SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020012-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 12
• Publication Date: June 19, 1961
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/140
19 June 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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SECRET
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Summary of Events
2-15 June 1961
Recent events indicate that the Bloc has become increasingly in-
volved in Cuban economic affairs. On 9 May a ship arrived in Havana
with Czechoslovak and Polish machinery to equip six industrial plants;
in June, new contracts were concluded between Cuba and the USSR and
Czechoslovakia calling for increases in trade; a Czechoslovak official
announced that his government had agreed to purchase Cuban minerals
valued at $15 million and that the Bloc would be willing to buy all of
Cuba's mineral production during the next 20 years; and the first large
group of Cubans departed for training in the Bloc.
On 11 June, Indonesia and the USSR concluded an additional protocol
to the arms agreement of 6 January 1961 between the two countries. No
details have been announced, but reports from Djakarta indicate that
Indonesia has been seeking to increase the nominal value of the arms
agreement from $250 million to $349 million, a development that would
increase the credit figure for this agreement from $186 million to $276
million (assuming past discounts).
On 2 June an announcement issued in Moscow revealed that the USSR
had extended to Somalia a long-term credit of $44. 5 million for industrial
and agricultural development and a credit of $7. 8 million for the financing
of commodity deliveries. In addition, the USSR agreed to construct (on a
grant basis) two hospitals, a printing plant, a school, and a radio station
and to send Soviet doctors and teachers to Somalia. On 5 June the country
concluded with Czechoslovakia scientific, technical, cultural, and trade
and payments agreements.
On 23 May, Ghana announced that an economic and technical assist-
ance agreement with Czechoslovakia had been signed. This pact provides
for a Czechoslovak credit of $14 million at 2. 5 percent interest.
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A Nigerian economic mission has successfully completed talks in
Czechoslovakia and the USSR. A joint communique issued at the end
of the conversations in Prague announced that Nigeria and Czechoslo-
vakia had agreed to establish diplomatic relations and that Czechoslo-
vakia was willing to negotiate long-term economic aid. According to
Pravda, the talks in Moscow resulted in a Soviet offer of economic aid
and a decision to conclude a cultural agreement and to conduct negotia-
tions leading to a trade agreement.
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CONTENTS
Page
I. Latin America . . . . . . . . . . . . . . . . . . 1
Economic Relations Between Cuba and the Bloc
Since the Invasion . . . . . . . . . . . . . . . .
Soviet-Indonesian Protocol to the Arms Agreement
of 6 January 1961 . . . . . . . . . . . . . . . . 2
A. Recent Shipment of Czechoslovak Arms to Mali. . - 3
B. Bloc Economic Aid for Somalia . . . . . . . . . 3
C. Czechoslovak Credit to Ghana for Economic
Assistance . . . . . . . . . . . . . . . . . 4
D. Commitments of Bloc Economic Aid to Nigeria . . 5
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