SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010093-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 93
• Publication Date: August 31, 1959
• Content Type: REPORT

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BIWEEKLY REPORT
SINO -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1 /93
31 August 1959
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, U.S.C., 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 "Sinn-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, th Air Force, Commerce, and Agricul-
ture; the International Cooperation Administration; the
Oflice 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
Central Intelligence Agency
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Summary of Events'~~
14 - 27 August 1959
On 26 August it was announced that the USSR had agreed to ex-
tend a 140 million ruble ($35 million) credit to Guinea, to be repaid
over a pe riod of 12 years at 2-1 / 2 percent interest. The credit is
to be used for economic and technical assistance in the industrial
developme nt of Guinea.
Official contacts between Ghana and the Soviet Bloc have .received
added impetus during recent weeks. A Hungarian trade mission ar-
rived for talks with government ministries and organizations, and a
Polish delegation, at the time of its departure on 19 August, had signed
preliminary agreements to build two blast furnaces and several small
factories. A trade mission from Ghana will spend 10 days in Com-
munist China in October before its departure for Tokyo,
An Indonesian Army purchasing mission recently contracted to
buy $4 million worth of exigineering equipment from the USSR in the
first direct military deal that Indonesia has been willing to make with
the USSR since the purchase of ,jeeps in 1957.
On 24 August the two submarines urchased b Indonesia from
Poland were sighted The
submarines-are the ast ma,~or items to be delivered under the agree-
ments of March 195$.
Burmese officials reportedly have complained that the hotel now
being constructed at Rangoon by Soviet technicians is old-fashioned
and have requested costly revisions, including the installation of cen-
tral air conditioning.
In June the Afghan Ministry of Planning requested Soviet assist-
ance in the preparation of Afghanistan's Second. Five Year Plan. The
cost of the services of Soviet personnel is to be charged to the Soviet
$100 million credit.
'~~ An unclassified table of Sino-Soviet Bloc specialists in underde-
veloped countries of the Free World, 1 January - 30 June 1959, is
included in this issue on p. 7.
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A large advance Soviet technical team is expected to arrive in
Ethiopia early in October to undertake a 3-month survey to determine
the economic and technical needs of Ethiopia as a basis for the utili-
zation of the $100 million line of credit extended to Ethiopia by the
USSR in July 1959.
An Iraqi-Soviet agreement was signed on 1? August in Moscow
calling for building a nuclear reactor and an isotope laboratory in
.Iraq, for organizing research, and for training Iraqi staffs.
On 1 August, Yugoslavia and Hungary signed a trade and payments
agreement for 1960 and a 3-year trade agreement for 1960-6Z. On
8 August, Yugoslavia signed similar agreements with East Germany
for the same periods of time.
On lZ August the USSR purchased from Cuba 175, Q00 tons of sugar
valued at $11 million at current market prices. This amount is less
than the total of 188, Q00 tons purchased by the USSR in 1958. In addi-
tion, a .Czechoslovak commercial mission reportedly has negotiated a
barter agreement for the exchange of $2 million worth of Cuban sugar
far Czechoslovak machinery, and an East German trade mission that
visited Havana in mid-August reportedly discussed the possibility of
a barter agreement.
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CONTENTS
Page
I?
Southeast Asia ? . 1
A. Indonesian. Military purchases in the Bloc ? 1
B. Soviet Hotel Project in Surma . 1
IZ.
Middle East and Africa 2
A
B
. Soviet Participation in Afghanistan's Second Five
Year Plan
? Increase in Ghana's Contacts with Blac Countries
Z
2
C
. Soviet Credit to Guinea
3
D
. Soviet Techni~ai Team to Eth
iopia.
4
E
. Iraqi-Soviet Agreement on At
omic Power
4
III.
L
atin America (Bloc Trade Activi
ties in Cuba) .
5
IV.
E
urope (Yugoslav Long-Term Tra
with Hungary and East Germany)
de Agreerrxents
?
~'
Since-Soviet Bloc Industrial, Agricultural, and Other
professional Specialists in Underdeveloped Countries
of the Free World, 1 ,January - 30 ,Tune 199
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