SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010011-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 11
• Publication Date: July 9, 1956
• Content Type: REPORT

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Copy N? 417
SECRET
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /11
9 July 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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WARNING
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, 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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S-E-C-R-E-T
CONTENTS
Page
I? Summary of Events, 19 June-2 July 1956 . . . . . . ? 1
II. South Asia . . . . . . . . . . . . ? ?? ? ? ? 2
A. Ceylon . ? . . . . . . . . . . . . . . .
Rubber-Rice Debt Settlement with Communist
1
.
China . . . . . . . . . . . . . . . . . . 2
2. Bulgarian Trade Agreement . . . . . . . . 3
B. Pakistan-USSR Trade Agreement .
C. Soviet Credit to Afghanistan Utilized
A. Sino-Soviet Bloc Aid to Cambodia . . . . . . . . 5
B. Soviet-Sponsored Technical Institute in Burma 6
IV. Middle East and Africa: Soviet Aid to Yemen . . . . ? 7
V. Europe: Yugoslav-Hungarian Trade Agreement . . . . 8
III. Far East . . . . .a . ?
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SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
I. Summary of Events, 19 June-2 July 1956.
The most significant features of the Sino-Soviet Bloc drive to
expand economic relations with the underdeveloped areas of the
Free World during the period 19 June to 2 July 1956 were the im-
plementation of Soviet economic agreements with Afghanistan and
Burma, the signing of a Soviet trade agreement with Pakistan, the
acceptance by Yemen of a Soviet economic aid proposal, and the
signing of an agreement providing for a grant-in-aid from Communist
China of about US $22.4 million** to Cambodia.
The Soviet agreement with Afghanistan, which provides for a
$100-million loan, was implemented by the signing of a contract call-
ing for the construction of a nitrogen fertilizer plant, an auto repair
shop,. a research laboratory, and a military air base and for the
reconstruction of the Kabul Civil Airfield. Burma reached an agree-
ment with the USSR on the details of the Union of Burma Institute of
Technology to be established in Rangoon by the USSR.
The grant-in-aid of $22.4 million to Cambodia by Communist
China is the first substantial grant-in-aid by a Communist country
to a non-Bloc nation and represents a new approach in the Chinese
Communist bid for influence in Southeast Asia, The agreement
specifies that China will not control the Cambodian government's
use of the grant.
* Although the main emphasis of the Biweekly is on economic ac-
tivities of the Sino-Soviet Bloc in underdeveloped areas of the Free
World, significant Bloc activities of this. nature in areas not con-
sidered underdeveloped also will be discussed.
** Unless otherwise specified, all dollar values in this report are
in terms of US dollars.
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The Soviet proposal for economic aid, which was accepted in
principle by Yemen, involves the construction of a modern port
at Hodeida, the Yemen harbor on the Red Sea, and the training of
Yemen students at the University of Moscow as specialists in oil
research and mining.
Communist China liquidated in sterling a debt of $9, 5 million
to Ceylon, which had been incurred under the 5-year rubber-rice
trade agreement between the two countries. New trade agreements
signed by Sino-Soviet Bloc nations with Free World countries dur-
ing the period of this report include 1-year trade and payments
agreements between Ceylon and Bulgaria and between Pakistan
and the USSR and an 18-month agreement between Yugoslavia and
Hungary.
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