SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020071-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 71
• Publication Date: September 23, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/199
23 September 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
391
ECONOMIC INTELLIGENCE COMMITTEE Owns VIA%
to t~RC~~~~'S vet
SECRET 10Y.V %
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Summary of Events
6-19 September 1963
Brazil plans to increase its exports of iron ore to the Bloc from
1. 5 million tons to 4 million tons. In addition to reflecting a general
desire to increase exports, such shipments also are related to Brazil's
search for nondollar sources of petroleum. By 1966 Brazil hopes to
export 1 million tons of iron ore to Rumania for its projected metal-
lurgical project at Galati. If the USSR fails to supply the ore for this
project, which it opposes, the exchange of Brazilian ore for Rumanian
petroleum clearly will be to the advantage of both partners.
Czechoslovakia will assist Brazil in the development of its electric
power capacity under a credit of from $60 million to $100 million.
Although it is not so stated, this credit probably is the May 1961 credit
of $60 million for machinery and equipment.
Cuba has begun preliminary negotiations with four Bloc countries
on the 1964 protocols to the existing trade agreements with these coun-
tries. Negotiations at this time may indicate Cuban anxiety to obtain
assurances of supply and balance-of-payments support from the Bloc
as early as possible. In addition, these discussions may reflect Cuba's
desire to complete its economic plan for 1964 before the first of next
year.
East Germany has extended a credit of $10 million to Cuba for
machinery and equipment. Total East German credits to Cuba now
amount to $33 million.
Iraq has recently publicized a number of problems associated with
economic projects undertaken by the USSR. These difficulties cannot
be considered to reflect exclusively on Soviet or Bloc projects, and
Iraqi complaints along these lines appear to be politically motivated.
Recent information on the Soviet credit of October 1957 to Syria
has been received which indicates that only $87. 5 million of the original
$150 million has been committed for specific projects. The remainder
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may have been for the now-abandoned Euphrates Valley project or may
be for projects subcontracted by the USSR to the European Satellites.
On the other hand, the balance still may be outstanding as an open-end
credit and subject to future negotiation. Uncertainty surrounding the
status of this line of credit is compounded by the fact that it is the only
major economic credit to an underdeveloped country for which an amount
has never been announced by Soviet officials.
The USSR has offered Algeria a credit of $100 million for economic
development. The details of this proposed agreement will be negotiated
in the near future when an Algerian government delegation will be in
Moscow.
Soviet equipment, technical assistance, and training will be pro-
vided to Afghanistan in the field of atomic energy. This program will
be conducted under the auspices of the International Atomic Energy
Agency.
In anticipation of the completion in early 1964 of a Soviet technological
institute near Phnom Penh, six Cambodian teachers have left for training
in the USSR. About 25 Soviet teachers who will instruct at the institute
are expected to arrive in Cambodia soon.
Communist China and Nepal have agreed to substitute five smaller
projects for the paper mill project originally planned at Nepalgunj.
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1. Brazilian Hopes for Expanded Iron Ore
Shipments to Eastern Europe . . . . . . . 1
2. Czechoslovak Credit to Brazil. . . . . . . . 2
B. Cuba . . . . . . . . . . . . . . . . . . . . . 3
1. Bloc-Cuban 1964 Trade Negotiations . . . . 3
2. East German Extension of Credit to Cuba . . 3
II. Middle East . . . . . . . . . . . . . . . . . .
A. Technical Problems in Soviet Economic Aid
Projects in Iraq . . . . . . . . . . . .
B. Soviet Economic Aid to Syria . . . . . . . .
III. Africa . . . . . . . . . . . . . . . . . . . . . .
Soviet Offer of Aid to Algeria . . . . . . . . . . . . 6
IV. Asia . . . . . . . . . . . . . . . . . . . . . . . 7
A. Afghan-Soviet Atomic Reactor Agreement . . . . 7
B. Preparations for the Opening of the Soviet
Technological Institute in Cambodia . . . . . . 8
C. Alteration of Communist China's Aid Program
in Nepal . . . . . . . . . . . . . . . . . . 8
V. Brief Notes . . . . . . . . . . . . . . . . . . . . 9
Dahomey . . . . . . . . . . . . . . . . . . . . . 9
Yemen . . . . . . . . . . . . . . . . . . . . . . 9
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