SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020008-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 8
• Publication Date: April 24, 1961
• Content Type: REPORT

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SECRET
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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/136
24 April 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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SECRET
qoG V
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Summary of Events*
7--20 April 1961
Although recent events have created an impression that the new
Brazilian regime may move rapidly toward increased economic rela-
tions with the Bloc, there is actually little evidence that the Quadros
policies regarding trade with the Bloc differ markedly from those of
the previous regime. Nevertheless, pro-Bloc feeling among many
Brazilians and the demands of Brazil's present development program
will tend to increase Brazilian receptivity to economically attractive
Bloc offers of financial assistance and trade.
Further Soviet aid to Afghanistan is likely as a result of talks in
Moscow between Khrushchev and Afghan Prime Minister Daud.
Yemen's first deep-water port, which has been under construction
by the USSR since early 1958, was officially opened at Hudaydah on
2 April.
A Soviet goodwill mission that visited the Somali Republic dur-
ing the first week in April discussed means of expanding economic,
trade, and cultural relations between the two countries and indicated
willingness to consider favorably a Somali request for long-term finan-
cial assistance.
Bloc activity in India will increase substantially during the next
5 years. About $775 million are presently committed for projects in
the public sector, and aid will continue to be concentrated in the fields
of steel, heavy machinery, petroleum, and power.
Negotiations between Cambodia and Czechoslovakia for the con-
struction of factories in Cambodia are not going well -- several proj-
ects have been delayed or canceled. In addition, difficulties have
been encountered with the hospital given by the USSR in Phnom Penh.
* An unclassified table summarizing Bloc credits and grants to under
developed countries, 1 January 1954 - 31 March 1961, is included in
this issue on p. 14.
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On 30 March, Yugoslavia and the USSR signed a 5-year trade
agreement that by 1965 will double the 1960 trade level of $110 mil-
lion. The signing of longterm trade agreements with most of the
Bloc countries indicates that Yugoslavia's economic relations with
the Bloc will continue to show limited improvement.
During the first 3 months of 1961 the Bloc continued to use the
export of crude oil and refined products as well as petroleum tech-
nology as an important lever for achieving an expansion of economic
relations with countries of the Free World.
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Page
1. General . . . . . . . . . . . . . . . . . . . . . 1
Recent Developments in the Bloc Petroleum
Offensive . . . . . . . . . . . . . . . . . . 1
II. Latin America . .
Course of Brazilian-Bloc Economic Relations Since
the Inauguration of President Quadros . . . . . . . 5
III. Middle East
A. Yemen . . . . . . . . . . . . . . . . . . . . 7
Opening of a Deep-Water Port at Hudaydah . . . . 7
B. Discussion of Further Afghan-Soviet Economic
Cooperation . . . . . . . . . . . . . . . . . 7
IV. Africa . . . . . . . . . . . . . . . . . . . . . . 8
Soviet Mission in the Somali Republic . . . . . . . . 8
V. Asia . . . . . . . . . . . . . . . . . . . . . . . 9
A. Bloc Participation in India's Third Five Year
Plan . . . . . . . . . . . . .. . . . . . .
B. Current Developments in Economic Relations
Between Cambodia and the Bloc . . . . . . .
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Page
VI. Europe . . . . . . . . . . . . . . . . . . I2
Yugoslav Trade Agreements with the Bloc
for 1961-65 . . . . . . . . . . . . . . .
Sino-Soviet Bloc Credits and Grants Extended
to Underdeveloped Countries of the Free World,
1 January 1954 - 31 March 1961 . . . . . . . . 14
Maps
Following Page
Major Road Construction in Yemen, April 1961 . . 7
Bloc Aid Projects in India, April 1961 . . . . . . 9
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Next 14 Page(s) In Document Exempt
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UNCLASSIFIED
Sino-Soviet Bloc Credits and Grants
Extended to Underdeveloped Countries of the Free World a/'-,
1 January 1954 - 31 March 1961
Million US $
Area and Country
Total
Economic b/ Military
Total
5,
108
3,825 1,
28 2
Latin America
352
352
0
Argentina
104
104
0
Brazil
4
4
0
Cuba
245
245
Cl
Middle East
2,
008
1, 322
Afghanistan
255
217
38
Iran
6
6
0
Iraq
404
216
188
Pakistan
33
33
0
Turkey
17
17
0
UAR. -- Egypt
924
609
315
UAR -- Syria
307
179
128
Yemen
61
44
17
335
329
Ethiopia
114
114
0
Ghana
56
56
0
Guinea
108
107
1
Mali
44
44
0
Morocco
4
0
4
Sudan
e/
0
e/
Tunisia
8
8
0
Footnotes for the table follow on p. 15.
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UNCLASSIFIED
Sino-Soviet Bloc Credits and Grants
Extended to Underdeveloped Countries of the Free World a/
1 January 1954 - 31 March 1961
(Continued)
Million US $
Area and Country
Total
Economic b/
Military #/
Asia
2,
296
1,706
Burma
96
96
0
Cambodia
55
55
0
Ceylon
58
58
0
India
946
946
0
Indonesia
1,
099
509
590
Nepal
41
41
0
Europe
116
116
0
Iceland
5
5
0
Yugoslavia
11I f/
111 f /
0
a. Because of rounding, figures may not add to totals.
b. Including about $221 million in grant aid to Afghanistan, Cambodia,
Ceylon, Ethiopia, Guinea, India, Indonesia, Nepal, Pakistan, the UAR
(Egyptian region), and Yemen.
c. Including about $6 million in grant aid to Guinea, Morocco, and
Sudan.
d. Estimated minimum total of $50 million. Financial arrangements
unknown.
e. Less than $1 million.
f. Not including about $353 million in credits extended in 1956 and
subsequently either canceled or allowed to expire.
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