SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP92B01090R000700020017-1
Release Decision: 
RIPPUB
Original Classification: 
C
Document Page Count: 
11
Document Creation Date: 
December 16, 2016
Document Release Date: 
August 2, 2005
Sequence Number: 
17
Case Number: 
Publication Date: 
August 28, 1961
Content Type: 
REPORT
File: 
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PDF icon CIA-RDP92B01090R000700020017-1.pdf240.99 KB
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ApproveAfJ~R1sCUq~WDN01090R000700020017-1 Copy N?. 443 BIWEEKLY REPORT S1NO - SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS EIC WGR 1/145 28 August 1961 PREPARED BY THE WORKING GROUP ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS ECONOMIC INTELLIGENCE COMMITTEE Approved For ReleastALl"ibE 2f01090R000700020017-1 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Approved For Release d,551 L22~ENTIAL1090R000700020017-1 Summary of Events* 11-24 August 1961 Cuban Minister of Industries Guevara revealed at the Inter- American Economic and Social Council meeting in Uruguay that the Sino-Soviet Bloc has extended to Cuba economic credits totaling $357 million. This figure includes credits worth $112 million that had not been announced previously -- $100 million from the USSR and $12 million from Poland. He further asserted that Cuba was negotiating for additional credits of $100 million from unspecified countries. Two Hungarian technicians recently arrived in Brazil to conduct water well drilling operations in the drought-ridden northeast. Their arrival marks the beginning of what probably will be a steady influx of Bloc technical personnel who will participate in Brazil's develop- ment program. Before the arrival of the technicians, President Quadros directed his Foreign Minister to make certain that the Bloc specialists would be given all possible cooperation in their efforts. The vast deposits of oil shale in Brazil continue to be of interest to the USSR. Although Petrobras, the government-owned petroleum monopoly of Brazil, has applied to the Export-Import Bank for a loan to finance the construction of a prototype shale-oil plant in the State of Parana, a group of engineers from Petrobras has accepted an in- vitation to visit the USSR to study Soviet oil-shale operations. Communist China announced the extension of $19. 6 million to Ghana for the purchase of equipment, machinery, and materials and for the financing of Chinese technical assistance. The credit is interest-free and is to be repaid within a period of 10 years (beginning on 1 July 1971) in goods or foreign exchange. An unclassified table summarizing the number of Bloc economic technicians in underdeveloped countries, July-December 1960 and January-June 1961, is included in this issue on p. 7. Approved For Release.21090R000700020017-1 Approved For Release O1 090R000700020017-1 2QQ/ &P Cambodia has announced that Czechoslovakia will provide three factories having a total value of $13. 7 million. Cambodia also has recently purchased from the USSR two 11-14 aircraft valued at $457, 000, and Prince Sihanouk has accepted a helicopter as a gift from the Soviet Government. Poland has extended a credit of $30 million to Indonesia for use in the construction of industrial projects, including a cement factory, a coal mine, and a smelter. A trade protocol signed at the same time calls for an increase in trade between the two countries. A Sino-Ceylonese agreement signed in August for delivery of a textile mill to Ceylon represents the first project to be implemented under the $15. 8 million grant extended by Communist China in November 1957. Further negotiations for utilization of the grant are currently underway. Approved For Release Oo ((1 yh LA:F Ap,92801090R000700020017-1 Approved For Release ONFI !A i 01090R000700020017-1 CONTENTS Page I. Latin America . . . . . . . . . . . . . . . . . . . 1 A. New Bloc Credits to Cuba . . . . . . . . . . . . 1 B. Brazil . . . . . . . . . . . . . . . . . . . . . 2 1. Soviet Interest in Brazilian Oil Shale . . . 2. Hungarian Technical Assistance in North- eastern Brazil . . . . . . . . . . . . Chinese Communist Credit to Ghana . . . . . . . . . 4 III. Asia . . . . . . . . . . . . . . . . . . . . . . . 5 A. Textile Mill for Ceylon from Communist China 5 B. Current Developments in Economic Relations Between Cambodia and the Bloc . . . . . . . . . 5 C. Extension of Polish Credit to Indonesia . . . . . . 6 Table Bloc Economic Technicians in Underdeveloped Countries, July-December 1960 and January-June 1961 . . . . . . . 7 Approved For Release 1 'Vi'l 090R000700020017-1 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Next 2 Page(s) In Document Exempt Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Approved For Re1ease.2QQ((3/?,2.: G!9-PA71090R000700020017-1 program. Most of those who entered have done so quietly and for the purpose of servicing or installing Bloc machinery and have departed as soon as the job was completed. With the exception of the visit in early 1960 of the group of Soviet shale technicians who were brought in to consult with a private company, Bloc personnel generally have not undertaken exploratory or survey work. (FOR OFFICIAL USE ONLY) Preliminary arrangements for the Hungarians to enter Brazil probably were made in May, when a large Brazilian economic mission visited Budapest and signed economic and technical assistance agreements. Before the arrival of the technicians, President Quadros directed his Foreign Minister to make certain that the Bloc specialists would be given all possible cooperation in their efforts. (UNCLASSI- FIED) During Prime Minister Nkrumah's recent visit to Communist China, Peiping announced the extension of a credit of $19.6 million to Ghana. The credit is available for a period of 6 years, interest free, and is to be repaid in goods or foreign exchange over a 10-year period beginning 1 July 1971. The credit will be used to purchase equipment, machinery, and materials and to finance technical. assistance. Although Nkrumah has completed an extensive tour of the Commu- nist world, the Chinese Communist credit is the only new Bloc economic aid commitment to Ghana that has been announced. The USSR, however,: has agreed in principle to extend additional aid. Before Nkrumah's visit the USSR, Czechoslovakia, Hungary, and Poland had extended a total of $88. 4 million in credits to Ghana. Communist China had not previously extended any economic assistance to Ghana. Ghana is the second African country to receive credits from Peiping (a $25 million credit was extended to Guinea last September), and Pei in al o has agreed in principle to extend economic aid to Mali. s 25X1 25X1 25X1 Approved For ReleastW/ 1b'9 py92B01090R000700020017-1 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Next 1 Page(s) In Document Exempt Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020017-1 Approved For Release 2Q/1V 2 : C~SIFIE O 09OR000700020017-1 Bloc Economic Technicians in Underdeveloped Countries a/* July-December 1960 and January-June 1961 Area and. Country January-June 1961 July-December 1960 Total 8,220 6,510 Latin America 570 290 Argentina 50 55 Brazil 10 10 Chile 5 5 Cuba 500 220 Ecuador 5 0 4,755 4,390 Afghanistan 1, 910 b/ 1, 650 b/ Greece 5 5 Iran 70 60 Iraq 480 400 Pakistan 5 5 Turkey 60 70 UAR -- Egypt 630 530 UAR -- Syria 415 540 Yemen 1,180 b/ 1, 130 b / 1,640 540 Ethiopia 120 40 Ghana 205 100 Guinea 1,200 400 Mali 45 0 Morocco 5 0 Somali Republic 5 0 Tunisia 60 0 * Footnotes follow on p. 8. Approved For Release 2 6kIMB0109OR000700020017-1 Approved For Release 2~NCLAr~SIF~ED1090R000700020017-1 Bloc Economic Technicians in Underdeveloped Countries a/ July-December 1960 and January-June 1961 (Continued) Area and Country January-June 1961 July-December 1960 Asia 1, 255 1, 285 Burma 25 60 Cambodia 310 235 Ceylon 45 40 India 640 735 Indonesia 180 165 Nepal 55 50 Europe 0 Yugoslavia 0 a. Minimum estimates (rounded to the nearest five) of the number of persons present for a period of 1 month or more, b. Including technicians and laborers. Approved For Release2 "Jy01090R000700020017-1 Approved For Releas M)UIDBI pAD1090R000700020017-1 Approved For Release QQg Ipjf 01090R000700020017-1