SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010106-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 106
• Publication Date: February 29, 1960
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/106
29 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*
12 - 25 February 1960
On 13 February the USSR and Cuba signed two agreements that
together represent a radical departure in Cuba's trade and economic
policy. The first pact,. which calls for the Soviet purchase of 1 mil-
lion Spanish long tons** of sugar annually for 5 years (80 percent pay-
able in merchandise and 20 percent in dollars) is the largest barter
agreement that the Cuban government has signed and the first inter-
governmental trade. pact that Cuba has made with a Bloc country. The
second agreement calls for the extension of a Soviet line of credit of
$100 million for industrial and agricultural equipment. This credit
is the first known to have been extended to Cuba by a Bloc country.
The visit of Soviet Premier Khrushchev to India and Burma
(11-16 February) brought few, if any, results. No new offers of aid
to India were made public during the trip, and the only indication that
additional Soviet aid was discussed with India was a statement by First
Deputy Premier Kozlov that the USSR might be willing to give between
$420 million and $630 million in additional aid for India's Third Five
Year Plan (1961-66). During his stay in Burma, Khrushchev reportedly
discussed with Burmese leaders the possibility of new Soviet economic
aid.
In spite of:the desire of Burma to curtail the operations of the
two Chinese Communist banks in Burma -- the Bank of China and the
Bank of Communications there are. recent indications of an expan-
sion of their lending activities. These banks are believed to be co-
operating with left-wing associations by allocating low-interest loans
to members, by subsidizing mutual-benefit societies, and by contrib-
uting to the funds of both Chinese and .Burmese pro-Communist organi-
zations.
Unclassified tables showing the value of Sing-Soviet Bloc trade with
underdeveloped countries of the Free World (1958 and the first half of
1959) and the number of trade and payments agreements in force be-
tween Bloc countries and underdeveloped countries of the Free World
(1958 and 1959) are included in this issue on pp. 10 and 13, respec-
tively, below.
*'** The Spanish long ton is the conventional unit of measure used in
the international: sugar market, and is equal to 2, 271.6 US pounds.
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Poland has offered India a $31. 5 million credit for the purchase
of a variety of industrial plants and equipment. A Czechoslovak
government enterprise has extended a credit of $1. 7 million to a
_rivate Indian firm for machinery to produce automobile tires.
A large number of Chinese Communist agricultural experts re-
portedly are expected to arrive in Guinea this spring to assist the
Guinean government in its programs for the raising of livestock and
the cultivation of rice. Guinea also expects the arrival of 60 medical
service personnel from Czechoslovakia during 1960.
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Page
I. South Asia (India) . . . . . . . . . . . . . . . . . . 1
A. Czechoslovak Credit to Private Indian Firm . . . . 1
B. Polish Offer of Credit to India . . . . . . . . . . 1
C. Khrushchev in India and Burma . . . . . . . . . . 2
II. Southeast Asia (Chinese Communist Banks in Burma) 4
III. Middle East and Africa (Influx of Bloc Technicians
into Guinea) . . . . . . . . . . . . . . ? ? ? ? ? . 5
IV. Latin America (Soviet-Cuban Trade and Credit
Agreements) . . . . . . . . . . . . . . . . . . . . 6
Tables
1. Sino-Soviet Bloc Trade with Selected Underdeveloped
Countries of the Free World, 1958 and First Half
1959 . . . . . . . . . . . . . . . . . . . . . . . 10
2. Trade and Payments Agreements in Force Between
the Sino-Soviet Bloc and Underdeveloped Countries
of the Free World, 31 December 1958 and
31 December 1959 . . . . . . . . . . . . . . . . . 13
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