SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020072-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 72
• Publication Date: October 7, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/200
7 October 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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X TbMATIC DOWNGRADING
AND DECLASSIFICATION
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Summary of Events--
20 September - 3 October 1963
A Soviet report recently submitted to Petrobras indicates that
potentialities for petroleum development exist in the Amazon and
Northeast regions of Brazil. It is questionable, however, whether
producing fields can be developed in these areas.
Recent deliveries of Soviet materiel to Basra indicate that the
USSR is fulfilling its commitment to resume military aid to Iraq.
The value of the Soviet-UAR arms agreement concluded in June
may total more than $50 million. The agreement, which includes
materiel for all three services, is being implemented rapidly.
The line of credit of $100 million recently offered by the USSR to
Algeria apparently carries an interest rate of 2. 5 percent and a re-
payment period of 12 years. The USSR has proposed that the credit
be used primarily for agricultural development.
At a recent meeting with Bloc ambassadors to Ghana, Nkrumah
asked for suggestions to increase the rate of implementation of Bloc
projects. Among the several measures proposed, the most interesting
concerned increased utilization of a French consortium to finance the
local construction costs. A master agreement signed in January 1963
between this consortium and Ghana provides for credits that will be
used in part to meet the local currency costs of development projects
financed under both Bloc and Free World aid programs. In August an
implementing contract was signed between the two parties covering six
projects, including the Hungarian pharmaceutical plant in Accra.
The USSR apparently is planning an extensive development program
in Tanganyika, and Poland has agreed to construct a sugar plantation
and refinery valued at $12. 6 million.
This issue of the Biweekly Report contains a special annex on Soviet
civil air expansion in non-Bloc underdeveloped countries and Cuba,
beginning on p. 10.
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According to recent reports, India is considering requesting Soviet
assistance in the construction of a steel plant at Bokaro, possibly in a
construction consortium with other Bloc countries. If Soviet aid for
such a project is forthcoming, it probably will be on a smaller scale
than that considered in recent US-Indian negotiations. Nehru also has
stated recently that India is considering, assistance for this project
from all sources, including Japan and Western Europe.
Poland reportedly has agreed to lengthen the repayment schedule
of Indonesia's debt obligations over the next few years. Although no
details are available, the repayments in question are believed to be
for Polish military assistance.
Pakistan recently has signed seven barter agreements with Bloc
countries that provide for about $6 million in trade each way. These
agreements are small and appear to be intended to demonstrate
Pakistan's independence of its Western allies rather than to portend
a substantial shift in its economic relations.
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CONTENTS
I. Latin America . . . . . . . . . . . . . . . . . .
Page
Recent Bloc Economic Activities in Brazil . . . . . . 1
II. Middle East . . . . . . . . . . . . . . . . . . . . 2
A. Resumption of Soviet Military Deliveries to Iraq . 2
B. Details of the New Soviet-UAR Arms Agreement 2
A. Details of the Soviet Credit to Algeria .
B. Ghana . . . . . . . . . . . . . . .
1. French Firm to Finance Construction Costs
of Bloc-Aided Projects . . . . . . . . . .
2. Meeting of Bloc Ambassadors with Nkrumah
on Aid and Trade . . . . . . . . . . . . .
C. Recent Economic Developments Between
Tanganyika and the Bloc . . . . . . .
A. Possible Soviet Participation in the Bokaro
Project . . . . . . . . . . . . .. . . .
B. Rescheduling of the Indonesian Debt to Poland
C. Pakistan's Trade Relations with the Bloc . .
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India . . . . . . . . . . . . . . . . . . . . . . . 8
Indonesia . . . . . . . . . . . . . . . . . . . . . 8
Morocco . . . . . . . . . . . . . . . . . . . . . 8
Special Annex
Soviet Civil Air Expansion in Non-Bloc Underdeveloped
Countries and Cuba . . . . . . . . . . . . . . . .
Map
International Routes of Soviet and Czechoslovak Civil
Airlines to Non-Communist Countries, Yugoslavia,
and Cuba, as of 1 October 1963 inside back cover
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