SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010113-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 113
• Publication Date: June 6, 1960
• Content Type: REPORT

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SECRET
BIWEEKLY REPORT
SINO SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/113
6 June 1960
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
25X1
SECRET
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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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 Approved For Release 2005%EiZ-UA-RDP92B01090R000700010113-5
Summary of Events
20 May - 2 June 1960,
The USSR has recently extended a credit of $45 million to Iraq for
construction work on the Baghdad-Basra railroad. The new credit is a
response by the USSR to Iraq's critical need for a satisfactory trans-
portation link between its two most important economic centers. Popu-
lar dissatisfaction with present economic conditions in Iraq has created
pressures on the Kassem regime and also has affected adversely the
pace of the Soviet aid program. Rapid and efficient implementation of
the new Soviet credit, therefore, is of vital interest to both the Iraqi
and the Soviet Governments.
After a delay of a year the USSR reportedly has agreed to provide
the Air Force of the United Arab Republic (UAR) with MIG- 19 aircraft.
There are indications that the UAR also will acquire other military
items from the Bloc in the near future.
Tunisia has announced the signing of a trade agreement with East
Germany. This move, in conjunction with several other developments,
represents Tunisia's effort to assume a more neutralist foreign policy
position, to expand the number of its trading partners, and thereby to
improve its bargaining position with the West with respect to aid.
Burma has accepted a Czechoslovak offer of a line of credit of
$10 million for the purchase of capital goods, in particular to set up
new plants to produce chemical fertilizers, sugar, tile, and cement.
A recently signed Soviet-Ceylonese contract provides for the prepa-
ration by Soviet technicians of designs for a flour mill and a grain ele-
vator. This contract is the sixth to be concluded in connection with the
16 projects provided for under the Soviet credit of $30 million extended
in February 1958.
Under a new protocol to the $100 million Soviet-Argentine credit
agreement of October 1958, Argentina may use $50 million for the
purchase of transportation equipment and other machinery. The credit
originally was to be used exclusively by Argentina's government petro-
leum company.
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CONTENTS
I. Asia . . . .
Page
1. Czechoslovak Offer of Credit to Burma . . . . . 1
2. Sixth Soviet Aid Project in Ceylon . . . . . . . . 1
I.I. Middle East and Africa . . . . . . . . . . . . . . . 2
1. New Soviet Economic Credit to Iraq . . . . . . . 2
2. Probable Procurement of Soviet MIG-19 Aircraft
by the Air Force of the United Arab Republic . . 4
3. Tunisian Economic Relations with the Soviet Bloc . 4
III. Latin America (Soviet-Argentine Credit Protocol) . . 5
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