SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010116-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 116
• Publication Date: July 18, 1960
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/116
18 July 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
1 - 14 July 1960
The USSR has again offered Turkey substantial economic aid -- a
proposal that represents a continuation of Moscow's campaign to take
advantage of Turkey's current financial difficulties and to strengthen
elements within the new Turkish regime that may be inclined toward a
policy of closer alignment with the Bloc.
The Pakistani Minister of Fuel, Power, and Natural Resources
has been invited to the USSR to negotiate an agreement covering di-
rect Soviet assistance in the field of petroleum and mineral explora-
tion. Although new barter agreements with Czechoslovakia, Poland,
and the USSR may further strengthen Bloc economic ties with Pakistan,
this country's future relations with the Bloc will continue to be cir-
cumscribed by the avowedly pro-Western policies of the Ayub govern-
me nt.
Ghana reportedly is considering a Soviet offer of extensive tech-
nical assistance and a credit of as much as $280 million. The offer
enumerates 28 projects for which technicians, training, equipment,
and materials might be provided.
Czechoslovakia and Brazil have concluded a new 5-year trade and
payments agreement that calls for an exchange of goods worth $70 mil-
lion in 1960 -- a level that is below the figure of $100 million that
Czechoslovakia announced as its goal at the beginning of negotiations.
Czechoslovak machinery will be exchanged for Brazilian coffee, cacao,
minerals, leather, and sisal.
Following the US decision to cut the Cuban sugar quota, Premier
Khrushchev announced that the USSR has offered to buy an additional
700, 000 tons of sugar in 1960 if Cuba has difficulty in disposing of its
current crop.
The Cuban economic mission to the countries of the Bloc completed
its tour on 6 July. As a result of agreements signed during the trip,
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30 new factories will be built in.Cuba. Aid in the form of industrial
equipment and technical assistance for these projects is expected from
Czechoslovakia, East Germany, Poland, and the USSR.
Cuba's supply of petroleum is tight, following the confiscation of
the Esso, Texaco, and Shell refineries by the Cuban Government.
Premier Castro has claimed that supplies will again be normal by the
middle of July because of the sbheduled arrival of 19 Soviet tankers
during the month. There is little doubt that the USSR is able to sup-
ply sufficient petroleum to meet Cuba's requirements. Furthermore,
the USSR will evidently be able to meet successfully the transport
problem involved in moving Soviet crude oil from the Black Sea to
Cuba.
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CONTENTS
Page
I. Middle East . . . . . . . . . . . . . . . . . . . 1
A. Possible Strengthening of Pakistani Ties
with the Bloc . . . . . . . . . . . . . . . .
B. Soviet Offer of Aid to Turkey . . . . . . . . . . 2
II. Africa (Reported Soviet Offer to Ghana) . . . . . . . 2
III. Asia (Burmese Plans for Using the Soviet-Built
Technological Institute in Rangoon) . . . . . . . . 3
IV. Latin America . . . . . . . . . . . . . . . . . . 4
A. Cuba . . . . . . . . . . . . . . . . ... . . . 4
1. Results of the Nunez Jiminez Mission
to the Bloc . . . . . . . . . . . . . 4
2. Khrushchev Offer to Purchase Additional
Cuban Sugar . . . . . . . . . . . . . . 5
3. Soviet Petroleum in Cuba . . . . . . . . . . 6
B. New Brazilian-Czechoslovak Trade Agreement . . 8
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