SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020015-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 15
• Publication Date: July 31, 1961
• Content Type: REPORT

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Copy N? 436
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/143
31 July 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*
14-27 July 1961
Cuba recently announced that a nonferrous metals foundry equipped
with :.,achinery from Czechoslovakia was to be dedicated on 26 July.
This plant is the first in Cuba known to Have been completed with Bloc
assistance. The Bloc also is giving support to Cuba's program to in-
crease the country's electrical generating capacity. Two Czechoslovak
diesel generating plants have been set up, and mobile electric power-
plants are expected to arrive soon from the USSR. Hungary izas agreed
to provide three glass factories. Housing is now being constructed for
foreign technicians and officials in Cuba.
A number of contracts for development projects and project studies
in Iraq have been obtained by the Soviet Bloc in recent months. Iraq's
economic and planning board has agreed in principle to Soviet studies
and proposals for a glass factory at Ramadi; for a sulfur recovery plant;
and for a workshop to repair Soviet machinery, equipment, and instru-
ments used in aid projects.
The protocol to the Soviet-Indonesian arms agreement that was
signed in Moscow on 10 June provides for an increase of $75 million
(making a total of $325 million) in the value of military items listed
in the January agreement as amended. Added items of equipment in.-
elude 15 tracked amphibian landing craft and surface-to-air missiles
and launchers to equip 10 battalions.
In an aggressive interview with the Thai Prime Minister on 12 July
the Soviet Ambassador in Bangkok demanded that Thailand accept Sovi.t
economic aid or face the consequences. The following day the Prime
Minister announced that Thailand would accept Soviet assistance if there
were no strings attached. It is expected, however, that any decision
will be deferred until the return of the Soviet Ambassador to Bangkok.
An unclassified table summarizing Bloc economic credits and grants
to underdeveloped countries, 1 January 1954 - 30 June 1961, is in-
cluded in this issue on p. 4.
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CONTENTS
Page
I.
Latin America . . . . . . . . . . . . . . . . . .
1
II.
Recent Developments in Bloc Technical Assistance
to Cuba . . . . . . . . . . . . . . . . . . . .
Middle East . . . . . . . . . . . . . . . . . .
2
Soviet Aid Program in Iraq . . . . . . . . . . . . .
2
A. Protocol to Recent Soviet-Indonesian Arms
Agreement . . . . . . . . . . . . . . . . .
3
B. Soviet Pressure on Thailand to Accept Aid . . .
3
Table
Sino-Soviet Bloc Economic Credits and Grants Extended
to Underdeveloped Countries of the Free World,
1 January 1954 - 30 June 1961 . . . . . . . . . . . . 4
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UNCLASSIFIED
Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/*
1 January 1954 - 30 June 1961
Million US $
Area and Country
Total
Credits
Grants
Total
3,991
3,854
137
Latin America
352
352
0
Argentina
104
104
0
Brazil
4
4
0
Cuba
Z45
245
0
Middle East
1, 345
1, 336
9
Afghanistan
217 b/
217 b/
0
Iran
6-
6-
0
Iraq
216
216
0
Pakistan
33
30
3
Turkey
17
17
0
UAR Egypt
633
628
5
UAR - o Syria
179
179
0
Yemen
44
43
1
Ethiopia
114
112
2
Ghana
88
88
0
Guinea
113
104
9
Mali
57
57
0
Somalia
58
57
1
Tunisia
8
8
0
Footnotes for the table follow on p. 5.
- 4-
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UNCLASSIFIED
Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/
1 January 1954 - 30 June 1961
(Continued)
Million US $
Area and Country
Total
Grants
Asia
1,740
1,
624
116
Burma
96
96
0
Cambodia
55
0
55
Ceylon
58
42
16
India
946
944
2
Indonesia
544
542
2
Nepal
41
0
41
Europe
116
Ic eland
5
5
0
Yugoslavia
111 c/
111 c/
0
a. Because of rounding, figures may not add to totals.
b. Including some grant aid, but a breakdown is not possible.
c. Not including about $353 million in credits extended in 1956 and
subsequently either canceled or allowed to expire.
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UNCLASSIFIED