SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010043-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 43
• Publication Date: September 30, 1957
• Content Type: REPORT

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SECRET PP
BIWEEKLY REPORT
SING -SOVIET BLOC
ECONOMIC A( TIVIT`I]ES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /43
30 September 1957
PREPARED BY THE WORKING GROUP
ON SING-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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SECRET
WARNING
TH'!~ NlATEF#,IAL CONTAINS INFORMATION AFFECT-
ING fi~IE N'P.'Y'IONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USG, 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
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Summary of E-rLnts
13 - 26 September 1957
The conclusion of an economic assistance agreement between
Communist China and Ceylon and the continuation of the rapid pace
of implementing the Soviet aid program in Syria were the principal
events affecting the economic relations between the Sino~Soviet Bloc
:..:. d the underdeveloped countries of the Free World during the period
13 - 26 September,
Since mid-1955 the Soviet Bloc has agreed to supply military
equipment and supplies valued at about $350 million to underdeveloped
countries. Most of the war materiel has already been delivered to
Egypt, Syria, Afghanistan, and Yemen and was sold under credit
arrangements believed generally to call for repayment over a 10-year
period at 2~-percent interest.
The aid agreement between Ceylon and Communist Ghina pro-
vides for Communist China to furnish $15. 75 million in grant assist-
ance over the next 5 years far development of its rubber industry.
A new 5-year agreement on the exchange of rubber and rice also was
signed ~y these countries, but the new agreement omits the provision
found in the expiring pact which required Communist China to make
premium payments for Ceylonese rubber. Also in South Asia,
Afghanistan cancelled plans for Soviet assistance on two projects,
both of which were scheduled for inclusion under the Soviet $100 mil-
lion credit program,
In Burma the USSR has proposed an agreement under which coop-
eration in the application of atomic energy far peaceful purposes would
be established. No Burmese officials, however, seem to be interested
i::~ this proposal.
The USSR continued to press forward ragidly its economic assist-
ance program in Syria, sending 18 technicians to Damascus to discuss
and complete details of Soviet economic aid, Czechoslovak experts
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also began work at the site chosen for the construction of a new oil
refinery near Homs. In Iran, the Soviet Trade Commissioner for
Iran stated that the USSR has offered unlimited credit to Iran for the
expansion of heavy industry including a steel mill. Both the Iranian
Prime Minister and the Foreign Minister, however, denied receiving
such an offer.
It was announced in Belgrade that the USSR and Yugoslavia had
established definite programming schedules for several d:v~.lol me=ntal
projects under Bloc aid agreements.. The projects involved are a
coal-mining combine in the Kasrnet region, a nitrogen fertilizer plant
in Pancevo, and an aluminum eornbine in Montenegro, all of which the
USSR postponed earlier in 19.57. It was also revealed that the nuclear
reactor promised by the USSR would probably be delivered in May 1958,
several months earlier than previously planned.
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I. Sino-Soviet Bloc (Arms Agreements with Under-
developed Countries j . . ~ . . .. .
A. EgYPt
B. Syria ~ . . .
C. Yemen . .
D. Afghanistan
A. Signing of Sino-Ceylonese Grant and Trade
Agreements . . . .
B. Soviet-Pakistan Trade Promotion Developments
C . .Afghanistan . . . . . . ,. .
1. Developments Under Utilization of Soviet
Credit . ? . .
2. Arrival of Polish Technicians ~ ?
A. Soviet Proposal far Burmese Cooperation in
Atomic Energy ~ . . . . . .
B. Efforts to Promote Chinese Communist -Malayan
Trade . . ~ .
A. Syria
Page
Z. Beginning of Work on Refinery . . , .. 8
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B, Higher Targets in Egyptian -East German Trade .
C. New Soviet Offers of Economic Aid to Iran .
Latin America (Chinese Communist Trade Delegation
in Chile)
VI. E~~arope (Yugoslavia)
Page
25X1
A. Details of Soviet Bloc ~,.id Deliveries . 11
Speed-Up by the USSR in the Delivery of a
Nuclear Reactor . . . . 12
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