SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020021-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 21
• Publication Date: October 23, 1961
• Content Type: REPORT

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SECRET
25X1
BIWEEKLY REPORT
S1N0 - SOVIET $LOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/149
23 October 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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Summary of Events*
6-19 October 1961
Efforts of the USSR to conclude civil air agreements outside the Bloc
and to sell its aircraft in underdeveloped countries have focused attention
on the degree to which Soviet jet and turboprop transports are competitive
with comparable Free World models. Although there are few important
differences in speed, range, and carrying capacity between Soviet and
Free World high-performance transports, Free World planes are gener-
ally superior in fuel economy, maintenance, durability, safety, and com-
fort. In order to counteract these advantages, the USSR has offered its
aircraft at reduced prices and on favorable credit terms.
Poland and Hungary have arrived at specific agreements with Indo-
nesia on a number of small nro,jects to be financed under lines of credit
recently extended.
The USSR has agreed to extend assistance for Afghanistan's Second
Five Year Plan. New economic and technical cooperation pacts signed
on 16 October provide aid in such fields as petroleum, chemicals, road
construction, agriculture, and geological surveys. On 6 September,
Poland signed economic and technical aid agreements with Afghanistan.
The amount and terms of aid to be provided under the Soviet and Polish
agreements are not yet known.
Peiping has overcome earlier Nepalese reluctance and now has
obtained approval to build a road from the Tibet border to Katmandu.
A Chinese Communist delegation visiting Rangoon in September
advised the Burmese that, during the forthcoming year, Peiping would
be unable to provide items such as fertilizer and irrigation pumps
under the $84 million economic credit extended early this year. China's
current agricultural crisis was given as the reason for the present un-
availability of such goods for export.
An unclassified table summarizing Bloc economic credits and grants
to underdeveloped countries, 1 January 1954 - 30 September 1961, is
included in this issue on p. 11.
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A review of Bloc military aid in West African areas indicates that
the USSR and Czechoslovakia are continuing well-established policies
and practices --- providing financial and technical assistance for mod-
ernizing and expanding the armed forces of the newly independent states
as well as for equipping and training dissident forces within colonial
territories.
During President Nkrumah's visit to the Bloc in late summer, some
new arrangements were made for Soviet-Ghanaian economic cooperation,
and the groundwork was established for additional arrangements with
other Bloc countries. The recent arrangements point toward greater
Bloc financial and technical support for Ghana's economic development
efforts and the existence of a program under which the USSR is to pro-
vide training for Ghanaian military personnel.
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Page
I. General . . . . . . . . . . . . . . . . . . . . . 1
Soviet Transport Aircraft in Underdeveloped
Countries . . . . . . . . . . . . . . . . . . . .
II. Middle East . . . . . . . . . . . . . . . . . . . 3
New Bloc Credits for Afghanistan . . . . . . . . . . 3
A. Soviet Bloc Military Assistance to Western
Africa . . . . . . . . . . . . . . . . . . . 3
B. Soviet Construction of a Shipyard in Morocco 6
C. Recent Developments in Bloc Economic
Relations with Ghana . . . . . . . . . . . . . 6
IV. Asia . . . . . 8
A. Progress in Bloc Economic Aid to Indonesia . . . 8
B. Utilization of Chinese Communist Credit
to Burma . . . . . . . . . . . . . . . . . . 9
C. Construction of a Road in Nepal by Communist
China . . . . . . . . . . . . . . . . . . . . 9
Sino-Soviet Bloc Economic Credits and Grants Extended
to Underdeveloped Countries of the Free World,
1 January 1954 - 30 September 1961 . . . . . . . . . . 11
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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 September 1961
Million US $
Area and Country
Total
4,
241
4,100
141
Latin America
Argentina
104
104
0
Brazil
4
4
0
Cuba
357
357
0
Middle East
1,
335
1, 326
9
Afghanistan
217 b/
217 b/
0
Egypt
624
619
5
Iran
6
6
0
Iraq
216
216
0
Pakis tan
33
30
3
Syria
178
178
0
Turkey
17
17
0
Yemen
44
43
1
508
496
Ethiopia
114
112
2
Ghana
108
108
0
Guinea
113
104
9
Mali
57
57
0
Somalia
58
57
1
Sudan
22
22
0
Tunisia
36
36
0
* Footnotes for the table follow on p. 12.
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UNCLASSIFIED
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UNCLASSIFIED
Sing-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/
1 January 1954 - 30 September 1961
(Continued)
Million US $
`
Area and Country
Asia
1,817
1,
697
120
Burma
96
96
0
Cambodia
71
14
57
Ceylon
58
42
16
India
946
944
2
Indonesia
603
601
2
Nepal
43
0
43
Europe
116
116
0
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