SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020002-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 2
• Publication Date: January 30, 1961
• Content Type: REPORT

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BIWEEKLY REPORT
SINO -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1 /130
30 January 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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Summary of Events
13 - 26 January 1961.
A new Soviet-Indonesian arms agreement provides for about
$244 million in military equipment to be supplied to Indone sia's armed
forces. The contracts are in addition to an agreement negotiated last
September for naval aid valued at more than $2.77 million.
The USSR and Indonesia have signed an agreement under which-the
USSR will build two nuclear reactors valued at $2. Z million. A reactor
worth $2 million, which will be constructed near Djakarta, is to be
completed by the end of 1963. A smaller reactor valued at $200, 000 is
to be installed at the Gadja Mada University in Jogjakarta by the end of
1961.
Czechoslovakia has offered to provide a munitions factory to Cam-
bodia on credit. The terms reportedly meet the Cambodian desire for
repayment in 5 years at 1 percent interest, partly in foreign exchange
and partly in Cambodian goods.
Czechoslovakia will soon begin to train personnel for Mali's civil
airline, Reports also indicate that Czechoslovak Airlines (CSA) is
making plans to extend its regular Prague-Zurich.-Dakar-Conakry ser-
vice to Bamako (Mali).
In December, several shipments of Bloc small arms and ammuni-
tion arrived in Mali from Guinea. Mali reportedly will receive a total
of 150 .tons of Bloc :arms, of which at least 80 tons had been delivered
by 7 Janua ry.
Czechoslovakia and Ecuador have agreed to barter Ecuadoran
cacao worth. $630, 000 for Czechoslovak tools and equipment to be used
in Ecuador?s technical schools. At about the same time, the first
members of a resident Czechoslovak Legation arrived in Quito.
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The Cuban economic mission currently visiting the Bloc has signed
ecanornic agreements with Bulgaria and Albania.. Bulgaria will purchase
40, 000 tons of sugar and other products from Cuba in exchange for ma-
chinery, chemicals, and other goods. Bulgaria also granted Cuba a
credit of $5 million for construction work in connection with hydroelectric
power stations and other industrial enterprises. The mission signed a
5-year trade and payments agreement, a cultural agreement, and a 1961
trade protocol with Albania.
Hungary has extended a credit of $14. 4 million to the Egyptian secaor
of the United Arab Republic (UAR) (probably for the import of capital
goods), and Czechoslovakia and-East Germany have extended small credits
to the Syrian sector (for financing the import of machinery and equipment
for electrical and water resources programs).
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CCINTENTS
Fage
A. New Cuban Economic Agreements with the Bloc 1
B. Barter Agreement Between Ecuador and Czecho-
slovakia . . 2
YT. Middle East (New Bloc Credits to the United Arab
IIT. Africa (Mali) . 3
A. Czechoslovak:-Mali Civil .Air I:7evelopments 3
B. Deliveries of Bloc Arms to Mali. from Guinea 3
1. New Massive Soviet.-Indonesian. Arms
Agreement . . . . 4
z. Soviet Aid in the Field of Nuclear Energy 5
B. Czechoslovak Offer of a Munitions .Plant
to Cambodia . . . 6
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SING-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS'~6
A. New Cuban Economic Agreements with the Bloc
The section of the Guevara economic mission that remained i:n
the Bloc completed its tour by signing economic agreements with Bul-
garia and Albania. In Bulgaria the group negotiated a 1961 trade protocol
calling for the purchase by Bulgaria of 40, 000 Spanish long tons~69ti of
Cuban sugar and other products in exchange for machinery, chemicals,
and other goods. Bulgaria also granted Cuba a credit of $5 million'~;6~;6
for construction work in connection with hydroelectric power stations
and other industrial enterprises. In Albania the trade mission concluded
a 5-year trade and payments agreement, a cultural agreement, and a
1961 trade protocol. Albanian petroleum, textiles, handicrafts, and
food are to be exchanged for sugar, coffee, hides, and other products,
With completion of the Albanian agreements, Cuba now has trade and
a ments a reements with all regimes in the Sino-Soviet Bloc.
In another development, Radio Havana announced that Communist
China had purchased at a price of 4 cents per pound the 1 million Spanish
long tons of sugar that it agreed to take in 1961. A contract for Com-
munist China to purchase 5, 000 metric tons of copper also was announced.
2;6 Although the main emphasis of the Biweekly Report is on economic
activities of the Sino-Soviet Bloc in underdeveloped areas of the Free
World, significant Bloc activities of this nature in areas not considered
underdeveloped also will be discussed.
'~6'~6 The Spanish long ton, which is the conventional unit of measure used
in the international sugar market, is equal to 2, 271. 6 US pounds.
:~6 )06>~6 Unless otherwise specified, all dollar values in this report are in
terms of US dollars.
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B. Barter Agreement Between. Ecuador and Czechoslovakia
Two Czechoslovak officials arrived in Quito in December 1960
and signed a previously negotiated contract to barter Ecuadoran cacao
worth $630, 000 for Czechoslovak tools and equipment to be used in
Ecuador's technical schools. Initial negotiations for the barter took
place in September 1960, when the Ecuadoran Minister of Education
visited Czechoslovakia.'~s Deliveries are scheduled over a. 4-year
period.
At about the same time that the barter contract was signed, the
first members of a resident Czechoslovak Legation arrived in Quito.
Their arrival marks the first time since the expulsion of two Czecho-
slovak diplomats in September 195? that this Bloc country has had a
resident diplomatic mission in Quito. Relations were renewed in August
1960, when the Czechoslovak Minister to Brazil presented his creden~?
tials to the Ecuadoran President.
'k See the Biweekly Report o
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The two Soviet reactors will make the USSR the chief
source of foreign assistance in developing Indonesia's nuclear energy
capacity. The US is supplying the only other nuclear energy projects
currently scheduled -- two research facilities amounting to less than
$1 million.
B. Czechoslovak Offer of a Munitions Plant to Cambodia
Cambodia's interest in acquiring a small arms and ammuni-
tion factory from Czechoslovakia, suggested by Sihanouk's inspection
of a Czechoslovak munitions plant during hi~~ .recent visit to the Bloc,'"~
has resulted in a firm credit offer from Czechoslovakia. The proposal
reportedly meets the terms desired by Cambodia -- repayment in
5 years- at 1 percent interest, partly in foreign exchange and partly in
Cambodian goods. The Cambodian Ministry of Plans is considering
the Czechoslovak offer but also has solicited a bid from West Germany.
'~s See the Biweekly Report of 11 May 1959.
':~~;< See the Biweekly Report of 19 December 1960,
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