INTELLIGENCE MEMORANDUM SOVIET FISHERIES AID TO THIRD WORLD COUNTRIES

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CIA-RDP85T00875R001700030108-8
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January 18, 2011
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108
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July 1, 1972
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Sanitized Copy Approved for Release 2011 /01 /18 CIA-RDP85T00875R0017000 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R0017000 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Secret DIRECTORATE OF INTELLIGENCE Intelligence Memorandum Soviet Fisheries Aid to Third World Countries Secret ER IM 72-108 July 1972 Copy No. 71 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 WARNING This document contains information affecting the national defense of the United States, within the meaning of Title 18, sections 793 and 794, of the US Code, as amended. Its transmission or revelation of its contents to or re- ceipt by an unauthorized person is prohibited by law. Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET CENTRAL INTELLIGENCE AGENCY Directorate of Intelligence July 1972 INTELLIGENCE MEMORANDUM SOVIET FISHERIES AID TO THIRD WORLD COUNTRIES Summary 1. As Soviet fishing vessels have expanded their areas of operation, Moscow has increased its fisheries aid to less developed riparian countries in these areas. Since 1960, the USSR has extended at least US $123 million in aid for fisling ports, processing plants, ships, and technical services. Twenty countries, led by Chile, Ghana, Iraq, and Peru have received this aid, some $50 :rilllion of it in 1970-71. Although fisheries aid is only a small part of the Soviet foreign aid program, its repayment in the form of services to the Soviet fishing fleet serves to extend the fleet's range and operating time. Soviet fisheries aid is likely to grow in the next few years, particularly in the waters off Latin America and in the Indian Ocean. Introduction 2. One part of Moscow's economic aid program benefiting the Soviet Union about as much as the recipient is fisheries assistance. With a growth during the 1960s from 1.8 million to 5.1 million gross register, tons, the Soviet fishing fleet has expanded its operations to all the world's oceans (see Figure 1). This has strained Soviet support resources, however, forcing Moscow to seek more ports of call for servicing and resupply. Recipient countries commonly grant such services in repayment for fisheries assistance, thereby greatly increasing efficiency by permitting Soviet vessels as much as two additional months of fishing per season. Note: This memorandum was prepared by the Office of Economic Research and coordinated within the Directorate of Intelligence. SECRET 25X1 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Soviet Fishing and Fisheries Aid- Areas currently fished extensively by the Soviet Union Countrieswhich have urepfed Soviet Figure 1 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET Magnitude of Aid 3. Since 1960 the USSR has committed at least $123 million for fisheries development to 20 less developed countries (LDCs) (see Table 1), although only about ',340 million has been drawn. Small amounts of such assistance have also been provided by the USSR to many other countries through commercial arrangements or by participating in projects sponsored by the UN's Food and Agriculture Organization. Soviet Aid Commitments for Fisheries Development in Less Developed Countries 1960-71 Million US $ Total 123.1 Peru 25.5 Chile 17.0 Ghana 11.2 Iraq 11.0 Yemen (San' a) 7.8 Egypt 7.0 Guinea 6.3 Iran 6.3 Yemen (Aden) 5.6 Mauritius 5.0 Senegal 4.7 Algeria 4.5 Somalia 4.2 Others a/ 7.0 a. Including Ceylon, India, Indonesia, Kenya, Pakistan, Sudan, and Tanzania. 4. The first fisheries assistance commitment was made to Ghana in 1960, shortly after the Soviets began extensively exploiting the world's richest sardine stock off West Africa. Similar aid for Guinea and Senegal soon followed. During the mid-1960s, the program was expanded to include Algeria, Egypt, Sudan, and Yemen (San'a). By 1966, Soviet fisheries research vessels were operating around Latin America and throughout the Indian Ocean. Aid was offered to many countries in those areas, and agreements were concluded with a number of them. SECRET 3 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET Character of Soviet Aid 5. Soviet aid usually covers technical assistance, fishing equipment, or trawlers, and often an entire fisheries complex (see the Appendix). The complex includes surveys of adjacent fish resources, trawlers, and construction of ports and other facilities, as well as technical assistance and training. About $42 million has been extended for ports and facilities directly related to fisheries,* some $52 million for fish processing and ship repair facilities, and more than $29 million for trawlers (see Table 2). Almost all commitments include some type of processing facility. Agreements with Somalia, Sudan, Tanzania, and both Yemens included fish drying plants and canneries, usually with 1,500 metric tons of capacity. Peru, with one of the world's largest fishing fleets, will receive a plant designed to process 100,000 tons of fish products annually. 6. Agreement to develop a complex facility normally is preceded by a resources survey, which often includes study of fishing potentials in coastal areas by a Soviet research ship. Survey costs usually are absorbed by the USSR. Another team of Soviet specialists usually conducts feasibility studies for on-shore facilities. 7. The Chilean aid package, for example, involves constructing a large fishing complex and modernizing at least two other fishing ports. Some 25 Chileans will study navigation and fishing techniques in the USSR this year. The Soviets also ree' ntly completed the initial design for a Sea Resources and Naval Construction Institute in Chile. Earlier this year, at least three Soviet research ships conducted a three-month survey, of Chilean fish resources. This is the second such survey; the first was in 1968 in connection with Moscow's original aid offer. 8. Moscow also has agreed to build or expand port facilities in eight other countries. This includes dredging ports and harbors, constructing wharves and repair facilities, and providing related equipment. 9. The USSR has agreed to provide 86 fishing vessels worth more than $29 million to 11 countries (Table 3). While these vessels have included the 2,555-ton BMRT-class stern trawler (see Figure 2), they generally are smaller and older and of less efficient design. The Soviets also have provided some ships as gifts and on loan totaling around $1 million. * Many Soviet-aided ports obviously have multipurpose use, and some fishing ports can service other kinds of maritime vessels. This memorandum, however, is co.'Icerned only with aid projects that are solely or largely for fisheries. 4 SECRET Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET Soviet Aid Extended for Fisheries Development in Less Developed Countries 1960-71 Million US $ Port Processing, Repair, and Miscellaneous Country !otal Facilities Trawlers Facilities Total 123.1 41.6 29.3 52.2 Africa 38.8 2.5 17.5 18.8 Algeria 4.5 N.A. 4.5 -- Ghana 11.2 2.5 4.5 4.2 Guinea 6.3 -- 2.5 3.8 Kenya N.A. -- ?-- N.A. Mauritius 5.0 -- 2,4 2.6 Senegal 4.7 -- 3.6 1.1 Somalia 4.2 -- -- 4.2 Sudan 2.0 -- -- 2.0 Tanzania 0.9 -- -- 0.9 Middle East 37.7 6.6 9.9 21.2 Egypt 7.0 -- 2.8 4.2 Iran 6.3 1.1 3.0 2.2 Iraq 11.0 5.5 -- 5.5 Yemen (Aden) 5.6 -- 1.6 4.0 Yemen (Satz' a) 7.8 -- 2.5 5.3 So uth and East Asia Ceylon India N.A. 2.2 N.A. N.A. N.A. N.A. 2.2 Indonesia 0.3 -- 0.3 N.A. Pakistan 1.6 N.A. 1.6 -- La tin America Chile 17.0 17.0 - N.A. Peru 25.5 15.5 -- 10.0 SECRE'T' 5 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET Soviet Credit Sales of Fishing Vessels to Less Developed Countries 1960-71 Value Number of Vessels Country of Credit (Million US $) Purchased Delivered Total 29.3 86 50 Algeria 4.5 18 N.A. Egypt 2.8 10 10 Ghana 4.5 18 18 Guinea 2.5 4 4 Indonesia 0.3 N.A. 1 Iran 3.0 6 6 Mauritius 2.4 2 0 Pakistan 1.6 8 8 Senegal 3.6 10 3 Yemen (Aden) 1.6 3 0 Yemen (San'a) 2.5 7 N.A. Terms of Aid 10. Nearly all Soviet fisheries assistance is provided under 12-year credits at 2.5% interest. Although repayments originally were made only in goods, Moscow increasingly accepts payment in services and access to port facilities. Bilateral commissions meet periodically to determine when repayment in services will be made and their value. Such services include the use of storage and repair facilities, food and fuel supplies, and shore privileges for Soviet crews. In some cases, Aeroflot is allowed to fly in relief crews. 11. Mauritius, for example, will pay for Soviet-provided fishing vessels by covering bunkering and all other port costs for 50 Soviet fishing ships annually and by allowing Moscow to fly in relief crews as necessary. Egypt also allows Moscow to use Cairo's communications facilities for directing Soviet fishing activities in the Red Sea and the northwest part of the Indian Ocean. 12. Soviet fisheries assistance agreements have not required that the recipients provide assistance or facilities for Soviet naval ships. However, such agreements do increase the entree of the Soviet Union in the maritime nations of the world and could open the way for naval cooperation. SECRET Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET Soviet Fishing Vessels Supplied to Third World Countries, by Class Vessel type Seiner Vessel class RS-300 Length overall 95-98' Deadweight 60-50 tons Gross tonnage Unknown Endurance 14 days No. In crew 15 Vessel type Tuna Long Liner Length overall 142' Deadweight Unknown Gross Tonnage 311 tons Endurance Unknown No. In crew Unknown Vessel class Mayak Length overall 178' Deadweight 307-239 tons Gross tonnage 929 tons Endurance 33 days No. in crew 30 Vessel class Pushkin Length overall 277' Deadweight 1,230-1,242 tons Gross tonnage 2,472-2,555 tons Endurance 60-80 days No. In crew 90-125 SECRET Figure 2 Vessel type Stern Trawler Vessel class Atlantik Length overall 270' Deadweight Unknown Gross tonnage 2,760 tons Endurance 60 days No. In crew 80 Vessel type Stern Trawler Vessel '.lass Tropik Length overall 262' Den_'lweirht 793 tons Gross tonnage 2,435 tons Endura, :n 60 days No. in crew 76 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 SECRET 13. All package aid agreements carry provisions for extensive services to the Soviet fishing fleet including use of repair, supply, and storage facilities. This enables Soviet trawlers and seiners to operate for longer periods before returning to their home ports. Catches are transferred to factory ships or stored in the aid recipient's facilities for eventual shipment to the USSR or its customers, and relief crews are flown in by plane. The Soviets now have such access in Chile, Peru, Senegal, Guinea, Algeria, and Egypt. Soviet vessels also are serviced in the Indian Ocean and the Arabian Sea ports of Ceylon, Iran, Iraq, Yemen (San'a), Yemen (Aden), Somalia, Tanzania, and Mauritius. Aid agreements with Chile, Mauritius, and Yemen (Aden) also provide for joint fishing operations. These may simply combine activities of the two fleets or may entail the use of mixed crews. Sardine, crab, and hake presently are the principal seafood caught on these operations, which until recently were conducted close to the recipients' shores. 14. Commercial arrangements recently have been made for servicing the Soviet fleet in countries where fisheries aid agreements do not exist. In the Madeira, Canary, and Azore Islands a joint Spanish-Soviet company services the 200-300 Soviet fishing vessels a year that call for repairs and supplies.. Moscow recently concluded an agreement with Singapore for periodically overhauling whaling ships. 15. Some agreements also carry provisions for selling fish and fish products to the assisted country. Such sales are not entered in trade statistics. Although their magnitude is not known, they are already increasing. Beginning in the mid-1960s the Soviet Union contracted to provic.; Egypt with increased amounts of fish and fish products, much of which is caught on joint fishing expeditions. In Chile, Soviet ships also deliver fish for local markets. In 1972 they probably will supply 30% of Chile's total consumption. Prospects 16. Soviet aid probably will continue to grow in the next few years as LDCs develop their fishing industries and as Moscow's fishing grounds expand further. Additional Latin American countries and some bordering the Indian Ocean are likely to be the next recipients. Feelers have been noted recently in India and Ecuador, and Bangladesh has accepted Soviet technical aid and ten fishing vessels for rehabilitating its fishing industry. 8 SECRET Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875RO01700030108-8 1 Soviet Assistance to the Fishing Industries of Less Developed Countries Year of Country Commitment 1968 Included under a $100 million line of credit extended in October 1963 were the following: (1) sale of 18 traw- lers; (2) ports to be constructed after feasibility studies were undertaken; (3) the training of Algerians as fishery specialists; (4) oceanographic research as- sistance. '1966 Under a credit of unknown magnitude, a private Ceylonese firm took delivery of a Soviet trawler that was to be operated for one year by a mixed Soviet-Ceylonese crew. The ship was originally offered as part of a fisheries agreement under negotiation in 1965. 1971 A fis::sries assistance agreement signed in August in- cludes provisions for: (1) technical training and development of a training center in Ceylon; (2) a joint fisheries operation; (3) possible future sale or rental of Soviet fishing vessels. 1968 Following surveys by Soviet fisheries experts, the USSR agreed to establish a fishing port and a king crab plant under $55 million worth of credits extended in 1967. 1971 A $17 million fisheries agreement concluded in September calls for the Soviets: (1) to build one or more fishing ports with complementary ir.dustrial installations; (2) to train Chilean fishermen on Soviet vessels; (3) to create a training center for middle level fishery technicians;(4) to rent Soviet fishing vessels. 1964 The USSR agreed to provide an estimated $7 million of assistance to Egypt's fishing industry. This was to include: (.1) ten Soviet ships for deep sea fishing and research; (2) Soviet technical and research assistance; (3) training of Egyptian personnel; (4) Soviet assist- ance in developing a fishing center at Ras Benas on the Red Sea. ~p 1967 In a mixed commission meeting it was decided to raise the number of Egyptian students receiving fisheries training in the USSR from 200 '_o 300. Status as of April 1972 Fishing port at La Calle under construction; Soviet specialists studying general develop- ment of the industry. Another trawler was delivered in 1967 and both are currently in operation. An oceanographic research survey began in February 1972. Allocations have been made to construct a fishing port in the Bio-Bio area and for renovating at least two other ports. Three Soviet hake trawlers, rented to a Chilean firm, are landing their catch in Santiago. A research fleet conducted a survey between January and March of 1972. Several Soviet research-mission-conducted studies in the Red Sea and the Mediterran- ean; and, in 1971, joint Soviet-Egyptian fishery operations. The ten trawlers have been delivered. Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release Year of Country Commitment Egypt (Continued) 1969 At the fifth mixed commission meeting, the USSR agreed to train an additional 110 Egyptian students in fishing subjects in the USSR. 1971 Under an agreement signed at the seventh mixed commis- sion meeting the USSR agreed to provide the Egyptians 12,000 tons of fish an.xually, to undertake a joint fisheries survey, and to provide additional assistance to develop the potential of Lake Nasser. 1972 Under a 1972 protocol to the agreement the Soviets will continue to supply equipment and technical assistance. They will train 22 Egyptians in the USSR, construct a wharf on the Red Sea, and conduct another fisheries survey there. 1960 A fisheries agreement was concluded to construct a fishing cor-lex at Tema, including port and drydock facilities, a -old storage and icc plant, a workshop to produce fishing gear, and several fish processing plants. Financing for the projects came under a $40 million credit extended in 1960. 1960-61 Contracts signed . der credits extended in 1960 and 1961 provided for delivery of 18 fishing vessels, valued at $4.5 million. 1963-64 In a protocol to the 1960 agreement the USSR agreed: (1) to supply temporary facilities including a floating dock with ship repair, workshop, and refrigerator units to be used until the shore facilities were completed; (2) to train 100 Ghanaians in fishing techniques; (3) to send equipment for fishery schools to be set up in Ghana; (4) to undertake joint scientific investiga- tions. 1960-61 The USSR allocated $2.3 million of a $35 million credit extended in 1959 for a cold storage plant at Conakry. 1966 Under a 1962 credit of $13 million the USSR allocated some $4 million for developing Guinea's fishing indus- try, including ten fishing seiners, three years of technical training for 60 students in the USSR, and a slip and a dock for repair of fishing boats in the port of Conakry. About 400 Egyptians have received training in the USSR. Work was suspended on the fishing complex after the 1966 coup. By that time about 100 Ghanaians had been trained as fisheries experts in the USSR. The drydock facil- ities at Tema were completed i,: 1967 with- out Soviet assistance. In May 1968, the USSR agreed to send a mission to Ghana to study resuming work on the projects but no agreements have been concluded. All 18 vessels were deli,.ared before the coup. The plant was completed by mid-1963 and expanded in 1968. Technical training also was provided. In 1966 the USSR delivered four of the seiners to be operated by Soviet and Guinean person- nel, and Guinea, during 1969, rented two refrigerated trawlers while canceling the re- maining six seiners. Thirty Guineans were accepted for training in the USSR during 1971-72. Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Year of Country Commitment Maracter of Assistance Status as of April 1972 India 1966 Included in a 1966 development credit was a provision for $2.2 million worth of deep sea fishery assistance including the use of two trawlers and the construction of a shipyard for fishing vessels. Indonesia 1964 An agreement was signed to establish a fishing complex One trawler was delivered in 1965. using part of a $90 million credit extended in 1956. The complex was to include processing facilities and fishing trawlers. 1963 An agreement was signed for Soviet assistance in devel- The first section of the hatchery and the opines the Caspian Sea resources including equipment for cold storage plant were completed in 1959. a large fish hatchery, a marine resources survey, re- Port equipment has been arriving sporad- clamation work and technical assistance. Financing ically since 1968. Late in 1971, Iran re- arrangements are unknown. ceived the six fishing vessels. 1966 As part of a $17 million trade credit, the USSR agreed to assist in port expansion and to construct a cold storage plant. 1969 Iran and the USSR concluded an agreement for the supply of a trawler and five seiners worth $3 million. Iraq 1969 Under a $5.5 million fisheries agreement the USSR agreed A fishery survey was conducted in 1970-71. to construct processing plants and refrigeration facil- Other projects were under survey in 1971. ities. 1970 A protocol to the fisheries agreement was signed; it in- cluded provisions for Soviet aid in developing market- ing facilities and two technical training centers to be financed under a $222 million credit extended earlier. 1972 Iraq announced a $139 million fisheries development pro- gram to be implemented in three stages over the next eight years. As part of the program the USSR agreed to build a port in the northern sector of Um Qasr and cold storage plants. Iraq will rent two Soviet fishing boats, and 50 Iraqis will study in Soviet fishery institutes beginning in 1973. Presumably these projects will also be financed under the 1971 credit. Kenya 1964 The USSR agreed to construct various facilities includ- ing a fish cannery under a $44 million credit. No progress has been made, Mauritius 1970 The USSR extended a $5 million credit for the sale of two SRTM trawlers, marine equipment, and the services of Soviet fishery specialists. No action has been taken on the trawlers. A shipment of marine equipment arrived in 1971 but it is unclear `f this was the first con- signment of the credit shipment. A survey was completed during 1971. Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 M Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Year of Country Commitment 1966 Pakistan purchased Soviet trawlers valued at $1.8 mil- lion, of which $1.6 million was covered by Sr.viat cred- its. 19%;Z: An offer of Soviet assistance for fisheries development was made in 1967 under a 1966 credit, and a Pakistani team went to study Soviet fisheries. In '968 a memo- randum of understanding was signed and the USSR agreed to conduct oceanographic research, design a fishing port, and train Pakistani fishermen. 1971 Under.a 1970 credit for $26 million, the USSR agreed to establish 'a large fishing complex at Paita, including expansion of port facilities and cc struction of a re- pair yard and processing facilities. 1965 The USSR extended a $u?.7 million credit to establish a tuna fishing complex, including ten fishirq vessels, a fish cannery, a workshop and repair facility, and cold storage plants. A team of four Soviet experts studied land facilities in 1968. In January 1469, three trawlers arrived to train fisheries person- nel and to conduct a two-year fishing sur- A joint fishing operation and ichthyological survey were undertaken in 1971. Soviet experts submitted their report on the proposed project in 1966. Because the re- port failed to establish the feasibility of the plant, the cannery and cold storage facilities were canceled, reducing the cred- it to $4.7 million. Three boats arrived in 1970. A fishery survey and training program were undertaken in 1971. 1968 In a protocol to the 1965 agreement, the USSR agreed to undertake a study of deep-sea fish resources. 1963 In a protocol to a $44 million credit of 1961, the USSR The plant was completed in 1970. Somali agreed to provide equipment valued at $4.2 million for students are being trained as navigation construction of a fish canning plant at Las Khoreh with officers and ships engineers in Soviet an annual capacity of 6 million cans. schools. 1961 The USSR agreed to survey the fish potentials of the Red The surveys were completed in 1964. A feas- Sea and Nile River and establish a fish cannery at ibility report on the cannery was prepared Jebel Aulia. in 1965, but no subsequent activity has been reported. 1966 The USSR, under a 1966 credit for $20 million, agreed to The cold storage and fish-drying plants were construct a fish-drying plant at Kigoma and four cold canceled. storage plants and to provide $900,000 of marine equipment. 1969 The USSR and Yemen signed a fisheries agreement that in- Seiners, engines, and nets were delivered in cluded a $5.6 million credit for research, marine 1970, and a training center was established. equipment, construction of a training center, a fish- The cannery design was completed in 1971, ing boat, and feasibility studies for canning and cold and the Soviets will supply an oil and flour storage facilities. It also included grant aid of unit for it. Nearly 30 students are training two completely equipped seiners. in the USSR, and the two countries have jointly conducted fishing operations. C1) 71 H Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 ~~~Tanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8 Year of Country Commitment Yemen (San'a) 1964 Approximately $7.8 million was allocated for fisheries The workshop and a cold storage plant, part of and related projects, including two repair workshops, the processing unit, are completed. In 1971, seven fishing boats, processing facilities, and tech- discussions were again held on constructing nical training. the processing plant and procuring the boats. Sanitized Copy Approved for Release 2011/01/18: CIA-RDP85T00875R001700030108-8