SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020065-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 65
• Publication Date: July 1, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/193
1 July 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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AND DECIASSIFICAIIDN
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Summary of Events
14-27 June 1963
The USSR finally has inaugurated a new air route to Havana via
North and West Africa. TASS announced on 27 June that the first
Tu-114 has begun flights via Conakry, Guinea.
The United Arab Republic and the USSR have signed a new credit
agreement for $44. 4 million to finance industrial projects. The terms
provide for repayment over a 12-year period and an interest of 2. 5 per-
cent. There is a strong possibility that additional Soviet military assist-
ance also may have been discussed.
A Soviet-Ghanaian protocol, signed last March, provides that
$22. 2 million of the 1960 and 1961 Soviet development credits will be
earmarked for Soviet commodities to finance local currency costs of
certain Soviet-assisted projects under these credits. The financing of
these costs has hindered the implementation of the Soviet aid program.
Communist China recently waived reimbursements for assets
taken over in the nationalization of two Chinese banks in Burma. The
net value of the assets is estimated at $700, 000. The Chinese Com-
munists probably will use their action to propagandize their coopera-
tion with the policies and actions of the Revolutionary Government of
Burma in implementing the "Burma Way to Socialism. "
A group of 20 Burmese technical trainees left for the USSR on
7 June to participate in 3-months' training in the operation of tractors
and mechanized farms. The trainees ultimately may supervise 20
government tractor stations to be established throughout Burma. The
present Soviet program for training station supervisors will be the
first step toward the assimilation of larger numbers of tractors in
Burmese agriculture.
An Indian delegation will begin discussions on military assistance
early in July in Moscow and subsequently will go to Prague for similar
discussions. These negotiations will involve Soviet and Czechoslovak
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deliveries of a wide range of military hardware as well as Soviet assist-
ance in constructing an ammunition factory in India. If successful,
these negotiations will broaden the scope of Bloc military assistance
to India that heretofore had been concerned only with production and
deliveries of aircraft.
The USSR is reported to have agreed on 14 June to a 50 percent
reduction in Indonesia?s annual debt servicing costs and to enter into
production sharing arrangements.
After a 7-year downward trend the prices of some primary com-
modities have begun to rise. Viewed against the history of price move-
ments in commodity markets since the Korean War, however, these
recent price increases cannot yet be construed as a reversal in general
trends. The prospects for a long-run increase in the export earnings
of most underdeveloped countries are not encouraging.
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CONTENTS
Recent' Price Changes in Commodities Important
to Underdeveloped Countries . . . . . . . . . . . .
Page
A. Trade Pattern of Underdeveloped Countries . . . . 1
B. Ten Major Commodities . . . . . . . . . . . . 4
Coffee . . . . . . . . . . . . . . . . . . 4
Cocoa . . . . . . . . . . . . . . . . . . 5
Sugar . . . . . . . . . . . . . . . . . . . 6
Bananas . . . . . . . . . . . . . . . . . 7
2. Agricultural Raw Materials . . . . . . . . . 7
Jute . . . . . . . . . . . . . . . . . . . 7
Rubber . . . . . . . . . . . . . . . . . . 8
Cotton . . . . . . . . . . . . . . . . . 9
Wool . .. . . . . . . . . . . . . . . . . . 10
Tin . . . . . . . . . . . . . . . . . . . . 10
Copper . . . . . . . . . . . . . . . . . . 11
Soviet Air Access to Cuba via Africa . .
III. Middle East . . . . . . . . . . . . . .
New Soviet Aid to the UAR . . . . . . .
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IV. Africa . . . . . . . . . . . . . . . . .. . . . . . 13
Soviet Commodity Credit for Financing Local Costs
in Ghana . . . . . . . . . . . . . . . . . . . . . 13
V. Asia . . . . . . . . . . . . . . . . . . . . . 14
A. Burma . . . . . . . . . . . . . . . . . . . . 14
1. Chinese Communist Propaganda Gain . . . 14
2, Departure of Technical Trainees for
the USSR . . . . . . . . . . . . . . . . . 14
B. Imminent Bloc Military Aid Agreements
with India . . . . . . . . . . . . . . . . . . 15
C. Sumarno-Hidajat :Mission to Moscow ? . . . . . . 15
Algeria . . . . . . . . . . . . . . . . . . . . . . 16
Brazil . . . . . . . . . . . . . . . . . . . . . . 16
Ghana . . . . . . . . . . . . . . . . . . . . . . 16
Somali Republic . . . . . . . . . . . . . . . . . . 17
Figure 1. World Average Export Unit Values of Selected
Food Products, 1955-63 following page . . . . 4
Figure 2. World Average Export Unit Values of Selected
Agricultural Raw Materials, 1955-63
following page . . . . . . . . . . . . . . 8
Figure 3. World Average Export Unit Values of Selected
Metals, 1955-63 following page . . . . . . . . 10
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