SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010046-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 46
• Publication Date: November 12, 1957
• Content Type: REPORT

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Copy N? 361
SECRET
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /46
12 November 1957
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
NOFORN/CONTINUED CONTROL
SECRET
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SECRET
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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S-E-C-R-E-T
Summary of Events
25 October - 7 November 1957
The signing of an economic aid agreement between the USSR and
Syria and the possible offer of economic and military aid to Egypt by
the USSR highlight the economic activities of the Sino=Soviet Bloc in
the underdeveloped countries of the Free World during the period
25 October 7 November, The Syrian-Soviet agreement calls for
Soviet aid in the form of a line of credit in rubles as well as technical
assistance. Although the agreement does not specify the amount of
aid to be extended, the aid might amount
to as much as $168 million if all projects are implemented. It is
believed that General Amer, Egyptian Minister of Defense and Com-
mande r of the Egyptian-Syrian Joint Command, who arrived in Moscow
on 1 November for an extended visit, is seeking additional arms for
Egyptian forces.
The first major construction project undertaken by the Soviet Bloc
in Syria, the petroleum refinery at Homs, has apparently encountered
difficulties. Most recently, Syrian workers demonstrated against the
Czechoslovak firm Technoexport, protesting the firm's hiring practices.
In Iran, the USSR protested recommendations made to the Iranian Economic
High Council that the USSR be awarded a contract for the construction
of only 1 grain elevator, contending that it should receive contracts for
3 additional elevators as well.
Other economic activities of the Soviet Bloc in the Middle East and
Africa include the signing of a protocol to the existing trade agreement
between East Germany and Egypt, which calls for increased trade be
tween the two countries; the signing of a contract under which the USSR
is to supply an oil processing and research plant to Egypt; and a Polish
offer to help Jordan prospect some small iron ore deposits and furnish
the technical advice and equipment needed for their development.
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Czechoslovakia and Iceland have signed a new 3-year trade agree.
ment following the expiration of a similar agreement signed in August
1954. On 1 November Yugoslavia and the USSR signed a 1958 trade
protocol (within the framework of the 3-year arrangement between the
two countries), calling for a $125-million total turnover (the 1957 tar-
get was $112 million). In contrast to difficulties encountered in arriving
at the expiring protocol, Yugoslavia seems to have had relatively little
trouble in concluding agreements for 1958 with countries of the Soviet
Bloc.
On 18 October Argentina signed bilateral trade and payments agree-
ments with Czechoslovakia, Poland, and Hungary which will supersede,
previous agreements.
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S-E-C-R-E-T
CONTENTS
I. Middle East and Africa . . .
A. Syria . . . . . .
Page
1. Syrian-Soviet Economic Agreement . . . .
2. Difficulties in Czechoslovak Construction
of the Syrian Petroleum Refinery . . . . . 2
B. Egypt . . . . . . . . . .
1. Probable Soviet Offer to Egypt of More
Military and Economic Assistance . . . .
2. East German Industrial Fair and Trade
Mission in Cairo . . . . . . . . . . . .
3. Soviet Technical Assistance in Egyptian
Petroleum Research . . . . . . . . . .
C. Polish Offer of Aid to Jordan . . . . . . . . . 4
D. Recommendations for the Awarding of an
Iranian Contract for Grain Elevators . . . . . 5
II, Latin America (Argentine Trade and Payments
Agreements with Three Bloc Countries) . .
III. Europe . . . . . . . . . . . . . . . . .
A. Three-Year Agreement Between Iceland
and Czechoslovakia . . . . . . . . . . . . . 7
B. Yugoslav 1958 Trade Protocols with the Bloc . . 8
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