SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020030-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 30
• Publication Date: February 26, 1962
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/158
26 February 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
RETURN To RECORDS CENTER
IMMEDIATELY AI" TER USE
JOB ~--
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Summary of Events*
9-22 February 1962
Cuba is reported to have advised its European Satellite trading
partners that it will be unable to deliver most of the sugar scheduled
for shipment to those countries during 1962. It appears that Cuba,
confronted with poor prospects for the sugar harvest in 1962, has de-
cided to restrict sales to the European Satellites rather than further
complicate its hard currency problem by reducing exports to markets
in the Free World.
Regular airline service between Prague and Havana by the Czecho-
slovak State Airline was inaugurated on 3 February. This development
establishes the first Bloc air service to the Western Hemisphere.
Although Cuba began air service to Prague in February 1961, Czecho-
slovakia could not establish its route until it had obtained overflight
privileges and technical landing rights from the UK, Ireland, and
Canada.
Since late in 1960 the Bloc has been supplying military and eco-
nomic assistance to the neutralist and the pro-Communist forces in
Laos. Although information on this aid is meager, there have been a
number of agreements that provide the framework for .the Bloc's cur-
rent economic relations with the regime of Souvanna Phouma. These
agreements presumably could be expanded rapidly to accommodate
whatever coalition of forces emerges from the negotiations now in
progress at Geneva.
Ceylon recently has contracted for the purchase of Soviet and
Rumanian petroleum products that will meet about one-fourth of
Ceylon's requirements for the next few years. Consequently the
Bloc, which to date has not supplied petroleum products to Ceylon,
will become an important source of supply beginning about mid-1962.
Late in 1961, Indonesia concluded credit agreements with Poland
and Czechoslovakia for the provision of spare parts and accessories
for military equipment supplied by both countries in 1958. The Polish
credit amounts to $10 million and the Czechoslovak to $4. 3 million.
* An unclassified table showing Bloc. economic technicians in under-
developed countries in 1961 is included in this issue on p.. 8..
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According to a recent report from Belgrade, 100 Soviet technicians
are to work on the expansion of an iron and steel plant in Yugoslavia --
the first indication that the Soviet commitment to provide technical
assistance to Yugoslavia within the framework of the 5-year commer-
cial agreement is being implemented.
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CONTENTS
Fage
I. Latin America (Cuba) . . . . . . . . . . . . . . . 1
A. Possible Cut in Cuban Sugar Sales to the Bloc 1
B. Establishment of Prague-Havana Run by the
Czechoslovak State Airline . . . . . . . . . . 2
II. Asia . . . . . . . . . . . . . . . . . . . . . . . 2
A. Bloc Assistance to Neutralist and Pro-Communist
Forces in Laos . . . . . . . . . . . . . 2
B. Bloc Military Aid to Indonesia . . . . . . . . . 5
C. Ceylonese-Rumanian Petroleum Agreement . . . 6
III. Europe . . . . . . . . . . . . . . . . . . . . 7
Soviet Technicians Scheduled for Yugoslavia . . . . . 7
Bloc Economic Technicians in Underdeveloped Countries,
1961 . . . . . . . . . . . . . . . . . . . . . . . . . 8
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Bloc Economic Technicians in Underdeveloped Countries a/*
1961
Area and Country
January-June
July-December
8, 220
8, 475
Argentina
50
50
Brazil
10
10
Chile
5
5
Cuba
500
750
Ecuador
5
5
2,840
2,520
Greece
5
0
Iran
70
70
Iraq
480
625
Syrian Arab Republic
415
415
Turkey
60
45
United Arab Republic
630
725
Yemen
1,180 b/
640 b/
1, 640
2, 005
Ethiopia
120
100
Ghana
205
250
Guinea
1, 200
1,445
Mali
45
125
Morocco
5
10
Somali Republic
5
15
Sudan
0
15
Tunisia
60
45
sic Footnotes follow on p. 9.
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Bloc Economic Technicians in Underdeveloped Countries a/
1961
(Continued)
Area and Country
JanuarX-June
July-December
3, 170
3, 130
Afghanistan
1,910 b/
1,920
Burma
25
35
Cambodia
310
170
Ceylon
45
25
India
640
560
Indonesia
180
315
Nepal
55
75
Pakistan
5
30
a. Minimum estimates (rounded to the nearest five) of the number of
persons present for a period of 1 month or more. Personnel engaged
solely in commercial or military activities are excluded.
b. Including technicians and laborers.
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