SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020080-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 80
• Publication Date: January 27, 1964
• Content Type: REPORT

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BIWEEKLY REPORT
Copy N?
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/208
27 January 1964
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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Summary of Events
10-23 January 1964
The visit of four Soviet engineers to the proposed Sete Quedas
hydroelectric power site in Brazil and their interview with President
Goulart revived press speculation about Soviet intentions to finance
the $2 billion project. The Minister of Mines and Power, however,
subsequently stated that the project is still under preliminary consid-
eration and that there has been no final commitment entered into with
the Soviet Government "or any other. "
Cuba has concluded its 1964 trade protocols with the USSR, Com-
munist China, East Germany, and Bulgaria, and substantial increases
in trade are anticipated. The agreement with the USSR also includes
provision for additional balance-of-payments support to help finance
Cuba's continuing trade deficits.
A new long-term trade agreement has been concluded between Cuba
and the USSR. Although the complete details are not available, the
USSR has agreed to import increasing amounts of sugar. These ship-
ments are scheduled to rise from 2. 1 million tons in 1965 to 5 million
tons during the 1968-70 period. The USSR will pay 6 cents per pound
under the terms of the agreement -- the same price currently paid by
the USSR and most of the other members of the Bloc.
Mexico's recent expansion of trade with Communist countries has
included the sale of 550, 000 metric tons of wheat to Communist China,
Czechoslovakia, and East Germany and an order from Communist China
for $28 million worth of Mexican cotton in 1964. Trade missions to
Communist China, Poland, and the USSR are planned. for early 1964.
Details now available on the 1962 Soviet-Syrian arms agreement
indicate that provisions originally were made for 11-28 jet light bom-
bers, MIG-21 jet fighters, Komar-class missile boats, T-54 tanks,
and SAM's. The order for SAM's was canceled later because of the
high cost. Deliveries under this agreement, which began in mid-1963,
have comprised about half of the equipment ordered; no I1-28's, how-
ever, have been delivered.
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In spite of an increase of the margin of swing credit in the Syrian -
Chinese Communist payments agreement, Communist China has sub-
stantially exceeded the margin. Syria is now insisting on cash payments
for cotton purchases.
Senegal's President Senghor has reported the cancellation of the
proposed Soviet aid project for irrigation facilities and watershed re-
habilitation on the Senegal River.
Additional information on Indonesian Defense Minister Nasution's
negotiations with the USSR in November indicates that Indonesia will
receive additional jet fighters and jet light bombers and -- for the first
time -- Mi-6 helicopters. No country outside the USSR has received
the Mi-6, the world's largest helicopter.
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EUR
Page
A. Soviet Hydroelectric Technicians in Brazil . . .
B. Cuba . . . . . . . . . . . . . . . . . . . .
1. New Long-Term Cuban Trade Agreement
with the USSR . . . . . . . . . . . . . .
2. 1964 Trade Protocols Between Cuba and the
USSR and Other Bloc Countries . . . .
C. Mexican Plans for Trade Expansion with Com-
munist Countries . . . . . . . . . . . . . . . 4
II. Middle East (Syria) . . . . . . .
A. Syrian - Chinese Communist Payments
Difficulties . . . . . . . . . . . . . . . . . 5
B. Details of the 1962 Soviet-Syrian Arms
Agreement . . . . . . . . . . . . . . . . . 5
Cancellation of Soviet Aid Project in Senegal . .
Argentina . . . . . . . . . . . . . . . . . . . . . 6
Brazil . .. . . . . . . . . . . . . . . . . . . . . 7
Chile . . . . . . . . . . . . . . . . .. . . . . . 7
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