SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010068-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 68
• Publication Date: September 15, 1958
• Content Type: REPORT

Approved For Release 2005/08/22: CIA-RDP92B01090R0007.,Q~a10068-6
SECRET Copy 372
jw
25X1
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
SIN UNDERDEVELOPED AREAS
EIC-WGR-1 /68
15 September 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
25X1
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010068-6
 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010068-6
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
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010068-6
 Approved For Release 2005/01 CREr'DP92BO1090R000700010068-6
Summary of Events
29 August - 11 September 1958
The Egyptian sector of the UAR recently concluded its fourth arms
agreement with the USSR, and large numbers of Soviet aircraft, artillery,
armor, and rockets reportedly will arrive in Egypt by 20 September.
An economic and technical cooperation agreement between East
Germany and the UAR was concluded on 29 August, under the terms
of which East Germany will extend a $21. 5-million credit for fac-
tories and heavy industrial equipment.
A Soviet offer to help Afghanistan with its civil aviation program
by providing modern aircraft, constructing airports, and training
Afghan airport personnel will probably not be accepted at this time.
It is also unlikely that a Soviet offer to Libya of financial assistance,
technicians, and capital goods for petroleum exploration will be
favorably considered by the government.
Cambodia has accepted from Communist China a grant of $5. 6
million in addition to the $22. 4-million grant received under the
1956 agreement, An offer of a military grant was refused.
The USSR has refused to deliver 200, 000 metric tons of wheat to
Yugoslavia which were scheduled for shipment under the 1958 Soviet-
Yugoslav trade agreement. It is also reported that shipments of
Soviet coal have been stopped. This is the second action taken within
the last few months by the USSR in its campaign of economic harass-
ment of Yugoslavia, the first being the suspension in May of $244
million in credits which had previously been negotiated.
The development of mineral resources in underdeveloped coun-
tries of the Free World is becoming an increasingly important form
of Sino-Soviet Bloc economic and technical assistance. Thus far
most of this assistance has been for preliminary stages of mineral
development. Geological surveys are either under way or scheduled
Approved For Release 2005/08/22Sjfj92B01090R000700010068-6
 Approved For Release 2005/AW4AT-RDP92B01090R000700010068-6
to begin soon in Egypt, Syria, Yemen, Afghanistan, and Ceylon.
Offers of financial and technical aid for mineral development are
under consideration in Yemen, Cambodia, Burma, and Indonesia,
Bloc countries are also providing assistance to coal development
programs in India, Afghanistan, and Argentina.
In unclassified table showing selected Bloc
developmental projects in underdeveloped
countries of the Free World is to be found on
p. 11. A number of projects identified only
in classified documents have been omitted.
A summary table, also unclassified, showing
Bloc economic credits and grants follows on
p. 187
Approved For Release 2005/08/22 ;L(;'T2B01090R000700010068-6
 Approved For Release 2005/09gc - DP92B01090R000700010068-6
I. General (Bloc Assistance in the Development of
Mineral Resources in Underdeveloped Countries
of the Free World) . . . . . . . . . . . . .
A. Middle East . . . . . . . . . . . . . . . . . 2
1. UAR . . . . . . . . . . . . . . . . . . 2
2. Yemen . . . . . . . . . . . . . . . . . . 3
3. Other Middle Eastern Countries . . . . . . . 3
B. South and Southeast Asia . . . . . . . . . . . . 4
1. Afghanis tan . . . . . . . . . . . . . . . . 4
2. India . . . . . . . . . . . . . . . . . . . 4
3. Ceylon . . . . . . . . . . . . . . . . . . 5
4. Burma ... . . . . . . . . . . . . . . . . 5
5. Cambodia . . . . . . . . . . . . . . . . . 6
6. Indonesia . . . . . . . . . . . . . . . . . 6
C. Europe (Yugoslavia) . . . . . . . . . . . . . . 6
D. Latin America . . . . . . . . . . . . . . . . 6
II. South Asia (Soviet Offer of Assistance to Afghan Civil
Air Program) . . . . . . . . . . . . . . . . .
III. Southeast Asia (Chinese Communist Promise of More
Aid to Cambodia) . . . . . . . . . . . . . . . .
IV. Middle East and Africa . . . . . . . . . . . .
Page
A. UAR . . . . . . . . . . . . . . . . . . . . 8
1. Signing of Technical Cooperation Agreement
Between the United Arab Republic (UAR)
and East Germany . . . . . . . . . .
Approved For Release 2005/08/29ECR-E P92B01090R000700010068-6
 Approved For Release 2005/08SE FT'DP92B01090R000700010068-6
2. Another. Egyptian-Soviet Arms Agreement . . 9
B. New Soviet Aid Offer to Libya . . . . . . . . .
V. Europe (Continued Soviet Economic Pressure
on Yugoslavia) . . . . . . . . . . . . . . . . . .
1. Selected Sino-Soviet Bloc Developmental Projects
in Underdeveloped Countries of the Free World,
1 July 19 58 . . . . . . . . . . . . . . . . . . . 11
2. Summary of Sino-Soviet Bloc Economic Credits and
Grants to Underdeveloped Countries of the Free World,
1 January 1954 - 1 July 1958 . . . . . . . . . . . 18
Approved For Release 2005/08/SEeP92B01090R000700010068-6
 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010068-6
Next 19 Page(s) In Document Exempt
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010068-6