SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020034-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 34
• Publication Date: April 23, 1962
• Content Type: REPORT

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SECRET
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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/162
23 April 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
25X1
SECRET
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Summary of Events*
6-19 April 1962
Bolivian President Paz has expressed interest in expanding economic
relations with the USSR because of Bolivia's desperate economic need
and the suitability of Soviet-manufactured equipment for developing
Bolivia's mineral and petroleum resources. The Soviet offer in 1960 of
$100 million in credits is still outstanding, and Bolivia has repeatedly
postponed sending a negotiating team to the USSR.
Efforts to expand Czechoslovak interests and influence in the de-
pressed Brazilian Northeast have increased significantly during recent
weeks. A number of steps have been taken that may lead to closer re-
lations between the area and Czechoslovakia.
According to the first contract to be signed under the economic aid
agreement of May 1961, Czechoslovakia will supply mining equipment
for the development of Morocco's copper resources. Payment for this
assistance will be made in deliveries of copper ore over a 5-year period
at 3 percent interest.
Two Soviet freighters recently arrived in Casablanca with arms
for the Moroccan army. These deliveries of Soviet materiel are the
first to be made under the recently concluded arms agreement.
The USSR reportedly has agreed to extend assistance to India's
Defense Research Organization, an agency responsible for India's mis-
sile development program, but this aid probably will be limited to the
training of Indian specialists in the USSR.
The USSR will assist Afghanistan-in developing its housing construc-
tion industry and in city planning, according to a recent agreement.
The initiation of agricultural reform and development programs in
underdeveloped countries requires an improved organization of produc-
tion and marketing as well as the formation of large cadres of trained
* An unclassified appendix summarizing Bloc economic credits and
grants extended to underdeveloped countries, 1 January 1954 - 31 March
1962, is included in this issue on p. 14.
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personnel. The Bloc has provided or is committed to provide technical
assistance for agricultural development valued at approximately $100
million. Although Free World assistance for agriculture emphasizes
private ownership of land, the Bloc encourages the expansion of state-
controlled agriculture and is introducing techniques and methods toward
that end in those countries where it has aid programs in this field.
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Bloc Technical Assistance in Agricultural Develop-
ment of Underdeveloped Countries . . .
A. Continued Soviet Interest in Bolivia . . . . .
B. Increased Czechoslovak Activity in Northeast
Brazil . . . . . . . . . . . . . . . .
III. Africa (Morocco) . . . . . . . . . . .
A. Delivery of Soviet Arms to Morocco . . . . .
B. Czechoslovak Assistance for Moroccan Copper
Development . . . . . . . . . . . . . . .
A. Afghan-Soviet Agreement on Housing and City
Planning . . . . . . . . . . . . . . . . .
B. Soviet Assistance for India's Missile Program
Tables
1. Bloc Assistance for the Establishment of State
Agricultural Enterprises Planned or Under
Construction in Underdeveloped Countries
Page
12
12
2. Bloc Technicians and Training for Agricultural.
Development in Underdeveloped Countries . . . . . . 5
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Appendix
Page
Sino-Soviet Bloc Economic Credits and Grants Extended
to Underdeveloped Countries of the Free World,
1 January 1954 - 31 March 1962 . . . ? . ? ? . ? ? . . 14
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UNCLASSIFIED
Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/'',,
1 January 1954 - 31 March 1962
Million US $
Area and Country
Total
Credits
Grants
4,651
4,495
156
465
465
0
Argentina
104
104
0
Brazil
4
4
0
Cuba
357
357
0
1,133
1,127
6
Cyprus
1
1
0
Iran
6
6
0
Iraq
216
216
0
Syrian Arab Republic
178
178
0
Turkey
17
17
0
United Arab Republic
(Egypt)
671 b/
666 b/
5
Yemen
44
43
1
625
611
Ethiopia
114
112
2
Ghana
200
200
0
Guinea
110
104
6
Mali
65
65
0
Morocco
5
5
0
Somali Republic
63
57
6
Sudan
22
22
0
Tunisia
46
46
0
Footnotes for the a appendix follow on p. 15.
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UNCLASSIFIED
Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/
1 January 1954 - 31 March 1962
(Continued)
Million US $
Area and Country
Total
Credits
Grants
Asia
2,312
2,
176
136
Afghanistan
417 c/
417 c/
0
Burma
93
93
0
Cambodia
65
8
57
Ceylon
B8
42
16
India
950
946
4
Indonesia
641
640
1
Nepal
55
0
55
Pakistan
33
30
3
Europe
116
116
Iceland
5
5
0
Yugoslavia
111 d/
111 d/
0
a. Not including military credits and grants.
b. Not including about $12 million in credits that were extended in
1958 and 1960 and have expired.
c. Although some grant aid is included, a breakdown is not possible.
d. Not including about $353 million in credits that were extended in
1956 and subsequently either canceled or allowed to expire.
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