 11 8 9 Spain 31 51 86 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Secret East German airliner carrying Nicaraguan wounded to East Berlin for treatment. We expect that countries in Africa and the Middle East will remain prime targets for East Germany, but the opportunities for increased East German involve- ment in Latin America may be of most concern to the United States. East Germany's recent efforts in Cen- tral America and the Caribbean, its ties to leftist and while small in comparison to Moscow's, can be used selectively in those areas where Moscow is reluctant to show its hand directly We believe that these trends are already evident in recent East German moves: ? In Nicaragua, the East Germans reportedly are involved in assisting the Sandinistas reorganize their party along Communist lines, as well as providing intelligence and security assistance. East Germany is providing limited assistance to insurgents in Gua- temala and El Salvador. ? In Syria, East Berlin has agreed to provide the ruling Ba'th Party with cadre training and assist- ance in party reorganization. ? During 1982 East Berlin signed agreements to provide news services to the local press in Greece, Cyprus, and Syria and provided a grant for newspa- per printing equipment to the government of Grena- da. Communist groups, and its effort to develop economic relations in the region indicate a growing interest in Latin America. How much further East Berlin will go is not yet clear. In considering this question, East Berlin will have to balance its desire for ties and influence with revolutionary regimes and nonruling leftist parties with its efforts to develop relations with countries like Brazil, Argentina, and Mexico, where East Germany has a growing economic stake. F_~ 25X1 The impetus for continued expansion of East German activities in the Third World comes from the potential benefits to all parties the East Germans, the USSR, and the LDCs themselves. In addition to helping Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 Sanitized Copy Approved for Release 2010/08/09: CIA-RDP85T00283R000100050009-3 secure its international. position, East Germany's ac- tive role in the Third World reinforces its special relationship with Moscow. It also provides some op- portunities-albeit as yet small-for economic gain. For the USSR, the presence of its Warsaw Pact ally in the Third World takes some of the burden off Moscow and helps diffuse some of the Western and Third World criticism of superpower interference. The Soviets can be expected to again look to the East Germans to test the waters in a target LDC when it is politically inopportune for them to do so. The LDCs benefit from East German programs because of the specialized technical. expertise the East Germans have developed. 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