SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010042-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 42
• Publication Date: September 16, 1957
• Content Type: REPORT

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SECRET 1~
BIWEEKLY REPORT
S1N0 -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /42
16 September 1957
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC, ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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SEP 1954
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SECRET
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.
These biweekly reports on "Sino-Soviet Bloc Economic Ac-
tivities in Underdeveloped Areas" are prepared and issued
by a Working Group of the Economic Intelligence Commit-
tee, including representatives of the Departments of State,
the Army, the Navy, the Air Force, Commerce, and Agricul-
ture; the International Cooperation Administration; the
Office of the Secretary of Defense; and the Central Intelli-
gence Agency. Their purpose is to provide up-to-date fac-
tual information on significant developments in the eco-
nomic relations of Sino-Soviet Bloc countries with under-
developed countries of the Free World. The EIC-R-14 series
of reports, under the same title, provide periodic summaries
and analytical interpretations of these developments.
Printed and Disseminated by the
Central Intelligence Agency
SECRET
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Summary of Events
30 August - 12 September
The growing orientation of Syria toward the Soviet Bloc was the
most significant development in the activities of the Sino-Soviet Bfoc
in. the underdeveloped countries of the Free World during the period
30 August - 12 September. The USSR is reported to have agreed to
purchase one-third (about 120, 000 metric tons) of Syria's wheat sur-
plus; a communique issued in Moscow announced that a Soviet economic
mission would soon visit Syria to study specific projects arid sign eco-
nomic and technical agreements; a Syrian military delegation visited
Czechoslovakia; and Soviet and Czechoslovak trade delegations arrived
in Damascus for the opening of the Fourth Damascus International Fair.
Prime Minister Nehru announced that India recently received a
new credit offer from the USSR amounting to approximately US $25
million for the expansion of facilities for the manufacture of pharma-
ceuticals in India. There are no immediate plans for the negotiation
of the loan.
Ceylon has signed an agreement with Czechoslovakia for the con-
struction, beginning in October, of a sugar factory at Kantalai. Un-
confirmed reports indicate that the USSR has agreed to provide Ceylon
with the machinery and technicians needed to clear 6, 000 acres of
jungle at Kantalai for the cultivation of the sugarcane needed to supply
the proposed sugar factory.
Communist China has requested Burma to pay 95 percent of its
deficit under the now-defunct barter agreement as soon as possible.
The amount owed is estimated to be about the equivalent of $500, 000
in. sterling. The Burmese government has not yet announced whether
it: will comply with the request.
Goods from Communist China continue to arrive in Cambodia under
the terms of the $22. 4-million grant of June 1956. Delivery of the first
installment, goods valued at $5. 7 million, has been nearly completed.
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Counterpart funds, generated through local auction sales of these goods
by the Cambodian Directorate of Plans, total to date approximately
$2. 9 million.
Prime Minister Nkrumah of Ghana indicated that his government
intends to ask the USSR, Communist China, and Japan to receive trade
missions from Ghana in an effort to increase its exports. He stated
that he believed that the missions would also lead to closer diplomatic
relations. Nkrumah probably hopes to increase cocoa sales to the
Bloc. Soviet purchases have risen from a level of 6 percent of Ghana's
cocoa exports in 1953 to a current level of 13 percent.
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CONTENTS
Page
A. Offer of Additional Soviet Credit to India . . . . 1
B. Acceptance by Ceylon of Soviet Bloc Aid Offers
for Development of the Sugar Industry . . . . . 1
C. Visit of Pakistan Agricultural Mission to Bloc
Countries . . . . . . . . . . . . . . 2
1. Soviet-Burmese Contract . . . . . . . . ? 2
2. Request by Communist China for Deficit
Payment . . . . . . . . . . . . . . . . 3
B. Communist Chinese Aid Program in Cambodia . 3
III. Middle East and Africa . . . . . . . .
A. Soviet Bloc-Syrian Exchange of. Economic
Missions . . . . . . . . . . . . . . . . . . 4
B. Polish Machinery for Turkish Paper Factories 5
C. Interest of Ghana in Bloc Markets . . . . . . . 6
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