SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010059-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 59
• Publication Date: May 12, 1958
• Content Type: REPORT

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,QR00>QQ0100591 61
SECRET
BIWEEKLY REPORT
EIC-WGR-1 /59
12 May 1958
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SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
MAY2'
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
CRET
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S-E-C-R-E-T
Summary of Events
25 April - 8 May 1958
The rapid implementation by various Bloc countries of agreements
to supply Indonesia with military equipment and technical services is
the most important development in the economic activities of the Sino-
Soviet Bloc in underdeveloped countries of the Free World during the
period 25 April - 8 May 1958.
Arms, ammunition, and a number of military
technicians also have arrived from the Bloc, probably through the port
of Surabaya. Although the government of Indonesia has been reluctant
to acknowledge military aid from the Bloc, it is significant that Prime
Minister D.juanda admitted on 6 May that the first shipment of MIG
trainer aircraft from the Bloc had arrived in Indonesia.
Hungary has offered to the Communist state of Kerala in southern
India economic aid in starting an aluminum plant and assisting a por-
celain factory. The USSR is providing the necessary machinery, oil
experts, and technicians for the oil-drilling operations recently begun
in the state of Bombay. The USSR also is assisting the Indian govern-
ment in similar operations in the state of Punjab and thus far has ex-
tended credits of approximately $3. 6 million for the petroleum explora-
tion program of India.
The USSR has agreed to the request of President Nasser of the
UAR that Soviet economic agreements with Egypt and Syria be brought
together under one agreement between the USSR and the UAR. A new
trade agreement as been concluded between the USSR and Morocco
calling for an exchange of products valued at $14. 2 million as well as
for the establishment of clearing accounts in Rabat and Moscow, thus
bypassing franc zone channels.
Work on various construction projects being carried out by the
USSR in Burma is progressing. The cornerstone of the main build-
ing of the Technological Institute in Rangoon was laid on 21 April,
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and construction of the hospital in Taunggyi is reported to be well under
way. Work also has begun on a hotel and other construction: projects at
Inye Lake in the Rangoon area.
Poland and Japan signed a treaty of commerce and a trade and
payments agreement on 26 April. Although Polish-Japanese trade is
of minor importance to both countries, the exchange of documents at
the government level enhances Poland's prestige and is in keeping
with Polish efforts to expand formal relations with countries of the
Free World.
During March and April the Bloc purchased from Cuba 143, 225
metric tons of sugar valued at about $10. 4 million. Bloc purchases
for the January-April period, which totaled $18. 5 million, were con-
siderably below purchases for the same period in 1957, which amounted
to $41.9 million.
Since late 1954 the USSR and other Bloc countries have played an
increasingly active part in international civil aviation. A number of
bilateral air agreements have been concluded between members of
the Soviet Bloc and underdeveloped countries in the Middle East and
in South and Southeast Asia. Communist China has concluded one bi-
lateral air agreement, a pact with Burma.
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CONTENTS
Page
I. General (Expansion of Civil Aviation Activities of the
Sino-Soviet Bloc) . . . . . . . . . . . . . .
A. Civil Aviation Activities of the Soviet Bloc in the
Free World . . . . . . . . . . . . . . . . 2
1. In Yugoslavia and Finland . . . . . . . . 2
2. In South and Southeast Asia . . . . . . . 3
3. In the Middle East . . . . . . . . . . . 4
B. Civil Aviation Activities of Communist China
in the Free World . . . . . . . . . . . . .
II. South Asia (India) . . . . . . . . . . . . . . . 6
A. Hungarian Offer of Aid to the State of Kerala . . 6
B. Soviet Assistance in Bombay Oil-Drilling
Operations . . . . . . . . . . . . . . . .
III. Southeast Asia . . . . . . . . . . . . . . . . .
1, Rapid Implementation of Bloc-Indonesian
Arms Transactions . . . . . . . . . .
2. Soviet-Indonesian Assistance Agreement
in Force . . . . . . . . . . . . . . .
B. Soviet Construction Projects in Burma . . . . 10
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B. New Soviet-Moroccan Trade Agreement . . . 12
IV. Far East (Polish-Japanese Trade Agreement) . . . 11
V. Middle East . . . . . . . . . . . . . . . . . . 12
A. Unification of Soviet Loans to Egypt and
Syria . . . . . . . . . . . . . . . . . . 12
VI. Latin America (Soviet Bloc Purchases of Cuban
Sugar) . . . . . . . . . . . . . . . . . . . . 13
VII. Europe (Reported Delays on Soviet - East German
Aluminum Project. in, Yugoslavia) . . . . . . . . 13
Map
Following Page
Civil Air Agreements Between Members of the
Sino-Soviet Bloc and Underdeveloped Countries
of the Free World . . . . . . . . . . . . .
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