SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010051-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 51
• Publication Date: January 20, 1958
• Content Type: REPORT

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SECRET
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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC A(aTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1151
20 January 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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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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Summary of Events
3 -- 16 January 1958
Heavy pressure exerted by the USSR on Indonesia to accept ships
and military equipment for use in the present emergency is the most
significant development affecting the economic relations between the
Sino-Soviet Bloc and the underdeveloped countries of the Free World
during the period 3 - 16 January 1958.
Since August 1957, Brazilian officials have become increasingly
interested in the possibility of expanding trade with the Soviet Bloc.
Although the Bloc has thus far shown only a limited interest in
Brazil's major export, coffee, and although Bloc offers of large-
scale trade have been vague, the timing and rumored size of the -
offers have nevertheless kindled a widespread interest in the expan-
sion of economic relations with the Bloc among important segments
not only of the Brazilian government but also of the general public.
Argentina also has shown definite interest in the expansion of trade
with the Bloc, stimulated in part by reports of a Soviet offer to
Argentina of petroleum products at favorable prices.
Communist China has for the first time extended economic assist-
ance in the form of loans to underdeveloped countries of the Free
World. Instead of making grants as in the past, Communist China
has signed agreements to lend Yemen $16 million and Burma. $4. 2
million and has offered Indonesia a loan of $20 million.
India will receive a loan of $24 million to $30 million for its
foundry project at Ranchi in Bihar State, according to an agreement
recently signed with Czechoslovakia. The loan will cover the entire
foreign exchange costs of the plant.
A four-man Soviet commission arrived in Tehran in December
to discuss the joint development of the Hari (Tedzhen) River, which
forms a part of the northeastern border of Iran adjoining Afghanistan
and the USSR.
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Under an agreement signed with the Afghan government on 7 January
1958, the Soviet organization Technoexport will survey northern
Afghanistan for oil deposits. The agreement formalizes the general
Afghan-Soviet pact signed on 30 July 1957, in which the USSR agreed
to provide equipment and technical assistance for the petroleum ex-,
ploration program of Afghanistan.
S-E -G-R-E-T
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A. Signing of Afghan-Soviet Oil Exploration
Agreement . . . . . . . . . . . . . . . .
B. Signing of Indian-Czechoslovak Aid Agreement
1. Soviet Loans . . . . . . . . . . . . .
2. Soviet Offer to Build Nuclear Laboratory
3. Loan from Communist China . . .
1. Soviet Offer of Ships and Military
Equipment . . . . . . . . . . . . . . . .
2. Chinese Communist Offer of Aid .
A. Soviet-Iranian Negotiations on Joint Use
of Hari River . . . . . . . . . . . . . . . . .
B. Signing of Economic and Technical Agreement
Between Communist China and Yemen
1. Inclination of Top Brazilians Toward
Expanded Soviet Trade . . . . . . . . . .
2, Arrangement for Second Polish Sale
of Steel Rails to Brazil . . . . . . . . . .
B. Argentine Economic Plight as Encouragement
to Bloc Overtures . . . . . . . . . . . . . . .
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