SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020064-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 64
• Publication Date: June 17, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/192
17 June 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
25X1
GROUP 1
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Summary of Events
31 May - 13 June 1963
Cuban exports of sugar to the Communist Bloc, which totaled $400
million in 1962, may be reduced as much as $100 million in 1963. Such
exports to the Free World probably will increase in 1963 following the
rise in the world price of sugar and probably will amount to roughly
$200 million compared with about $130 million in 1962. It appears that
the Bloc has been willing to accept a reduction in its sugar imports in
order that Cuba may maintain its exports to the Free World.
Evidence mounts that Iraq may have canceled its orders for Soviet
surface-to-air missiles (SAM) and aid in the construction of three mili-
tary plants. The continuation of SAM training, however, suggests that
the program costing about $17 million may be pared down rather than
canceled outright. Negotiations affecting the entire military assistance
program apparently are still in progress.
Soviet Bloc countries have recently expanded relations with some
of the countries of the UAM, which in the past have been quite cautious
in their dealings with the Bloc. Senegal and Dahomey have accepted
Bloc diplomatic missions, and Niger, Dahomey, and Cameroon have
signed agreements for cultural exchanges and economic and technical
assistance. These agreements show an increasing willingness on the
part of several UAM states to expand contacts with the Bloc, but it is
doubtful that relations of present UAM governments with the Bloc will
become very close.
Algeria and Bulgaria have reached preliminary agreement on a $6
million long-term economic development credit -- the first credit of
this kind extended by a Bloc country to Algeria.
The size of the Soviet credit to Cambodia for financing the Kamchay
hydroelectric project is reported at $12. 2 million, which is about $4
million less than the Soviet Ambassador had estimated in April. It will
carry an interest rate of 2. 5 percent and will be repayable over a 12-
year period,
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An Indonesian economic and military mission departed by air for
Moscow on 31 May to discuss the rescheduling of Indonesia's debt to
the USSR and possible further purchases of Soviet aircraft and equip-
ment. Negotiations reportedly will include the purchase of An-12
transports, inasmuch as a shortage of foreign exchange precludes the
purchase of comparable US aircraft.
Agreement for air service between Pakistan and Communist China
has been reached by airline authorities of the two countries; arrange-
ments must still be approved by both governments. Although Communist
China has signed or negotiated similar agreements with other countries
of the Free World, only Bloc airlines presently fly into China.
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Page
Cuban Exports of Sugar During 1963 . . . . . . . . . 1
Possible Cancellation of Iraqi Order of Soviet
Missiles . . . . . . . . . . . . . . . . . . . . . 3
A. Bloc Advances in UAM Countries . . . . . . . . 4
B. Bulgarian Credit for Algeria . . . . . . . . . . 6
A. Further Details on the Soviet Credit for a Cam-
bodian Hydroelectric Project . . . . . . . . . 6
B. Signing of New Indian-Soviet Five Year Trade
Agreement . . . . . . . . . . . . . . . . . 7
C. Indonesian Mission to Moscow . . . . . . . . . 8
D. Air Service Between Communist China
and Pakistan . . . . . . . . . . . . . . . . 9
V. Brief Notes . . . . . . . . . . . . . . . . . . . . 9
Chile . . . . . . . . . . . . . . . . . . . . . . . 9
Libya . . . . . . . . . . . . . . . . . . . . . . . 10
Syria . . . . . . . . . . . . . . . . . . . . . . . 10
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