AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES IN LESS DEVELOPED AREAS OF THE FREE WORLD, 1970

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP90-00596R000600020006-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 174
• Document Creation Date: December 19, 2016
• Document Release Date: November 3, 2004
• Sequence Number: 6
• Publication Date: April 1, 1971
• Content Type: REPORT

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 Approved For Release 2005/08/22 ".' CIA-R6P90-00596ROUg649 0006-8
Aid And Trade Activities f Communist Countries
In Less Developed Areas IVf The Free World, 1-970
Secret
April 1971
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WARNING
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL SECURITY OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, U.S.C., SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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Foreword
In this report the term Communist countries
refers primarily to the following countries that
extend aid to less developed countries of the
Free World: the USSR, Communist China, and the
following countries of Eastern Europe -- Bulgaria,
Czechoslovakia, East C;ermany, Hungary, Poland,
and Romania. For certain limited purposes the
term also may include Albania, Cuba, Mongolia,
North Korea, and North Vietnam, none of which is
normally a donor of aid. Yugoslavia is not nor-
mally included.
The term Zess developed countries of the Free
World includes the following: (1) all countries
of Africa except the Republic of South Africa;
(2) all countries of East Asia except Japan;
(3) Portugal and Spain in Europe; (4) all coun-
tries in Latin America except Cuba; and (5) all
countries in the Near East and South Asia.
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CONTENTS
Summary . . . . . . . . . . . . . . . . .
I. Communist Activities in Less
1 ed Areas by Type
Page
Deve we 1 5
of Activity . . . . . . . . .
Major Trends . . . . . . . . . . . . 5
Economic Assistance . . . . . . . . . 7
Credits and Grants . . . . . ? ? 7
Extensions . . ? ? ? ? ? ? ? 7
Drawings . . ? ? ? ? ? ? ? ? 9
Technical Assistance . . . . . . 11
Economic Technicians . . . . 11
Technical Trainees . . . . . 12
Academic Students in Communist 13
Countries . . . . . . . . .
Military Assistance . . . . . . . . . 15
Credits and Grants . . . . . . . 15
Extensions . . . . . . . . . 15
Drawings . . . . . . . . . . 16
Technical Assistance . . . . . . 17
Military Technicians . . . . 17
Military Trainees from Less 18
Developed Countries . . .
Trade . . . . . . . . . . . . . . . .
Value . . . . . . . . . . . . . .
4-4,, of Trade and Relative
Direc 20
Shares . ? . ' '
Commodity Composition of Soviet
Trade with the Less Developed 22
Countries . . . . . . . . . .
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Page
II. Communist Activities in Less
Developed Areas, by Area and
Country . . . . . . . . . . . . . . 25
Africa . . . . . . . . . . . . . . . 25
Algeria . . . . . . . . . . . . . 25
Guinea . . . . . . . . . . . . 27
Nigeria . . . . . . . . . . . . 27
Somalia . . . . . . . . . . ? 28
Sudan . . . . . . . . . . . . . 28
Tanzania . . . . . . . . . . 30
Zambia . . . . . . . . . . . . 31
Other African Countries . . . . . 31
East Asia . . . . . . . . . . . . . 35
Latin America . . . . . . . . . . . . 37
Bolivia . . . . . . . . . . 37
Brazil . . . . . . . . . . . . . 37
Costa Rica . . . . . . . . . 38
Peru . . . 38
Other Latin American Countries 39
Near East and South Asia
Afghanistan . . . . . . . . . 41
Ceylon . . . . . . . . . . 41
India . . . . . . . . . . . . . . 42
Iran . . . . . . . . . . . . 44
Iraq . . . . . . ... . . . . . 46
Pakistan . . . . . . . 47
Southern Yemen . . . . . . . . . 48
Syria . . . . . . . . . . . . 48
Turkey . . . . . . . . . . . 49
UAR . . . . 49
Other Near East and South Asian
Countries . . . . . . . . . . . 51
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Page
Statistical Tables
1. Economic Aid Extended by Communist
Countries to Less Developed
Countries of the Free World, 1970
8
2. Communist Economic Credits and Grants
to Less Developed Countries, Ex-
tended and Drawn, 1954 - December
1970 . . . . . . . . . . . . . . .
54
3. Communist Economic Credits and Grants
Extended to Less Developed Countries,
by Communist Area and Country,
1954 - December 1970 . . . . . . . .
56
4. Communist Economic Credits and Grants
Drawn by Less Developed Countries,
by Communist Area and Country,
1954-70 . . . . . . . . . . . . . .
57
5. Communist Economic Technicians in the
Less Developed Countries, January-
December 1970 . . . . . . . . . . .
58
6. Technical Trainees from Less Developed
Countries Trained in Communist Coun-
tries, 1956-70 . . . . . . . . . . .
60
7. Academic Students from Less Developed
Countries Trained in Communist Coun-
tries, 1956-70 . . . . . . . . .
62
8. Military Aid Extended by Communist
Countries to Less Developed Coun-
tries, 1955-70 . . . . . . . . . . .
66
9. Communist Military Aid to Less De-
veloped Countries, Extended and
Drawn, 1955-70 . . . . . . . . . . .
67
10. Communist Military Technicians in
Less Developed Countries, 1969-70
68
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11. Military Personnel from Less Developed
Countries Trained in Communist Coun-
tries . . . . . . . . . . . . . . . 69
12. Communist Exports to and Imports from
Selected Less Developed Countries,
1968-69 . . . . . . . . . . . . . 71
13. Percentage Share of the Communist
Countries in the Trade of Selected
Less Developed Countries, 1968-69 73
Illustrations
Figure 1. Communist Activity in Less
Developed Countries of the
Free World, 1965-70
(following) . . . . . . . . .
2
Figure 2. Communist Economic Assistance
to Less Developed Countries
of the Free World, 1954-70
(following) . . . . . . . . .
2
Figure 3. Annual Departures of Academic
Students from Less Developed
Countries for Study in the
USSR anc Eastern Europe . . .
14
Figure 4. Communist Exports to and
Imports from Less Developed
Countries of the Free
World (following) . . . . .
Figure 5. USSR: Foreign Trade,
1955-69 . . . . . . . . . . .
21
Figure 6. Soviet Exports to and Imports
from Less Developed Countries
of the Free World, by Com-
modity Croup . . . . . . . .
23
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AID AND TRADE ACTIVITIES
OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS
OF THE FREE WORLD
1970
Summary
Major Trends (see Figure 1)
Although Communist aid initiatives during 1970
generally conformed to the conservative aid poli-
cies pursued by most Communist countries in the
post-Khrushchev years, the USSR provided a record
amount of military aid to the UAR and Communist
China made major economic aid commitments to
Pakistan and for the Tan-Zam Railroad.
Moscow's extension of an estimated $650 million
of military aid to the UAR was the largest annual
Soviet aid commitment ever given to a Third World
when it emerged from the aftermath of the Cultura
Revolution, a year in which China tried to resume
its role as an international power, when it again
made, a bid to expand its presence in the Third
Worl. China's $710 million of economic aid ex-
tended to less developed countries was far larger
than the total amount of aid extended by all other
Communist donors in 1970 and was more than double
China's own previous peak year extensions in 1964.
Chinese aid for constructing the Tan-Zam Railroad
was the largest credit ever extended by a Com-
munist country to a single development project in
a less developed country. It also reaffirmed
China's continuing interest in Africa and is part
of Peking's attempt to renew and establish more
firmly its presence on that continent.
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Economic Aid
Communist countries extended more than $1.1
billion of economic assistance to the less de-
veloped countries during 1970, bringing total
extensions* since 1954 up to $11.9 billion (see
Figure 2). Communist China's aid accounted for
nearly two-thirds of the total in 1970. Its
major commitments were $400 million to Tanzania
and Zambia for building the Tan-Zam Railroad and
$200 million to Pakistan for its Fourth Five-Year
Plan. No other major economic agreements were
concluded by Communist countries during the year.
The USSR agreed to provide a total of $210 million
(its smallest annual commitment since 1962) to 11
countries, and East European countries extended
about $185 million. This was only about 40% of
the total commitments made by East European coun-
tries in 1969. Drawings on Communist economic
aid increased to $475 million in 1970, the second
successive annual increase following a four-year
period when drawings were falling. The upward
course reflects larger Soviet deliveries, particu-
larly to Iran and Turkey. The total drawn by the
end of 1970 on aid extended since the start of the
program in 1954 is estimated at about $5 billion.
Communist economic technicians in the less
developed countries numbered about 23,600 in 1970,
an increase of somewhat more than 5% over 1969.
Soviet technicians accounted for about 45% of the
total, the same as in 1969, while the number of
Chinese Communists increased to a record one-third
of the total because of the more than 4,000 addi-
tional Chinese personnel sent to work on the Tan-Zam
Railroad. The number of East European personnel
dropped by more than 25%, primarily because of
reductions in the number employed in Libya and
In this report the term extension refers to a
commitment to provide goods and services, either
as a grant or on deferred payment terms. Credits
allowing 5 years or more for repayment are in-
cluded. Assistance is considered to have been
extended when accords are initialed and constitute
a formal declaration of intent. The term drawings
refers to the delivery of goods or the use of
services.
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Figure 1
C M U ST - TIVITY IN LESS DEVELOPED COUNT RUES,
-------------------------
--- ---------- -------
------------
- --------- ------------
--- -- ---------- -
F THE FREE WORLD 1965- t
ECONOMIC ASSISTANCE EXTENDED MILITARY ASSISTANCE EXTENDED
2000
Million US $
1500 15001
Million US $
1000
500
0
40
1 (~ I I _ I I 10001 Eastern Europe
Communist
China
Eastern
Europe
0'
1965 1966 1967 1968 1969 1970 1965 1966 1967 1968 1969 1970
ECONOMIC AND MILITARY STUDENTS DEPARTING FROM
TECHNICIANS LESS DEVELOPED COUNTRIES FOR
IN LESS DEVELOPED COUNTRIES TRAINING IN COMMUNIST COUNTRIES
*Trode ofCommunist"Countries with Less Developed Countrtes of
the Free World is shown in Figure 4.
NOTE: Data are revised periodically to Include new Information and-therefore
.~= may-not be comparable with data previously presented=
Communist
China
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Fig ti-re 21
COMMUNIST ECONOMIC ASSISTAN ETC,)
ES ;= DE ELC PEED COUNTRIES OF THE FREE WORLD
1954-70
CUMULATIVE EXTENSIONS AND DRAWINGS
SHARE OF TOTAL
ECONOMIC ASSISTANCE EXTENDED
1954-70
By Donor
SHARE OF TOTAL
ECONOMIC ASSISTANCE DRAWN, 1954-70
By Recipient
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Tunisia under commercial contract. Communist
countries continued to train personnel for tech-
nical jobs* though the number going abroad for
this training in 1970 declined to 1,650 from
almost 1,900 in 1969. Meanwhile, the USSR has
continued to build training facilities in the less
developed countries and also to provide on-the-job
training at plants in the less developed countries.
Approximately 3,600 students from the Third World
went to Communist countries for academic training**
during 1970, bringing the total number that has
gone for this training during the 15 years of the
program up to more than 47,000. During 1970 the
USSR, for the 1st time since 1965, made additional
places available for students from less developed
countries, bringing its total enrollment to more
than 12,600. Approximately 8,600 students were
enrolled in East European institutions. No Third
World students are known to be studying in Com-
munist China.
Military Aid
Military aid of over $1 billion extended to
less developed countries in 1970 was at a near
record level, bringing the total committed since
1955 to $7.7 billion. The UAR was by far the most
important aid recipient, receiving $650 million of
aid, or almost two-thirds of the total.
* Technical trainees are personnel trained to per-
form jobs on Communist-built installations in the
Less developed countries. They undertake training
on-the-job in Communist countries or are trained
in Communist technical schools that require Less
than one year of training.
** Academic students include those enrolled in
universities., colleges, and specialized secondary
schools. Although these include students taking
advanced degrees whose course of study may be as
little as one year, the period of study is usually
5 to 6 years.
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I. Communist Activities
in Less Developed Areas, by Type of Activity
Major Trends
Communist aid initiatives during 1970, except
for military aid to Egypt and economic aid to
Pakistan and the Tan-Zam Railroad, generally con-
formed to the conservative aid policies pursued
by most Communist countries in the post-Khrushchev
years. Although drawings on economic aid increased,
no important new Soviet or East European economic
aid agreements were signed during the year, and
the terms of most agreements continued to be less
concessional than in the early 1960s. On the
other hand, Communist countries continued to use
economic and military aid to foster their own
national interests in selected less developed
countries and to strengthen their economic and
political bonds with these countries. For the
changed; for Communist China, two large economic
aid commitments demonstrated China's intention
to reassert its presence and influence in the
Third World.
Moscow's extension of $650 million of military
aid to the UAR was the largest annual aid commit-
ment ever given to a Third World country. More-
Communist countries provided small amounts of mili-
tary aid to other countries, these activities were
dwarfed by Moscow's overwhelming preoccupation
with Egyptian military activities.
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For Communist China, 1970 was a banner year.
It was the year when China emerged from the after-
math of its Cultural Revolution, a year when it
tried to resume its role as an international power,
when it again made a bid to expand its presence in
the Third World. China's $710 million of economic
aid extended to less developed countries was far
larger than the total amount of such aid extended
by all other Communist donors in 1970 and was more
than double China's own previous peak year exten-
sions in 1964. Two major credits, $200 million
to Pakistan and $400 million for the Tan-Zam Rail-
road, accounted for most of the aid. But the aid
for constructing the Tan-Zam Railroad was by far
the most significant. It is the largest credit
ever extended by a Communist country to a single
development project in a less developed country.
It exceeds by $75 million Soviet credits for the
Aswan Dam, previously the largest Communist under-
taking. The credit for the Tan-Zam Railroad
reaffirms China's continuing interest in Africa
and is part of China's attempt to renew and estab-
lish more firmly its presence on that continent.
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Economic Assistance
Credits and Grants
Extensions
Communist countries extended more than $1.1
billion of economic assistance to the less
developed countries during 1970, up $170 million
from 1969 and bringing their total commitments
since the start of the program in 1954 up to
$11.9 billion (see Tables 1-3 and Figure 2).
For the first time Communist China's aid agree-
ments exceeded the value of the combined aid of
other Communist donors. Its extensions of almost
$710 million accounted for nearly two-thirds of
total Communist economic aid agreements, while the
USSR and East European countries extended about
$210 million and $185 million respectively.
Bolivia, Costa Rica, and Venezuela received Com-
munist aid for the first time. The largest re-
cipients of aid were Tanzania, Zambia, and
Pakistan, each of whom received commitments of
approximately $200 million from Communist China.
It was the peak year for the Chinese Communist
aid program. New Chinese undertakings in 1970,
which were more than twice their previous record
level achieved in 1964, account for about 43% of
all Chinese aid extended since 1956. The $400
million extended to Tanzania and Zambia for
building the Tan-Zam Railroad represents the
largest credit ever provided by a Communist coun-
try for a single project in the Third World.
During 1970, Communist China also extended a $200
million credit to Pakistan for project and com-
modity assistance. With this new commitment,
Pakistan continued as China's largest aid recipient.
China also extended smaller amounts of aid to
Ceylon, Guinea, Southern Yemen, and Sudan.
Repayment terms for Chinese Communist aid,
all of which is interest free, were somewhat
more liberal than usual for the $400 million of
aid to Tanzania and Zambia extended in 1970.
Repayment of this credit is to be made over 30
years instead of the more usual 10 years plus a
grace period.
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Economic Aid Extended by Communist Countries
to Less Developed Countries of the Free World a/
1970
Total
USSR
Total
Bulgaria
Czecho-
slovakia
East
Germany
Hungary
Poland
Romania
Communist
China
1,104.9
210.4
186.4
52.0
15.0
14.1
85.8
10.0
9.5
708.1
593.0
56.1
84.1
40.0
0
14.1
30.0
0
N.A.
452.8
Algeria
74.1
--
74.1
40.0
--
14.1
20.0
--
--
--
Central African Republic
N.A.
N.A.'
N.A.
--
--
--
--
--
N.A.
--
Guinea
10.0
--
--
--
--
--
--
--
10.0
Mauritius
5.0
5.0
--
--
--
--
--
--
--
Morocco
44.4
44.4
--
--
--
--
--
--
--
--
Nigeria
6.7
6.7
--
--
--
--
--
--
--
--
Sudan
51.6
--
10.0
--
--
--
10.0
--
--
41.6
Tanzania
200.6
--
--
--
--
--
--
--
--
200.6
Cr
Zambia
200.6
--
--
--
--
--
--
--
--
200.6
Cx!
C-:
115.8
65.8
50.0
0
15.0
0
25.0
10.0
0
0
Bolivia
27.5
27.5
--
--
--
--
--
--
--
-
-
a
Costa Rica
10.0
10.0
--
--
--
--
--
--
--
--
Peru
53.3.
28.3
25.0
--
--
--
15.0
10.0
--
--
Uruguay
15.0
--
15.0
--
5.0
--
10.0
--
--
--
Venezuela
10.0
--
10.0
--
10.0
--
--
--
--
--
Near East and South Asia
396.1
88.5
52.3
12.0
0
0
30.8
0
9.5
255.3
Afghanistan
2.8
2.8
--
--
--
--
--
Ceylon
20.5
8.4
--
--
--
--
--
Iran
54.4
54.4
--
--
--
--
--
Iraq
65.3
22.5
42.8
12.0
--
--
30.8
Pakistan
209.5
--
9.5
--
--
--
--
9.5
200.0
Southern Yemen
43.2
--
--
--
--
--
--
43.2
Yemen
0.4
0.4
--
--
--
--
--
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No major new Soviet economic aid was provided
to the less developed countries during 1970. Its
new commitments were the lowest for any year since
1962. Although 11 countries shared in the USSR's
total extensions of $210 million, only Iran re-
ceived credits exceeding $50 million. A credit
of almost $45 million was extended to Morocco;
Bolivia, Peru, and Iraq received aid commitments
ranging between $20 million and $30 million; Costa
Rica received $10 million for roadbuilding equip-
ment; and lesser amounts went to Ceylon, Mauritius,
and Nigeria. With the possible exception of the
aid to Nigeria and Mauritius, Soviet extensions
were primarily for capital goods purchases, the
repayment terms for which are harder than those
traditionally associated with Soviet aid. Instead
of the usual repayment terms of 12 years at 2/%
interest, about 95% of the aid extended by the
USSR in 1970 is to be repaid over 8-10 years at
interest rates of 3%-4%. In some cases downpay-
ments are required.
East European economic aid agreements in 1970
totaled about $185 million, considerably below
the 1969 level of $455 million but 10% above the
average of their commitments in 1967 and 1968.
Hungary and Bulgaria, with extensions of $86 mil-
lion and $52 million, respectively, accounted for
nearly 75% of the total provided by Eastern Europe.
Algeria and Iraq, by far the largest recipients of
East European aid in 1970, received commitments of
$74 million and $43 million, respectively. Aid
totaling $25 million was extended to Peru and lesser
amounts were extended to Pakistan, Sudan, Uruguay,
and Venezuela.
Drawings*
Limited reporting, especially from the Near
Eastern countries where major programs are under
way, has reduced the precision of estimates of
Repayments data have not been computed beyond
those presented in Aid and Trade Activities of
Communist Countries in Less Developed Areas of
the Free World, 1969, ApriZ 1969, p. 10-11 and 16.
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recent annual drawings. Estimates for 1970 are
based largely on project construction schedules
previously announced, adjusted for current infor-
mation. These estimates show an increase in
drawings in 1970, the second successive annual
increase after the decline that began in 1965.
From a peak of about $560 million in 1964, total
Communist deliveries had fallen to about $460 mil-
lion by 1968, then (based on recently revised
data) recovered slightly in 1969 (see Table 4).
Deliveries continued an upward course in 1970,
totaling about $475 million. Soviet deliveries
rose to about $340 million compared with an annual
average of $320 million for the previous five
years. Drawings on East European and Chinese aid
were about $90 million and $45 million, respec-
tively, roughly the same as in 1969. Deliveries
in 1970 brought the total drawn on Communist aid
since 1955 up to about $5 billion.
Drawings are believed to have increased in
spite of the general cutback of new investments
in some Arab countries of the Near East and in
India, countries which have received the largest
share of past Communist aid deliveries. Deliveries
for the Helwan steel mill in the UAR and the
Bokaro plant in India were not large enough to
compensate for reduced drawings following the
completion of other large undertakings in these
countries. Nevertheless, total drawings began to
rise again in 1969 and continued in 1970 as a
result of the vastly accelerated flow of Soviet
equipment to Iran and, to a lesser extent, to
Turkey, Algeria, and Syria. The upsurge in de-
liveries to Iran accounted for most of the rise
in 1970, as the Soviet-aided natural gas pipeline
was completed and good progress was made on the
Soviet-aided steel mill and the hydroelectric and
irrigation scheme on the Aras River. All of the
Soviet-assisted projects in Turkey, including a
steel mill, were under way and work on the Annaba
steel mill in Algeria, after five years of virtual
inactivity, had begun in earnest. In Syria, where
the Euphrates Dam is under construction, and in
Iraq, where oil drilling under 1969 credits got
under way, drawings also were increased in 1970.
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Technical Assistance
Economic Technicians*
The number of. Communist economic technicians
in the less developed countries during 1970 rose
by somewhat more than 5% to approximately 23,600
(see Table 5). In addition to the overall in-
crease, there were important changes in the number
of Chinese Communist and East European technicians.
The number of Chinese Communists providing tech-
nical services in the less developed countries rose
to 8,100, up 60% from 1969. The number of East
European technical personnel dropped by more than
25% to over 5,200 reflecting primarily reductions
in those employed in Libya and Tunisia under com-
mercial contract. The USSR increased the number
of its technicians by about 5% to about 10,300.
They accounted for about 45% of the total, about
the same ratio as in most recent years. The
Chinese, whose number rose to its highest level
since the beginning of China's aid program, be-
cause of the more than 4,000** additional Chinese
personnel sent to work on the Tan-Zam Railroad,
contributed a record one-third to the number of
Communist technicians present in Third World coun-
tries. This compares with somewhat less than one-
fourth in 1969 and 20% in 1968. Eastern Europe's
technical personnel in aid-receiving countries
accounted for little more than 20% of the total in
1970.
Africa, which in recent years has received
more than one-half of all Communist technicians
sent to Third World countries, accounted for almost
60% of the total number present in 1970. The
somewhat heavier concentration during 1970 was
due largely to the huge influx of technicians to
work on the Tan-Zam Railroad. A large number of
technicians also continued to be employed under
commercial contract and on non-project activity.
Of the approximately 3,900 Soviet technicians in
Africa, more than half were employed in Algeria
as oil technicians, mining and geological experts,
teachers, doctors and nurses, and on economic aid
* Including personnel working under commercial
contracts as well as economic aid agreements.
** May include laborers as well as technicians.
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projects. Although there were significant reduc-
tions in the number of East European personnel
employed in Libya and Tunisia under commercial
contract, about 45% of the nearly 3,100 East Euro-
pean technicians in Africa still were working in
these two countries. The largest contingent of
East Europeans in Africa (800), however, was in
Algeria.
The second largest group of Communist tech-
nicians (9,100) were employed in the Near East
and South Asia during 1970. Their number declined
somewhat from the 1969 level largely because of
the reduced number of Chinese in Pakistan, where
about 950 technicians working on the Gilgit-
Sinkiang Road had departed by the end of 1969
when the project was completed. Large declines
also occurred in Iraq and the UAR, where new
project activity had not accelerated sufficiently
to offset departures. Iran was the only country
in the area where there was a marked increase in
the number of technicians. They rose by more
than 10% in 1970 to 1,650. All of the increase
was in Soviet personnel that came to work on
mining operations for iron and coal to supply
the steel plant being built at Isfahan.
There was little change in the number of
Communist personnel present in most other coun-
tries and areas during 1970, except for Guinea
and Brazil. The number of Soviet technicians in
Guinea increased by 200 during 1970 and in Brazil
the number of East Europeans under commercial
contract increased from 20 to over 100.
During 1970, an estimated 1,650 trainees from
the less developed countries went to Communist
countries to develop skills for use on Communist-
aided projects (see Table 6). This compares
with about 1,900 that undertook similar training
in the previous year. A total of 18,600 have
been trained since 1956. As.in the past, most of
the technical personnel went to the USSR, which
took about two-thirds of the total. By far the
largest share (80%) of the trainees came from
those Near East and South Asian countries where
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the major Communist aid undertakings are concen-
trated. In addition to the technical trainees
that have gone to Communist countries, by the end
of 1969 more than 150,000 workers had been trained
on-the-job at Soviet project sites.
The size of the program for training skilled
labor, technicians, and administrative personnel
in Communist countries is expected to decrease
gradually as the number of Communist-built tech-
nical training facilities in the less developed
countries is increased. Many personnel who in the
past would have gone to Communist countries will
be trained in local schools as they become opera-
tional, and training in Communist countries will
be confined largely to advanced courses or to
particular specialties. By October 1970 the USSR
had built or was constructing 115 technical
schools in the less developed countries. In the
UAR alone some 23,000 personnel currently are
enrolled in technical schools constructed with
Soviet assistance. Other important aid recipients
where these training facilities are being con-
structed include Afghanistan, Algeria, Ethiopia,
India, Iran, and Iran.
Academic Students in Communist Countries
Almost 3,600 students from the Third World
went to Communist countries for academic training
during 1970 (see Table 7). Of this number, about
2,250 enrolled in Soviet academic institutions,
while some 1,350 went to East European countries.
Although a few Chinese Communist universities
opened for the first time since the Cultural Revo-
lution began in 1966, they are not believed to
have admitted any students from the less developed
countries.
African nationals accounted for about one-half
of the total number of new students in 1970,
roughly the same share this area has represented
since 1961. They were followed in importance
by Near East and South Asian nationals, who made
up about one-third of the total, and Latin American
students who accounted for 15% of the total.
The remainder came from East Asian countries.
Algeria, Nigeria, Sudan, Syria, and the UAR sent
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the largest contingents of students to the Com-
munist countries.
During the 15 years since Communist countries
began to accept students from the developing
nations, annual departures for study in both the
USSR and Eastern Europe have followed a similar
pattern (see Figure 3). Both the USSR and East
ANNUAL DEPARTURES OF ACADEMIC STUDENTS
FROM LESS DEVELOPED COUNTRIES
Figure 3
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Annual Average
510662 2-71 CIA
European countries had peak admissions in 1962.
The number of enrollees subsequently declined
until 1968, when the number again began to in-
crease. A cyclical pattern for the number of new
enrollees has emerged that appears to relate
largely to the length of the course of study in
these institutions -- generally five years in the
USSR and five to six years in most East European
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countries. Fluctuations in the number of annual
departures are largely a function of the number of
places for study made available by students who
complete their courses. They also reflect changes
in the number of places allotted by Communist coun-
tries to nationals from the less developed coun-
tries. In 1970, the USSR, for the first time
since 1965, made additional places available for
Third World nationals, bringing its total enroll-
ment of these students up slightly to more than
12,600. An estimated 8,600 students from the less
developed countries were studying in East European
countries, somewhat less than in the mid-1960s
because of a smaller program in Czechoslovakia.
Since the introduction of the Communist aca-
demic training program in 1956, 47,300 students
from the developing nations have gone to Communist
countries for training. About 25,800 of these
have gone to higher educational institutions in
the USSR, and some 20,800 to East European univer-
sities. Only about 700 have gone to Communist
China. Approximately one-half of the students
that have gone for training have received degrees --
8,000-10,000 from East European institutions and
about 15,000 from Soviet universities. Few of
those who returned home after graduation are be-
lieved to have achieved positions of influence in
their own governments, but officials in the less
developed countries appear generally to be satisfied
with the overall quality and the character of the
education the students have received. Faced with
increasing demands for trained personnel and limited
educational opportunities in the West, nationals
from the developing countries continue to accept Com-
munist scholarships, and the number of applicants
continues to exceed the number of places available
to them.
Military Assistance
Credits and Grants
Extensions
In contrast with the relatively low-keyed
Communist military aid programs of 1968 and 1969,
Communist countries extended a record $1 billion
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of military aid to less developed countries in
1970. These new estimated commitments brought
total Communist arms aid extended since 1955 to
about $7.7 billion (see Tables 8-9). New military
aid agreements in 1970 were more than double those
for 1969. The USSR provided about $960 million
and East European countries the remainder.
The Arab countries of the Near East again
received the largest share of the total aid ex-
tended. Soviet commitments to the UAR alone
were an estimated $650 million. The USSR signed
its first arms agreement with Libya -- for at
least $30 million of ground forces equipment --
and concluded an agreement with Iraq for heli-
copters, support equipment, and spare parts. In
other accords, Moscow signed additional agreements
with Iran for ground forces equipment and appar-
ently agreed to provide Somalia with additional
jet fighters and ground equipment.
Although Soviet arms aid in 1970 was signifi-
cant for its size and concentration in the Near
East, perhaps more important was the changed
character of the Soviet commitment to the UAR.
Drawings
By the end of 1970, Communist countries had
delivered more than $6 billion of military aid to
estimated 6,500 Soviet
mz itary technicians in the UAR.
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the less developed countries. Estimated deliveries
of nearly $1 billion for 1970 are the highest for
any year since the program began and more than
twice the annual average for the past three years.
The USSR accounted for most of the deliveries.
About $800 million of the total aid delivered went
to the Arab countries, of which the UAR received the
Technical Assistance
Military Technicians
The number of Communist military technicians
in less developed countries during 1970 rose to
about 10,700, an increase of 50%, from an esti-
mated 7,100 in 1969 (see Table 10). Most of the
increase came from the USSR, while the number of
Chinese technicians rose from 325 to 545.
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The heaviest concentration of Soviet advisory
personnel was in the UAR where about 60% of the
Communist technicians were stationed. Their num-
ber doubled to an estimated 6,500 in 1970.* Addi-
tional Soviet advisers also arrived in Sudan and
Syria to assist in the buildup of air defenses in
those countries. Most of the growth in the Chinese
presence occurred in Tanzania where technicians
helped to construct naval and air bases and to
establish an air defense force. In Nigeria, with
the end of its civil war, the number present de-
clined to an estimated 50. All Communist military
technicians were withdrawn from Cambodia following
the March 1970 ouster of Prince Sihanouk.
Military Trainees from Less Developed Countries
Approximately 2,500 nationals from the less
developed countries departed for military training
in Communist countries during 1970. These depar-
tures brought to about 29,200 the estimated number
of military personnel from less developed countries
who have been sent to Communist countries for such
training (see Table 11). Approximately 3,900 of
these still were being trained at the end of 1970
mostly in the USSR.
As in the past, most military trainees from
the less developed countries went to the USSR.
Their number rose to 2,200 in 1970 from 1,200 in
the previous year, while those going to Communist
China increased to more than 300 from only 15 in
1969. Most of the increase in new trainees was
accounted for by the UAR, whose number rose to at
least 1,000. Somalia also expanded the number of
its trainees significantly. China's enrollment
was expanded by increases in personnel from Congo
(B) and Tanzania.
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After a four-year period of relative stagna-
tion, Communist trade turnover with the less
developed countries rose by 13% in 1969 to more
than $5.2 billion (see Table 12 and Figure 4).
Virtually all of this growth occurred in Soviet
trade, which, after hovering around the $1.7-$1.8
billion mark during 1965-68, jumped to $2.3 bil-
lion of Soviet trade. Exports and imports shared
equally in the increase. Looking back to the
beginning of the decade, gains in Soviet-Third
World trade were even more significant, as Soviet
imports from these countries doubled and its ex-
ports more than tripled.
In 1969, for the first time since 1965, the
value of Soviet trade with the Third World ex-
ceeded Eastern Europe's, which remained at the
1968 level of about $2 billion. Though Eastern
Europe's exports fell slightly, its imports rose
to compensate for the decline. Communist China's
trade with the less developed countries rose from
about $700 million in 1968 to some $745 million
in 1969; and its share in total Communist-Third
World trade remained at about 15%. The USSR's
share in the total rose to 45% from less than 40%
in the previous year, while Eastern Europe's
share declined to 40%.
The upsurge in Soviet-Third World trade in
1969 was a result of increases in its trade with
less than half a dozen countries, all of whom had
been major Soviet trading partners in the past.
The USSR's trade with Algeria, India, Iran, and
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the UAR accounted for about 60% of the increase.
Soviet exports to Iran doubled as a result of a
sharp acceleration of Soviet aid deliveries, and
the UAR's total trade turnover with the USSR in-
creased by about 25% following larger Soviet pur-
chases of the UAR's expanded cotton crop and of
non-traditional Egyptian goods. The UAR's require-
ments for Soviet goods also increased. Algeria's
trade with the USSR rose as a result of larger
aid deliveries and larger exports to the USSR of
wine, iron ore, and petroleum, some of which was
diverted to other countries. The rise in Soviet
imports from India reflected the expanded pur-
chases of steel rails and other Indian manufac-
tures as part of an attempt to utilize Indian
plant capacity built with Soviet assistance more
fully and to draw down Soviet-held rupee balances.
Increases in Eastern Europe's trade with
certain less developed countries were offset by
reduced trade with other countries. Eastern
Europe's trade with the UAR, its second largest
trading partner in the Third World, underwent the
largest changes as East European exports dropped
by 30%. This may have been a reflection of
domestic restraints placed on Cairo's investment
program. Their imports, however, increased by
25% as Eastern Europe took larger quantities of
Egyptian manufactures and more of the UAR's larger
cotton crop. Eastern Europe's trade patterns with
other less developed countries remained fairly
constant except for sharp declines in exports to
Brazil and Greece. From a peak of $76 million in
1968, East European exports to Brazil declined to
$57 million in 1969. Eastern Europe's exports to
Greece declined from $84 million to $66 million
during the same period.
Communist China's trade with the Third World
rose by some $50 million in 1969 to about $745 mil-
lion. Most of this increase was caused by the
sharp rise in its imports from Malaysia and Singa-
pore, which accounted for almost 40% of China's
total imports from all the developing nations.
Direction of Trade and Relative Shares
Communist countries' trade with the less de-
veloped countries in 1969 was less than 10% of
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OMI T NIST EXPORTS TO AND IMPORTS FROM
LESS DEVELOPED COUNTRIES OF THE FREE WORLD
Million US $
35001
Communist
China
Other*
Communist
China
Eastern
Europe
TOTAL EXPORTS: 2,806
(Million US $)
Eastern
Europe
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 SECRET
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their total trade, although the less developed
countries' share has more than doubled over the
past decade and a half, as shown in Figure 5 for
USSR: FOREIGN TRADE, 1955-69 Figure 5
Million US $
0 WOMEMPM
1955
510664 2-71
ith Com. unist. Countries
the USSR. More importantly, Communist trade with
the developing nations has been concentrated in a
few selected countries -- mostly in the Near East
and South Asia -- and for some of these countries,
it has become a significant and growing share of
their total trade (see Table 13). Communist coun-
tries took more than 50% of the UAR's exports in
1969 and more than 30% of its imports. Some 20%
of the total trade of Ceylon and India was with
Communist countries.
Unspecified
1969
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Other less developed countries who conducted
an important share of their trade with Communist
countries included Iraq, which gets almost 25% of
.its imports from Communist nations, and Pakistan
and Turkey, who conduct about 15% of their total
trade with Communist countries. The Communist
share of Syria's total trade tripled between 1968
and 1969 to account for more than 30% of its trade.
Of the African countries, only Sudan and Morocco
conducted more than 10% of their total trade with
the Communist countries.
The rapid rate of increase in trading rela-
tionships between Communist countries and some
major partners in the Third World is of particular
significance. For example, during the 15-year
period 1955-69 total Communist trade with India
rose from about $50 million to some $665 million.
UAR trade with Communist countries rose from $140
million to about $725 million during these years.
Other important, though less spectacular, increases
took place between the Communist countries and
Algeria, Greece, Iran, Malaysia, Pakistan, Singa-
pore, and Syria.
Commodity Composition of Soviet Trade
with the Less Developed Countries
There has been little basic alteration in the
composition of Soviet trade with the less developed
countries in recent years. The most important
change in Soviet exports to the Third World in 1969
was in the machinery and equipment category (see
Figure 6). The share of these exports in the total
was 54% in 1969, up from about 51% in the preceding
year. Most of the increase was in complete plants,
which rose by about $100 million largely because of
the acceleration of aid deliveries to Iran and Tur-
key. The share for other major export groups de-
clined by small amounts.
Identified changes in the commodity composition
of Soviet imports from the less developed countries
in recent years have been the reduced importance
of raw materials as a percent of the total and the
increased importance of food. Raw materials com-
prised 44% of total imports in 1968 but were less
than 41% of the total in 1969. This occurred in
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Figure 6
SOVIET = EXPORTS TO AND IMPORTS FROM LESS
DEVELOPED COUNTRIES OF THE FREE WORLD
------ ---------
By Commodity Group*
EXPORTS
1168
16%
Manufactures-
11%
Food
Wood Products
Rolled Ferrous Metals
Petroleum Products
Raw Materials
5%
Other Machinery and
Equipment ,
Fuels
20%
Food
the presence of an increase of more than 15% in
the absolute value of raw material imports, re-
flecting particularly larger Soviet purchases of
natural rubber and cotton fiber. On the other
hand, food purchases were valued at $433 million,
up from $323 million in 1968. They accounted for
almost 39% of total Soviet imports from the de-
veloping nations. This compares with 37% in 1968
and 34% in 1967. The growing share of food in the
total stems mostly from expanded purchases of
luxury-type foods, including fruits, cocoa, coffee,
and tea. There was also a spurt in imports of
petroleum and petroleum products and natural gas,
from 1.2% in 1968 to 2.7% of total imports in
1969. The growth of this category reflects the
systematic increase in Soviet purchases of crude
oil and natural gas from several countries in
North Africa and the Near East.
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Ii. Communist Activities
in Less Developed Areas, by Area and Country
Africa
Summary
African countries received almost 55% of total
Communist economic aid commitments to the Third
World during 1970 but only about 5% of new mili-
tary assistance. Most of the economic aid was
from Communist China whose commitment of $400 mil-
lion for constructing the Tan-Zam Railroad over-
shadowed all other Communist aid to Africa. China
also provided its first economic aid to Sudan and
$10 million to Guinea for budget support.
Apart from a $44 million credit to Morocco,
Soviet credits to Africa during the year were pro-
vided to implement economic accords previously
signed with Nigeria and Mauritius. Soviet project
activity was at its usual low level in most African
countries except for some acceleration in Algeria,
as work on a steel mill pressed forward. The USSR
initiated work in Guinea on the exploitation of
bauxite deposits, for which a protocol was signed.
Agreements were signed with a number of East Euro-
pean countries, Algeria being the principal recip-
ient of new economic aid from this source.
Communist agreements to provide military equip-
ment to Libya and Somalia were the only important
new military agreements concluded with African
countries in 1970. Nigeria turned to its tradi-
tional Western sources for new military equipment.
The only major arms deliveries were to Libya.
Algeria
Algeria's economic ties with the USSR and
Eastern Europe were strengthened further during
1970 as Soviet deliveries of economic and military
assistance were accelerated and as East European
countries agreed to provide an estimated $75 mil-
lion of additional economic aid. Algeria estab-
lished diplomatic relations with East Germany in
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May, signed sizable new trade agreements with But-
garia and Poland, and received a commitment from,
Romania for equipment and technical aid for.
Algeria's oil and mineral industries.
Eastern Europe's new commitments of economic
aid in 1970 included: (1) a $40 million credit
from Bulgaria for agricultural and industrial
enterprises to be built under Algeria's Four Year,
Development Plan that began in 1970;.(2) a $14.1
million, 10-year East German credit* for a cast
iron and steel valve plant; and (3) a $20 million
industrial credit from Hungary. Contracts for 2
food canneries were signed under the latter agree-
ment. It carries a 10-year amortization period
and 2i% interest.
Construction activity increased on the 400,000-
ton Soviet-aided steel plant at Annaba. The plant,
whose construction was begun in 1968 under a $128
million Soviet credit extended in 1964, is now
scheduled to be completed in 1971. Construction was
begun on a mining and metallurgical institute at
Annaba and a glass factory at Oran, and progress
continued on several small irrigation dams, on,
geological prospecting, and on the construction of-
a mercury plant at Ismail scheduled to start opera-
tions in 1971. In spite of some discontent with
past Soviet assistance for oil and gas development,
four contracts for further Soviet aid to the in-
dustry were signed under the $100 million Soviet
line of credit extended in 1963. An additional
contract was signed in June for the delivery of-
15 Russian oil drilling rigs.. There was specula-
tion throughout the year that Algeria might cancel
its seven-year agreement,.concluded in 1968, for
the annual sale of 5 million hectoliters of wine
to the USSR because of its resumption of wine
sales to France under a new annual accord..
Algeria continued to draw on credits provided
in 1963 by Communist China for water well digging
and the construction of several small dams and an
exposition hall. Agricultural projects with
The reported value of credits extended by East
Germany during 1970 ranges between $50 million and
$200 million.
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Chinese aid were begun in Tebessa.
The tempo of Communist aid activities in
Guinea was heightened during 1970 as some 200
additional Soviet technicians arrived to begin
work on the exploitation of bauxite at Kindia.
Work on Chinese aid projects also was accelerated.
The only new aid extended was $10 million provided
by China for budget support following the attack
on Guinea in November. The Chinese began work on
a plantation and refinery in Mandiana and completed
construction of an oil pressing plant and a power
transmission station at Mamou -- all under 1966
credits. Protocols signed with the USSR provided
for the initiation of work to develop bauxite de-
posits near Kindia and to construct a new 140-km
railroad between the Port of Conakry and the de-
posits. A 30-year contract signed with the USSR
late in the year provided for annual exports of
about 2 million tons of bauxite from Kindia to the
USSR. The Soviet Union also delivered small arms
and ammunition under an old military agreement, and
Communist China delivered 'ee s and explosives.
Nigeria
Following the settlement of the civil war with
Biafra early in 1970, the Nigerian Federal Military
Government turned more to its traditional Western
sources for military equipment and training.
Though it continued to accept delivery of some
spare parts and ammunition from the USSR, Nigeria
canceled or modified military contracts still
outstanding with Communist countries, Nigeria's
principal suppliers of offensive weapons during the
civil war. The end of the war, however, did not
affect Nigeria's economic relations with Communist
countries. Both the USSR and Nigeria were anxious
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to implement the iron and steel accord of 1968.
As an important step in that direction, Moscow
extended its first credit to Nigeria ($6.7 million)
for further exploratory work in locating an indige-
nous raw material base for the proposed plant..
This work presumably will be on a more extensive
scale than that undertaken in 1968 which failed
to find ore and coal of suitable quality.
Nigeria's relations with East European coun-
tries expanded slightly during 1970 with the
signing of economic, scientific, and technical
cooperation agreements with Poland and Bulgaria.
Poland conducted a feasibility study for a sugar
plantation and an oil crushing plant during the
year and provided equipment for two textile mills all presumed to be under commercial contract.
Joint ventures between Nigeria and Poland also
were mentioned as a possible area for cooperation.
Romania completed a feasibility study for a $16.$.
million woodworking complex in Nigeria, but no
action was taken on its proposals.
Somalia
25X1
oma is an ommunist China signed
new protoco s o the 1963 Chinese economic credit
during 1970. They provided for the construction
of a highway and cigarette and match factories
and for expanded agricultural assistance. Chinese
technicians arrived to survey for the highway. A
cooperation agreement for agricultural development
and mineral exploitation was signed with Bulgaria,
and discussions were held with East Germany on
possible economic assistance and diplomatic recog-
nition.
Sudan's revolutionary government strengthened
its grip on the country's economy in 1970 through
the nationalization of most domestic enterprises
and the establishment of a government trade
monopoly. Sudan's anti-Western and anti-Israeli
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foreign policy stance has led to increased re-
liance on Communist countries both for military
and economic aid. Several new aid agreements were
concluded and aid commitments previously made by
a number of East European nations were renewed.
Communist China extended its first aid to the Sudan
in June, a $41.6 million interest-free loan for
industrial use and roadbuilding.. The credit, which
is to be used during 1970-79,. is repayable in
Sudanese commodities over a 10-year period begin-
ning in 1986. Sudan and China also signed a trade
protocol calling for trade to increase by 20% in
1970. North Korea reportedly extended $11.4 mil-
lion of credits, on easy terms, for industrial
enterprises and for training agricultural techni-
cians.
A high-level Sudanese delegation that went to
Eastern Europe received assurances from Bulgaria,
Czechoslovakia, East Germany, and Hungary of $37
million in aid for 30 agricultural and light in-
dustrial projects included in Sudan's Five Year
Development Plan (1970-75). In addition, Poland
offered an undisclosed amount of aid for a sugar
plant, agricultural machinery, and roadbuilding
equipment. Only Hungary's commitment to provide
$10 million of credits represented new aid, its
first to Sudan. The rest are obligations of
earlier commitments. The five East European coun-
tries also agreed to double their trade with Sudan
(which, with Romania, totaled $35 million in 1969)
and to increase their purchases of Sudanese cotton.
Sudan announced in June that the USSR had
agreed on the implementation of the Ar-Rahid irri-
gation project, although Sudan has continued to
seek IBRD aid for the project. Soviet equipment
and technicians began to arrive in November for
mineral prospecting in the Red Sea under credits
extended in 1969. The USSR also delivered MIG-21s,
helicopters, and some ground forces e ui
under a 1968 arms agreement.
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Tanzania
In 1970, Communist China greatly expanded its
economic aid commitments to Tanzania and became
Tanzania's only significant source of military aid.
Tanzania and Zambia became the major targets of
Communist China's aid effort in the Third World
with the extension of $401.2 million of interest-
free credits to these two countries for con-
structing the 1,100-mile Tan-Zam Railroad (from
the Zambian Copperbelt to Dar es Salaam) and with
the dispatch of approximately 4,000 technicians to
Tanzania to start work on the railroad. This was
the most important development in Communist-Third
World economic relations during 1970 and repre-
sented the largest amount of aid ever provided by
a Communist country to a single project in the
less developed countries. The Chinese credit,
which will be divided equally between Tanzania
and Zambia, emerged from a September 1967 agree-
ment with Tanzania and Zambia to provide aid in
constructing the railroad. The credit is sched-
uled to be drawn down over 10 years, retroactive
to 1 January 1968, the date on which the survey
began, and is to be repaid over 30 years beginning
in 1983. The agreement provides also for the
import of Chinese commodities under the credit to
be sold to generate local currency needed in
Tanzania to cover local construction costs.
Construction of the railroad began in April
although it was not inaugurated formally until
October.
Communist China continued its aid undertakings
in Tanzania (including Zanzibar) under credits
extended in 1964. Communist China provided new
radio antennas to the station at Dar es Salaam, and
completed well drilling and construction of
storage facilities on Zanzibar and a hospital
in Pemba. The Chinese announced that they would
construct several new projects in Zanzibar, prob-
ably under the 1964 credits. These included a
cigarette factory, a saw mill, a brick factory,
a rum distillery, a sports arena, and a school
for medical technicians. Tanzania's trade with
China also may have shown gains in 1970. During
the first five months of the year, imports
tripled and exports were twice as high as in the
first five months of 1969.
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INI-iff
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Relations between Tanzania and the USSR were
maintained at the low levels of previous years,
although the Soviet geological survey and teaching
programs expanded slightly. In early 1970 the
Zanzibar government ordered the removal of all
East German personnel and aid equipment because
of dissatisfaction with their aid activities on
the island. Nevertheless, a new trade agreement
and a scientific and technical cooperation agree-
ment were signed between East Germany and Mainland
Tanzania during the year.
Zambia
Zambia shared equally with Tanzania in the
Chinese credits provided for the construction of
the Tan-Zam Railroad. The increase of Chinese
personnel and materials, especially Chinese goods
to generate funds for defraying local construction
costs of the railroad, will tend to enlarge the
limited economic relationship that Zambia has
maintained with Communist nations heretofore.
During 1970 the Chinese delivered radio trans-
mitters under a 1969 grant and continued work
on the 394-mile Lusaka-Mongu road surfacing
project.
A Soviet economic delegation was in Zambia
in May to discuss the status of the $5.6 million
credit extended in 1967. With only minor drawings
on the credit, and its utilization period about
to expire, the delegation is believed to have
renewed the agreement. Accords were signed with
Romania to expand trade and economic, technical,
and scientific cooperation. The Romanians were
to prospect for oil and provide technical services
in agriculture and copper mining.
Other African Countries
The Central African Republic (CAR) signed an
agreement on economic and technical cooperation
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with the USSR in July calling for feasibility
studies for a hydropower station, for mineral
prospecting, and for the supply of machinery for
cotton growing. The USSR also agreed to build a
maternal and child health center as a grant.
President Bokassa's trip to Bucharest in July re-
sulted in economic, scientific, and technical
agreements with Romania. East Germany and the CAR
established diplomatic relations during 1970 and
concluded a long-term trade agreement as well as
scientific, technical, and cultural accords. The
CAR established diplomatic relations with Czecho-
slovakia and Albania.
Soviet activities in Ethiopia during 1970 were
confined largely to negotiations for expanding
the Soviet--built Assab oil refinery and for imple-
menting the $85 million of credits still not
drawn under the $100 million credit extended in
1959. Ethiopia also asked the USSR to prolong
the repayment period for debts incurred under this
credit from 12 to 20 years and requested that some
of the credits still outstanding be applied to an
agricultural settlement scheme near the Awash
Valley. Construction was initiated on two Czech-
aided projects, a rubber tire plant at Addis and
a hide processing plant at Mojo.
Ghana signed a cultural accord with the USSR
in July and lifted the suspension of trade proto-
cols with its six former trading partners in
Eastern Europe. It received no new economic or
military aid commitments during the year, nor
were deliveries made under old agreements.
The USSR moved to strengthen its relations
with Libya. Soviet oil experts visited Libya and
Libyan officials concerned with petroleum the USSR for digol--in-n-
25X1
25X1
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Mali's relations with Communist countries were
limited during 1970, although they were ready to
resume aid activities. The USSR agreed to a five-
year moratorium on the repayment of Mali's $45
million debt for economic aid. The Soviet-aided
cement plant at Diamou was inaugurated in June,
and the Chinese-built shoe factory and radio
transmission center were completed. A trade
protocol with the USSR, signed in February,
called for a 50% increase in Malian-Soviet trade
during 1970.
In July, Mauritius approved a revised fish-
eries accord with the USSR. This agreement,
which spelled out in greater detail the provisions
of the 1969 accord, made available an estimated
$5 million of credits for developing a national
fishing industry in Mauritius. Repayment is to
be made over a 10-year period through the pro-
vision of goods and services to the Soviet
Antarctic fishing fleet, operating out of
Mauritius.
Morocco received a $44 million Soviet credit
in 1970 for machinery and equipment imports, and
agreement was reached for the construction of a
third unit for the Djerada powerplant currently
under construction with Soviet assistance.
Morocco and the USSR agreed to reallocate $18.7
million of the 1966 Soviet credit to a hydroelec-
tric plant to be built at Ait Adel, in place of
the metallurgical complex and lead and zinc enter-
prise originally planned. In October, Morocco
concluded a new agreement to sell to Communist
China over a five-year period
2,500
French
Berliot
trucks assembled in Morocco.
These
sales
should
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help to reduce the deficit in Morocco's clearing
account with Communist China.
Senegal received the first three of ten
fishing vessels that it had ordered from the
USSR under credits extended in 1965. Under Soviet
assistance extended to Uganda in 1964, site
preparation was begun for the spinning mill at
Lira, and the construction of a technical school
at Tororo was completed. Chinese aid for develop-
ment of a rice project in Kimbina Swamp continued
and may be expanded under a protocol signed in
1970.
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Beyond establishing formal trade relations
with several East Asian countries, Communist eco-
nomic activities in this area were on a very
limited scale during 1970. There was no new
economic aid, and only a negligible amount of new
military aid was provided. Drawings on previous
economic aid commitments were minor.
The most important development in Burma's
relations with Communist countries was its resump-
tion of diplomatic and trade relations with Com-
munist China, suspended in 1967. A Soviet team
sent to survey the J1awchi mines, under an agreement
signed last year, refused to begin work until
hazardous conditions at the mines are remedied.
Following the ouster of Prince Sihanouk in
March, Communist countries suspended military aid
to Cambodia. The Czech-built ordnance plant,
Cambodia's only such factory, was stripped of its
equipment and destroyed by retreating Cambodian
forces late in 1970.
Indonesia's relations with Communist countries
during 1970 were highlighted by the resolution of
its longstanding debt repayment problem with the
USSR and the payment in December of the first in-
stallment due on this debt. An agreement signed
in August provides for Indonesian repayment of
its $750 million long-term economic and military
debt to the USSR over 30 years beginning in
December 1970 but allowing $75 million of these
payments to be deferred during the initial eight
years, until 1992-99. This deferred portion will
carry interest of 4% and payments of interest will
begin in 1992. Interest that accrued prior to the
1966 rescheduling will be paid off in 15 install-
ments, beginning in 1985. The USSR also offered
to aid in the development of Indonesia's tin and
bauxite industries and agreed to send a technical
team to survey the Soviet-aided steel plant and
superphosphate project, whose construction was
stopped in 1965. Indonesia did not reach debt
settlements with its East European creditors during
the year, but some activity continued on East Euro-
pean projects. The Makassar shipyard and Tjot
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Girek sugar mill built with Polish assistance
were completed.
Malaysian delegations visited Czechoslovakia,
Hungary, Poland, Romania, and the USSR during the
year to discuss the expansion of economic relations
with these countries, and in November Malaysia
signed its first trade agreement with Poland. At
the end of the year, Malaysian officials still were
considering a Soviet offer to provide machinery
and equipment for about 30 joint ventures in
Malaysia.
In July, the Philippine Chamber of Commerce
signed a trade agreement with Bulgaria, the first
with a Communist country. The agreement envisages
the exchange of $10 million in goods during 1970-
71. The Chamber of Commerce continued to promote
the concept of trade relations with Eastern Europe,
and Czech, Hungarian, and Romanian delegations
visited the country during 1970.
In July a Soviet delegation arrived in Singapore
to discuss the establishment of joint ventures and
in September the Prime Minister visited Moscow for
trade talks. An agreement for servicing and re-
pairing Soviet vessels in Singapore was still
under consideration at the year's end. In December,
Singapore permitted the Bank of China access to
interbank clearing facilities, a privilege suspended
in May 1969 because of the Bank's refusal to pay a
fine for contravention of liquidity requirements.
Thailand signed its first trade agreement with
the USSR in late December, after three years of
negotiations. Trade between the two countries
previously had been carried on through third
countries. Trade agreements with Bulgaria and
Romania also were signed.
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Summary
There has been no marked growth in economic
relations between Latin American and Communist
countries. For the most part, the interchange
between them still is confined to diplomatic and
trade promotion activities, and most Communist
credits to Latin American countries have been
extended to promote equipment sales. Generally,
little use has been made of these credits. During
1970 some $115 million of new credits were made
available to these countries, roughly half of
which were designated for Peru. Bolivia, Costa
Rica, and Venezuela received their first credits
from a Communist country. The only other Latin
American country to receive Communist economic
aid was Uruguay, to whom Hungary and Czechoslo-
vakia made commitments of $10 million and $5 mil-
lion, respectively.
Bolivia
Communist countries renewed their efforts to
establish closer economic ties with Bolivia in
1970. The most important development was
Bolivia's acceptance of its first economic aid
from a Communist country, a $27.5 million credit
from the USSR for the purchase of mining and
metallurgical equipment. The credit is repayable
over 10 years and carries 3% interest. Bolivia
also signed its first commercial agreement with
the USSR for the sale of 3,200 tons of tin, for
which the USSR will pay $8 million in hard currency.
A trade agreement and an economic cooperation
agreement were signed with Poland, but the details
of the agreements are not available. Hungary
agreed to build a copper processing and a smelting
plant and offered credits, possibly for these
plants. Czechoslovakia expressed interest in
providing an antimony smelter to Bolivia, for which
it had offered assistance originally in 1961.
Brazil
Brazil's relations with Communist countries
in 1970 were highlighted by (1) a contract between
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Brazil and the USSR for the purchase of $12.5 mil-
lion of equipment for the Capwan hydroelectric
plant in Sao Paulo State, presumably under credits
extended in 1966, and (2) an accord for continued
Soviet purchases of Brazilian coffee over the next
5 years. Czechoslovakia agreed to provide a $10
million powerplant for Sao Paulo, probably under
1961 credits, and equipment for a manganese ore
homogenizing plant. Poland delivered the first of
10 cargo ships under 1962 agreement, and Romania
extended the drawing period of a 1961 credit for
petroleum equipment.
Costa Rica
A $10 million Soviet credit for the purchase
of roadbuilding machinery and equipment is in-
cluded under Costa Rica's first trade agreement
with the USSR, signed in June. The trade agreement
also provides for reciprocal trade missions and
future coffee sales to the USSR. These sales in
1970 totaled about 6,000 metric tons, valued at
$6 million to $7 million. Costa Rica established
diplomatic relations with Bulgaria and Hungary,
announced its intention to exchange ambassadors
with the USSR, and prepared draft trade agreements
with Bulgaria and Czechoslovakia. Costa Rican
officials expressed interest in a Romanian proposal
to assist in petroleum development, port construc-
tion, and bauxite exploitation. A Hungarian trade
delegation, which visited Costa Rica, failed to
conclude an agreement. A Polish commercial office
closed in Play after several years of unprofitable
operation.
Peru was the most important Latin American
recipient of Communist economic aid during 1970.
Agreements, totaling $53.3 million, included Peru's
first credit from the USSR ($28.3 million for
agricultural, mining, and industrial machinery
and equipment) and $10 million in credits from
Poland and $15 million from Hungary. The Soviet
credit is to be repaid over ten years, partially
in Peruvian industrial goods. Poland offered
assistance for exploiting coal and phosphate de-
posits, constructing copper and zinc refineries,
and providing fishing vessels and other equipment
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for Peru's fishing industry, while Hungary offered
an antioxidant plant for the fish-meal industry.
Romania and Peru signed an agreement to invest
$1 million each to establish a tractor assembly
plant in Peru. In September Peru purchased some
$30 million worth of Romanian oil equipment and
a $5.5 million mobile smelter to process low-
yield mineral ores. Romania also offered to build
a zinc refinery and to establish joint companies
to exploit and process copper.
Other Latin American Countries
Argentina ratified trade agreements with Poland
and Romania during 1970, and Czechoslovakia offered
assistance to Argentina's textile and chemical indus-
tries.
Colombia and Poland signed a three-year,
$76
million trade agreement and reportedly signed
economic and technical assistance agreement.
an
The Allende government, in its initial steps
toward expanding Chile's relations with Communist
countries, reopened trade and diplomatic relations
with Cuba and trade relations with North Korea.*
Czechoslovakia extended the utilization period for
a $5 million credit, made available to Chile in
1968, which had not been drawn. In September,
Chile signed an agreement with Romania to estab-
lish jointly owned copper facilities in each
country. Chile reportedly will provide 35,000-
40,000 tons of copper annually for the Romanian
plant.
Venezuela received its first credit from a
Communist country in 1970, a $10 million bank
agreement with Czechoslovakia for the purchase
of capital goods. Venezuelan officials also
discussed trade and economic cooperation with
Bulgaria, Hungary, and Poland.
At the beginning of 1971, Chile established
diplomatic relations with Communist China.
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Summary
Moscow's expanded political interests in the
Arab countries of the Near East led to an inten-
sification of the Soviet involvement in the area
during 1970. The major preoccupation was with
military assistance, as the USSR made huge new com-
mitments and delivered record amounts of materiel
to the UAR that included sophisticated equipment,
not provided previously outside of Eastern Europe.
25X1
New commitments of economic aid to Near East-
South Asian countries totaled about $400 million,
or about 35% of the total extended in 1970. Com-
munist China was the most important donor. It
concluded agreements with Pakistan, Southern Yemen,
and Ceylon to provide more than $250 million. The
USSR extended economic aid totaling about $85 mil-
lion to Iran, Iraq and Ceylon, but Soviet economic
relations with Iran showed the most important in-
crease. Large deliveries of equipment were made
for projects being constructed with Soviet assist-
ance and a Soviet-Iranian agreement signed in 1970
set forth a 15-year plan for cooperation between
them. This included, among other things, a pos-
sible second gas pipeline from Iran to the Soviet
Union, increased Soviet participation in oil ex-
ploration, an expansion of the steel mill being
constructed with Soviet aid, and joint Soviet-
Iranian undertakings for producing petrochemicals.
Of particular importance to the Soviet aid pro-
gram was the completion in July of the Aswan Dam,
a 10-year effort that involved $325 million of
Soviet credits and thousands of Soviet technicians.
Implementation of previously extended aid lagged
from the high levels of the mid-1960s in India
and the UAR, while deliveries to Iran rose sharply
and surpassed deliveries to any other less de-
veloped country. Turkey also began a more rapid
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drawdown of credits, and deliveries to Syria and
Iraq showed small gains.
New agreements concluded between Near Eastern
and East European countries emphasized again the
importance of oil in their long-range planning.
As in the USSR's 1969 agreements with Iraq, which
included repayment in oil for the first time, al-
most all of the 1970 accords with Eastern Europe
included this proviso. Moreover, a preliminary
agreement between the USSR and Iran might mean
some additional Soviet assistance for future oil
exploration in Iran. Communist trade with the
area during 1970 probably increased. Protocols
signed during the year were intended to expand
this trade over previous levels.
Afghanistan
Apart from a small Soviet grant for establishing
three veterinary laboratories and a $2.8 million
credit for the Afghan Airlines, the USSR confined
its aid activities in Afghanistan during 1970 to
the implementation of old agreements. Protocols
under the 1968 agreement called for geological
surveys, valued at $2.1 million, a $5 million 40-
mile road from the Puli-Khumri-Shibarghan Highway
at Nayebabid to Hairatan, and a $1.9 million ex-
pansion of the electric and fertilizer plants at
Mazar-i-Sharif. Installation of equipment at the
nuclear research reactor in Kabul and at the tech-
nical training school in Jangalak and construction
of the mother and child care center at Kabul were
completed. In April a Soviet survey was agreed
to for gas and petroleum in northwestern Afghan-
istan. Work also was completed on a lapis lazuli
cutting plant in Kabul and a fish breeding farm
in Darunta, both under the $28 million Chinese
credit extended in 1965. Bulgaria, Czechoslovakia,
and the USSR signed trade protocols with Afghan-
istan. The protocol with the USSR called for
natural gas exports to increase by 25% in 1970 to
$9 million.
Ceylon
The victory of Mrs. Bandaranaike's leftist
United Front Coalition in the May 1970 election
in Ceylon was followed by the establishment of
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diplomatic relations with East Germany, North
Korea, North Vietnam, and the Provisional Revolu-
tionary Government of South Vietnam and by the
extension of new economic aid by Communist China
and the USSR. The new Chinese credit of $8.9
million is to cover shipments of 100,000 tons of
rice, which is in addition to China's commitment
of 200,000 tons under the 1970 rice-rubber agree-
ment. The new interest-free credit is repay-
able mainly in rubber, over 10 years beginning in
1972. Earlier in the year, plans were announced
for assistance for a spinning and weaving mill.
A $3.2 million grant for construction of the
Bandaranaike International Conference Hall was
provided by China, which had agreed to undertake
its construction in 1964. The earlier agreement
had lapsed, however, following the demise of
Mrs. Bandaranaike's Government. The USSR extended
an $8.4 million credit for the purchase
machinery and equipment, which also is
of
to
be re-
paid over 10 years and carries interest
of
3%.
Although helicopters originally were included in
the list of items covered by the Soviet credit,
these were later excluded. The Ceylon government
approved the feasibility report prepared by the
USSR for expanding the Soviet-aided Homogama-
Oruwala steel mill to 60,000 tons, from its present
annual capacity of 35,000 tons. Presumably credits
of somewhat more than $7 million, remaining to be
drawn under the 1958 credit of $30 million, will
cover the foreign exchange costs of the expansion.
India
Economic relationships between India and Com-
munist countries improved somewhat during 1970 as
the USSR appeared to reduce its former pressure
on the Indian Government to accelerate project
activity. Nevertheless, no new Communist economic
credits were extended, the reduced level of
project activity noted in recent years continued,
and India failed to bring a number of completed
projects up to profitable levels of operation.
The aid relationship continued to be limited
because India's current development plan reduced
the planned level of outlays for new heavy indus-
trial projects, especially of the type that the
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USSR usually has provided, and because India is
able to fill a major part of its requirements for
these projects from indigenous production. The
result has been a failure of drawings on Soviet
aid to return to the high levels of 1964-65.
Still outstanding are some $250 million of pre-
viously extended credits, that have not been allo-
cated to specific project use because the Indian
economy cannot use them for building the heavy
industrial projects for which they were intended.
The most important development in Soviet-Indian
economic aid relations was the signing of a proto-
col, under the 1966 Soviet-Indian agreement, to
allocate $61 million for expanding the capacity
of the Bokaro steel mill to 4 million tons. The
Bokaro plant, the largest Soviet-aided plant cur-
rently under construction in India, again ex-
perienced delays, mostly because of local supply
shortages. The scheduled completion date for the
first stage of operation at 1.7 million tons is
March 1973. The expansion of the Bhilai plant to
3.2 million ton capacity is underway, and the
coal washery at Bihar was commissioned in mid-1970,
a year and a half behind schedule. Soviet-assisted
off-shore oil drilling operations, shut down after
they encountered mechanical difficulties, were not
reactivated. Exploratory drilling in the Cauvery
basin, under way since 1963, also has not been
successful and may be abandoned.
The second stage of the Czech foundry-forge
plant at Ranchi was commissioned during 1970, and
the grinding machine tool plant at Rajastan went
into partial production. Construction of a re-
finery at Haldia with Romanian assistance got
under way at the end of 1969. Progress also was
made on several Polish-aided projects, and an
agreement was signed for joint Polish-French con-
struction of a fertilizer plant at Haldia.
Trade between India and the Communist coun-
tries is believed to have increased again in 1970.
During 1 April 1969 - 31 March 1970 the USSR re-
placed the United Kingdom as India's second most
important trading partner. A new five-year Soviet-
Indian trade agreement, signed in December, provides
for an annual increase of 15% in India's exports to
the USSR. These increases are expected to result
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from the Soviet agreement to accept more industrial
products from Soviet-assisted plants. The agree-
ment also includes provision for increased Soviet
exports of nonferrous metals and provides for
Soviet-Indian joint cooperation in third countries.
Bulgaria, Hungary, and Poland signed trade protocols
with India, and Hungary placed a large order for
freight cars.
25X1
Iran continued to expand its economic relations
with the USSR and Eastern Europe during 1970. Of
particular significance during the year was an
agreement signed in October that set forth the goals
of Soviet-Iranian economic cooperation over the
next 15 years. The agreement provided $44.4 mil-
lion of credits for developing Iran's public and
private sector industry and a $10 million credit
for establishing eight vocational training centers
in Iran. It also included the following: (1) Soviet
cooperation in drilling for oil in the Caspian and
central province areas, for which agreements would
be exchanged later, (2) a second gas pipeline to
be built from Iran to the USSR, pending the results
of an economic feasibility study, (3) expansion to
4 million ton annual capacity of the Soviet-aided
steel plant currently being built at Isfahan, if
studies demonstrate its feasibility, (4) the imple-
mentation of plans in Iran to supply Soviet and
Iranian needs for petrochemicals through joint
ventures, and (5) the establishment of thermal
energy units and chemical fertilizer plants based
on the use of natural gas.
The rapid drawdown of Soviet economic credits
continued in 1970 as Soviet aid deliveries to Iran
exceeded those to any other less developed country
during the year. The most significant achievement
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was the completion of the 690-mile Iran Gas Trunk-
line (IGAT) from Southern Iran to Astara on the
Soviet border for which the USSR is contributing
equipment and technical services, valued at $77 mil-
lion. While Soviet equipment still is being pro-
vided to expand the pipeline's capacity, the USSR
received its first gas imports through the pipeline
in October. These imports are scheduled to rise
to almost a billion cubic feet per day by 1974,
with a total annual value of $70 million. Gas
deliveries to the USSR were interrupted briefly
following an explosion during welding operations
on the pipeline in mid-December. Two hydroelectric
stations and a diversion dam being constructed as
a joint Soviet-Iranian project on the Aras River
also were completed in 1970. Completion of the
storage dam at the project is expected in 1971.
in September the blast furnace for the steel mill
near Isfahan was completed 18 months ahead of
schedule and the steel mill is now expected to go
into operation by mid-1971. Satisfactory progress
also was being made on most other Soviet projects.
The number of Soviet technicians in Iran rose by
almost 20% during the year, to 1,400.
25X1
Largely because of Eastern Europe's growing
interest in Iranian crude oil to supplement supplies
from the USSR, East European countries have ex-
panded their economic ties with Iran over the past
several years. As a result, Iran has become the
second largest recipient of economic aid extended
by this group of countries. Nevertheless, progress
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in implementing these commitments was relatively
slow in 1970. The Czech-aided machine tool plant
at Tabriz, however, was on schedule, and the first
stage of the Romanian tractor plant at Tabriz was
completed. The repayment terms of some $50 million
of credits extended by Hungary in 1965 and 1968 were
renegotiated in July. The required downpayment
was reduced to 10% from 20% on both credits and
the repayment period extended from 8 to 10 years
on the 1965 credit and from 10 to 12 years on the
1968 credit. Reports indicated that Bulgaria would
be ready to extend $20 million of credits, but there
was no confirmation that an agreement was signed.
Except for East Germany, all of the East European
countries signed trade agreements or protocols with
Iran. All included oil as a barter item. The USSR
and I-ran also signed a five-year trade agreement in
July to become effective in 1971 when the present
agreement expires.
Iraq
Although political relations between Iraq and
the USSR were strained in 1970, several new Com-
munist economic aid agreements and an arms agree-
ment with the USSR were signed during the year,
and deliveries of economic and military equipment
continued. Iraq received new economic aid commit-
ments totaling some $65 million. These included
Soviet credits of $22.5 million, extended for
agricultural equipment, workshops, and a training
center, presumably with a five-year repayment
period and possibly requiring a downpayment.
Iraq also received a $30.8 million credit from
Hungary for the purchase of machinery and equip-
ment. The repayment terms of the Hungarian credit
are not known except that 70% of the total will
be repaid in crude oil. Bulgaria extended a $12
million credit that is to be repaid in crude oil
over an eight-year period.
Eauipment deliveries to the North Rumaylah
oilfields began during 1970 under credits extended
by the USSR and Hungary in 1969, and pipe arrived
from France in November for the Rumaylah-Fao pipe-
line to be built with Soviet assistance. A Soviet
fisheries team went to Iraq to study fisheries
development possibilities, and an East German dele-
gation undertook studies for a shipyard at Basra.
_- 46 -
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X1
Pakistan
Pakistan received its only new major economic
aid from Communist China -- a $200 million interest-
free credit to Pakistan's Fourth Five-Year Plan
(1 July 1970 - 30 June 1975) in November. The
credit carries a 10-year grace period, after which
repayments will be stretched over 10 years. The
new aid, which is nearly double China's previous
total commitments to Pakistan, also makes China
the largest Communist donor of economic aid to
Pakistan. The credit will cover commodity imports
and seven projects, including expansion of the
heavy machine building plant at Taxila, a bridge
over the Brahmaputra River, a project for hard
rock mining, a limestone and cement plant, a pig
iron plant,,and a prefabricated housing development.
During 1970 two projects (a heavy industrial complex
at Taxila and an ordnance plant at Dacca) were com-
pleted under credits extended in 1964.
A Soviet offer to provide assistance for build-
ing a steel mill at Karachi was repeated following
President Yahya Khan's visit to Moscow in June.
Though Pakistan approved the feasibility study for
the 1-million-ton plant, an agreement for Soviet
aid was not consummated.* Meanwhile, there was
limited progress in using outstanding Soviet
credits. In spite of the completion of feasibility
studies, construction was not started on the elec-
trical equipment plants at Taxila and Chittagong
which will draw on some $22 million of credits ex-
tended in 1966. The thermal power station at
Ghorasal, however, was in the final stage of con-
struction. Romania extended a $9.5 million credit
to finance the export of railway cars to Pakistan.
* In January 1971 the USSR extended a credit of
$208.8 million for building the plant.
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The credit, Romania's first to Pakistan, is re-
payable over 10 years and carries 2.5% interest.
Communist China extended interest-free credits
of $43.2 million to Southern Yemen, repayable over
20 years. These credits were designated for
textile mills, agricultural machinery, and for
road construction. Approximately 50 Chinese tech-
nicians arrived in Southern Yemen during the year
to begin work on projects under these and earlier
credits. The USSR began deliveries of equipment
for agricultural projects under its 1969 credit
and delivered 2 trawlers under its fisheries
agreement, also signed in 1969. East Germany be-
gan surveys for a glass factory and construction
of two flour mills. Romania undertook a geological
survey.
Syria
In spite of strains in Syrian-Soviet political
relations during 1970, progress on economic aid
undertakings was accelerated and the flow of mili-
A July protocol to a 1957 economic agreement
provided for Soviet participation in several de-
velopment projects, especially for the oil industry.
At mid-year the foundations for the powerplant at
the Euphrates Dam were being laid, and some 600
Soviet technicians continued work on the Dam, the
largest Soviet project in Syria. A bridge over
the Euphrates River, part of the Latakia-Qamishli
Railroad project, was completed, extending the
railroad to Dayr Az-Zawr. The Chinese-aided cotton
25X1
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 Approved For Release 7 ~2`1TCIA-RDP90-00596R000600020006-8
yarn mill at Hama was scheduled to start production
before year's end, and the construction of two
East German flour mills and a Polish telephone
plant was completed.
Turkey
The major focus of Communist-Turkish economic
relations during 1970 was on the implementation of
earlier Soviet economic assistance agreements. The
rate of drawdown on the $366 million of Soviet
credits extended in 1967 and 1969 for construction
of five industrial projects increased as work on
the iron and steel plant at Iskenderun got under
way and the sulfuric acid plant at Bandirma was
completed. Activity on other projects also ex-
panded, except for the Izmir refinery site where
labor difficulties disrupted construction. With
the heightened project activity, the number of
Soviet technicians rose to 175. The USSR and
Turkey also reached agreement on the repayment
terms for most of the credits extended in 1969.
Ten annual installments were allowed for the repay-
ment of $113.7 million of the credits, and interest
on this portion of the debt was set at 2.5%. The
remainder of the 1969 credits ($52.3 million) re-
portedly includes a $46.0 million credit repayable
over six years with no interest. The repayment
terms for the remaining $6.3 million credit, allo-
cated for commodity imports, are not known.
A Turkish-Soviet highway transit agreement,
governing all passengers and commodities using cer-
tain designated routes in the two countries, was
signed in October. Although the agreement ex-
cludes transit of military cargo, Soviet UAZ-69
jeeps had been delivered via Turkey to Iraq in
August under a similar agreement with Bulgaria.
Turkey signed annual trade protocols with the USSR
and East European countries that called for further
increases in trade, but the planned level of trade
with its bilateral partners for 1970-71 was to
level off at the approximately 16% of Turkey's
total trade it had accounted for in 1969.
Nasser's January visit to Moscow led to an ex-
panded Communist military involvement in the Near
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 Approved For Release 2005/08/221
PN
East conflict during 1970 and the UAR's increased
dependence on the USSR for political and economic
support as well. Major military agreements signed
in January and July amounted to an estimated $650
million, the largest annual commitment of military
aid ever made by the USSR to a Third World country.
The most important development in the economic
aid program during the year was the completion of
the Aswan Dam, the USSR's largest economic aid
undertaking in the Third World. No new economic
aid was extended to the UAR by Communist countries,
and Soviet aid deliveries were at the relatively
low level of the past few years. This was largely
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because of reduced deliveries to Aswan as it went
into the completion stage and because Egyptian
development expenditures failed to rise to their
pre-war levels. The Helwan steel mill expansion
was the only major Communist project under way in
1970. Among East European aid projects, construc-
tion of two East German aided textile plants was
completed in 1970 and contracts were signed for the
construction of two additional plants. A protocol
was signed in June for the construction of a petro-
chemical complex in Alexandria with Czech assistance.
Trade between the UAR and Communist countries
increased in 1970, possibly because of Egypt's
larger cotton crop. During July 1969 - June 1970,
UAR trade with the West is reported to have de-
clined 7% while its trade with Communist countries
rose by more than 25%.
Other Near East and South Asian Countries
25X1
Exce t for continuing Chinese aid to a y ro-
P
i4L
electric plant at Sunkosi, roadbuilding dominated
Communist aid activity in Nepal. China completed
the Katmandu-Kodari Road, with the 10-mile exten-
sion to Bhaktapur and the Katmandu-Pokhara Road
still under construction. About half of the 500
Chinese technicians in Nepal were employed on road-
building projects. The Soviet-assisted Simra-
Janakpur Road (the only uncompleted Soviet aid
project in Nepal) was nearing completion at the
end of the year.
The only new Soviet assistance to Yemen in 1970
was a grant of 5,000 tons of wheat, valued at
$400,000. The secondary school built at San'a
under a 1969 Chinese grant was inaugurated in Sep-
tember, and East Germany completed the Ta'iz-
Hudaydah portion of a telephone network that even-
tually will link these cities with San'a.
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Statistical Tables
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Communist Economic Credits and Grants to Less Developed Countries, Extended and Drawn
1954
- December 1970
Million Current US $
Extended
Drawn
Recipient Country
Total
USSR
Eastern
Europe
Communist
China
Total
USSR
Eastern
Euro
e
Communist
Chi
p
na
Africa
2,384
1,100
472
812
648
360
91
197
Algeria
381
233
96
52
129
95
7
27
Cameroon
8
8
0
0
1
1
0
0
Central African Republic
4
N.A.
N.A.
4
2
0
0
2
Congo (B)
34
9
0
25
16
5
0
11
Ethiopia
119
102
17
0
24
18
6
0
Ghana
239
93
104
42
60
31
25
4
Guinea
299
200
30
69
151
74
27
50
Kenya
67
49
0
18
7
4
0
3
Mali
-
132
64
23
45
87
45
6
36'
v
Mauritania
8
3
0
5
1
0
0
1
O
trj
Mauritius
5
5
0
0
0
0
0
0
C7
- Morocco
123
88
35
0
13
8
5
0
Nigeria
21
7
14
0
0
0
0
0
Senegal
7
7
0
0
1
1
0
0
H
Sierra Leone
28
28
0
0
2
2
0
0
Somalia
89
63
3
23
48
38
3
7
Sudan
176
65
69
42
17
17
0
0
Tanzania
282
20
7
255
52
1
3
48
-Tunisia
108
34
74
0
26
17
9
0
Uganda
31
16
0
15
7
3
0
4
Zambia
223
6
0
217
4
0
0
4
East Asia
914
411
338
165
443
135
166
142
Burma
69
14
29
26
46
14
6
26
Cambodia
134
25
17
92
90
16
5
699
Indonesia
711
372
292
47
307
105
155
47
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Table 2
Communist Economic Credits and Grants to Less Developed Countries, Extended and Drawn
1954 - December 1970
(Continued)
Extended
Drawn
ntr
t C
i
Total
USSR
Eastern
Europe
Communist
China
Total
USSR
Eastern
Europe
Communist
China
y
ou
en
Recip
Latin America
637
277
360
0
120
37
83
0
Argentina
86
44
42
0
41
34
7
0
Bolivia
28
28
0
0
0
0
0
0
Brazil
331
90
241
0
66
1
65
0
Chile
60
55
5
0
0
0
0
0
Colombia
2
2
0
0
2
2
0
0
Costa Rica
10
10
0
0
0
0
0
0
Ecuador
10
0
10
0
5
0
5
0
Peru
59
28
31
0
0
0
0
0
Uruguay
41
20
21
0
6
0
6
0
Venezuela
10
0
10
0
0
0
0
0
Near East and South Asia
7,926
5,284
1,968
674
3,824
2,929
659
236
- Afghanistan
739
700
11
28
590
568
8
14
Ceylon
141
38
50
53
71
23
12
36
Greece
8
8
0
0
8
8
0
0
-India
1,999
1,612
387
0
1,131
932
199
0
Iran
1,010
578
432
0
292
232
60
0
Iraq
536
332
204
0
163
136
27
0
-Nepal
86
21
0
65
66
18
0
48
Pakistan
653
270
74
309
137
77
16
44
3
-Southern Yemen
92
13
24
55
5
2
0
Syria
439
233
190
16
231
150
69
12
Turkey
390
371
19
0
67
51
16
0
United Arab Republic
1,681
1,010
565
106
947
669
241
37
-Yemen
152
98
12
42
116
63
11
42
Total
11,861
7,072
3,138
1,651
5,035
3,461
999
575
cn
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Communist Economic Credits and Grants Extended to Less Developed Countries
by Communist Area and Country
1954 - December 1970
Eastern Europe
Year
Total
USSR
Total
Bulgaria
Czecho-
slovakia
East
Germany
Hungary
Poland
Romania
Communist
China
1954-60
2,974
2,408
402
0
216
54
25
99
8
164
1961
1,009
551
384
13
142
2
45
81
101
74
1962
268
70
186
2
57
0
12
115
0
12
1963
323
217
18
1
6
1
0
10
0
88
cr,
1964
1,467
825
331
6
118
66
2
99
40
311.
tt
y i
1965
1,041
371
599
43
118
174
54
107
103
71
1966
1,632
1,276
237
15
61
50
107
4
0
119
1967
502
290
162
56
25
18
30
10
23
50
1968
610
379
177
32
6
8
40
5
86
54
1969
931
475
456
8
238
156
11
11
32
0
1970
1,104
210
186
52
15
14
86
10
9
708.
Total
11,861
7,072
3,138
228
1,002
543
412
551
402
1,651
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Communist Economic Credits and Grants
Drawn by Less Developed Countries
by Communist Area and Country
1954-70
Million Current US $
Y
Total USSR
Eastern
Europe
Communist
China
ear
1954-60
522
356
1961
237
183
1962
356 3 ) ~
254
1963
425
345
1964
558
377
1965
523 r6 `
355
1966
514
338
1967
499
284
1968
e~..
456
6
5 296
1969
471, `i
332
1970
474
341
Total
5,035
3,461
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 Approved For Release 2005/08/22 : M0-00596R000600020006-8
Communist Economic Technicians in the Less Developed Countries a/
January-December 1970
Area Country
Total
USSR
Eastern
Europe
Communist
China
13,960
3,880
3,090
6,990
'Algeria
3,000
2,100 b/
800
100
Burundi
10'
10
--
--
Cameroon
5'
5
--
--
Central African Republic
35?
35
--
--
Chad'
45?
45
--
--
Congo-(B)
380?
145
15
220 c/
Congo.(K)
20'
--
20
--
Ethiopia
150'
70
80
--
Ghana
95'
15
80
--
Guinea
1,050'
500
150
400
Kenya
40'
15
25.
--
Libya
710'
1Q--
700
--
Mali
650.
200
,
50
400 d/
Mauritania
300 ~
15-
--
285
Morocco
400.
225-
175
--
Nigeria
200
75
125
--
Senegal
5
5
--
--
Sierra Leone
15
15
--
--
Somalia
180
100
5
75
Sudan
150
50
100
--
Tanzania
5,430
125
105
5,200 e/
Tunisia
700
50-
650
--
Uganda
30
20
--
10
Zambia
360
50
10
300
340
180
60
100
Burma
35
10
25
--
Cambodia
230
120
10
100 f/
Indonesia
75
50
25
Latin America
185
35
150
0
Argentina
10
5
5
Bolivia
15
10
5
Brazil
110
5
105
Chile
10
5
5
Colombia
10
5
5
Mexico
10
5
5
Uruguay
20
--
20
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 Approved For Release 2Q W2 : CIA-RDP90-00596R000600020006-8
Table 5
Developed Countries
Communist Economic Technicians in Less
1970
January-December
(Continued)
25X1
Near East and South Asia
Afghanistan
Ceylon
-.India
Iran
Iraq
Kuwait
Lebanon
- Nepal
-Pakistan
Southern Yemen
Syria
Turkey
United Arab Republic
Yemen
9,085 6,180
1,350 1,050-
175 70-
1,355 955-
1,650 1,400
800 560
35 15
25 --
580
450
185
895
185
1 , 1.0 0
320
80-
375-
100
700
175
600
100
Eastern Communist
Europe China
1,945 960
100
100
400
250
240
20
25
25
25
150
10
500
100
200
5
500
50
60 c/
25
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Technical Trainees from Less Developed Countries Trained in Communist Countries
1956-70
1956-70
1970
Bein
Trai
d
f D
b
g
ne
as o
ecem
er 1970
Area and Country
Total
USSR
Eastern
Europe
Communist
China
Total
USSR
Eastern
E
Eastern
urope
Total
USSR
Europe
Total
18,615
11,575
6,295
745
1,650
1,095
555
1,540
1,015
525
Africa
4,080
1,970
1,995
115
295
110
185
205
60
145
..Algeria
915
285
630
--
190
50
140
110
10
100
Burundi
25
--
5
20
5
--
5
5
--
Central African
5
Republic
55
55
Cl)
Congo (B)
40
40
Dahomey
80
80
c
Ethiopia
140
65
75
--
0
Ghana
760
440
320
--
10
10
t7l
I
Guinea
345
155
190
--
10
10
Kenya
125
10
115
--
10
10
-Libya
25
25
--
Mali
515
320
155
40
Mauritius
5
5
-Morocco
125
95
30
Mozambique
10
10
Nigeria
70
20
50
Sierra Leone
5
5
Somalia
145
135
10
--
Sudan
10
10
--
10
--
10
10
Tanzania
"
285
60
170
55
30
--
30
30
10
Tunisia
290
95
195
--
30
Uganda
50
45
5
--
Upper Volta
60
60
15
0
15
15
Burma
215
40
120
55
15
--
15
15
Cambodia
385
10
20
355
Indonesia
485
300
185
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Technical 'Trainees from Less Developed Countries Trained in Communist Countries
1956-70
(Continued)
Departures to Communist Countries
1956-70 1970 Being Trained as of December 1970
Area and Country
lrazil
Chile
Colombia
Mexico
Near East and
South Asia
- Afghanistan
- Ceylon
Cyprus
India
Iran
Iraq
Nepal
Pakistan
Southern Yemen
Syria
Turkey
United Arab
Republic
Yemen
Eastern Communist Eastern Eastern
Total USSR Europe China Total USSR Europe Total USSR Europe
45 15 30 0 0 0 0 0 0 0-
15 5 10 -- -- -- -- -- -- --
5 -- 5 -- -- -- -- -- -- --
5 5
20 5 15 -- -- -- --
n
13,405 9,240 3,945 220 1,340 985 355 1,320 955 365
720 500 220 50 50 -- 50 50
155 115 40
100 50 50 --
3,130 2,655 475 -- 210 150 60 210 150 60
1,275 865 410 -- 500 445 55 490 415 75
1,115 750 355 10 110 50 60 110 50 60
95 55 10 30 -- -- -- -- -- --
70 70 -- -- 25 25 -- 25 25 --
75 50 25 -- -- --
690 195 495 -- 80 30 50 30 30 --
245 170 75 -- 100 100 -- 140 100 40
5,045 3,435 1,610 -- 240 135 105 240
690 330 180 180 25 -- 25 25
105
25
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Academic Students from Less Developed Countries Trained in Communist Countries a/
1956-70
Being Trained
1956-70
1970
as of December 1970
Eastern
Communist
Eastern
Eastern
Area and Country
Total
USSR
Europe
China
Total
USSR Europe
Total
USSR
Europe
47,30o
25,785
20, 815
700
3, 575
2,240 7, 335
21,245
12,640
8,605
23,230
13,070
9,730
430
1,815
1,205 610
10,935
6,855
4,080
"Algeria
1,810
645
1,150
15
300
200 100 b/
660
375
285
Angola
180
120
60
--
5
5 b/ --
30
30
--
Botswana
115
65
50
--
5
5.5/
--
15
15
--
Burundi
180
175
5
--
45
40
5
155
150
5
Cameroon
745
440
305
--
35
30 c/
5 b/
200
100
100
Central African Republic
350
150
20
180
25
25
--
125
125
--
Chad
120
115
5
--
15
15
--
105
105
--
Comoro Islands
35
20
--
15
5
5 b
/
--
15
15
--
Congo (B)
570
490
65
15
110
_
100
10 b/
380
340
40
Congo (K)
885
490
385
10
40
20-
20 b/
485
275
210
Dahomey
150
90
50
10
10
--
10
90
40
50
Equatorial Guinea
5
5
--
--
5
5
--
5
5
--
Ethiopia
680
305
375
--
50
25
25
485
280
205
Gambia
55
40
15
--
--
--
--
50
45
5
Ghana
1,885
1,045
810
30
--
--
--
370
120
250
Guinea
1,420
640
760
20
60
50 b/
10 b/
560
320
240
Ivory Coast
165
125
40
--
5
5 IT/
--
55
55
--
Kenya
1,735
1,020
705
10
45
30
15
865
530
335
Lesotho
75
40
30
5
5
5 b/
--
15
10
5
Liberia
15
5
10
-Libya
15
5
10
--
--
--
--
10
--
10
Malagasy Republic
25
10
15
--
5
5 b/
--
10
10
--
Malawi
20
5
15
--
--
--
--
5
5
--
Mali
985
720
265
--
20
10 t/
10 b/
320
210
110
Mauritania
85
85
--
--
55
55 c/
--
65
65
--
Mauritius
*
110
70
40
--
20
5 c/
15
85
65
20
*Morocco
490
195
295
--
30
10
20 c/
220
125
95
Mozambique
35
35
--
--
20
10 b/
10 b/
35
25
10
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 0-
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
from Less Developed Countries Trained in Communist Countries
1956-70
(Continued)
De artures to Communist Countries
Trained
i
1970
Be
ng
as of December 1970
1956-70
Eastern
Communist
,
l
T
t
Eastern
USSR Europe
Total
USSR
Eastern
Europe
Total
USSR
Europe
China
a
o
,
255
220
35
--
55
50
5
Niger
230
170 60
1,125
800
325
Nigeria
2,035
85
1,245
35
775
50
15
--
10
5 b/ 5
b/
15
10
5
Portuguese Guinea
40
5 35
150
65
85
Rhodesia
280
100
180
--
10
10 --
35
35
Reunion
35
35
--
15 --
70
70
150
135
15
--
15
Rwanda
265
205
60
--
40
40
--
120
105
15
Senegal
55
40
15
c/
505
440
65
Sierra Leone
595
500
95
--
40
110
100
c/ 10
c/
595
475
120
Somalia
1,720
1,270
410
5
250
50
b/ 200
1,510
600
910
d
2,515
940
1,570
5
445
305
140
an
Su
9
5
575
300
30
55
40
1
Tanzania
0
10
10
b/ --
80
70
10
Togo
205
135
70
--
15
10
5
c/
330
40
290
Tunisia
485
85
400
--
0
25
20
5
b/
280
235
45
Uganda
515
50
310
40
175
10
3
--
20
15
b/ 5
c/
45
35
10
Upper Volta
15
15
--
160
80
80
Zambia
195
90
105
--
70
135
95
60
35
i
020
3
1,515
1,3
a
East As
,
520
245
2
255
20
5
5 b_/ --
175
80
95
25
Burma
200
,
55
135
10
10
-- 10
50
25
Cambodia
935
1
030
1
825
80
--
--
-- 185
75
110
55
Indonesia
,
330
,
175
135
20
75
50
25 b/ 125
70
20
Laos
--
20
--
th Vietnam
20
--
20
Sou
iland
Th
10
5
--
5
--
--
a
Philippines
5
5
--
--
5
5
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Academic Students from Less Developed Countries Trained in Communist Countries a/
1956-70
(Continued)
Departures to Communist Countries
1956-70
1970
Being Trained
as of D
b
1
ecem
er
970
Area and Country
Total
USSR
Eastern
Europe
Communist
China
T
t
l
Eastern
Eastern
o
a
USSR
Europe
Total
USSR
Europe
Latin America
4,745
2
975
1
770
0
530
32
,
,
0
210
2,395
1,615
780
Argentina
265
140
125
--
25
10
c/
15 c/
130
60
b
Bolivia
B
510
250
260
--
20
15
c/
5 b/
210
145
/ 70
65
razil
350
200
150
--
35
20
15 b/
205
150
Chile
500
355
145
--
45
30
b/
15 b/
300
230'
55
70
Colombia
C
325
200
125
--
55
30
25
235
175
60
osta Rica
D
i
i
210
170
40
--
50
50
--
125
.
105
20
om
n
can Republic
E
d
105
60
45
--
35
25
10
65
40
25
cua
or
550
385
165
--
65
40
25 b/
385
260
U;
12
El Salvador
90
50
40
--
--
--
15
15
5
-- C~
French West Indies
15
15
--
--
--
--
--
15
15
Guatemala
70
50
20
--
--
--
--
5
--
Guyana
180
85
95
--
--
--
--
10
5
10
--
Haiti
80
40
40
--
15
5
c/
10 c/
25
15
--
10
Honduras
155
105
50
--
--
--
--
Mexico
i
460
280
180
--
40
15
25 b/
230
115
11
N
caragua
P
155
110
45
--
20
5
b/
15 b/
90
60
5
30
anama
Paraguay
205
20
140
10
65
10
--
--
50
--
25
--
-
25
-
120
70
50
Peru
255
180
75
--
70
50
b/
20
185
125
60
Uruguay
65
35
30
--
5
--
5 b/
30
10
20
Venezuela
180
115
65
--
--
--
-- -
15
10
5
Near East and South Asia
16,305
8,225
7
945
135
1
13
,
,
5
655
480
7,355
3,915
3,440
-Afghanistan
1,500
885
610
5
125
100
25 b/
720
530
1
'Ceylon
u
385
205
160
20
5
5
-- -
135
55
90
80
Cypr
s
950
360
590
--
75
25
b/
50 b/
950
360
590
Greece
75
--
70
5
--
--
India
1,170
630
535
5?
75
50
25 b/
435
260
175
Iran
115
55
60
--
25
2
Iraq
3,740
2,080
1,635
25
60
25
35
875
0
525
5
3-5-9---
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Academic Students from Less Developed Countries Trained in Communist Countries a/
1956-70
(Continued)
Departures to Communist Countries Being Trained
1956-70 1970 as of December 1970
Eastern Communist Eastern Eastern
Area and Country Total USSR Europe China Total USSR Europe Total USSR Europe
Near East and South Asia
Continue
Israel
Jordan
Kuwait
Lebanon
Nepal
Pakistan
Saudi Arabia
Southern Yemen
Syria
Trucial States
Turkey
UAR
Yemen
30
385
20
860
455
75
20
590
2,560
20
80
1,870
1,405
30 --
185 200
10 10
435 425
330 50
65 10
5 15
215 375
1,125 1,435
10 10
80 --
820 1,050
-- 35 30 Cl
-- 5 --
20 10 c/
75 30 30
-- 15 15 c/
105 50 c/
240 150
235 65
110 100
20 10
945
655
365
350
355
665
10
580
305
25X1
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
5 140 130 10
5 15 10 5
10 c/ 315 205 110
-- - 260 250 10
-- 30 30 --
55 b/ 545 190
90 b/ 1,290 625
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Military Aid Extended by Communist Countries
to Less Developed Countries
1955-70
Million Current US $
Total
USSR
Eastern Communist
Euro
e Chi
p
na
1955-60
1,715
1,225
460
30
1961
845
830
15
--
1962
415
415
1963
395
390
1964
940
920
15
5
1965
390
275
45
70
1966
410
385
15
10
1967
660
570
75
15
1968
485
435
45
5
1969
430
310
70
50
1970
1,010
960
50
N.A.
Total
7,695
6, 715
795
185
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 201I2T CIA-RDP90-00596R000600020006-8
Table 9
Communist Military Aid to Less Developed Countries, Extended and Drawn
1955-70
Million Current US $
Other Communist
Other Communist
i
Total
USSR
Countries
Total
USSR
es
Countr
7,695
6,715
980
6,315
5,425
890
70
500
450
50
Africa
Algeria
310
295
15
275
260
15
Burundi
Negl.
5
Negl.
5
--
Negl.
5
Negl.
Negl.
Congo (B)
l
10
10
--
Gh
10
10
.
Neg
l
Ne
ana
i
10
10
Negl.
10
10
.
g
--
nea
Gu
35
30
5
30
30
Libya
5
5
--
5
5
Negl.
Mali
35
15
20
o
35
15
20
--
Morocc
ia
i
10
10
--
10
10
--
ger
N
Somalia
45
45
--
40
40
5
n
d
S
75
65
10
65
60
10
a
u
Tanzania
15
Negl.
15
10
Negl.
5
Uganda
15
10
5
10
5
1
10
240
1,100
860
240
East Asia
1,350
1,1
Cambodia
25
10
15
25
10
15
225
Indonesia
1,325
1,100
225
1,075
850
105
670
4,715
4,115
600
Ne
ar East and South Asia
5,775
5,
hanistan
Af
300
285
15
290
275
0
15
l
Ne
g
Cyprus
25
25
Negl.
20
2
625
.
g
50
di
1,000
950
50
675
-
a
In
Iran
300
300
--
100
100
-
50
Ira
800
725
75
575
525
95
q
kistan
125
25
100
105
10
Pa
Southern Yemen
20
20
10
10
--
60
ria
S
600
500
100
535
475
300
y
United Arab Republic
2,500
2,200
300
2,300
2,000
30
Yemen
105
75
30
105
75
SECRET
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08122 : CIA-RDP90-00596R000600020006-8
Table 11
Military Personnel from Less Developed Countries
Trained in communist countries a/
De artures to Communist Countries
1955 - December 1970
Being Trained in December 1970
Eastern
Total
C mmunist
Eastern o Total USSR Europe
USSR Euro e China
190
195
26
3,350
645 3.0855 3,470
Total
29,
,
500 500
2,130
1,890
240
0
15 480 480
Afghanistan
135
2
1,920
20
eria
Al
,
30
--
60
g
30
170 300 1
Cambodia
490
320
--
Congo (B)
180
180
--
65 65
Ghana
550
500
50
100 100
Guinea
1,445
1,445
--
India
270
9
7,560
1,710
110 110
--
Indonesia
,
135
135
--
30
450 370
80
Iran
1,780
1,650
1
55
55
Iraq
160
150
10
Mali
60
--
60
35
35
Morocco
95
95
eria
i
40
130
--
g
N
170
30 350
350
Pakistan
245
1
1,215
180
160
20
Somalia
,
180
160
20
--
170
150
20
Southern Yemen
330
310
20
--
240
220
20
Sudan
685
1
310
1
375
--
00
Syria
,
535
,
250
--
285 1
20
15
5
Tanzania
170
140
30
15 b/ 300
300
--
Uganda
045
5
505
400
--
United Arab Republic
5,565
850
,
850
400
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Communist
China
__25X1
 Approved For Release 2005108122 : CIA-RDP96-OD596R000600020006-8
TABLE 12
COMMUNIST EXPORTS TO AND IMPORTS FROM SELECTED LESS DEVELOPED COUNTRIES,? 1968-69
Million Current US$
Total
USSR
Eastern Europe
Communist China
1968
1969
1968
1969
1968
146
1968
1969
AREA AND COUNTRY
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports"
Exports
Imports
Exports
Imports
Total .................................
$,631.9
2,012.2
2,806.3
5,437.6
948.0
885.0
1,167.5
1,119.0
1,123.2
886.9
1,072.4
994.1
494.0
201.7
484.5
260.2
Africa ................................
434.2
312.9
470.4
367.3
132.8
122.7
176.4
172.2
179.4
132.6
169.0
134.7
111.4
50.4
110.6
49.3
Algeria .............................
61.3
56.6
94.8
94.2
31.9
27.7
57.7
61.6
21.9
18.3
26.0
21.8e
6.8
9.3
10.8e
9.0
Angola .............................
0.9
1.9
2.4
1.4
.. ........
..........
.. ........
.. .. ......
0.4
1.9
1
2.4
1.4
.........
.........
.. .......
.. .. .. .. ..
Cameroon ..........................
3.6
5.9
4.2
14.8
0.6
5.8
1.1
12.0
2.3
0.1
1.6
2.8
0.6
1.3
Chad ..........................:...
1.7
1.5
0.2
Negl.
1.1
0.8
0.4
0.7
Congo (B) ..........................
2.4
0.9
0.1
0.8
0.7
0.9
0.1
0.8
..........
.. ........
.. ........
.........
1.7 ^
.........
.........
.. .. .. .. ..
Congo (K) ..........................
.. .. .. .. ..
..........
..........
..........
.. ........
.. ........
..........
Dahomey ...........................
2.7
Negl.
0.9
Negl.
0.4
Negl.
0.4
Neg..
0.9e
.
1 .9C
.........
.........
..........
Ethiopia .... .......................
8.8
8
2.6
2
6
9.1
9
1
4.8
8
2.1
1
2.1
2.4
4.0
4.1
4
Negl.
4.5
0.3
2.6
0.5
2.2
0.5
Gabon .........................
....
.....
.....
.
..
.....
.
..
.. .....
..
.. .....
..
..........
.. ..
..........
....
.. ..
.........
.........
..........
Ghana ........:....................
22.2
29.6
22.3
21.8
9.2
20.4
9.3
15.9
11.3
8.7
8.7
8
5.3
3
1.0
6
0.6
4.3
3
1.1
1
Guinea .............................
13.8
3.2
8.8
3.4
13.8
13
3.2
88.8
3.4
......
....:.....
......
....
..
......
......
..
.........
......
..
......
...
Ivory Coast ........................
3.2
3.9
3.7
9.8
..
0.7
Ne..
5.8
2.6
3.2
2.9
4.0
0.6
0.7
Kenya .............................
9.6
3.5
8.4
3.6
0.8
0.2
0.3
1.3
4.3
2.1
4.8
1.0
4.5
1.2
3.2
1.3
Liberia .. ...........................
1.3
.....
..........
.. ........
.. ........
.. ........
.. .. ......
.. ........
l.3 d
.. ..
..........
.........
.........
.. .......
.........
.. .. .. .. ..
Libya ..............................
54.3
2.4
55.0
7.2
.
6.1
Negl.
10.8
Negl.
35.8
2.4
28.2e
7.2e
12.3
15.7
Malagasy Republic ..................
M
lag
R
0.1
0.1 1
Neg..
Neg2.
..........
..........
.. ........
..........
0.1
0.1
Negl.
Neg2.
.........
.........
.........
.. .. .. .. ..
Malawi ............................
..........
..........
.. ........
..........
Mali . ..............................
20.6
3.4
8.5
2.1
9.4
11.8
5.1
2.0
2.2
.0.9
0.3
0.1
9.1
1.1
3.1
.. .. .. .. ..
Mauritania .........................
..........
..........
..........
.. ........
.. ........
.. ........
.. .. ......
..........
..........
..........
Mauritius ..........................
a
1.2
... ..
..........
..........
.. ........
.. .......
.. ........
..........
..........
..........
... ..
1.2 a
Morocco ...........................
61.4
61.4
84.5
64.6
19.2
18.3
37.1
17.9
20.6
29.8
20.9
30.7
12.0
7.3
13.2
6.8
Mozambique ... .....................
0.2
.. .. ......
0.1
0.2
.. ........
........
0.2
..........
0.1
0.2
Negl.
.........
Negri.
Niger ..............................
1.8
Negl.
.........
1.8
......................
a
42.6
33.
49.9
30.8
11.9
21.3
10.7
24.4 9
20.2
0
11.9
17.8
6.9
10.9
0.7
155.3
Neg2.
Senegal . ...........................
5.9
0.3
7.9
0.3
0.2
0.3
0.2
0.
....
..........
1.1
0.2 '
5.7
.....
.7e
Sierra Leone ........................
8.3
14.1
1.1
0.9
1.0
0
1.1
.1
5
8.9 '
.....
2.3
42
Somalia ............................
3.6
0.1
2.1
Neg..
3.6
0.1
2.
Neg..
....
..........
..........
.........
.........
.. .. .. ...
.. .......
.. .. .. .. ..
Sudan ..............................
52.5
44.3
46.8
50.9
16.0
12.1
16.0
13.7
19.3
18.2
16.8
18.7
17.2
13.9
14.0
18.5
Tanzaniae ..........................
17.8
11.1
15.3
15.9
0.9
1.1
0.4
2.8
4.9
2.4
3.7
2.2
12.1
7.7
11.1
10.9
Togo ...............................
4.1
Negl.
3.9
0.9
0.8
Neal.
1.1
0.9
l.0
Neg..
1.2
2.2
1.6
Tunisia ............................
17.5
30.3
17.0
18.0
3.3
5.4
4.2
3.4
13.7
24.1
12.8
14.6
0.5
0.8
Neg!.
Uganda ............................
6.8
7.3
6.2
11.8
0.8
1.1
1.4
1.6
3.1
1.4
2.3
9.0
2.9
4.9
2.5
1.2
Upper Volta ........................
..........
..........
..........
.. .......
...
Zambia ............................
4.5
10.0
3.2
8.8
3.0
7.6 '
3.2
8.8'
1.3'
2.4
Europe ...............................
124.3
95.0
137.3
106.9
20.4
13.7
24.4
3.8
61.9
61.4
69.1
63.0
1.1
1.3
1.4
0.8
Portugal ...........................
12.2
6.7
16.5
7.2
.. ........
.. ........
..........
..........
11.7
6.7
10.2
7.2
0.1
Neg..
0.3
Negri.
Spain ....... :......................
112.1
88.3
120.8
99.7
20.4
13.7
24.4
3.8
50.2
54.7
52.9
55.8
1.0
1.3
1.1
0.8
East Asia .............................
270.7
22.3
296.0
2210
16.I
124.1
I;.4
1a0.7
33.C
1U.S
36.7
66.C
215.0
59.1
272i
1YL.7
Burma ....................... ....
13.5
3.1
13.5 e
3.7
it
0.3
2.6
3.7
10.2
2..8
U9 g
0.8
Cambodia ..........................
10.9
15.8
0.7
Neg..
0.7
2.1
0.7
Negl.
3.0.1
4.0
6.7 a
9.0
Indonesia ...........................
5.2
19.1
46.6
25.8
5.2
19.1
3.6
23.8
4.0
2.0
39.0
Laos ...............................
..........
..........
.. ........
2.0
..........
.. .. ......
..........
2.0
Malaysia ...........................
62.8
146.1
65.4
198.2
0.1
100.4
1.7
121.8
4.1
21.8
3.6
31.8
57.2
23.9
57.1
44.6
Singapore ..........................
166.2
40.1
159.1
93.2
6.9
2.0
6.2
1.1
7.6
10.3
11.1
29.4
150.3
26.5
136.7
57.1
Thailand ...........................
12.1
2.0
9.7
1.7
3.3
0.4
2.8
0.3
8.7
1.6
6.8
1.4
Negl.
Neg2.
0.1
Latin America .........................
157.9
279.2
166.9
301.4
22.6
82.4
25.1
104.3
127.9
192.2
133.5
196.4
6.8
0.0
8.1
0.3
Argentina ..........................
12.2
62.2
22.5
71.9
3.2
28.7
6.8
25.6
8.7
32.9
14.9
45.7
0.3
0.6
0.8
0.3
Bolivia .............................
1.6
..........
.. ........
.. .. .. .. ..
.. ........
.. ........
.. ........
.. .. .. .. ..
1.6
Brazil ..............................
89.8
124.5
69.1
134.2
13.8
27.9
12.1
48.8
75.9
96.6
57.0
85.3
Negl.
Neg..
Negl.
Chile ..............................
5.3
Negl.
6.0
0.9
0.1
Negl.
0.2
0.1
4.8
5.6e
0.8
0.4
0.2 '
Colombia ...........................
16.7
20.4
16.9
25.8
2.1
3.4
2.6
4.2
14.6
17.0
14.3
21.0
Costa Rica .........................
..........
..........
0.2
5.4
5.2
.........
0.2 a
0.2d
Ecuador ............................
2.7
17.7
8.8
21.8
Negl.
12.4
0.2
13.9
2.7
5.3
8.6
7.9 '
); Sa]vadar .........................
..........
8.1
.. ........
.. .. .. .. ..
..........
..........
..........
.. ........
..........
8.1 s
.. .. ..
.........
.. .. ... ..
.. .. ... ..
.. .......
..........
Guatemala .........................
..........
2.7
2.7
Guyana . ...........................
0.3
.. .. .. .. ..
0.2
.. .. .. .. ..
..........
.. .. ......
..........
.. .. ......
0.1,
.........
0.'L
0
.. .. ... ..
0.2
Honduras ..........................
1.1
1.1
.. ..
..........
........
.l
Mexico .............................
7.7
15.5
16.4
7.4
.
2.7
8.4
0.9
5.6
4.9
3.1
15.4'
].8 '
Nicaragua .. ........................
..........
..........
.. .. ......
..........
..........
.. .. ......
.. ........
..........
..........
..........
..........
.. .. ... ..
.. .. ... ..
.. .. ... ..
.........
.. .. .. .. ..
Peru ...............................
6.0
21.0
7.9
24.1
Negl.
1.4
1.8
21.0
2.4
24.1
4.2
Negl.
4.1
Negl.
Uruguay ...........................
3.3
7.1
6.8
10.0
0.7
1.0
0.9
1.0
2.1.1
5.5
5.7
9.0
Neg..
0.1
Venezuela ...........................
11.2
Negl.
12.1
Negl.
..........
.. .. .. .. ..
..........
..........
9.6
Negl.
9.4
Negl.
1.6
2.7
Near East and South Asia ..............
1,644.8
1,098.8
1,736.7
1,337.4
754.1
541.8
924.1
688.0
720.4
460.2
664.1
533.4
159.7
91.0
131.5
108.1
Afghanistan ........................
39.7
31.0
44.8
30.6
39.7
31.0
44.8
30.6
Ceylon .............................
68.5
58.9
80.7
66.1
11.8
16.2
8.3
14.4
13.4
10.0
25.0
11.3
41.2
32.7
47.4
40.4
Cyprus .............................
10.1
8.7
13.2
10.4
3.4
4.3
5.1
5.8
6.7
4.4
8.0
4.6
Neg2.
Greece .............................
109.2
71.9
95.4
88.6
24.7
24.8
28.8
28.9
84.4
47.1
66.2
59.7
0.1
Neg..
0.4
Negl.
India
322.1
316.9
313.8
351.6
183.3
183.0
171.3
221.'.'
38.8
133.6
142.5
130.1
Iran:- ....................
161.9
70.9
221.1
95.2
88.1
40.11.
- 161.6
56.k 'y'
70.8
29.3
57.6
38.0
2.3
1.5
1.8
0.9
Iraq . .............................
100.9
11.2
131.6
15.5
50.8
4.1
67.7
4.7
31.6k
l.7'
37.1e
2.8r
l7.2'
5.4'
19.1
7.9<
Israel ..............................
20.2
18.6
'14.6
22.7
..........
.. .. .. .. ..
..........
..........
20.2
18.6
'29.6
2'2.7
Negl.
.........
Neg2.
Negri.
Jordan ............:................
16.8
0.9
23.3
1.1
3.4
4.3
8.8
0.4
14.1
0.5
4.6
0.5
4.9
0.6
Kuwait ............................
54.1
0.3
15.3
15.0
15.3
17.6
Negl.
20.9
0.3
Lebanon ...........................
13.6
3.4
11.6
3.0
13.6
3.4
11.6
3.0
Malta ... ...........................
5.3
Negl.
5.9
0.1
..........
.. .. .. .. ..
..........
..........
3.9
Negl.
4.1
0.1
L2
Negl.
1.7
Negl.
Nepal ..............................
0.9
0.6
0.9
1.1
0.9
0.6
0.9
1.1
Pakistan ...........................
115.2
73.1
125.8
100.8
36.8
11.1
39.4
23.7
48.8
36.3
59.3
47.1
29.6
25.5
26.4
28.9
Saudia Arabia .......................
16.4
12.6
0.2
3.9
4.6
0.2
5.1
8.0 '
7.3
Southern Yemen ....................
9.5
Negl.
6.9
1.0
1.4
6.9
1.0
5.3
Negl.
2.7
Syria ..............................
Turkey .............................
120.6
99.3
41.7
91.2
127.2
124.2
79.5
90.6
42.1
30.8
20.9
30.0
47.8
57.9
37.3
29.r
63.3
68.2
12.3d
60.1
56.3'
06.1
24.3x
00.6
12.0'
0.2
7.6d
1.0
16.7e
0.2
15.3e
0.1
United Arab Republic ................
354.1
297.9
348.1
377.9
198.0
170.7
238.2
228.
3 `3.5
106.4
95.2
131.4
20.4
16.5
12.9
14.0
Yemen .............................
6.4
1.6
9.7
1.4
6.4
1.6
9.7
1.
COMMUNIST EXPORTS
COMMUNIST IMPORTS
1968
1969
1968
, t.:
1969
Total ....................
66.4
81.5
97.7
64.5
Albania ...............
1.4
0.8
0.9
-
1.2 '
Cuba .................
61.8
72.8
33.3
J
57.0 )
Mon olio ..............
..........
Ne l
Negi. '
North Korea...........
1.0
397
0.6
5.4
North Vietnam.........
2.2
4.2
2.9
0.9
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 Approved For Release 2"22TCIA-RDP90-00596R000600020006-8
Table 13
Percentage Share of the Communist Countries
in the Trade of Selected Less Developed Countries a/
1968-69
Exports to imports from
Communist Countries Communist Countries
1968
1969
1968
1969
Africa
Algeri
a 6.4
9.0
6.4
7.2
8
0
Angol
a 0.7
0.4
0.1
.
9
Camero
on 3.1
5.4
2.2
1.
4
Chad
--
--
4.0
3.
A
Congo
(B) 2.1
N.A.
4.5
.
N.
A
Dahom
ey Negl.
N.A.
5.3
.
N.
1
Ethio
pia 3.3
2.1
5.0
6.
4
Ghana
6.7
3.2
6.4
7.
A
N
Guine
a 7.4
N.A.
b/
.
.
1
Ivory
Coast 0.9
1.3
1.0
1.
8
Kenya
2.2
1.8
3.0
2.
5
Libya
0.1
0.3
8.3
7.
Malag
asy
l
Ne
u
R
blic 0.1
Negl.
0.1
.
g
ep
li
M
7.3
2.8
34.7
19.5
a
oc
M
co 13.1
12.6
11.2
14.0
or
er
Ni
ia 4.7
3.2
6.1
5.4
g
e
S
al 0.2
0.2
4.3
4.2
en
g
Sierr
a Leone --
N.A.
9.5
14.4
mal
S
ia 0.6
N.A.
8.6
N.A.
o
n
d
S
19.7
19.0
21.1
IV)
16.5
a
u
za
T
nia 5.1
6.7
8.4
7.8
an
o
To
Negl.
2.3
8.2
7.4
g
is
T
ia 18.9
11.7
8.2
6.9
un
Ugand
a 4.0
6.3
5.7
4.7
Europe
Portugal 0.9
0.9
1.4
1.4
8
2
Spain 5.8
5.3
3.1
.
East Asia
Burma 3.3
N.A.
12.8
N.A.
A
N
Cambodia 18.0
N.A.
10.0
.
.
0
5
Indonesia 2.6
1.5
0.7
.
3
7
Malaysia 10.6
11.6
7.2
.
1
8
Singapore 5.8
8.7
10.2
.
8
0
Thailand 0.3
0.3
1.1
.
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 Approved For Release 2005/08/2:SfD0-00596R000600020006-8
Percentage Share of the Communist Countries
in the Trade of Selected Less Developed Countries a/
1968-69
(Continued)
Exports to
Imports from
Communist Countries
Communist Countries
1968 .
1969
1968
Latin America
Argentina
3.7
4.2
1.2
1.6
Brazil
6.5
5.6
4.4
3.2
Chile
Negl.
0.1
0.7
0.7
Colombia
3.7
4.3
2.7
2.6
Ecuador
13.3
9.5
1.1
3.7
Mexico
0.7
0.1
0.3
0.8
Peru
2.4
2.8
1.0
1.6
Uruguay
Near East
3.9
5.3
1.7
3.4
and South Asia
Afghani
stan
40.6
N.A.
C/
N.A.
Ceylon
17.1
20.7
19.4
18.9
Cyprus
10.0
10.9
6.2
6.7
Greece
15.3
16.2
8.0
6.1
India
18.2
19.2
12.2
19.7
Iran
3.4
4.4
8.0
8.3
Iraq
1.1
3.3
21.2
23.2
Israel
2.9
3.1
1.9
1.9
Jordan
2.7
3.3
11.1
13.2
Kuwait
Negl.
--
7.4
N.A.
Lebanon
1.7
N.A.
2.3
N.A.
Malta
Negl.
0.5
4.9
4.4
Nepal
2.2
N.A.
2.2
N.A.
Pakista
n
10.6
14.7
11.5
11.5
Saudi A
rabia
N.A.
2.7
1.5
Syria
11.7
38.3
9.1
30.9
Turkey
United
Arab
18.3
16.9
12.8
13.2
Republic 48.6
53.1
39.4
31.8
a. Soviet trade data from official trade yearbooks; other
data from US Department of Commerce and UN, Direction of
Trade.
b. The Soviet Trade Handbook is the only source for data
on trade with Communist areas. By relating these data to
total trade reported in DOT the figure would be 50.5%; if
IFS data for world trade are used the figure would be 19.7%.
C. The Soviet Trade Handbook is the only source for data
on trade with Communist areas. By relating these data to
total trade reported in DOT the figure would be 51.3%; if
IFS data for world trade are used the figure would be 27%.
- 74 -
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ST-
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Secret
Secret
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 Approved For Release 2005/08/22 : CIA-RDP90-00 96R000 00020006-8
ecre
25X1
USIB
UNITED STATES
INTELLIGENCE
BOARD
Economic Intelligence
Committee
Aid And Trade Activities Of Communist Countries
In Less Developed Areas Of The Free World, 1970
Secret
EIC R14-S25
February 1971
Copy No.
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL SECURITY OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, U.S.C., SECTIONS 793 AND 794, TIIE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
ECONOMIC INTELLIGENCE COMMITTEE
Representatives of the Department of State; the Dc-
fense Intelligence Agency; the Departments of the Army,
Navy, and Air Force; the National Security Agency; and
the Central Intelligence Agency are members of the
Economic Intelligence Committee. Representatives from
the Office of the Secretary of Defense; the Departments
of the Treasury, Agriculture, and Commerce; the Federal
Reserve Board; the Agency for International Develop-
ment; and several other departments and agencies of the
(:o%ernincnt arc associate members of the Committee.
Printed and Disseminated by the
Central Intelligence Agency
GROUP 1
Excluded from automatic
downgrading and
declassification
Prepared by the Subcommittee on International Trade and Aid
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 5105122` CIA-RDP90-005968000600020006-8
Foreword
The EIC-R14 series provides periodic summaries
and analytical interpretations of significant de-
velopments in the economic and military aid acti-
vities of Communist countries with less developed
countries of the Free World. Highlights of trade
developments also are included. These develop-
ments are reported on a current, factual basis in
the Monthly Reports in the EIC STA 1 series.
Project tables on economic credits and grants
are available to recipients on request.
This report, covering the 12 months from
1 January through 31 December 1970, constitutes
the twenty-fifth report of the EIC-R14 series.
The present report updates and revises data in
the previous annual reports; figures in the cur-
rent supplement supersede those in previous
issues. This report was prepared by the Central
Intelligence Agency. The draft was reviewed and
coordinated by a Subcommittee on International
Trade and Aid of the Economic Intelligence Com-
mittee, which includes representatives of the
Department of State, the Defense Intelligence
Agency, the Departments of Commerce and Agricul-
ture, the Agency for International Development,
the National Security Agency, and the Central
Intelligence Agency. The final report was
approved by the Economic Intelligence Committee
on 9 February 1971.
In this report the term Communist countries
refers primarily to the following countries that
extend aid to less developed countries of the
Free World: the USSR, Communist China, and the
following countries of Eastern Europe -- Bulgaria,
Czechoslovakia, East Germany, Hungary, Poland,
and Romania. For certain limited purposes the
term also may include Albania, Cuba, Mongolia,
North Korea, and North Vietnam, none of which is
normally a donor of aid. Yugoslavia is not nor-
mally included.
.. iii -
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The term Zess developed countries of the Free
World includes the following: (1) all countries
of Africa except the Republic of South Africa;
(2) all countries of East Asia except Japan;
(3) Portugal and Spain in Europe; (4) all coun-
tries in Latin America except Cuba; and (5) all
countries in the Near East and South Asia.
- iv -
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 Approved For Release ~AgWBET- CIA-RDP90-00596R000600020006-8
I. Communist Activities in Less
Developed Areas, by Type
Page
of Activity . . . . . . . . . . . . 5
Major Trends . . . . . . . . . . . . 5
Economic Assistance . . . . . . . . . 7
Credits and Grants . . . . . . . 7
Extensions . . . . . . . . . 7
Drawings . . . . . . . . . . 9
Technical Assistance . . . . . . 11
Economic Technicians . . . . 11
Technical Trainees . . . . . 12
Academic Students in Communist
Countries . . . . . . . . . . . 13
Military Assistance . . . . . . . . 15
Credits and Grants . . . . . . 15
Extensions . . . . . . . . . 15
Drawings . . . . . . . . . . 18
Technical Assistance . . . . . . 19
Military Technicians . . . . 19
Military Trainees from Less
Developed Countries . . . . 20
Trade . . . . . . . . . . . . . . . . 21
Value . . . . . . . . . 21
Direction of Trade and Relative
Shares . . . . . . . . . . . . . 23
Commodity Composition of Soviet
Trade with the Less Developed
Countries . . . . . . . . . . . 24
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Page
II. Communist Activities in Less
Developed Areas, by Area and
Country . . . . . . . . . . . . . . 27
Africa . . . . . . . . . . . . . . . 27
Algeria . . . . . . . . . . . . . . 27
Congo (B) . . . . . . . . . . . . . 29
Guinea . . . . . . . . . . . . . 29
Nigeria . . . . . . . . . . . . . . 30
Somalia . . . . . . . . . . . . . . 31
Sudan . . 31
Tanzania . . . . . . . . . . . . . 32
Zambia . . . . . . . . . . . . 34
Other African Countries . . . . . . 34
East Asia . . . . . . . . . . . . . . 37
Latin America . . . . . . . . . . . . 40
Bolivia . . . . . . . . . . . . . . 40
Brazil . . . . . . . . . . . . . . 41
Costa Rica . . . . . . . . . . . . 41
Peru . . . . . . . . . . . . . 41
Other Latin American Countries . . 41
Near East and South Asia . . . . . . 44
Afghanistan . . . . . . . . . . . . 45'
Ceylon . . . . . . . . . . . . . . 46
India . . . . . . . . . . . . . . . 46
Iran . . . . . . . . . . . . . . . 48
Iraq . . . . . . . . . . . . . . . 51
Pakistan . . . . . . . . . . . . . 51
Southern Yemen . . . . . . . . . . 52
Syria . . . . . . . . . . . . . . . 53
Turkey . . . . . . . . . . . . . . 53
UAR . . . . . . . . . . . . . . 54
Other Near East and South Asian
Countries . . . . . . . . . . . . 56
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Page
11. Academic Students from Less Developed
Countries Trained in Communist
Countries, 1956-70 . . . . . . . . .
71
12. Communist Military Agreements with
Less Developed Countries, by
Recipient, 1955-70 . . . . . . .
75
13. Military Aid Extended by Communist
Countries to Less Developed
Countries, 1955-70 . . . . . . . . .
82
14. Communist Military Aid to Less
Developed Countries, Extended
and Drawn, 1955-70 . . . . .
15. Major Communist Military Equipment
Delivered, by Recipient, 1970 . . .
84
16. Major Communist Military Equipment
Delivered, by Recipient, 1955-70 . .
86
17. Communist Military Technicians in
Less Developed Countries, 1969-70 .
89
18. Military Personnel from Less Developed
Countries Trained in Communist
Countries . . . . . . . . . . . . .
90
19. Communist Exports to and Imports from
Selected Less Developed Countries,
1968-69 . . . . . . . . . . . . . .
91
20. Percentage Share of the Communist
Countries in the Trade of Selected
Less Developed Countries, 1968-69 .
93
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Page
Statistical Tables
1. Economic Aid Extended by Communist
Countries to Less Developed
Countries of the Free World, 1970
8
2. Military Aid Extended by Communist
Countries to Less Developed
Countries of the Free World, 1970
17
3. Communist Economic Credits and Grants
to Less Developed Countries,
Extended and Drawn, 1954 - December
1970 . . . . . . . . . . . . . . . .
58
4. Communist Economic Credits and Grants
Extended to Less Developed Countries,
by Communist Area and Country,
1954 - December 1970 . . . . . . . .
60
5. Soviet Economic Credits and Grants
Extended to Less Developed Countries,
by Year, 1954-70 . . . . . . . . . .
61
6. East European Economic Credits and
Grants Extended to Less Developed
Countries, by Year, 1954-70 . . . .
63
7. Chinese Communist Economic Credits
and Grants Extended to Less Developed
Countries, by Year, 1956-70 . . . .
65
8. Communist Economic Credits and Grants
Drawn by Less Developed Countries,
by Communist Area and Country,
1954-70 . . . . . . . . . . . . . .
66
9. Communist Economic Technicians in the
Less Developed Countries, January-
December 1970 . . . . . . . . . . .
67
10. Technical Trainees from Less Developed
Countries Trained in Communist
Countries, 1956-70 . . . . . . . . .
69
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Illustrations
Figure 1. Communist Activity in Less
Developed Countries of the
Free World, 1965-70
(following) . . . . . . . . . 2
Figure 2. Communist Economic Assistance
to Less Developed Countries
of the Free World, 1954-70
(following) . . . . . . . . . 2
Figure 3. Annual Departures of Academic
Students from Less Developed
Countries for Study in the
USSR and Eastern Europe . . . 14
Figure 4. Communist Exports to and
Imports from Less Developed
Countries of the Free World
(following) . . . . . . . . . 22
Figure 5. USSR: Foreign Trade, 23
1955-69 . . . . . . . . . .
Figure 6. Soviet Exports to and Imports
from Less Developed Countries
of the Free World, by
Commodity Group . . . . . . . 25
Figure 7. Communist Economic and Mili-
tary Assistance to Africa
(following) . . . . . . . . . 28
Figure 8. Communist Economic and Mili-
tary Assistance to East Asia
(following) . . . . . . . . . 38
Figure 9. Communist Economic Assistance
to Latin America
(following) . . . . . . . . . 40
Figure 10. Communist Economic and Mili-
tary Assistance to the Near
East and South Asia
(following) . . . . . . . . . 44
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 25X1
.?
Approved For
AID AND TRADE ACTIVITIES
OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS
OF THE FREE WORLD
1970
Summary
2&X1
25X1
Major Trends (see Figure 1)
Although Communist aid initiatives during 1970
generally conformed to the conservative aid poli-
cies pursued by most Communist countries in the
post-Khrushchev years, the USSR provided a record
amount of military aid to the UAR and Communist
China made major economic aid commitments to
Pakistan and for the Tan-Zam Railroad.
Moscow's extension of $650 million of military
aid to the UAR was the largest annual Soviet aid
commitment ever given to a Third World country.
For Communist in ,
when it emerged from the aftermath of the Cultural
Revolution, a year in which China tried to resume
its role as an international power, when it again
made a bid to expand its presence in the Third
World. China's $710 million of economic aid ex-
tended to less developed countries was far larger
than the total amount of aid extended by all other
Communist donors in 1970 and was more than double
China's own previous peak year extensions in 1964.
Chinese aid for constructing the Tan-Zam Railroad
was the largest credit ever extended by a Com-
munist country to a single development project in
a less developed country. It also reaffirmed
China's continuing interest in Africa and is part
of Peking's attempt to renew and establish more
firmly its presence on that continent.
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25X1
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Economic Aid
Communist countries extended more than $1.1
billion of economic assistance to the less de-
veloped countries during 1970, bringing total
extensions* since 1954 up to $11.9 billion (see
Figure 2). Communist China's aid accounted for
nearly two-thirds of the total in 1970. Its
major commitments were $400 million to Tanzania
and Zambia for building the Tan-Zam Railroad and
$200 million to Pakistan for its Fourth Five-Year
Plan. No other major economic agreements were
concluded by Communist countries during the year.
The USSR agreed to provide a total of $210 million
(its smallest annual commitment since 1962) to 11
countries, and East European countries extended
about $190 million. This was only about 40% of
the total commitments made by East European coun-
tries in 1969. Drawings on Communist economic
aid increased to $475 million in 1970, the second
successive annual increase following a four-year
period when drawings were falling. The upward
course reflects larger Soviet deliveries, particu-
larly to Iran and Turkey. The total drawn by the
end of 1970 on aid extended since the start of the
program in 1954 is estimated at about $5 billion.
Communist economic technicians in the less
developed countries numbered about 24,000 in 1970,
a 10% increase over 1969. Soviet technicians
accounted for about 45% of the total, the same as
in 1969, while the number of Chinese Communists
increased to a record one-third of the total be-
cause of the more than 4,100 additional Chinese
personnel sent to work on the Tan-Zam Railroad.
The number of East European personnel dropped by
more than 25%, primarily because of reductions in
the number employed in Libya and Tunisia under
In this report the term extension refers to a
commitment to provide goods and services, either
as a grant or on deferred payment terms. Credits
allowing 5 years or more for repayment are in-
cluded. Assistance is considered to have been
extended when accords are initialed and constitute
a formal declaration of intent. The term drawings
refers to the delivery of goods or the use of
services.
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8 Figure 1
COMMUNIST ACTIVITY IN LESS DEVELOPED COUNTRIES
OF THE FREE WORLD; 1965-70
ECONOMIC ASSISTANCE EXTENDED
Communist
China
Eastern
Europe
ECONOMIC AND MILITARY
TECHNICIANS
IN LESS DEVELOPED COUNTRIES
MILITARY ASSISTANCE EXTENDED
STUDENTS DEPARTING FROM
LESS DEVELOPED COUNTRIES FOR
TRAINING IN COMMUNIST COUNTRIES
0LI Military
1965 1966 1967 1968 1969 1970
*Trode of Communist Countries with Less Developed Countries of
the Free World is shown in Figure a.
NOTE: Data are revised periodically to Include new information and therefore
may not be comparable with data previously presented.
25X1
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Figure 2
COMMUNIST ECONOMIC ASSISTANCE TO
LESS DEVELOPED COUNTRIES OF THE FREE WORLD
1954-70
CUMULATIVE EXTENSIONS AND DRAWINGS
SHARE OF TOTAL
ECONOMIC ASSISTANCE EXTENDED
1954-70
By Donor
SHARE OF TOTAL
ECONOMIC ASSISTANCE DRAWN, 1954-70
By Recipient
F4'7--SOUTH p"S P'
25X1
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commercial contract. Communist countries con-
tinued to train personnel for technical jobs*
though the number going abroad for this training
in 1970 declined to 1,650 from about 1,900 in
1969. Meanwhile, the USSR has continued to build
training facilities in the less developed countries
and also to provide on-the-job training at plants
in the less developed countries. Approximately
3,650 students from the Third World went to Com-
munist countries for academic training** during
1970, bringing the total number that has gone for
this training during the 15 years of the program
up to more than 47,000. During 1970 the USSR,
for the 1st time since 1965, made additional
places available for students from less developed
countries, bringing its total enrollment up to
about 12,700. Approximately 8,700 students were
enrolled in East European institutions. No Third
World students are known to be studying in Com-
munist China.
25X1
Military Aid
Military aid of $910 million extended to less
developed countries in 1970 was at a near record
level, bringing the total committed since 1955 to
$7.5 billion. The UAR was by far the most impor-
tant aid recipient, receiving $650 million of aid,
1-h'r 7n% of the total. Included in this
* Technical trainees are personnel trained to per-
form jobs on Communist-built installations in the
Less developed countries. They undertake training
on-the-job in Communist countries or are trained
in Communist technical schools that require less
than one year of training.
** Academic students include those enrolled in
universities, colleges, and specialized secondary
schools. Although these include students taking
advanced degrees whose course of study may be as
little as one year, the period of study is usually
5 to 6 years.
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25X1
y the end of 1970, Communist coun-
ries a e ivered nearly $6.3 billion of mili-
tary aid to 24 less developed countries, or about
85% of their total commitments since 1955. In
1970 alone, deliveries were $980 million, the
highest for any year since the program began.
The UAR accounted for $670 million of the total.
The number of Communist military technicians
ase o bUt
over 1969. The UAR accounted for 60% of the total
number of technicians in less developed countries
during 1970. There also were about 2,500 military
personnel from the less developed countries that
went to Communist countries for military training
in 1970, bringing the total to about 29,200 who
have received this training since the inception
of the program.
Trade
After a four-year period of relative stagna-
tion, Communist trade turnover with Third World
countries rose by 13% in 1969* to more than $5.2
billion. Virtually all of the growth occurred
in Soviet trade which, after hovering around $1.7-
$1.8 billion during 1965-68, jumped to $2.3 bil-
lion. Soviet trade with Algeria, India, Iran,
and the UAR accounted for about 60% of the in-
crease. There has been little basic alteration
in the composition of Soviet trade with the less
developed countries in recent years. The most
important change in the composition of Soviet ex-
ports was in the machinery and equipment category,
which rose from 51% of the total in 1968 to 54%
in 1969. Raw materials, which fell from 44% of
the total in 1968 to 41% in 1969, showed the
largest change in the import category. Food
imports increased slightly to 39%. Petroleum
products, petroleum, and natural gas also in-
creased as a share of total imports to 2.7% in
1969, from 1.2% in the preceding year.
This is the Zatest year for which comprehensive
Communist trade data are available.
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I. Communist Activities
in Less Developed Areas, by Type of Activity
Major Trends
Communist aid initiatives during 1970, except
for military aid to Egypt and economic aid to
Pakistan and the Tan-Zam Railroad, generally con-
formed to the conservative aid policies pursued
by most Communist countries in the post-Khrushchev
years. Although drawings on economic aid increased,
no important new Soviet or East European economic
aid agreements were signed during the year, and
the terms of most agreements continued to be less
concessional than in the early 1960s. On the
other hand, Communist countries continued to use
economic and military aid to foster their own
national interests in selected less developed
countries and to strengthen their economic and
nn1ii-i_cal bonds with these countries.
for Communist China, two iarge e
mmitments demonstrated China's intention
to reassert its presence and influence in the
Third World.
Moscow's extension of $650 million of military
aid to the UAR was the largest annual aid cow
mo?f- A17Ar rr; i n to a Third World country.
25X1
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For Communist China, 1970 was a banner year.
It was the year when China emerged from the after-
math of its Cultural Revolution, a year when it
tried to resume its role as an international power,
when it again made a bid to expand its presence in
the Third World. China's $710 million of economic
aid extended to less developed countries was far
larger than the total amount of such aid extended
by all other Communist donors in 1970 and was more
than double China's own previous peak year exten-
sions in 1964. Two major credits, $200 million
to Pakistan and $400 million for the Tan-Zam Rail-
road, accounted for most of the aid. But the aid
for constructing the Tan-Zam Railroad was by far
the most significant. It is the largest credit
ever extended by a Communist country to a single
development project in a less developed country.
It exceeds by $75 million Soviet credits for the
Aswan Dam, previously the largest Communist under-
taking. The credit for the Tan-Zam Railroad
reaffirms China's continuing interest in Africa
and is part of'China's attempt to renew and estab-
lish more firmly its presence on that continent.
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Economic Assistance
Credits and Grants
Extensions
communist countries extended more than $1.1
billion of economic assistance to the less
developed countries during 1970, up $170 million
from 1969 and bringing their total commitments
since the start of the program in 1954 up to
$11.9 billion (see Tables 1 and 3-7 and Figure 2).
For the first time Communist China's aid agree-
ments exceeded the value of the combined aid of
other Communist donors. Its extensions of almost
$710 million accounted for nearly two-thirds of
total Communist economic aid agreements, while the
USSR and East European countries extended about
$210 million and $190 million respectively.
Bolivia, Costa Rica, and Venezuela received Com-
munist aid for the first time. The largest re-
cipients of aid were Tanzania, Zambia, and
Pakistan, each of whom received commitments of
approximately $200 million from Communist China.
It was the peak year for the Chinese Communist
aid program. New Chinese undertakings in 1970,
which were more than twice their previous record
level achieved in 1964, account for about 42% of
all Chinese aid extended since 1956. The $400
million extended to Tanzania and Zambia for
building the Tan-Zam Railroad represents the
largest credit ever provided by a Communist coun-
try for a single project in the Third World.
During 1970, Communist China also extended a $200
million credit to Pakistan for project and com-
modity assistance. With this new commitment,
Pakistan continued as China's largest aid recipient.
China also extended smaller amounts of aid to
Ceylon, Guinea, Southern Yemen, and Sudan.
Repayment terms for Chinese Communist aid,
all of which is interest free, were somewhat
more liberal than usual for the $400 million of
aid to Tanzania and Zambia extended in 1970.
Repayment of this credit is to be made over 30
years instead of the more usual 10 years plus a
grace period.
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Table 1
Economic Aid Extended by Communist Countries
to Less Developed Countries of the Free World a/
1970
Million current us $
Eastern Europe
Total
USSR
Total
Bulgaria
s
zecho-
lovaki
East
st
Co
a
German
Hungary
Pol
d
Ch
Africa
1,110.0
210.4
191.5
52.0
15.0
19.2
85.8
an
10.0
Romania
9.5
ina
708.1
598.1
56.1
89.2
40.0
0
Algeria
19.2
30.0
0
N.A.
452.8
C
t
74.1
--
74
1
40
0
en
ral African Republic
C
N.A.
N.A.
.
N
A
.
14.1
20.0
__
ongo (B)
Guinea
5.1
10
0
--
--
.
.
5.1
--
--
--
5.1
N.A.
--
Cl)
Mauritius
.
5.0
5
0
--
Morocco
44.4
.
44
4
^^lJ ~
m
Nigeria
Sudan
Tanzania
6.7
51.6
200
6
.
6.7
--
10.0
I u
u
--
--
tt
Zambia
.
--
.
--
41.6
n
y
200.6
Lati
--
200.6
200
n America
115
8
.6
.
65.8
50.0
0
15
0
.
0
25
0
10
0
H
Bolivia
.
.
0
0
27.5
27
5
Costa Rica
10.0
.
10
0
Peru
53.3
.
28
3
25
0
Uruguay
15.0
.
--
.
15
0
--
--
15.0
10
0
Venezuela
10
0
.
5.0
--
10
0
.
.
--
10.0
10.0
.
--
Near East and South Asia
396.1
88.5
52.3
12.0
0
Af
h
i
0
30.8
0
9.5
255
3
g
an
stan
Ceylon
Iran
2.8
20.5
54.4
2.8
8.4
54
4
.
Iraq
Pakistan
65.3
209.5
.
22.5
--
42.8
9
5
12 in
30.8
Southern Yemen
Yemen
43.2
0.4
0.4
.
__
--
--
9.5
200.0
43.2
a. AZZ credits except for 0.4 million Soviet grant to Yemen and 3.2 million of Chinese Communist aid to Ceylon.
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No major new Soviet economic aid was provided
to the less developed countries during 1970. Its
new commitments were the lowest for any year since
1962. Although 11 countries shared in the USSR's
total extensions of $210 million, only Iran re-
ceived credits exceeding $50 million. A credit
of almost $45 million was extended to Morocco;
Bolivia, Peru, and Iraq received aid commitments
ranging between $20 million and $30 million; Costa
Rica received $10 million for roadbuilding equip-
ment; and lesser amounts went to Ceylon, Mauritius,
and Nigeria. With the possible exception of the
aid to Nigeria and Mauritius, Soviet extensions
were primarily for capital goods purchases, the
repayment terms for which are harder than those
traditionally associated with Soviet aid. Instead
of the usual repayment terms of 12 years at 2/%
interest, about 95% of the aid extended by the
USSR in 1970 is to be repaid over 8-10 years at
interest rates of 3%-4%. In some cases downpay-
ments are required.
East European economic aid agreements in 1970
also totaled about $190 million, considerably
below the 1969 level of $450 million but 13%
above the average of their commitments in 1967
and 1968. Hungary and Bulgaria, with extensions
of $86 million and $52 million, respectively,
accounted for more than 70% of the total provided
by Eastern Europe. Algeria and Iraq, by far
largest recipients of East European aid in 1970,
received commitments of $74 million and $43 million,
respectively. Aid totaling $25 million was ex-
tended to Peru and lesser amounts were extended
to Congo (B), Pakistan, Sudan, Uruguay, and
Venezuela.
Drawings*
Limited reporting, especially from the Near
Eastern countries where major programs are under
way, has reduced the precision of estimates of
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recent annual drawings. Estimates for 1970 are
based largely on project construction schedules
previously announced, adjusted for current infor-
mation. These estimates show an increase in
drawings in 1970, the second successive annual
increase after the decline that began in 1965.
From a peak of $560 million in 1964, total Com-
munist deliveries had fallen to about $460 mil-
lion by 1968, then (based on recently revised
data) recovered slightly in 1969 (see Table 8).
Deliveries continued an upward course in 1970,
totaling about $475 million. Soviet deliveries
rose to about $340 million compared with an annual
average of $320 million for the previous five
years. Drawings on East European and Chinese aid
were about $90 million and $45 million, respec-
tively, roughly the same as in 1969. Deliveries
in 1970 brought the total drawn on Communist aid
since 1955 up to about $5 billion.
Drawings are believed to have increased in
spite of the general cutback of new investments
in some Arab countries of the Near East and in
India, countries which have received the largest
share of past Communist aid deliveries. Deliveries
for the Helwan steel mill in the UAR and the
Bokaro plant in India were not large enough to
compensate for reduced drawings following the
completion of other large undertakings in these
countries. Nevertheless, total drawings began to
rise again in 1969 and continued in 1970 as a
result of the vastly accelerated flow of Soviet
equipment to Iran and, to a lesser extent, to
Turkey, Algeria, and Syria. The upsurge in de-
liveries to Iran accounted for most of the rise
in 1970, as the Soviet-aided natural gas pipeline
was completed and good progress was made on the
Soviet-aided steel mill and the hydroelectric and
irrigation scheme on the Aras River. All of the
Soviet-assisted projects in Turkey, including a
steel mill, were under way and work on the Annaba
steel mill in Algeria, after five years of virtual
inactivity, had begun in earnest. In Syria, where
the Euphrates Dam is under construction, and in
Iraq, where oil drilling under 1969 credits got
under way, drawings also were increased in 1970.
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Technical Assistance
The number of Communist economic technicians
in the less developed countries during 1970 rose
about 10% to approximately 24,000 (see Table 9).
In addition to the overall increase, there were
important changes in the number of Chinese Com-
munist and East European technicians. The number
of Chinese Communists providing technical services
in less developed countries rose to 8,100, up 60%
from 1969. The number of East European technical
personnel dropped by more than 25% to 5,200 re-
flecting primarily reductions in those employed
in Libya and Tunisia under commercial contract.
The USSR increased the number of its technicians
by about 10% to about 10,700. They accounted for
about 45% of the total, about the same ratio as
in most recent years. The Chinese, whose number
rose to its highest level since the beginning of
China's aid program, because of the more than
4,100** additional Chinese personnel sent to work
on the Tan-Zam Railroad, contributed a record
one-third to the number of Communist technicians
present in Third World countries. This compares
with somewhat less than one-fourth in 1969 and
20% in 1968. Eastern Europe's technical personnel
in aid-receiving countries accounted for little
more than 20% of the total in 1970.
Africa, which in recent years has received
more than one-half of all Communist technicians
sent to Third World countries, accounted for almost
60% of the total number present in 1970. The
somewhat heavier concentration during 1970 was
due largely to the huge influx of technicians to
work on the Tan-Zam Railroad. A large number of
,technicians also continued to be employed under
commercial contract and on non-project activity.
Of the approximately 4,000 Soviet technicians in
Africa, more than half were employed in Algeria
as oil technicians, mining and geological experts,
teachers, doctors and nurses, and on economic aid
* Including personnel working under commercial
contracts as well as economic aid agreements.
** May include Laborers as well as technicians.
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projects. Although there were significant reduc-
tions in the number of East European personnel
employed in Libya and Tunisia under commercial
contract, 40% of the more than 3,000 East European
technicians in Africa still were working in these
two countries. The largest contingent of East
Europeans in Africa (-880), however, was in Algeria.
The second largest group of Communist tech-
nicians (9,400) were employed in the Near East
and South Asia during 1970. Their number declined
somewhat from the 1969 level largely because of
the reduced number of Chinese in Pakistan, where
about 950 technicians working on the Gilgit-
Sinkiang Road had departed by the end of 1969
when the project was completed. Large declines
also occurred in Iraq and the UAR, where new
project activity had not accelerated sufficiently
to offset departures. Iran was the only country
in the area where there was a marked increase in
the number of technicians. They rose by more
than 35% in 1970 to 1,835. Nearly all of the
increase was in Soviet personnel that came to
work on mining operations for iron and coal to
supply the steel plant being built at Isfahan.
There was little change in the number of
Communist personnel present in most other coun-
tries and areas during 1970, except for Guinea
and Brazil. The number of Soviet technicians in
Guinea increased by 200 during 1970 and in Brazil
the number of East Europeans under commercial
contract increased from 25 to over 100.
During 1970, an estimated 1,650 trainees from
the less developed countries went to Communist
countries to develop skills for use on Communist-
aided projects (see Table 10). This compares
with about 1,900 that undertook similar training
in the previous year. A total of 18,600 have
been trained since 1956. As in the past, most of
the technical personnel went to the USSR, which
took about two-thirds of the total. By far the
largest share (80%) of the trainees came from
those Near East and South Asian countries where
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the major Communist aid undertakings are concen-
trated. In addition to the technical trainees
that have gone to Communist countries, by the end
of 1969 more than 150,000 workers had been trained
on-the-job at Soviet project sites.
The size of the program for training skilled
labor, technicians, and administrative personnel
in Communist countries is expected to decrease
gradually as the number of Communist-built tech-
nical training facilities in the less developed
countries is increased. Many personnel who in the
past would have gone to Communist countries will
be trained in local schools as they become opera-
tional, and training in Communist countries will
be confined largely to advanced courses or to
particular specialties. By October 1970 the USSR
had built or was constructing 115 technical
schools in the less developed countries. In the
UAR alone some 23,000 personnel currently are
enrolled in technical schools constructed with
Soviet assistance. Other important aid recipients
where these training facilities are being con-
structed include Afghanistan, Algeria, Ethiopia,
India, Iran, and Iraq.
Academic Students in Communist Countries
Approximately 3,650 students from the Third
World went to Communist countries for academic
training during 1970 (see Table 11). Of this
number, 2,300 enrolled in Soviet academic insti-
tutions, while 1,350 went to East European coun-
tries. Although a few Chinese Communist univer-
sities opened for the first time since the Cul-
tural Revolution began in 1966, they are not
believed to have admitted any students from the
less developed countries.
African nationals accounted for about one-half
of the total number of new students in 1970,
roughly the same share this area has represented
since 1961. They were followed in importance
by Near East and South Asian nationals, who made
up about one-third of the total, and Latin American,
students who accounted for 15% of the total.
The remainder came from East Asian countries.
Algeria, Nigeria, Sudan, Syria, and the UAR sent
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8
the largest contingents of students to the Com
munist countries.
During the 15 years since Communist countries
began to accept students from the developing
nations, annual departures for study in both the
USSR and Eastern Europe have followed a similar
pattern (see Figure 3). Both the USSR and East
ANNUAL DEPARTURES OF ACADEMIC STUDENTS
FROM LESS DEVELOPED COUNTRIES
1956-60 1961 1962 1963 1964 1965 1966
Annual Avera
e
g
Figure 3
European countries had peak admissions in 1962.
The number of enrollees subsequently declined
until 1968, when the number again began to in-
crease. A cyclical pattern for the number of new
enrollees has emerged that appears to relate
largely to the length of the course of study in
these institutions -- generally five years in the
USSR and five to six years in most East European
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countries. Fluctuations in the number of annual
departures are largely a function of the number of
places for study made available by students who
complete their courses. They also reflect changes
in the number of places allotted by Communist coun-
tries to nationals from the less developed coun-
tries. In 1970, the USSR, for the first time
since 1965, made additional places available for
Third World nationals, bringing its total enroll-
ment of these students up slightly to about 12,700.
An estimated 8,700 students from the less de-
veloped countries were studying in East European
countries, somewhat less than in the mid-1960s
because of a smaller program in Czechoslovakia.
Since the introduction of the Communist aca-
demic training program in 1956, approximately
47,300 students from the developing nations have
gone to Communist countries for training. About
25,800 of these have gone to higher educational
institutions in the USSR, and some 20,800 to East
European universities. Only about 700 have gone
to Communist China. Approximately one-half of
the students that have gone for training have
received degrees -- 8,000-10,000 from East Euro-
pean institutions and about 15,000 from Soviet
universities. Few of those who returned home
after graduation are believed to have achieved
positions of influence in their own governments,
but officials in the less developed countries
appear generally to be satisfied with the overall
quality and the character of the education the
students have received. Faced with increasing
demands for trained personnel and limited educa-
tional opportunities in the West, nationals from
the developing countries continue to accept Com-
munist scholarships, and the number of applicants
continues to exceed the number of places available
to them.
Military Assistance
Credits and Grants
Extensions
In contrast with the relatively low-keyed
Communist military aid programs
of
1968 and
1969,
Communist countries extended a
near
record
$910
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million of military aid to less developed coun-
tries in 1970 (see Table 2). These new estimated
commitments brought total Communist arms aid ex-
tended since 1955 to about $7.5 billion (see
Tables 12-14). New military aid agreements in
1970 were more than double those for 1969 and
larger than for any year since 1964. The USSR
provided about $870 million, or more than 95% of
the total extended, and East European countries
the remainder. Most of the East European aid
went to Syria, under credits extended by Czecho-
slovakia and Poland for ground equipment and
ammunition, to Libya under a Czech credit for
ground equipment and to the UAR under a Hungarian
agreement for antiaircraft guns. Bulgaria also
extended a $2 million credit to Yemen for small
arms and ammunition.
The Arab countries of the Near East again
received the largest share of the total aid ex-
tended. Soviet commitments to the UAR alone
were approximately $650 million, or more than
70% of total Communist military aid extended in
1970. The USSR signed its first arms agreement
with Libya -- for an estimated $40 million of
ground forces equipment -- and concluded a $25
million agreement with Iraq for helicopters, sup-
port equipment, and spare parts. In other accords,
Moscow signed two additional agreements with Iran
totaling $150 million for ground forces equipment,
agreed to provide Burma with a large quantity of
small arms -- the first Soviet military agreement
with that country -- and apparently agreed to pro-
vide Somalia with additional jet.fighters and
ground equipment.
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Military Aid Extended by Communist Countries
to Less Developed Countries of the Free World a/
1970
Million Current US $
i
echoslovakia
C
Hungary
Poland
Communist
China
Total
USSR
Total
a
Bulgar
z
912
870
42
2
20
10
10
N.A.
0
0
0
45
40
5
0
5
Burundi
Negl.
Negl.
--
Libya
35
30
0
C!D
Somalia
10
10
--
East Asia
N.A.
N. A.
0
0
Burma
N. A.
N.A.
--
--
2
15
10
Near East and South Asia
867
830
37
Iran
150
150
Iraq
25
25
N.A.
Pakistan
N.A.
--
thern Yemen
S
5
5
10
ou
25
--
25
--
15
--
Syria
-
10
--
United Arab Republic 660
650
10
--
-
2
Yemen
--
2
2
a. Excludes downpayments and cash sa es.
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Drawings
By the end of 1970, Communist countries had
delivered nearly $6.3 billion of military aid to
24 less developed countries or about 85% of their
total commitments since 1955. Estimated deliveries
of $980 million for 1970 are the highest for any
year since the program began and more than twice
the annual average for the past three years. The
USSR accounted for all but 5% of the deliveries.
About $775 million of the total aid delivered
went to the Arab countries of the Near East of
which an estimated $670 million was delivered to
the UAR.
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Technical Assistance
Military Technicians
The number of Communist military technicians
in less developed countries during 1970 rose to
about 10,700, an increase of 50%, from an esti-
mated 7,100 in 1969 (see Table 17). Most of the
increase came from the USSR, while the number of
Chinese technicians rose from 325 to 545.
The heaviest concentration of Soviet personnel
was in the UAR where about 60% of the Communist
technicians were stationed. Their number doubled
to an estimated 6,500 in 1970.* Additional Soviet
advisers also arrived in Sudan and S ria
Most o e growth in the Chinese presence occurre
in Tanzania where technicians helped to construct
naval and air bases and to establish an air defense
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force. Only in India, Algeria, Mali, and Nigeria
were there major reductions in the number of tech-
nical personnel. In India the number of Soviet
naval technicians and production specialists
assigned to the MIG assembly plant declined by
some 150, leaving only about 300 Soviet and East
European military personnel. In Nigeria, with
the end of its civil war, the number present de-
clined to 50 from the 130 present in 1969, and all
Communist military technicians were withdrawn from
Cambodia following the March 1970 ouster of Prince
Sihanouk.
Military Trainees from Less Developed Countries
About 2,500 nationals from the less developed
countries departed for military training in Com-
munist countries during 1970 (see Table 18). These
departures brought to about 29,200 the estimated
number of military personnel from less developed
countries who have been sent to Communist coun-
tries for such training. Approximately 3,900 of
these still were being trained at the end of 1970
mostly in the USSR.
As in the past, most military trainees from
the less developed countries went to the USSR.
Their number rose to 2,200 in 1970 from 1,200 in
the previous year, while those going to Communist
China increased to more than 300 from only 15 in
1969. East European countries Pnrn1loa In ..,,._,
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Trade
After a four-year period of relative stagna-
tion, Communist trade turnover with the less
developed countries rose by 13% in 1969 to more
than $5.2 billion (see Table 19 and Figure 4).
Virtually all of this growth occurred in Soviet
trade, which, after hovering around the $1.7-$1.8
billion mark during 1965-68, jumped to $2.3 billion
of Soviet trade. Exports and imports shared
equally in the increase. Looking back to the
beginning of the decade, gains in Soviet-Third
World trade were even more significant, as Soviet
imports from these countries doubled and its ex-
ports more than tripled.
In 1969, for the first time since 1965, the
value of Soviet trade with the Third World ex-
ceeded Eastern Europe's, which remained at the
1968 level of about $2 billion. Though Eastern
Europe's exports fell slightly, its imports rose
to compensate for the decline. Communist China's
trade with the less developed countries rose from
about $700 million in 1968 to some $745 million
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in 1969; and its share in total Communist-Third
World trade remained at about 15%. The USSR's
share in the total rose to 45% from less than 40%
in the previous year, while Eastern Europe's
share declined to 40%.
The upsurge in Soviet-Third World trade in
1969 was a result of increases in its trade with
less than half a dozen countries, all of whom had
been major Soviet trading partners in the past.
The USSR's trade with Algeria, India, Iran, and
the UAR accounted for about 60% of the increase.
Soviet exports to Iran doubled as a result of a
sharp acceleration of Soviet aid deliveries, and
the UAR's total trade turnover with the USSR in-
creased by about 25% following larger Soviet pur-
chases of the UAR's expanded cotton crop and of
non-traditional Egyptian goods. The UAR's require-
ments for Soviet goods also increased. Algeria's
trade with the USSR rose as a result of larger
aid deliveries and larger exports to the USSR of
wine, iron ore, and petroleum, some of which was
diverted to other countries. The rise in Soviet
imports from India reflected the expanded pur-
chases of steel rails and other Indian manufac-
tures as part of an attempt to utilize Indian
plant capacity built with Soviet assistance more
fully and to draw down Soviet-held rupee balances.
Increases in Eastern Europe's trade with
certain less developed countries were offset by
reduced trade with other countries. Eastern
Europe's trade with the UAR, its second largest
trading partner in the Third World, underwent the
largest changes as East European exports dropped
by 30%. This may have been a reflection of
domestic restraints placed on Cairo's investment
program. Their imports, however, increased by
25% as Eastern Europe took larger quantities of
Egyptian manufactures and more of the UAR's larger
cotton crop. Eastern Europe's trade patterns with
other less developed countries remained fairly
constant except for sharp declines in exports to
Brazil and Greece. From a peak of $76 million in
1968, East European exports to Brazil declined to
$57 million in 1969. Eastern Europe's exports to
Greece declined from $84 million to $66 million
during the same period.
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COMMUNIST EXPORTS TO AND IMPORTS FROM
LESS DEVELOPED COUNTRIES OF THE FREE WORLD
VALUE OF TRADE, 1965-69
Million US $
35001
Cornm
Communist
China
Eastern
Europe
Eastern
Europe
Communist
China
* Including trade of Albania, Cuba, North Korea, North Vietnam, and Mongolia.
PERCENT DISTRIBUTION, 1969
TOTAL EXPORTS: 2.806
(Million US $)
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Communist China's trade with the-Third World
rose by some $50 million in 1969 to about $745 mil-
lion. Most of this increase was caused by the
sharp rise in its imports from Malaysia and.Singa-
pore, which accounted for almost 40% of China's
total imports from all the developing nations.
Direction of Trade and Relative Shares
Communist countries' trade with the less de-
veloped countries in 1969 was less than 10% of
their total trade, although the less developed
countries' share has more than doubled over the
past decade and a half, as shown in Figure 5 for
Figure 5
With Developed West
i96O 19A5 1969
USSR: FOREIGN TRADE, 1955-69
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the USSR. More importantly, Communist trade with
the developing nations has been concentrated in a
few selected countries -- mostly in the Near East
and South Asia -- and for some of these countries,
it has become a significant and growing share of
their total trade (see Table 20). Communist coun-
tries took more than 50% of the UAR's exports in
1969 and more than 30% of its imports. Some 20%
of the total trade of Ceylon and India was with
Communist countries.
Other less developed countries who conducted
an important share of their trade with Communist
countries included Iraq, which gets almost 25% of
its imports from Communist nations, and Pakistan
and Turkey, who conduct about 15% of their total
trade with Communist countries. The Communist
share of Syria's total trade tripled between 1968
and 1969 to account for more than 30% of its trade.
Of the African countries, only Sudan and Morocco
conducted more than 10% of their total trade with
the Communist countries.
The rapid rate of increase in trading rela-
tionships between Communist countries and some
major partners in the Third World is of particular
significance. For example, during the 15-year
period 1955-69 total Communist trade with India
rose from about $50 million to some $665 million.
UAR trade with Communist countries rose from $140
million to about $725 million during these years.
Other important, though less spectacular, increases
took place between the Communist countries and
Algeria, Greece, Iran, Malaysia, Pakistan, Singa-
pore, and Syria.
Commodity Composition of Soviet Trade
with the Less Developed Countries
There has been little basic alteration in the
composition of Soviet trade with the less de-
veloped countries in recent years. The most
important change in Soviet exports to the Third
World in 1969 was in the machinery and equipment
category (see Figure 6). The share of these exports
in the total was 54% in 1969, up from about 51%
in the preceding year. Most of the increase was
in complete plants, which rose by about $100 mil-
lion largely because of the acceleration of aid
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Figure 6
C/lET ECPORTS Tt AND IMPORTS FROM LESS
Commodi .tyOF THE FREE f, RLD
ED' COUNTRIES
~7!!EVEL~P Group
~y
EXPORTS
t168
Million US $
Food
Wood Products
Roped Ferrous Metals
Petroleum Products
Other Machinery and
- Equipment
*Bosed on data from Soviet trade yearbooks
IMPORTS
1968 1969
Raw Materials
Fuels
Food
deliveries to Iran and Turkey. The share for other
declined by small amounts*
major export groups
Identified changes in the commodity composi-
tion of soviet imports from the less developed
countries in recent years have been the reduced
'of raw materials as a percent of the
importance of food. Raw
total and the increased importance
materials comprised 44% of total imports in 1968
but were less than l%eOf the sence oft an increase of
erial
This occurred in the pr ute
aw mOn
more than 15% in the e artic ularlyl lueargofer r Soviet pur-
imports, reflecting P
chases of natural rubber and cotton fiber.
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the other hand, food purchases were valued at
$433 million, up from $323 million in 1968.
accounted for almost 39% of total Soviet importsY
from the developing nations.
37% in 1968 and 34% in 1967. This compares with
of food in the total stems mostly growing andrd
purchases of luxury-type foods, including fruits,
cn omporof of and tea. There was also a spurt i and natural f petroleum and petroleum products
gas, from 1.2% in 1968 to 2.7% of
total imports in 1969,
gory reflects the s The growth of this cate-
purchases of crude oilyand1naturalagas fromoviet
several countries in North Africa and the Near
East.
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II. Communist Activities
in Less Developed Areas, by Area and Country
Africa
Summar (see Figure 7)
African countries received almost 55% of total
Communist economic aid commitments to the Third
World during 1970 but only about 5% of new mili-
tary assistance. Most of the economic aid was
from Communist China whose commitment of $400 mil-
lion for constructing the Tan-Zam Railroad over-
shadowed all other Communist aid to Africa. China
also provided its first economic aid to Sudan and
$10 million to Guinea for budget support.
Apart from a $44 million credit to Morocco,
Soviet credits to Africa during the year were pro-
vided to implement economic accords previously
signed with Nigeria and Mauritius. Soviet project
activity was at its usual low level in most African
countries except for some acceleration in Algeria,
as work on a steel mill pressed forward. The USSR
initiated work in Guinea on the exploitation of
bauxite deposits, for which a protocol was signed.
Agreements were signed with a number of East Euro-
pean countries, with Algeria the principal re-
cipient of new economic aid from this source.
Communist agreements to provide $45 million
of military equipment to Libya were the only impor-
tant new military agreements concluded with Afric n
countries in 1970.
Algeria
Algeria's economic ties with the USSR and
Eastern Europe. were strengthened further during
1970 as Soviet deliveries of economic and military
assistance were accelerated and as East European
countries agreed to provide an estimated $75 mil-
lion of additional economic aid. Algeria estab-
lished diplomatic relations with East Germany in
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May, signed sizable new trade agreements with Bul-
garia and Poland, and received a commitment from
Romania for equipment and technical aid for
Algeria's oil and mineral industries.
Eastern Europe's new commitments of economic
aid in 1970 included: (1) a $40 million credit
from Bulgaria for agricultural and industrial
enterprises to be built under Algeria's Four Year
Development Plan that began in 1970; (2) a $14.1
million, 10-year East German credit* for a cast
iron and steel valve plant; and (3) a $20 million
industrial credit from Hungary. Contracts for 2
food canneries were signed under the latter agree-
ment. It carries a 10-year amortization period
and 2/% interest.
Construction activity increased on the 400,000-
ton Soviet-aided steel plant at Annaba. The plant,
whose construction was begun in 1968 under a $128
million Soviet credit extended in 1964, is now
scheduled to be completed in 1971. Construction was
begun on a mining and metallurgical institute at
Annaba and a glass factory at Oran, and progress
continued on several small irrigation dams, on
geological prospecting, and on the construction of
a mercury plant at Ismail scheduled to start opera-
tions in 1971. In spite of some discontent with
past Soviet assistance for oil and gas development,
four contracts for further Soviet aid to the in-
dustry were signed under the $100 million Soviet
line of credit extended in 1963. An additional
contract was signed in June for the delivery of
15 Russian oil drilling rigs. There was specula-
tion throughout the year that Algeria might cancel
its seven-year agreement, concluded in 1968, for
the annual sale of 5 million hectoliters of wine
to the USSR because of its resumption of wine
sales to France under a new annual accord.
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The reported value of credits extended by East
Germany during 1970 ranges between $50 million
and $200 million.
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Algeria continued to draw on credits provided
in 1963 by Communist China for water well digging
and the construction of several small dams and an
exposition hall. Agricultural projects with
Chinese aid were be un in Tebessa
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Guinea
The tempo of Communist aid activities in
Guinea was heightened during 1970 as some 200
additional Soviet technicians arrived to begin
work on the exploitation of bauxite at Kindia.
Work on Chinese aid projects also was accelerated.
The only new aid extended was $10 million provided
by China for budget support following the attack
on Guinea in November. The Chinese began work on
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plantation and refinery in Mandiana and completed
construction of an oil pressing plant and a power
transmission station at Mamou -- all under 1966
credits. Protocols signed with the USSR provided
for the initiation of work to develop bauxite de-
posits near Kindia and to construct a new 140-km
railroad between the Port of Conakry and the de-
posits. A 30-year contract signed with the USSR
late in the year provided for annual exports of
almost 2 million tons of bauxite from Kindia to the
USSR. The Soviet Union also delivered small arms
and ammunition under an old military agreement, and
Communist China delivered jeeps and explosives.
Reports also indicate that some Soviet arms were
,received by the Portuguese liberation organization,
the African Organization for the Independence of
Portuguese Guinea and the Cape Verde Islands (PAIGC).
Nigeria
Following the settlement of the civil war with
Biafra early in 1970, the Nigerian Federal Military
Government turned more to its traditional Western
sources for military equipment and training.
Though it continued to accept delivery of some
spare parts and ammunition from the USSR, Nigeria
canceled or modified military contracts still
outstanding with Communist countries, Nigeria's
principal supplier of offensive weapons during the
civil war. The end of the war, however, did not
affect Nigeria's economic relations with Communist
countries. Both the USSR and Nigeria were anxious
to implement the iron and steel accord of 1968.
As an important step in that direction, Moscow
extended its first credit to Nigeria ($6.7 million)
for further exploratory work in locating an indige-
nous raw material base for the proposed plant.
This work presumably will be on a more extensive
scale than that undertaken in 1968 which failed
to find ore and coal of suitable quality.
Nigeria's relations with East European coun-
tries expanded slightly during 1970 with the
signing of economic, scientific, and technical
cooperation agreements with Poland and Bulgaria.
Poland conducted a feasibility study for a sugar
plantation and an oil crushing plant during the
year and provided equipment for two textile mills --
all presumed to be under commercial contract.
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Joint ventures between Nigeria and Poland also
were mentioned as a possible area for cooperation.
Romania completed a feasibility study for a $16.8
million woodworking complex in Nigeria, but no
action was taken on its proposals.
Somalia
oma is an Communist China signed
new protocols to the 1963 Chinese economic credit
during 1970. They provided for the construction
of a highway and cigarette and match factories
and for expanded agricultural assistance. Chinese
technicians arrived to survey for the highway. A
cooperation agreement for agricultural development
and mineral exploitation was signed with Bulgaria,
and discussions were held with East Germany on
possible economic assistance and diplomatic recog-
nition.
Sudan
Sudan's revolutionary government strengthened
its grip on the country's economy in 1970 through
the nationalization of most domestic enterprises
and the establishment of a government trade
monopoly. Sudan's anti-Western and anti-Israeli
foreign policy stance has led to increased re-
liance on Communist countries both for military
and economic aid. Several new aid agreements were
concluded and aid commitments previously made by
a number of East European nations were renewed.
Communist China extended its first aid to the Sudan
in June, a $41.6 million interest-free loan for
industrial use and roadbuilding. The credit, which
is to be used during 1970-79, is repayable in
Sudanese commodities over a 10-year period begin-
ning in 1986. Sudan and China also signed a trade
protocol calling for trade to increase by 20% in
1970. North Korea reportedly extended $11.4 mil-
lion of credits, on easy terms, for industrial
enterprises and for training agricultural techni-
cians.
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A high-level Sudanese delegation that went to
Eastern Europe received assurances from Bulgaria,
Czechoslovakia, East Germany, and Hungary of $37
million in aid for 30 agricultural and light in-
dustrial projects included in Sudan's Five Year
Development Plan (1970-75). In addition, Poland
offered an undisclosed amount of aid for a sugar
plant, agricultural machinery, and roadbuilding
equipment. Only Hungary's commitment to provide
$10 million of credits represented new aid, its
first to Sudan. The rest are obligations of
earlier commitments. The five East European coun-
tries also agreed to double their trade with Sudan
(which, with Romania, totaled $35 million in 1969)
and to increase their purchases of Sudanese cotton.
Sudan announced in June that the USSR had
agreed on the implementation of the Ar-Rahid irri-
gation project, although Sudan has continued to
seek IBRD aid for the project. Soviet equipment
and technicians began to arrive in November for
mineral prospecting in the Red Sea under credits
extended in 1969. The USSR also delivered MIG-21s,
helicopters, medium tanks, armored personnel car-
i
i1G.Ls, CL.L
lleLy, and
a 1968 arms acrrr-emPnt
Tanzania
In 1970, Communist China greatly expanded its
economic aid commitments to Tanzania and became
Tanzania's only significant source of military aid.
Tanzania and Zambia became the major targets of
Communist China's aid effort in the Third World
with the extension of $401.2 million of interest-
free credits to these two countries for con-
structing the 1,100-mile Tan-Zam Railroad (from
the Zambian Copperbelt to Dar es Salaam) and with
the dispatch of approximately 4,100 technicians to
Tanzania to start work on the railroad. This was
the most important development in Communist-Third
World economic relations during 1970 and repre-
sented the largest amount of aid ever provided by
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a Communist country to a single project in the
less developed countries. The Chinese credit,
which will be divided equally between Tanzania
and Zambia, emerged from a September 1967 agree-
ment with Tanzania and Zambia to provide aid in
constructing the railroad. The credit is sched-
uled to be drawn down over 10 years, retroactive
to 1 January 1968, the date on which the survey
began, and is to be repaid over 30 years beginning
in 1983. The agreement provides also for the
import of Chinese commodities under the credit to
be sold to generate local currency needed in
Tanzania to cover local construction costs.
Construction of the railroad began in April
although it was not inaugurated formally until
October.
Communist China continued its aid undertakings
in Tanzania (including Zanzibar) under credits
extended in 1964. These credits, which were to
expire in 1969, were renewed for an additional
five years. Communist China provided new radio
antennas to the station at Dar es Salaam, and
completed well drilling and construction of
storage facilities on Zanzibar and a hospital
in Pemba. The Chinese announced that they would
construct several new projects in Zanzibar, prob-
ably under the 1964 credits. These included a
cigarette factory, a saw mill, a brick factory,
a rum distillery, a sports arena, and a school
for medical technicians. Tanzania's trade with
China also may have shown gains in 1970. During
the first five months of the year, imports
tripled and exports were twice as high as in the
first five months of 1969.
Relations between Tanzania and the USSR were
maintained at the low levels of previous years,
although the Soviet geological survey and teaching
programs expanded slightly. In early 1970 the
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Zanzibar government ordered the removal of all
East German personnel and aid equipment because
of dissatisfaction with their aid activities on
the island. Nevertheless, a new trade agreement
and a scientific and technical cooperation agree-
ment were signed between East Germany and Mainland
Tanzania during the year.
Zambia
Zambia shared equally with Tanzania in the
Chinese credits provided for the construction of
the Tan-Zam Railroad. The increase of Chinese
personnel and materials, especially Chinese goods
to generate funds for defraying local construction
costs of the railroad, will tend to enlarge the
limited economic relationship that Zambia has
maintained with Communist nations heretofore.
During 1970 the Chinese delivered radio trans-
mitters under a 1969 grant and continued work
on the 394-mile Lusaka-Mongu road surfacing
project.
A Soviet economic delegation was in Zambia
in May to discuss the status of the $5.6 million
credit extended in 1967. With only minor drawings
on the credit, and its utilization period about
to expire, the delegation is believed to have
renewed the agreement. Accords were signed with
Romania to expand trade and economic, technical,
and scientific cooperation. The Romanians were
to prospect for oil and provide technical services
in agriculture and copper mining.
Other African Countries
The Central African Republic (CAR) signed an
agreement on economic and technical cooperation
with the USSR in July calling for feasibility
studies for a hydropower station, for mineral
prospecting, and for the supply of machinery for
cotton growing. The USSR also agreed to build a
maternal and child health center as a grant.
President Bokassa's trip to Bucharest in July re-
sulted in economic, scientific, and technical
agreements with Romania. East Germany and the CAR
established diplomatic relations during 1970 and
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m trade agreement as well aa s
concluded a long-ter and cultural accords.
scientific, technical,
established diplomatic relations with Czec o-
CAR es and Albania.
Slovakia during 1970 were
Soviet activities g Eoti aa-t onsisfor expanding
ti
d for imple-
confined largely to neg
the Soviet-bu1t Assab million oil refinery an
of credit s sti ll not
extended in
me3 draw ,ting the $85 million credit rolong OSSR to drawn under the $100 Ethiopia also askedthncurred under this
a ment period for debts uested that $35
the rep Y 20 years and req n agricultural
credit from 12 to lied to a Construc-
Valle
million of sthe cchem e neaeenear tithe applied
settlement y. a
tion was i ech-aided projects,
two Cz
nitiated on
at Addis and a hide processing
rubber tire plant
plant at Mojo?
cultural accord with USSR signed a ension of
in Jul nd lifted the sutPading partners in
colS with its six former new economic or
Eastern Europe. It received no the year, nor
ommitments during
eements.
r
military aid C
Were deliveries made under old ag
elations
its r
ed to strengthen a and
ited Libya
i
s
The USSR mov experts v
Soviet oil etroleum went to
with Li_. b;Z_a? concerned with
Libyan officials
discussions.
the USSR for
were
e
t countr
dy to
ea
i s relations with Communis
Ma h they were ready
althoug agreed to a
limited duringivities. The USSR agMali's $45
d
resume aid on the repayment of
year moratoriufor economic aid. The Soviet-aide
million debt
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cement plant at Diamou was
and the Chinese-built shoe inaugurated
transmission center were actor in June,
Protocol with the d and radio
USSR, signed in complete. A trade
called for a 50%
signed in February,
during 1970, increase in Malian-Soviet trade
In July, Mauritius
eries agreement with thaa pproved a revised
iplled out t USSR. This a fish-
oh the tell a greater detail the provisions
$5 million
69 greement, made available estimated
$5of credits for developing an toial
fishing industry in Mauritius. a national
be made over a 10-year Repayment is to
vision of goods and period through the
pro-
Antarctic services to the Pro-
biAnta cti fishing fleet, operatin
Mauritius.
g out t o S of t
of
Morocco received
in 1970 r machinery a $44 million Soviet credit
agreement was reached and equipment imports
third unit for the for the construction ofaad
under construction with et assistance.
currently
Morocco
Morocco and the h Soviet assistance,
of the USSR agreed to reallocate
mill pt 1966 Soviet credit for $18'7
trio plant lalur built at Alt a lace ofec-
gical complex and teal, in
Prise
prise originally planned. lead and zinc enter-
zinc t
a new In October
Berlio oncl t trucks assembled to sell Morocco
China over ntbled in Morocco to communist
help to reduce theydeficitlon' These sales should
account with Communist China. Morocco s
clearing
Sen--.._.e received the
fishing vessels that first three of ten
it had
USSR under credits ext
ended ordered from the
assistance extended to in 1965. Under
preparation was be U ands in 1964, site Soviet
Lira, and the construction of spinning mill at
at Tororo was completed, a technical school
meat of a rice Chinese aid for
and may in Kimbina Swam develop
p d
and0. y be expanded under a continued
The only significant Communist protoosigned in
delivery to Uganda in military
jet trainers. 1970 was seven Czech L-29
vided some technical tassmilitary istance ptosthe Ugandan
forces. also pro_
the U
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EAST ASIA*
Beyond establishing formal trade relations
with several East Asian countries, Communist eco-
nomic activities in this area were on a very
limited scale during 1970. There was no new
economic aid, and only a negligible amount of new
military aid was provided. Drawings on previous
economic aid commitments were minor.
The most important development in Burma's
relations with Communist countries was its resump-
tion of diplomatic and trade relations with Com-
munist China, suspended in 1967. The USSR con-
cluded a small agreement for infantry weapons.
East Germany reportedly delivered the last of the
equipment for a printing plant at Wazi, constructed
under a 1966 credit. A Soviet team sent to survey
the Mawchi mines, under an agreement signed last
year, refused to begin work until hazardous condi-
tions at the mines are remedied.
Following the ouster of Prince Sihanouk in
March, Communist countries suspended military aid
to Cambodia. Still undrawn is $3 million in
Soviet and Chinese Communist credits extended in
1964, and Chinese aid extended in October 1969.
The last Communist military equipment under the
aid program was delivered in the second half of
1969. The Czech-built ordnance plant, Cambodia's
only such factory, was stripped of its equipment
and destroyed by retreating Cambodian forces late
in 1970.
Indonesia's relations with Communist countries
during 1970 were highlighted by the resolution of
its longstanding debt repayment problem with the
USSR and the payment in December of the first in-
stallment due on this debt. An agreement signed
in August provides for Indonesian repayment of
its $750 million long-term economic and military
debt to the USSR over 30 years beginning in
December 1970 but allowing $75 million of these
payments to be deferred during the initial eight
years, until 1992-99. This deferred portion will
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carry interest of 4% and payments of interest will
begin in 1992. Interest that accrued prior to the
1966 rescheduling will be paid off in 15 install-
ments, beginning in 1985. The USSR also offered
to aid in the development of Indonesia's tin and
bauxite industries and agreed to send a technical
team to survey the Soviet-aided steel plant and
superphosphate project, whose construction was
stopped in 1965. There were repeated delays in
initiating the survey because of Indonesia's objec-
tion to its size and cost. Indonesia did not
reach debt settlements with its East European
creditors during the year, but some activity con-
tinued on East European projects. The Makassar
shipyard and Tjot Girek sugar mill built with
Polish assistance were completed. The USSR did
not deliver any spare parts for Communist military
equipment held in Indonesia's inventories, although
some $5 million still remains to be drawn for that
purpose under the 1967 agreement.
Malaysian delegations visited Czechoslovakia,
Hungary, Poland, Romania, and the USSR during the
year to discuss the expansion of economic relations
with these countries, and in November Malaysia
signed its first trade agreement with Poland. At
the end of the year, Malaysian officials still were
considering a Soviet offer to provide machinery
and equipment for about 30 joint ventures in
Malaysia.
In July, the Philippine Chamber of Commerce
signed a trade agreement with Bulgaria, the first
with a Communist country. The agreement envisages
the exchange of $10 million in goods during 1970-
71. The Chamber of Commerce continued to promote
the concept of trade relations with Eastern Europe,
and Czech, Hungarian, and Romanian delegations
visited the country during 1970.
In July a Soviet delegation arrived in Singapore
to discuss the establishment of joint ventures an
in September the Prime Minister visited Moscow for
trade talks. An agreement for servicing and re-
pairing Soviet vessels in Singapore was still
under consideration at the year's end. In December,
Singapore permitted the Bank of China access to
interbank clearing facilities, a privilege suspended
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in May 1969 because of the Bank's refusal to pay a
fine for contravention of liquidity requirements.
Thailand signed its first trade agreement with
the USSR in late December, after three years of
negotiations. Trade between the two countries
previously had been carried on through third
countries. Trade agreements with Bulgaria and
Romania also were signed.
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Summary
There has been no marked growth in economic
relations between Latin American and Communist
countries. For the most part, the interchange
between them still is confined to diplomatic and
trade promotion activities, and most Communist
credits to Latin American countries have been
extended to promote equipment sales. Generally,
little use has been made of these credits. During
1970 some $115 million of new credits were made
available to these countries, roughly half of
which were designated for Peru. Bolivia, Costa
Rica, and Venezuela received their first credits
from a Communist country. The only other Latin
American country to receive Communist economic
aid was Uruguay, to whom Hungary and Czechoslo-
vakia made commitments of $10 million and $5 mil-
lion, respectively.
Bolivia
Communist countries renewed their efforts to
establish closer economic ties with Bolivia in
1970. The most important development was
Bolivia's acceptance of its first economic aid
from a Communist country, a $27.5 million credit
from the USSR for the purchase of mining and
metallurgical equipment. The credit is repayable
over 10 years and carries 3% interest. Bolivia
also signed its first commercial agreement with
the USSR for the sale of 3,200 tons of tin, for
which the USSR will pay $8 million in hard currency.
A trade agreement and an economic cooperation
agreement were signed with Poland, but the details
of the agreements are not available. Hungary
agreed to build a copper processing and a smelting
plant and offered credits, possibly for these
plants. Czechoslovakia expressed interest in
providing an antimony smelter to Bolivia, for which
it had offered assistance originally in 1961.
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Brazil
Brazil's relations with Communist countries
in 1970 were highlighted by (1) a contract be-
tween Brazil and the USSR for the purchase of
$12.5 million of equipment for the Capwan hydro-
electric plant in Sao Paulo State, presumably
under credits extended in 1966, and (2) an accord
for continued Soviet purchases of Brazilian coffee
over the next 5 years. Czechoslovakia agreed to
provide a $10 million powerplant for Sao Paulo,
probably under 1961 credits, and equipment for a
manganese ore homogenizing plant. East Germany
and Hungary completed deliveries of some $30 mil-
lion worth of equipment for Brazil's universities
under agreements concluded in 1966 and 1967, and
they were negotiating further sales of this
equipment at the end of the year. Poland delivered
the first of 10 cargo ships under a 1962 agreement,
and Romania extended the drawing period of a 1961
credit for petroleum equipment.
Costa Rica
A $10 million Soviet credit for the purchase
of roadbuilding machinery and equipment is in-
cluded under Costa Rica's first trade agreement
with the USSR, signed in June. The trade agreement
also provides for reciprocal trade missions and
future coffee sales to the USSR. These sales in
1970 totaled about 6,000 metric tons, valued at
$6 million to $7 million. Costa Rica established
diplomatic relations with Bulgaria and Hungary,
announced its intention to exchange ambassadors
with the USSR, and prepared draft trade agreements
with Bulgaria and Czechoslovakia. Czechoslovakia
offered $1 million in credits for machinery and
equipment, and Costa Rican officials expressed
interest in a Romanian proposal to assist in petro-
leum development, port construction, and bauxite
exploitation. A Hungarian trade delegation, which
visited Costa Rica, failed to conclude an agree-
ment. A Polish commercial office closed in May
after several years of unprofitable operation.
Peru was the most important Latin American
recipient of Communist economic.aid during 1970.
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Agreements, totaling $53.3 million, included Peru's
first credit from the USSR ($28.3 million for
agricultural, mining, and industrial machinery
and equipment) and $10 million in credits from
Poland and $15 million from Hungary. The Soviet
credit is to be repaid over ten years, partially
in Peruvian industrial goods. Poland offered
assistance for exploiting coal and phosphate de-
posits, constructing copper and zinc refineries,
and providing fishing vessels and other equipment
for Peru's fishing industry, while Hungary offered
an antioxidant plant for the fish-meal industry.
Romania and Peru signed an agreement to invest
$1 million each to establish a tractor assembly
plant in Peru. In September Peru purchased some
$30 million worth of Romanian oil equipment and
a $5.5 million mobile smelter to process low-
yield mineral ores. Romania also offered to build
a zinc refinery and to establish joint companies
to exploit and process copper.
Other Latin American Countries
Argentina ratified trade agreements with Poland
and Romania during 1970, Czechoslovakia offered
assistance to Argentina's textile and chemical
industries, and the USSR expressed interest in
assistance for port construction and fish process-
ing installations.
Colombia and Poland signed a three-year, $76
million trade agreement and reportedly signed an
economic and technical assistance agreement. The
USSR completed its deliveries of 98 trolley buses
under credits extended in 1968.
The Allende government, in its initial steps
toward expanding Chile's relations with Communist
countries, reopened trade and diplomatic relations
with Cuba and trade relations with North Korea.*
Czechoslovakia extended the utilization period for
a $5 million credit, made available to Chile in
1968, which had not been drawn. In September,
Chile signed an agreement with Romania to estab-
lish jointly owned copper facilities in each
At the beginning of 1971, Chile established
diplomatic relations with Communist China.
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country. Chile reportedly will provide 35,000-
40,000 tons of copper annually for the Romanian
plant.
Venezuela received its first credit from a
Communist country in 1970, a $10 million bank
agreement with Czechoslovakia for the purchase
of capital goods. Venezuelan officials also
discussed trade and economic cooperation with
Bulgaria, Hungary, and Poland.
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NEAR EAST AND SOUTH ASIA
Summary
Moscow's expanded political interests in the
Arab countries of the Near East led to an inten-
sification of the Soviet involvement in the area
during 1970. The major preoccupation was with
military assistance, as the USSR made huge new com-
m ment
s and delivered record amounts of materiel
New commitments of economic aid to N
E
ear
ast-
South Asian countries totaled about $400 million,
or about 35% of the total extended in 1970. Com-
munist China was the most important dono
I
r.
t
concluded agreements with Pakistan, Southern Yemen,
and Ceylon to provide more than $250 million. The
USSR extended economic aid totaling about $85 mil-
lion to Iran, Iraq and Ceylon, but Soviet economic
relations with Iran showed the most important in-
crease. Large deliveries of equipment were made
for projects being constructed with Soviet assist-
ance and a Soviet-Iranian agreement signed in 1970
set forth a 15-year plan for cooperation between
them. This included, among other things, a pos-
sible second gas pipeline from Iran to the Soviet
Union, increased Soviet participation in oil ex-
ploration, an expansion of the steel mill being
constructed with Soviet aid, and joint Soviet-
Iranian undertakings for producing petrochemicals.
Of particular importance to the Soviet aid pro-
gram was the completion in July of the Aswan Dam,
a 10-year effort that involved $325 million of
Soviet credits and thousands of Soviet technicians.
Implementation of previously extended aid lagged
from the high levels of the mid-1960s in India
and the UAR, while deliveries to Iran rose sharply
and surpassed deliveries to any other less de-
veloped country. Turkey also began a more rapid
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drawdown of credits, and deliveries to Syria and
Iraq showed small gains.
New agreements concluded between Near Eastern
and East European countries emphasized again the
importance of oil in their long-range planning.
As in the USSR's 1969 agreements with Iraq, which
included repayment in oil for the first time, al-
most all of the 1970 accords with Eastern Europe
included this proviso. Moreover, a preliminary
agreement between the USSR and Iran might mean
some additional Soviet assistance for future oil
exploration in Iran. Communist trade with the
area during 1970 probably increased. Protocols
signed during the year were intended to expand
this trade over previous levels.
Afghanistan
Apart from a small Soviet grant for establishing
three veterinary laboratories and a $2.8 million
credit for the Afghan Airlines, the USSR confined
its aid activities in Afghanistan during 1970 to
the implementation of old agreements. Protocols
under the 1968 agreement called for geological
surveys, valued at $2.1 million, a $5 million 40-
mile road from the Puli-Khumri-Shibarghan Highway
at Nayebabid to Hairatan, and a $1.9 million ex-
pansion of the electric and fertilizer plants at
Mazar-i-Sharif. Installation of equipment at the
nuclear research reactor in Kabul and at the tech-
nical training school in Jangalak and construction
of the mother and child care center at Kabul were
completed. In April a Soviet survey was agreed
to for gas and petroleum in northwestern Afghan-
istan. Work also was completed on a lapis lazuli
cutting plant in Kabul and a fish breeding farm
in Darunta, both under the $28 million Chinese
credit extended in 1965. Bulgaria, Czechoslovakia,
and the USSR signed trade protocols with Afghan-
istan. The protocol with the USSR called for
natural gas exports to increase by 25% in 1970 to
$9 million.
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Ceylon
The victory of Mrs. Bandaranaike's leftist
United Front Coalition in the May 1970 election
in Ceylon was followed by the establishment of
diplomatic relations with East Germany, North
Korea, North Vietnam, and the Provisional Revolu-
tionary Government of South Vietnam and by the
extension of new economic aid by Communist China
and the USSR. The new Chinese credit of $8.9
million is to cover shipments of 100,000 tons of
rice, which is in addition to China's commitment
of 200,000 tons under the 1970 rice-rubber agree-
ment. The new interest-free credit is repay-
able mainly in rubber, over 10 years beginning in
1972. Earlier in the year, plans were announced
for assistance for a spinning and weaving mill.
A $3.2 million grant for construction of the
Bandaranaike International Conference Hall was
provided by China, which had agreed to undertake
its construction in 1964. The earlier agreement
had lapsed, however, following the demise of
Mrs. Bandaranaike's Government. The USSR extended
an $8.4 million credit for the purchase of
machinery and equipment, which also is to be re-
paid over 10 years and carries interest of 3%.
Although helicopters originally were included in
the list of items covered by the Soviet credit,
these were later excluded. The Ceylon government
approved the feasibility report prepared by the
USSR for expanding the Soviet-aided Homogama-
Oruwala steel mill to 60,000 tons, from its present
annual capacity of 35,000 tons. Presumably credits
of somewhat more than $7 million, remaining to be
drawn under the 1958 credit of $30 million, will
cover the foreign exchange costs of the expansion.
India
Economic relationships between India and Com-
munist countries improved somewhat during 1970 as
the USSR appeared to reduce its former pressure
on the Indian Government to accelerate project
activity. Nevertheless, no new Communist economic
credits were extended, the reduced level of
project activity noted in recent years continued,
and India failed to bring a number of completed
projects up to profitable levels of operation.
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The aid relationship continued to be limited
because India's current development plan reduced
the planned level of outlays for new heavy indus-
trial projects, especially of the type that the
USSR usually has provided, and because India is
able to fill a major part of its requirements for
these projects from indigenous production. The
result has been a failure of drawings on Soviet
aid to return to the high levels of 1964-65.
Still outstanding are some $250 million of pre-
viously extended credits, that have not been allo-
cated to specific project use because the Indian
economy cannot use them for building the heavy
industrial projects for which they were intended.
The most important development in Soviet-Indian
economic aid relations was the signing of a proto-
col, under the 1966 Soviet-Indian agreement, to
allocate $61 million for expanding the capacity
of the Bokaro steel mill to 4 million tons. The
Bokaro plant, the largest Soviet-aided plant cur-
rently under construction in India, again ex-
perienced delays, mostly because of local supply
shortages. The scheduled completion date for the
first stage of operation at 1.7 million tons is
March 1973. The expansion of the Bhilai plant to
3.2 million ton capacity is underway, and the
coal washery at Bihar was commissioned in mid-1970,
a year and a half behind schedule. Soviet-assisted
off-shore oil drilling operations, shut down after
they encountered mechanical difficulties, were not
reactivated. Exploratory drilling in the Cauvery
basin, under way since 1963, also has not been
successful and may be abandoned.
The second stage of the Czech foundry-forge
plant at Ranchi was commissioned during 1970, and
the grinding machine tool plant at Rajastan went
into partial production. Construction of a re-
finery at Haldia with Romanian assistance got
under way at the end of 1969. Progress also was
made on several Polish-aided projects, and an
agreement was signed for joint Polish-French con-
struction of a fertilizer plant at Haldia.
Trade between India and the Communist coun-
tries is believed to have increased again in 1970.
During 1 April 1969 - 31 March 1970 the USSR re-
placed the United Kingdom as India's second most
Approved For Release 200; 'MR:-RDP90-00596R000600020006-8
 Approved For Release 2005/($1C ]ATDP90-00596R000600020006-8
important trading partner. A new five-year Soviet-
Indian trade agreement, signed in December, provides
for an annual increase of 15% in India's exports to
the USSR. These increases are expected to result
from the Soviet agreement to accept more industrial
products from Soviet-assisted plants. The agree-
ment also includes provision for increased Soviet
exports of nonferrous metals and provides for
Soviet-Indian joint cooperation in third countries.
Bulgaria, Hungary, and Poland signed trade protocols
with India, and Hungary placed a large order for
freight cars.
25X1
Iran continued to expand its economic relations
with the USSR and Eastern Europe during 1970. Of
particular significance during the year was an
agreement signed in October that set forth the goals
of Soviet-Iranian economic cooperation over the
next 15 years. The agreement provided $44.4 mil-
lion of credits for developing Iran's public and
private sector industry and a $10 million credit
for establishing eight vocational training centers
in Iran. It also included the following: (1) Soviet
cooperation in drilling for oil in the Caspian
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and central province areas, for which agreements
would be exchanged later, (2) a second gas pipeline
to be built from Iran to the USSR, pending the
results of an economic feasibility study, (3) ex-
pansion to 4 million ton annual capacity of the
Soviet-aided steel plant currently being built at
Isfahan, if studies demonstrate its feasibility,
(4) the implementation of plans in Iran to supply
Soviet and Iranian needs for petrochemicals through
joint ventures, and (5) the establishment of thermal
energy units and chemical fertilizer plants based
on the use of natural gas.
The rapid drawdown of Soviet economic credits
continued in 1970 as Soviet aid deliveries to Iran
exceeded those to any other less developed country
during the year. The most significant achievement
was the completion of the 690-mile Iran Gas Trunk-
line (IGAT) from Southern Iran to Astara on the
Soviet border for which the USSR is contributing
equipment and technical services, valued at $77 mil-
lion. While Soviet equipment still is being pro-
vided to expand the pipeline's capacity, the USSR
received its first gas imports through the pipeline
in October. These imports are scheduled to rise
to almost a billion cubic feet per day by
with a total annual value of $70 million. Gas
deliveries to the USSR were interrupted briefly
following an explosion during welding operations
on the pipeline in mid-December. Two hydroelectric
stations and a diversion dam being constructed as
a joint Soviet-Iranian project on the Aras River
also were completed in 1970. Completion of the
storage dam at the project is expected in 1971.
In September the blast furnace for the steel mill
near Isfahan was completed 18 months ahead of
schedule and the steel mill is now expected toeos
into operation by mid-1971. Satisfactory prgr
also was being made on most other Soviet projects.
The number of Soviet technicians in Iran rose by
45% during the year, to 1,585.
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Largely because of Eastern Europe's growing
interest in Iranian crude oil to supplement supplies
from the USSR, East European countries have ex-
panded their economic ties with Iran over the past
several years. As a result, Iran has become the
second largest recipient of economic aid extended
by this group of countries. Nevertheless, progress
in implementing these commitments was relatively
slow in 1970. The Czech-aided machine tool plant
at Tabriz, however, was on schedule, and the first
stage of the Romanian tractor plant at Tabriz was
completed. The repayment terms of some $50 million
of credits extended by Hungary in 1965 and 1968 were
renegotiated in July. The required downpayment
was reduced to 10% from 20% on both credits and
the repayment period extended from 8 to 10 years
on the 1965 credit and from 10 to 12 years on the
1968 credit. Reports indicated that Bulgaria would
be ready to extend $20 million of credits, but there
was no confirmation that an agreement was signed.
Except for East Germany, all of the East European
countries signed trade agreements or protocols with
Iran. All included oil as a barter item. The USSR
and Iran also signed a five-year trade agreement in
July to become effective in 1971 when the present
agreement expires.
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 Approved For Release 20"& ' IA-RDP90-00596R000600020006-8
Iraq
Although political relations between Iraq and
the USSR were strained in 1970, several new Com-
munist economic aid agreements and an arms agree-
ment with the USSR were signed during the year,
and deliveries of economic and military equipment
continued. Iraq received new economic aid commit-
ments totaling some $65 million. These included
Soviet credits of $22.5 million, extended for
agricultural equipment, workshops, and a training
center, presumably with a five-year repayment
period and possibly requiring a downpayment.
Iraq also received a $30.8 million credit from
Hungary for the purchase of machinery and equip-
ment. The repayment terms of the Hungarian credit
are not known except that 70% of the total will
be repaid in crude oil. Bulgaria extended a $12
million credit that is to be repaid in crude oil
over an eight-year period.
Equipment deliveries to the North Rumaylah
oilfields began during 1970 under credits extended
by the USSR and Hungary in 1969, and pipe arrived
from France in November for the Rumaylah-Fao pipe-
line to be built with Soviet assistance. A Soviet
fisheries team went to Iraq to study fisheries
development possibilities, and an East German dele-
gation undertook studies for a shipyard at Basra.
25X1
Pakistan
Moscow's suspension of military deliveries
under the Pakistani-Soviet 1968 arms accord remained
in effect during 1970. Pakistan received its only
new major economic aid from Communist China -- a
$200 million interest-free credit to Pakistan's
Fourth Five-Year Plan (1 July 1970-30 June 1975)
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 Approved For Release 2005/08a R'bP90-00596R000600020006-8
in November. The credit carries a 10-year grace
period, after which repayments will be stretched
over 10 years. The new aid, which is nearly double
China's previous total commitments to Pakistan, also
makes China the largest Communist donor of economic
aid to Pakistan. The credit will cover commodity
imports and seven projects, including expansion of
the heavy machine building plant at Taxila, a bridge
over the Brahmaputra River, a project for hard
rock mining, a limestone and cement plant, a pig
iron plant, and a prefabricated housing development.
During 1970 two projects (a heavy industrial complex
at Taxila and an ordnance plant at Dacca) were com-
pleted under credits extended in 1964. In military
deliveries, Communist China provided MIG-19 jet
fighters, tanks, and artillery under a 1969 agree-
ment.
A Soviet offer to provide assistance for build-
ing a steel mill at Karachi was repeated following
President Yahya Khan's visit to Moscow in June.
Though Pakistan approved the feasibility study for
the 1-million-ton plant, an agreement for Soviet
aid was not consummated.* Meanwhile, there was
limited progress in using outstanding Soviet
credits. In spite of the completion of feasibility
studies, construction was not started on the elec-
trical equipment plants at Taxila and Chittagong
which will draw on some $22 million of credits ex-
tended in 1966. The thermal power station at
Ghorasal, however, was in the final stage of con-
struction. Romania extended a $9.5 million credit
to finance the export of railway cars to Pakistan.
The credit, Romania's first to Pakistan, is re-
payable over 10 years and carries 2.5% interest.
Southern Yemen
Communist China extended interest-free credits
of $43.2 million to Southern Yemen, repayable over
20 years. These credits were designated for
textile mills, agricultural machinery, and for ex-
tending the Umain-Mahfad Road to Mukalla, the
initial segment of which was to be built under
Chinese credits extended in 1968. Approximately
* In January 1971 the USSR extended a credit of
$208.8 million for building the plant,
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 Approved For Release 206N &M 2 'IA-RDP90-00596R000600020006-8
50 Chinese technicians arrived in Southern Yemen
during the year to begin work on projects under
these and earlier credits. The USSR began deliv-
eries of equipment for agricultural projects under
its $10.6 million credit, extended in 1969, and
delivered 2 trawlers under its fisheries agreement,
also signed in 1969. East Germany began surveys
for a glass factory and construction of two flour
mills. Romania undertook a geological survey.
Syria
In spite of strains in Syrian-Soviet political
relations during 1970, progress on economic aid
undertakings was accelera the flow of mili-
ntinued.
A July protocol to a 1957 economic agreement
provided for Soviet participation in several de-
velopment projects, especially for the oil industry.
At mid-year the foundations for the powerplant at
the Euphrates Dam were being laid, and some 600
Soviet technicians continued work on the Dam, the
largest Soviet project in Syria. A bridge over
the Euphrates River, part of the Latakia-Qamishli
Railroad project, was completed, extending the
railroad to Dayr Az-Zawr. The Chinese-aided cotton
yarn mill at Hama was scheduled to start production
before year's end, and the construction of two
East German flour mills and a Polish telephone
plant was completed.
Turkey
The major focus of Communist-Turkish economic
relations. during 1970 was on the implementation of
earlier Soviet economic assistance agreements. The
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 Approved For Release 2005/08/E6-'90-00596R000600020006-8
rate of drawdown on the $366 million of Soviet
credits extended in 1967 and 1969 for construction
of five industrial projects increased as work on
the iron and steel plant at Iskenderun got under
way and the sulfuric acid plant at Bandirma was
completed. Activity on other projects also ex-
panded, except for the Izmir refinery site where
labor difficulties disrupted construction. With
the heightened project activity, the number of
Soviet technicians rose almost fourfold to 175.
The USSR and Turkey also reached agreement on the
repayment terms for most of the credits extended
in 1969. Ten annual installments were allowed
for the repayment of $113.7 million of the credits,
and interest on this portion of the debt was set
at 2.5%. The remainder of the 1969 credits ($52.3
million) reportedly includes a $46.0 million
credit repayable over six years with no interest.
The repayment terms for the remaining $6.3 million
credit, allocated for commodity imports, are not
known.
A Turkish-Soviet highway transit agreement,
governing all passengers and commodities using cer-
tain designated routes in the two countries, was
signed in October. Although the agreement ex-
cludes transit of military cargo, Soviet UAZ-69
jeeps had been delivered via Turkey to Iraq in
August under a similar agreement with Bulgaria.
Turkey signed annual trade protocols with the USSR
and East European countries that called for further
increases in trade, but the planned level of trade
with its bilateral partners for 1970-71 was to
level off at the approximately 16% of Turkey's
total trade it had accounted for in 1969.
Nasser's January visit to-Moscow led to an ex-
panded Communist military involvement in the Near
East conflict during 1970 and the UAR's increased
dependence on the USSR for nolitira7 Ana eannnm;r.
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The most important eve
aid program during the year was the completion of
the Aswan Dam, the USSR's largest economic aid
c
new economii
undertaking in the Third World. No Communist countries,
aid was extended to the UAR by CoNo nne
and Soviet aid deliveries were at thesrelativelyly
low level of the past few years. was
Eas it an went
because of reduced delivries because Aswan
into the completion stage
development expenduHelwanlsteelomilleexpansian
The
pre-war levels.
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 Approved For Release 2005/08hff
was the only major Communist project under way in
1970. Among East European aid projects, a Czech-
aided crude oil distillation unit at the Alexandria-
Mex refinery was completed and a protocol was signed
in June for the construction of a petrochemical
complex in Alexandria with Czech assistance. Con-
struction of two East German aided textile plants
also was completed in 1970 and contracts were
signed for the construction of two additional plants.
Trade between the UAR and Communist countries
increased in 1970, possibly because of E's
larger cotton crop. During July 1969 June's
UAR trade with the West is reported to haveede970,
clined 7% while its trade with Communist countries
rose by more than 25%
.
Other Near East an a
Except for continuing Chinese aid to a hydro-
electric plant at Sunkosi, roadbuilding dominated
Communist aid activity in Nepal. China completed
the Katmandu-Kodari Road, with the 10-mile exten-
sion to Bhaktapur and the Katmandu-Pokhara Road
still under construction. About half of the 500
Chinese technicians in Nepal were employed on
roadbuilding projects. The Soviet-assisted Simra-
Janakpur Road (the only uncompleted Soviet aid
project in Nepal) was nearing completion at the
end of the year.
The only new Soviet assistance to Yemen in
1970 was a grant of 5,000 tons of wheat, valued
at $400,000. The secondary school built at San'a
under a 1969 Chinese grant was inaugurated in
September, and East Germany completed the Ta'iz-
Hudaydah portion of a telephone network that
eventually will link these cities with San'a.
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O.Ul
 Approved For Release 200 :F6lK-RDP90-00596R000600020006-8
Statistical Tables
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Table 3
Communist Economic Credits and Grants to Less Developed Countries
1954 - December 1970 , Extended and Drawn
Million Current US $
Reci Tent Countr
Africa
Total
2'4- 19 99
USSR
1.11?-5
Eastern
Europe
476
8
Communist
- China
8
Total
USSR
Drawn
Eastern
Eu
Communist
China
-
Algeria
C
38
.
30.6
653.1
363.8
92
ameroon
Centr
l
5.6
7
8
237.5
96.1
52
0
.5
1
a
African Republic
.
7.8
0
.
132.1
97
3
Chad
4.0
N
A
0
0
7
.
7.4
27
4
Congo (B)
2.2
.
.
2.2
N.A.
0
4.0
.
2.2
0.7
0
0
.
0
Cn
Ethiopia
44.2
13.9
5
1
0
0
0
0
2.2
Ghana
118.8
101
.
25.2
15
0
0
o,
Guinea
239.1
.8
93.0
17.0
104
1
0
.5
24.2
4.7
18
4
0
10.8
00
Kenya
308.9
199
7
.
42.0
59
.
5.8
0
6
.
29.7
79
.3
31.0
24
8
Mali
6.6
48.7
0
.5
152.0
73
8
.
3.5
Mauritania
139.3
63
7
17.9
6
8
.
27.3
50
9
.
22.6
5
.
3.8
0
.
Mauritius
8.0
3.3
0
3.0
87.9
45
6
3.0
Morocco
5.0
5.0
0
4.7
1.0
.
0
6.2
36.1
Nigeria
123.2
88.0
35
2
0
0
0
0
1.0
Senegal
20.7
6
7
.
0
13
2
0
0
Sierra Leone
6.7
.
6.7
14.0
0
0
.
0
8.0
0
5.2
0
Somalia
28.0
28
0
0
1
2
0
0
Sudan
89.9
.
63
0
0
.
1
1.2
0
0
Tanzania
175.0
.2
64
8
3.4
23.3
.6
48
5
1.6
0
0
T
281
.
68.6
41
.
38.6
3
2
unisia
.7
20.0
6
7
.6
17.6
17
4
.
6.7
Uganda
108.4
34
1
.
255.0
52
2
.
0.2
0
U
30
.
74.3
0
.
11
.
3
pper Volta
.6
15.6
0
26.3
17
3
.4
47.7
Zambia
3.2
3
2
15.0
6
7
.
9.0
0
223.0
.
5.6
0
0
0
217.4
.
0
4
1
2.8
0
0
0
3.9
0
877
0
.
0.5
0
.
374.0
338
0
3.6
Burma
Cambodia
69.5
15
4
.
165.0
444.5
136.0
166.4
142
1
I
d
134
.
28.6
25
.
n
onesia
.5
24.9
17
3
.5
44.7
13
7
Laos
671.5
332
2
.
92.3
905
.
5.5
25
5
1.5
.
1
5
292.1
47.2
307.
8
15.7
5.4
.
69
4
.
0
0
.
1
105.1
155.5
.
47
2
.5
1.5
0
.
0
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 ApprovedIFor Release 2005/08/12 : CIA-RDP90-00596R000600020006-8 f
Communist Economic Credits and Grants to Less Developed Countries, Extended and Drawn
1954 - December 1970
(Continued)
H
Recipient Country
Latin America
Argentina
Bolivia
Brazil
Chile
Colombia
Costa Rica
Ecuador
Peru
Uruguay
Venezuela
Near East and South Asia
Afghanistan
Ceylon
Greece
India
Iran
Iraq
Jordan
Nepal
Pakistan
Southern Yemen
Syria
Turkey
United Arab Republic
Yemen
Total
USSR
Eastern
Europe
Communist
China
642.1
277.4
364.7
86.0
44.3
41.7
27.5
27.5
0
330.6
90.0
240.6
59.8
54.8
5.0
7.5
2.5
5.0
10.0
10.0
0
10.0
0
10.0
59.3
28.3
31.0
41.4
20.0
21.4
10.0
0
10.0
7,936.1
5,281.8
1,967.7
686.6
741.1
700.2
12.9
28.0
144.6
39.0
52.5
53.1
7.7
7.7
0
0
1,993.5
1,611.8
381.7
0
1,010.3
578.3
432.0
0
533.0
331.5
201.5
0
N.A.
N.A.
0
0
85.8
20.8
0
65.0
647.0
266.5
73.5
307.0
94.3
13.1
26.0
55.2
439.6
233.3
190.0
16.3
390.5
371.2
19.3
0
1,680.9
1,010.0
565.2
105.7
167.8
98.4
13.1
56.3
11,875.1
7,045.7
3,147.2
1,682.2
Eastern Communist
Total- USSR Europe China
41.0
0
66.0
0.5
2.5
0
4.6
0.5
6.1
34.3
0
1.0
0
2.5
0
0
0
0
6.7
0
65.0
0.5
0
0
4.6
0.5
6.1
3,826.2
2,929.4
660.3
236.5
590.9
567.9
8.5
14.5
71.5
22.8
12.3
36.4
7.7
7.7
0
0
1,130.9
932.1
198.8
0
292.1
232.3
59.8
0
163.1
136.3
26.8
0
0
0
0
0
67.0
18.5
0
48.5
136.4
76.6
15.8
44.0
3.9
1.7
0.6
1.6
231.4
150.5
69.2
11.7
67.4
50.9
16.5
0
946.8
669.4
240.7
36.7
117.1
62.7
11.3
43.1
5,045.0
3,467.0
1,002.6
575.4
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Communist Economic Credits and Grants Extended to Less Developed Countries
by Communist Area and Country
1954 - December 1970
Million Current US $
Eastern Europe
Year
T
Czecho-
East
Communist
otal
USSR
Total
Bulgaria
Slovakia
G
ermany
Hungary
Poland
Romania
China
1954-60
2,968.7
2,378.9
408.8
0
222.9
49.8
25.9
99.1
11.1
181.0
1961
1,011.7
551.1
384.0
12.6
141.7
2.4
45.2
81.2
100.9
76.6
1962
269.0
70.2
186.5
2.8
57.4
0
11.7
114.6
0
12.3
1963
323.4
217.0
18.3
1.5
5.6
1.5
0
9.7
0
88.1
1964
1,466.5
824.7
330.9
5.4
118.2
65.9
2.4
99.0
40.0
310.9
1965
1,041.3
371.2
599.4
43.5
117.6
174.3
54.0
107.0
103.0
70.7
1966
1,631.6
1,276.0
236.6
15.0
60.9
49.7
107.5
3.5
0
119.0
1967
501.7
290.4
161.8
56.3
25.0
18.0
30.0
10.0
22.5
49.5
1968
610.7
379.3
177.1
32.1
6.0
7.5
40.0
5.0
86.5
54.3
1969
940.5
476.5
452.3
8.4
233.0
156.3
11.2
13.1
30.3
11.7
1970
1,110.0
210.4
191.5
52.0
15.0
19.2
85.8
10.0
9.5
708.1
Total
11, 875.1
7,045.7
3,147.2
229.6
1,003.3
544.6
413.7
552.2
403.8
1,682.2
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 Approveci'For Release 2005/0842 : CIA-RDP90-00596R000600020006-8 t
Table 5
Soviet Economic Credits and Grants Extended to Less Developed Countries, by Year
1954-70
Million current US $
1965
1966
1967
1968
1969
1970
1954-70
1954-60
1961
1962
1963
1964
2378.9
551.1
70.2
217.0
824.7
371.2
1,276.0
290.4
379.3
476.5
210.4
7,045.7
4
83
2
26
4
5
134.8
56.1
1,112.5
1
7
24
8
111
211.7
53.6
.
.
.
207.7
197.
.
.
237.5
--
--
0.6
100.0
131.5
--
7.8
Algeria
--
--
7.8
--
Cameroon
Central Afri
can
--
N.A.
N.A.
2
2
Republic
2.2
.
13.9
Chad
10.2
3.7
101.8
Cn
Congo (B)
Ethiopia
101.8
--
93.0
Ghana
46.8
46.2
--
0
15
2.7
16.7
--
92.2
--
199.7
n
Guinea
59.1
1.0
13.0
.
48.7
Kenya
2
0
3.2
--
--
0.8
--
63.7
Mali
.
--
--
3.3
3.3
Mauritania
--
--
5.0
5.0
Mauritius
--
43.6
44.4
88.0
Morocco
A
N
--
Nigeria
.
.
7
6
--
--
6.7
Senegal
.
0
28
--
28.0
Sierra Leone
.
--
8.5
--
63.2
8
64
Somalia
54.7
--
.
0
23
--
20.0
Sudan
.
--
34.1
Tanzania
5.7
15.6
Tunisia
6
15
Uganda
.
3.2
--
--
3.2
Upper Volta
5.6
--
--
--
5.6
Zambia
0
0
1.7
0
374.0
0
3
4
5
14.8
0
342.3
.0
.
15.4
Burma
7.2
--
3.9
2.6
2
12
3.5
24.9
Cambodia
6.2
3.0
--
.
332.2
Indonesia
328.9
a/ --
1.5
Laos
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Table 5
Soviet Economic Credits and Grants Extended to Less Developed Countries, by Year
1954-70
(Continued)
1954-60 1961
Near East
Afghanistan
Ceylon
Greece
India
Iran
~> .u l,vyy.t Z09.4 371.4 320.0 88.5 5,281.8
256.1 196.0 35.9 51.5 11.2
30.0
Iraq 182.5
Jordan --
Nepal
Pakistan
Southern Yemen
Syria
Turkey
United Arab
Republic
Yemen
7.5
3.2
100.0
5.2
508.6
20.7
Million current US $
1962 1963 1964 1965 1966 1967 1968 1969 1970 1954-70
1.4
2.8
7.7 b_/ --
226.5 574.2
14.1 0.9 5.0 126.7
0.6 -- --
1.7 -- 305.5 -- 177.8
10.5 -- --
11.0 50.0 85.2
Latin America 29.0 0
Argentina 29.0 c/
Bolivia --
Brazil --
Chile --
Colombia --
Costa Rica --
Peru --
Uruguay --
-- 501.4 --
77.2 0.1 --
0 15.3 90.0
-- -- 15.3 --
2.8 700.2
8.4 39.0
-- 7
7
.
1,611.8
120.7 22.5 331.5
N.A. -- N.A.
66.9 20.2
-- 13.1
GU. 0
266.5
13.1
233.3
371.2
54.8 2.5 20.0 65.8 277.4
90.0 --
-- 54.8
Approve,. For Release 2005/08/2 CIA-RDP90-005968000600020006-8
10.0
28.3
90.0
54.8
2.5
10.0
28.3
25X1
 ApproveciFor Release 2005/0842 : CIA-RDP90-00596R000600020006-8
East European Economic Credits and Grants Extended to Less Developed Countries, by Year
1954-70
1954-60
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1954-70
408.8
384.0
186.5
18.3
330.9
599.4
236.6
161.8
177.1
452.3
191.5
3,147.2
43.0
119.4
8.2
1.5
26.3
84.7
0.2
38.2
54.7
11.4
89.2
476.8
Algeria
--
--
1.4
--
20.4
--
0.2
--
--
--
74.1
96.1
Central African
--
N.A.
N.A.
Republic
--
5.1
5.1
Congo (B)
--
--
0
17
ia
Ethio
11.8
--
--
--
--
5.2
.
p
Ghana
--
83.9
--
--
--
20.2
--
--
104.1
Guinea
21.2
2.0
--
--
--
3.0
3.5
--
--
29.7
Mali
--
20.6
2.0
--
--
--
--
--
22.6
Morocco
0.4
4.8
--
--
30.0
N.A.
--
--
35.2
eria
Ni
--
--
--
--
--
14.0
--
--
14.0
g
Somalia
--
2.5
a/ --
--
--
0.9
--
--
3.4
Sudan
--
--
--
--
--
10.0
37.2
--
11.4
10.0
68.6
Tanzania
--
--
--
--
5.3
1.4
--
--
6.7
Fr
~,
Tunisia
10.0
10.0
--
1.5
0.6
--
1.0
51.2
--
--
74.3
107
8
1
120
4
1
5.6
61.1
13.0
16.1
0
1.0
11.9
0
338.0
East Asia
.
.
.
Burma
--
0.1
1.4
--
--
10.0
16.1
28.6
Cambodia
0.9
4.5
--
--
--
--
--
17.3
Indonesia
106.9
115.5
--
5.6
61.1
3.0
--
292.1
Near East
6
71
4
106
417
6
52
3
7
967
1
and South Asia
252.8
34.5
106,9
11.2
243.5
498.7
172.2
.
.
.
.
.
,
Afghanistan
5.0
1.3
--
--
--
--
4.7
--
1.9
--
--
12.9
Ceylon
--
--
--
8.0
--
42.0
--
--
2.5
52.5
India
119.5
15.9
32.9
--
84.0
22.0
52.5
25.0
--
30.3
--
381.7
Iran
6.1
--
--
0.9
15.0
125.0
--
10.0
75.0
200.0
--
432.0
Iraq
--
--
--
--
--
20.0
--
14.0
--
124.7
42.8
201.5
Pakistan
--
--
--
--
28.0
--
28.0
--
--
8.0
9.5
73.5
Southern Yemen
--
--
--
--
--
--
--
2.0
24.0
--
26.0
Syria
25.2
--
--
--
5.2
26.1
83.5
--
25.0
25.0
190.0
Turkey
12.9
--
--
0.8
--
--
--
--
--
5.6
19.3
United Arab
Republic
84.0
17.3
74.4
1.5
110.0
255.4
--
22.6
--
--
565.2
Yemen
0.1
--
--
--
1.3
8.2
3.5
--
--
--
13.1
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
East European Economic Credits and Grants Extended to Less Developed Countries, by Year
1954-70
(Continued)
Million Curre
t US
n
$
C/D
1954-60
1961
1962
1963
1964
1965
1966
1967
196
8
1969
1970
1954-70
Latin America
5.2
110.0
70.0
0
0
3
0
.48
1
Cn
.
.
52.0
15.0
11.4
50.0
364.7
Argentina
B
3.7
--
--
--
3.0 b/
--
30.0
5
0
41
7
H
razil
Chile
Colombia
1.5
110.0
70.0
--
42.1
17.0
.
5.0
.
240.6
50
.
H
Ecuador
5.0
5
.0
Peru
5.0
--
10.0
Uruguay
6.0
25.0
31.0
Venezuela
0.4
15.0
21.4
d e
--
10.0
10.0
a. Re
uc
d from 4.2 million when undrawn portion of credit expired.
b. Reduced from $15.0 million in 1968 when undrawn portion of credit expired.
ApprovecFor Release 2005/08/21 : CIA-RDP90-00596R000600020006-8
 App?ovedkor Release 2005/08/ : CIA-RDP90-00596R000600020006-8
Chinese Communist Economic Credits and Grants Extended to Less Developed Countries, by Year
1956-70
1956-60
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1956-70
181.0
76.6
12.3
88.1
310.9
70.7
119.0
49.5
54.3
11.7
708.1
1,682.2
Africa
26.5
39.2
1.8
71.6
138.2
24.7
42.5
21.5
0.3
11.5
452.8
830.6
Algeria
1.8
50.0
--
0.2
--
--
--
--
--
52.0
Central African Republic
--
4.0
--
--
--
--
--
--
4.0
Congo (B)
--
--
25.2
--
--
--
--
--
--
25.2
Ghana
--
19.6
--
--
22.4
--
--
--
--
--
--
42.0
Guinea
26.5
--
--
--
--
--
31.2
--
0.3
11.5
10,0
79.5
Kenya
--
--
--
--
17.9
--
--
--
--
--
--
17.9
Mali
--
19.6
--
--
22.4
8.0
3.0
--
--
--
--
53.0
Mauritania
--
--
--
--
--
--
--
4.7
--
--
--
4.7
Somalia
--
--
--
21.6
--
1.5
0.2
--
--
--
--
23.3
Sudan
--
--
--
--
--
--
--
--
--
--
41.6
41.6
Tanzania
--
--
--
--
46.3
--
8.1
--
N.A.
--
200.6
255.0
Uganda
--
--
--
--
--
15.0
--
--
--
--
--
15.0
Zambia
16.8
--
N.A.
200.6
217.4
76.5
27.6
0
0
0
18.0
42.9
0
0
0
0
165.0
Burma
--
25.5 a/
25.5
Cambodia
49.4
--
92.3
Indonesia
27.1
2.1
47.2
Near East and South Asia
78.0
9.8
10.5
16.5
172.7
28.0
33.6
28.0
54.0
0.2
255.3
686.6
Afghanistan
--
--
--
--
--
28.0
--
--
--
--
--
28.0
Ceylon
26.3
--
10.5
--
4.2
--
--
--
--
--
12.1
53.1
Nepal
33.6
9.8
--
--
--
--
19.6
--
2.0
--
--
65.0
Pakistan
--
--
--
--
60.0
--
--
7.0
40.0
--
200.0
307.0
Southern Yemen
--
--
--
--
--
--
--
--
12.0
--
43.2
55.2
Syria
--
--
--
16.3
--
--
--
--
--
--
--
16.3
United Arab Republic
4.7
--
--
--
80.0
--
--
21.0
--
--
--
105.7
Yemen
13.4
--
--
0.2
28.5
--
14.0
--
--
0.2
--
56.3
a. Total original credit extended was for 84 million. Undrawn balance was canceled when the Chinese were
expelled in 1968.
Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Communist Economic Credits and Grants Drawn by Less Developed Countries
By Communist Area and Country
1954-70
Million Current US $
Eastern Europe
Year
Total
USSR
Total
Bulgaria
Czecho-
slovakia
East
Germany
Poland
Hungary
Romania
Communist
China
1954-56
41
12
8
--
6
1
--
--
--
21
1957
62
36
19
--
9
6
1
3
--
7
1958
128
97
26
--
14
9
--
3
-
5
1959
151
109
17
--
8
4
2
Negl.
2
25
1960
149
107
32
--
16
1
11
Negl.
4
10
H
1962
356
254
89
2
35
9
36
6
1
13
H
1963
425
345
59
1
32
7
11
4
4
22
19.64
558
377
116
2
67
2
26
5
14
65
1965
523
355
91
3
43
4
30
10
2
76
1966
514
338
87
13
24
17
20
6
6
89
1967
499
284
121
10
41
20
13
10
27
94
1968
456
296
114
2
58
28
9
7
10
46
1969
471
332
90
6
37
20
13
4
10
49
1970
p457
341
88
2
21
20
22
10
14
45
Total
5,045
3,467
1,003
40
432
160
204
70
97
575
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 25X1 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
Next 14 Page(s) In Document Exempt
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 Approved For Release 2005/O C I P90-00596R000600020006-8
Military Aid Extended by Communist Countries
to Less Developed Countries
1955-70
Year
Total
USSR
Eastern
Europe
Communist
China
1955-60
1,717
1,222
462
33
1961
843
828
15
--
1962
416
416
--
--
1963
392
387
5
--
1964
921
901
16
4
1965
376
257
45
74
1966
396
371
15
10
1967
651
559
75
17
1968
445
395
45
5
1969
385
262
70
53
1970
912
870
42
N.A.
Total
7,454
6,468
790
196
Million Current US $
- 82 -
Approved For Release 2005/0?.P * DP90-00596R000600020006-8
 Approves For Release 2005/0842 : CIA-RDP90-00596R000600020006-8
Communist Military Aid to Less Developed Countries, Extended and Drawn
1955-70
Eastern Communist Eastern Communist
Recipient Country Total USSR Europe China Total USSR Europe China
Africa
Algeria
Burundi
Congo (B)
Ghana
Guinea
C!~ Libya
Mali
CO Morocco
Nigeria
y i Somalia
Sudan
Tanzania
Uganda
7,454 6,468 790 196 6,265 5,411 706 148
565 497 42 26 499 448 31 20
308 295 1 12 274 261 1 12
Negl. Negl. -- -- -- 1
4 3 -- 1 3 2
10 10 -- Negl. 10 10 -- --
12 10 1 1 11 10 1 --
35 30 5 -- 30 30 -- -- (iD
4 4 -- Negl. 4 4 -- --
33 13 20 -- 33 13 20 -- [~
9 9 -- -- 9 9 -- --
45 45 -- -- 40 40 --
75 66 9 -- 63 60 3 -7 I-~
15 2 1 12 10 2 1
15 10 5 Negl. 12 7 5 --
East Asia 1,338 1,104 199 35 1,091 868 189 34
Burma N.A. N.A. -- --
Cambodia 26 12 Negl. 14 23 10
Indonesia 1,312 1,092 199 21 1,068 858
189
13
21
Near East and South Asia 5,551 4,867 549 135 4,675 4,095 486 94
Afghanistan 293 280 13 288 275 13 --
Cyprus 27 26 1 19 18 1 --
India 819 768 51 625 574 51 --
Iran 310 310 -- -- 90 90
Iraq 799 722 77 -- 573 525 48 --
Pakistan 163 30 -- 133 102 8 - 94
Southern Yemen 17 17 -- -- 10 10 - --
Syria 596 502 92 2 535 473 62 --
United Arab Republic 2,420 2,135 285 -- 2,327 2,045 282 --
Yemen 107 77 30 -- 106 77 29
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 Approved For Release 2005/08/22 : CIA-RDP90-00596R000600020006-8
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 fi
Approved For Release 2005108122 : CIA-RDP90-005961$~C 020006-8
TABLE 19
COMMUNIST EXPORTS TO AND IMPORTS FROM SELECTED LESS DEVELOPED COUNTRIES, 1968-69
Million Current US$
AREA AND COUNTRY Exports
Total ................................. 12 ,631.9 12 ,012.2 2,8O63 12 ,437.6
Africa ................................ 434.2
Algeria ............................. 61.3
Angola ............................. 0.4
Cameroon .......................... 3.6
Chad ..........................:... . . . . .1.7
Congo (B) .......................... 2.4
Congo (K) ..........................
.....
Dahomey........................... 2.7
Ethiopia ........................... 8.8
Gabon ............................. ..........
Ghana ........:.................... 22.2
Guinea ............................. 13.8
Ivory Coast ........................ 3.2
Kenya ............................. 9.6
Liberia ............................. 1.3
Libya .............................. 54.3
Malagasy Republic .................. 0.1
Malawi ............................
..........
Mali ............................... `20.6
Mauritania ......................... ..........
Mauritius .......................... 1.2
Morocco ........................... 61.4
Mozambique ........................ 0.2
Niger .............................. 1.8
Nigeria ............................. 42.6
Senegal ............................ 5.9
Sierra Leone ........................ 8.3
Somalia ............................ 3.6
Sudan .............................. 52.5
Tanzaniae .......................... 17.8
Togo............................... 4.1
Tunisia ............................ 17.5
Uganda ............................ 6.8
Upper Volta ........................ ..........
Zambia ............................ 4.5
Europe...............................
Portugal ...........................
Spain ..............................
E& l :leis
Burner................-._ .............. 13.3
Cambodia .......................... 10.9
Indonesia ........................... 5.2
Laos ............................... ..........
Malaysia ........................... 62.8
Singapore .......................... 166.2
Thailand ........................... 12.1
Near East and South Asia .............. 1,644.8
Afghanistan ........................ 39.7
Ceylon ............................. 68.5
Cyprus ............................. 10.1
Greece ............................. 109.2
India .............................. 322.1
Iran ............................... 161.9
Iraq ............................... 100.9
Israel .............................. 20.2
Jordan ............:................ 16.8
Kuwait ............................ 54.1
Lebanon ........................... 13.6
Malta .............................. 5.3
Nepal.............................. 0.9
Pakistan ........................... 115.2
Saudia Arabia ....................... 16.4
Southern Yemen .................... 9.5
Syria .............................. 1`20.6
Turkey ............................. 99.3
United Arab Republic ................ 354.1
Yemen ............................. 6.4
COMMUNIST EXPORTS
1968
124.3
12.2
112.1
1968
1969
81.3
0.8
72.8
Negl.
3.7
4.2
Imports I Exports I Imports Exports I Imports
312.9 470.4 367.3 132.8 122.7
56.6 94.8 94.2 31.9 27.7
1.9 2.4 1.4
5.9 4.2 14.8 0.6 5.8
1.5 0.2
0.9 0.1 0.8 0.7 0.9
Neg2. 0.4 Negl. 0.4 Negl.
2.6 9.1 4.8 2.1 2.1
22.3
29.6 21.8 9.23.2 8.8 3.4 13.8 3.2
3.9 3.7 9.8 Negl. 0.7
3.5 8.4 3.6 0.8 0.2
....
2.4 .. 5.0 7.2 6.1 Negl.
0.1 Negl. Neg2.
3.4 8.5 .. .....2.1.. .....9.4.. .....1.8..
61.4 84.5 64.6 19.2 18.3
0.1 0.2
3319 49.9 30.8 11.9 21.3
0.3 7.9 0.3 0.2 0.3
14.1 1.1 0.9
0.1 2.1 Negl. 3.6 0.1
44.3 46.8 50.9 16.0 12.1
11.1 15.3 15.9 0.9 1.1
Negri. 3.9 0.9 0.8 N'egl.
30.3 17.0 18.0 3.3 5.4
7.3 6.2 11.8 0.8 1.1
Total USSR
10.0 3.2 8.8
1969 1968
948.() 885.0
95.0 137.3 106.9 20 A 13.7
6.7 16.5 7.2
88.3 120.8 99.7 20.4 13.7
'!!b .1 19;.u 32I. 6 18.1 124.4
3.1 13.3 s 3.7 1.9 9.3
15.8 0.7 Negl. 0.7 2.1
19.1 46.6 25.8 5.2 19.1
2.0
146.1 65.4 198.2 0.1 100.4
40.1 159.1 93.2 6.9 2.0
2.0 9.7 1.7 3.3 0.4
Latin America ......................... 157.9 279.2 166.9 301.4 22.6 82.4
Argentina .......................... 12.2 62.2 `22.5 71.9 3.2 28.7
Bolivia ............................. 1.6
Brazil .............................. 89.8 124.5 69.1 134.2 13.8 27.9
Chile .............................. 5.3 Negl. 6.0 0.9 0.1 Negl.
Colombia............................ 16.7 20.4 16.9 25.8 2.1 3.4
Ct Ri
....osaca
Ecuador............................ 2.7 17.7 8.8 21.8 Neg2. 12.4
E1 Salvador ......................... .......... 8.1
Guatemala ......................... 2.7
Honduras
0.2
Mexico.............................I 7.7 I 15.5 I 16.4 7.4 I 2.7 I 8.4
Peru ............................... 6.0 21.0 7.9 24.1 Negl.
Uruguay ........................... 3.3 7.1 6.8 10.0 0.7 1.6
Venezuela .......................... 11.2 Negl. 12.1 Negl.
1,098.8 1,736.7 1,337 A 754.1 541 .8
31.0 44.8 30.6 39.7 31.0
58.9 80.7 66.1 11.8 16.2
8.7 13.2 10.4 3.4 4.3
71.9 95.4 88.6 24.7 24.8
316.9 313.8 351.6 183.3 183.0
70.9 221.1 95.2 88.1 40.1
11.2 131.6 15.5 50.8 4.1
18.6 24.6 22.7
0.9 23.3 1.1 3.4
0.3 15.3 15.0
3.4 116 3.0 13.6 3.4
Neal. 5.9 0.1
0.6 0.9 1.1 0.9 0.6
73.1 125.8 100.8 36.8 11.1
12.6 0.2 3.9
Neg2. 6.9 1.0 1.4
41.7 127.2 79.5 42.1 20.9
91.2 124.2 90.6 30.8 30.0
297.9 348.1 377.9 198.0 170.7
1.6 9.7 1.4 6.4 1.6
COMMUNIST IMPORTS
1968
37.7
0.9
33.3
0.6
2.9
1969
1969
Exports
I ,167.5
176.4
57.7
1.1
Neg2.
0.1
0.4
2.4
9.3
8.8
Neg2.
0.3
10.8
5.1
37 . 1
16.7
0.2
1.0
2.1
16.0
0.4
1.1
4.2
1.4
24.4
24.4
0.2
0.9
1.4
0.9
924.1
44.8
8.3
5.1
28.8
171.3
161.6
67.7
4.3
15.3
11.6
6.9
39.4
4.6
6.9
47.8
57.9
238.2
9.7
Imports
172.2
61.6
12.0
0.8
2.0
17.9
24.4
0.1
1.1
Neg2.
13.7
2.8
0.9
3.4
1 . 6
3 .8
3.8
150.7
3.7
N egl.
23.8
121.8
1.1
0.3
5.6
1.0
688.0
30.6
14.4
5.8
28.9
221.4
56.4
4.7
3.0
1.1
23.7
0.2
1.0
37.3
29.9
228.1
1.4
1968
Exports
1 ,123.2
179.4
21.9
0.4
2.3
1.1
0.9e
4.1
11.3
2.2
5.1
3.0
61.9
11.7
50.2
33.6
10.2
3.0"
2.7
720.4
13.4
6.7
84.4
138.8
70.8
31.6"
20.2
8.8
17.6
3.9
Eastern Europe I Communist China
Imports
886.9
132.6
18.3
1.9
0.1
Neg2.
8.7
3.2
2.1
2.4
0.1
0.4
29.8
11.9
7.6 a
61.4
6.7
54.7
10.5
2.8
192.2
32.9
96.6
17.0
3.1
460.2
10.0
4.4
47.1
133.6
29.3
I.7
18.6
0.4
Neg2.
Neg2.
36.3
Neg2.
12.3"
60.1
106.4
57.2
150.3
Neg2.
1969 1968
Exports I Imports I Exports I Imports
1,072.4 994.1
494.0 20&.7
169.0 134.7 111.4 50.4
26.0 21.8e 6.8 9.3
2.4 1.4
1.6 2.8 0.6
0.8 0.4
1.4
4.5 0.3 2.6 0.5
8.7 5.3 1.6 0.6
2.9 4.0 0.6
4.8 1.0 4.5 1.2
28.2 e 7.2e 12.3
Neg2. Negl.
0.3 0.1 9.1 1.1
1.2"
20.9 30.7 12.0 7.3 ..
0.1 0.2 Negl.
1.8 ^.
17.8 6.4 10.4 0.7
1.1e 0.2e 5.7i
8.9' 2.3
16.8 18.7 17.2 13.9
3.7 2.2 12.1 7.7
1.2 2.2
12.8 14:6 0.5 0.8
2.3 9.0 2.9 4.9
3.2' 8.8' L5" 2.4"
69.1 I 63.0 I 1.1 I 1.3
16.2 7.2 0.1 Negl.
52.9 55.8 1.0 1.3
133.5 196.4 6.8 0.6
14.9 45.7 0.3 0.6
57.0 85.3 Negl.
5.6e 0.8' 0.4
14.3 21.6
0.2" 0.2^
8.6 e 79e
0.2
0.1
15.4' 1.8e
2.4 24.1 4.2 Ne 1.
5.7 9.0 Negl.
9.4 Negl. 1.6
664.1 533.4 159.7 91.0
25.(1 11.3 41.2 32.7
8.0 4.6
66.2 59.7 0.1 Neg2.
142.5 130.1
57.6 38.1) 2.3 1.5
37.le 2.8e 17.2" 5.4"
24.6 22.7 Slept.
14.1 0.5 4.6 0.5
20.9 0.3
4.1
0.1
59.3 47.1 29.6 25.5
8.0' 7.3
.... ..... ... .... 2.7 ... ... ..
56.3' 24.3 e 12.0" 7.6'
66.1 60.6 0.2 1.0
95.2 131.4 20.4 16.5
1.2 NeqI.
4.9
16.7
0.2
12.9
1969
0.6
Total .................... 66.4
Albania ............... 1.4
Cuba ................. 61.8
Mongolia.............. ..........
North Korea........... 1.0
North Vietnam......... 2.2
64.5
1.2
57.0
Neg2.
5.4
0.9
-91-
SECRET
Approved For Release 2005108122 : CIA-RDP90-00596R000600020006-8
Exports
Imports
484.5
260.2
110.6
49.3
10.8e
9.0'
1.3
0.7
2.2
0.5
4.3
1.1
0.7
3.2
1.3
15.7e
3.1
13.2
Neg2.
6.8
15.3
Neg2.
6.7
4.2e
14.0 18.5
11.1 10,9
l .13
Ncgl.
2.5 1.2
1.1 0.8
0.3 Negl.
1.1 0.8
232.9 101 .7
39.0
57.1 44.6
136.7 57.1
0.1
8.1 0.3
0.8 0.3
Neg2. Neg2.
0.2e
0.2
4.1
0.1
2.7
Neg2.
131.5
108.1
47.4
40.4
Neg2.
0.4
Neg2.
1.8
0.9
19. l e
7.9 e
Neg2.
Neg2.
 Approved For Release 2005 1 bl' -RDP90-00596R000600020006-8
Table 20
Percentage Share of the Communist Countries
in the Trade of Selected Less Developed Countries a/
1968-69
Exports to Imports from
Communist Countries Communist Countries
68
1969 1968
1969
19
Africa
eria
Al
6.4
9.0
6.4
7.2
8
g
Angola
0.7
0.4
0.1
0.
9
Cameroon
3.1
5.4
2.2
1.
Chad
--
--
4.0
3.4
A
Congo (B)
2.1
N.A.
4.5
.
N.
A
N
Dahomey
Negl.
N.A.
5.3
.
.
1
Ethiopia
3.3
2.1
5.0
6.
4
Ghana
6.7
3.2
6.4
7.
A
N
Guinea
7.4
N.A.
b/
.
.
1
Ivory Coast
0.9
1.3
1.0
1.
8
Kenya
2.2
1.8
3.0
2.
5
Libya
0.1
0.3
8.3
7.
Malagasy
Republic
0.1
Negl.
0.1
Negl.
5
Mali
7.3
2.8
34.7
19.
0
4
Morocco
13.1
12.6
11.2
.
1
4
eria
Ni
4.7
3.2
6.1
5.
2
4
g
al
Sene
0.2
0.2
4.3
.
4
4
g
Sierra Leone
--
N.A.
9.5
.
1
A
N
Somalia
0.6
N.A.
8.6
.
.
5
Sudan
19.7
19.0
21.1
16.
8
7
Tanzania
5.1
6.7
8.4
.
4
7
o
To
Negl.
2.3
8.2
.
9
6
g
Tunisia
18.9
11.7
8.2
.
7
4
Uganda
4.0
6.3
5.7
.
Europe_
al
t
0.9
0.9
1.4
1.4
ug
Por
Spain
5.8
5.3
3.1
2.8
East Asia
Burma
3.3
N.A.
12.8
N.A.
N
A
Cambodia
18.0
N.A.
10.0
.
.
0
5
Indonesia
.2.6
1.5
0.7
.
3
7
Malaysia
10.6
11.6
7.2
.
1
8
Singapore
5.8
8.7
10.2
.
8
0
Thailand
0.3
0.3
1.1
.
Approved For Release 2005/081 P90-00596R000600020006-8
 Approved For Release 2005/08-P90-00596R000600020006-8
Table 20
Percentage Share of the Communist Countries
in the Trade of Selected Less Developed Countries a/
1968-69
(Continued)
Exports to
Imports from
Communist Countries
Communist Countries
1968
1969
1968
1969
Latin America
Argentina
B
3.7
4.2
1.2
1.6
razil
Chil
6.5
5.6
4.4
3.2
e
C
l
Negl.
0.1
0.7
0.7
o
ombia
E
d
3.7
4.3
2.7
2.6
cua
or
M
i
13.3
9.5
1.1
3.7
ex
co
P
0.7
0.1
0.3
0.8
eru
U
2.4
2.8
1.0
1.6
ruguay
Near East
3.9
5.3
1.7
3.4
and South Asia
Afghan
C
l
istan
40.6
N.A.
c/
N.A.
ey
on
C
17.1
20.7
19.4
18.9
yprus
G
10.0
10.9
6.2
6.7
reece
I
di
15.3
16.2
8.0
6.1
n
a
I
18.2
19.2
12.2
19.7
ran
I
3.4
4.4
8.0
8.3
raq
I
l
1.1
3.3
21.2
23.2
srae
J
d
2.9
3.1
1.9
1.9
or
an
K
i
2.7
3.3
11.1
13.2
uwa
t
L
b
Negl.
--
7.4
N.A.
e
ano
M
l
n
1.7
N.A.
2.3
N.A.
a
ta
N
l
Negl.
0.5
4.9
4.4
epa
P
ki
2.2
N.A.
2.2
N.A.
a
st
S
di
an
10.6
14.7
11.5
11.5
au
S
i
Arabia
--
N.A.
2.7
1.5
yr
a
T
k
11.7
38.3
9.1
30.9
ur
ey
United
Arab
18.3
16.9
12.8
13.2
Republic
48.6
53.1
39.4
31.8
a. Soviet trade data from of icial trade yearbooks; other
data from US Department of Commerce and UN, Direction of
Trade.
b. The Soviet Trade Handbook is the only source for data
on trade with Communist areas. By relating these data to
total trade reported in DOT the figure would be 50.5%; if
IFS data for world trade are used the figure would be 19.7%.
c. The Soviet Trade Handbook is the only source for data
on trade with Communist areas. By relating these data to
total trade reported in DOT the figure would be 51.3%; if
IFS data for world trade are used the figure would be 27%.
- 94 -
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