SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010104-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 104
• Publication Date: February 1, 1960
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/104
1 February 1960
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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WARNING
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 "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
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Summary of Events
15 - 28 January 1960
On 19 January the UAR announced officially that the USSR had
agreed to finance the construction of the second stage of the Aswan
High Dam project. The terms of the new agreement -- involving a
credit of about $287 million -- reportedly are the same as for the
Soviet-Egyptian agreement on the first stage of the dam. Interest
will be at the rate of 2. 5 percent per year, and repayment will be
made in Egyptian pounds over a 12-year period, beginning 1 year
after work has been completed.
The USSR and Afghanistan signed a contract for Soviet assist-
ance in the construction of a hydroelectric power station at Naghlu
(on the Kabul River, east of the city of Kabul). The project will be
financed under the Soviet $100 million line of credit and will take
5 years to complete. An additional contract between the two coun-
tries calling for the development of the Darunta Gorge (west of
Jalalabad, on the Kabul River) was also approved. The Darunta pro-
ject will include the construction of an irrigation canal, a storage
dam, and a hydroelectric plant.
Indonesia has canceled the $30 million industrial development
credit that was negotiated with Communist China in June 1959. The
credit was granted to finance the construction of three spinning mills,
a soda plant, and other projects.
Negotiations for a $4. 2 million tire-manufacturing plant, begun
when a Burmese trade mission visited Czechoslovakia in June 1959,
are now nearly complete.
Tunisia, which has trade agreements with six Bloc countries, is
now seeking economic or technical assistance from the Bloc. During
recent negotiations for the renewal of the Soviet-,Tunisian trade agree-
ment, Tunisian delegates indicated an interest in obtaining economic
aid from the USSR, and a small Czechoslovak technical assistance
team is now in Tunis to make a survey.
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A traveling Soviet technical, scientific, and cultural exposition
is scheduled to open in Havana, Cuba, about 1 February. Soviet First
Deputy Premier Mikoyan reportedly may fly to Cuba by Tu-114 jet
to inaugurate the exposition. The exposition represents a further ex-
pansion of the current Bloc interest in Cuba. Other recent indications
of this interest include (1) a Soviet offer of a credit of $6 million to
INRA (Instituto Nacional de Reforma Agraria) for the purchase of agri-
cultural equipment; (2) recent sizable purchases of sugar by Poland,
Communist China, and the USSR; (3) a visit by an East German trade
delegation to Havana in November; and (4) an increased press and radio
coverage of Cuban events by the Bloc.
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Pape
I. Southeast Asia . . .. . . . . . . . . . . . . .
A. Indonesian Cancellation of Chinese Communist
Credit . . . . . . . . . . . . . . . . . .
B. Czechoslovak Tire-Manufacturing Plant for
Burma . . . . . . . . . . . . . . . . . .
II. Middle East and Africa . . . . . . . . . , ,
A. Sino-Afghan Contracts for Development of the
Kabul River . . . . . . . . . . . . . . . .
B. Acceptance by the United Arab Republic of Soviet
Assistance for the Second Stage of the Aswan
High Dam , .. . . . .. . . . . . . . . . .
C. Possible Bloc Technical and Economic Aid
to Tunisia . . . . . . . . . . . . . . . . .
D. Arrival of Chinese Communist Tea Experts
in Morocco . . . . . . . . . . .
E. Bloc Activities in Ghana . . . . . . . . . . .
III. Latin America (Soviet Exposition in Havana) . . . . . 6
IV. Europe (Expanding Greek-Bloc Economic Relations) , 7
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