SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020052-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 52
• Publication Date: December 31, 1962
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/ 180
31 December 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
25X1
GROUP 1
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Summary of Events
14-27 December 1962
Soviet Premier Khrushchev has sent a letter to President Sukarno
stating that the USSR is prepared to take all possible steps to ease Indo?-
nesia's debt repayment problem, including rescheduling the payments
over 20 to 25 years. The economic delegation, which had been scheduled
to arrive in Djakarta on 15 December to discuss the repayment problem.,
will come in January to work out the details of the new payment arrange-
ments.
A joint shipping service composed of vessels operated by Cuba,
Poland, Czechoslovakia, and East Germany will be initiated on 1 January
1963 to handle all Bloc shipping to Cuba from Baltic ports. This action
is needed to insure continued shipping facilities to and from Cuba in view
of the Bloc's increasing difficulty in chartering Free World vessels for
this run.
On 22 December the USSR inaugurated a new nonstop civil air route
over international waters to Havana. Tu-114 aircraft will be used on
the flights and will provide the USSR with a rapid and secure - - but
expensive -- route to Cuba for high-priority cargo and personnel.
Since late in September the Chilean Government has sold nearly
3, 000 tons of electrolytic copper, valued at slightly less than $2 million,
to the USSR. These are the first government-to-government sales be-
tween Chile and the USSR; they have added significance because they in-
dicate Soviet acquiescence to Chilean demands for hard currency in
payment.
Increased activity in East Africa may presage an unusually vigorous
drive to establish Chinese Communist influence in the area.
A Hungarian delegation toured a number of West and North African
countries in December. Trade, cultural, and scientific-technical co-
operation agreements were concluded with some countries.
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The USSR has made a formal request to the Somali Republic for
Aeroflot overflight and landing privileges. A similar request reportedly
has been made to Ethiopia.
India will send 5 crews and 82 technicians to the USSR for training
on An-12 transports. Negotiations are underway for the purchase of
additional aircraft of this type as well as Mi-6 helicopters and for the
right to manufacture Mi-4 helicopters.
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Page
A. Continued Soviet Purchases of Chilean Copper . . 1
B. Cuba . . . . . . . . . . . . . . . . . . . . . 1
1. Soviet Air Route to Cuba . . . . . . . . . .
2. Bloc Moves to Ease Cuban Shipping
Problems . . . . . . . . . . . . . . . .
II. Africa . . . . . . . . . . . . . . . . . . . . . . 4
A. Soviet Civil Air Activity in East Africa . . . . . . 4
B. Hungarian Goodwill Mission in West and North
Africa . . . . . . . . . . . . . . . . . . . . 4
C. Chinese Communist Activity in East Africa . . . . 5
A. Soviet Military Assistance to India . . . . . . . . 6
B. Soviet Willingness to Ease Indonesian Debt
Repayment Terms . . . . . . . . . . . . . . 7
C. Bloc Aid to Laos . . . . . . . . . . . . . . . 7
IV. Brief Notes . . . . . . . . . . . . . . . . . . . . 8
Iraq . . . . . . . . . . . . . . . . . . . . . . . 8
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