DI DIRECTIONS ON SANITIZATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP93B01194R001000080001-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 1
• Publication Date: August 28, 1989
• Content Type: MF

STAT Approved For Release 2005/08/16 : CIA-RDP93B01194RO01000080001-2
Approved For Release 2005/08/16 : CIA-RDP93B01194RO01000080001-2
 4 7 - 3 / Copy NO 31
crfO? roved For Rele
4. ~ aC)APn94OOOO8OOOI-2
NOT RELEASABLE TO
FOREIGN NATIONALS
(L
BIWEEKLY REPORT.
SING -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/99
23 November 1959 MT PJ- )
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
NOT RELEASABLE TO
FOREIGN NATIO ALS
SECRET `
MORI/CDF
Approved For Release 2005/08/16 : CIA-RDP93B01194RO01000080001-2
 L i
roved For Release 2005/08/ - 11
''' reportedly to participate in final negotiations on the
P;GZechoslovaks,
f the $20 million credit agreement that was signed
25X1
imPlerne ntatfon o
in July. Twenty-one persons -- including the Czechoslovak Deputy
Minister of Foreign.Trade, three engineers, and a professor of
are
medicine as well as several experts in geology and forestry -- ~-
baba. 25X
Twelve to 1 bzechoslovak administrative and technical em-
ployees, capitalizing on an exhibit in Conakry in September of Czecho-
slovak trucks and automobiles, are expected in Guinea some time in
November to establish an agency for the sale of Skoda automobiles,
trucks, and motorcycles. -It was reported earlier that the Czecho-
slovaks hope to gain a virtual monopoly of This line of goods by means
of lower prices and better facilities than their Western competitors.
At the present time Skoda products are being. imported and sold by
the Guinea Foreign Trade Agency, a government organization that
during the past 6 months has sharply decreased the number of licenses
issued for the importation of automotive and other goods from Western
suppliers in order to give priority to the fulfillment of bilateral trade
quotas with Bloc countries. ECONFIDENTIAL
During a recent visit to Czechoslovakia, representatives of
the Libyan Chamber of Commerce were offered Czechoslovak ma=.
chinery and complete factory installations on liberal credit terms.
Czechoslovak technicians would be sent to train Libyans in plant opera-
mila
s
d
i
+ - - - ---
we a
tions. The offers reporte
month visit of a Czechoslovak trade mission earlier this year. ICON
A Czechoslovak trade mission seven men was expected to
arrive in Liberia on 12 November for aday visit. Skoda automo-
biles recently have appeared on the local market for the first time.
Previously, the trade mission spent approximately 3 weeks each in
the Union of South Africa and the Federation of Rhodesia and Nyasa-
land. Although this was the first time as official Czechoslovak trade
FIDENT IAL)
mission had been received by either country, it is not expected that
the visits will result in any signi scant increase in the trade these
(
CONFIDENTIA4/NOFORN)
countries with. Czechoslovakia. \
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11
SECRET?
 pproved For Release 2005/08/16 :CIA-1P93B4R001 0800 -2
n Interest in Soviet Hos
itals yVc.._?A
ewed Lib
Re
B
y
p
n
An official Libyan press publication has announced that the
Council of Ministers decided on 11 November to approve an agreement
with the USSR for the construction of two gift hospitals. The offer was
first made by the USSR in 1956, and in October 1958 the Libyan govern-
ment confirmed its acceptance. In May 1959, however, the Council of
Ministers decided to reject the offer because of Soviet insistence on
staffing the hospitals with Soviet doctors and nurses. * The terms of
the agreen4ent now being considered are not known. FOR OFFICIAL-
USE ONLY J1
A. Indirect Exports by Latin America to the Bloc
Western European ports are frequently used as transshipment
points for Latin American exports destined for countries of the Soviet
Bloc. Because Free World statistics do not identify these shipments
as exports to the Bloc, the true magnitude of Latin. Ame rican trade with
the Bloc is understated to the extent that such shipments have taken
place. (FOR OFFICIAL USE ONLY)
Statistics recently made available show, for example, that
seven Latin American countries during 1958 shipped a total of 37, 809
tons of merchandise indirectly through Netherland ports to countries
of the Bloc. Of this total, Argentine hides and skins accounted for
21, 537 tons, and Uruguayan wool estimated to be worth $8 million ac-
counted for 8, 092 tons. Small additional amounts of merchandise
were shipped by Ecuador, Mexico, Peru, Brazil, and Chile. Hungary,
which imported 14, 521 tons, was the leading Bloc recipient of this in-
direct trade, followed by the USSR, which imported 9, 373 tons. CFOR-
OFFICIAL USE ONLY)
The Bloc imported directly about 43 percent by volume of
Argentine exports of hides and skins during 1958. If the sizable in-
direct shipments shown above are considered, the Bloc apparently
See the Biweekly Report of 22 June 1959.
r
(
SECRET
6-i
 Approved For Release 2005/08/16 IA-RDP93 011 44R0 0008( 01-2
MORI/CDF
skins in 17
worth $24 million in 1958, or 30 percent by value of Uruguay's wool
exports during the year. If the indirect shipments (worth approxi-
mately $8 million) are considered, the Bloc bought about 40 percent
of Uruguayan wool exports in 1958. Communist China bought 1, 306
tons of Uruguayan wool indirectly and only 1, 016 tons directly during
1958. (SECRET)
accounted for well over 50 percent of Argentine sales of hides'
58 Direct imports by the Bloc of Uruguayan wool were
delivery in 1959. ((FOR OFFICIAL USE ONLY)
Soviet Bloc countries, particularly Czechoslovakia and Hun-
gary, are selling increasing amounts of agricultural machinery to
Brazil and reportedly are cutting seriously into the Brazilian market
for US tractors. Bloc agricultural machinery is generally considered
to be inferior to comparable US products but sells at a price one-third
to one-half of that quoted by US firms and is offered under more generous
credit terms. Moreover, Brazilian currency control regulations have
favored Bloc suppliers. A technician representing Motokov, the Czecho-
slovak foreign trade corporation for vehicles, has been detailed to
Recife to take care of maintenance for the increasing number of Motokov
farm tractors in the area. (UNC LASSIFIEI)) In 1958, Brazil imported Bloc agricultural machinery worth
approximately $2. 6 million, of which Czechoslovakia and Hungary were
the main suppliers. These imports apparently are increasing sharply
in 1959. The Brazilian Council of the Superintendency of Currency and
Credit allocated $42 million under trade agreements for imports of
agricultural machinery during 1959, about half of which was to be pur-
chased from Bloc countries. It is not certain that the entire allocation
will be used, but 4, 000 Czechoslovak farm tractors worth $6 million
and 300 Hungarian rain combines worth $2 million were scheduled for
B. Bloc Agricultural Equipment in Brazil
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 Approved For Release 2005/08/16: CIA-RDP93RO 8991)00008 b01-2
Sino-Soviet Bloc Credits and Grants
Extended to Underdeveloped Countries of the Free
i January 1954 -- 15 November 1959
World a/*
Million US $
Area and Country
Total
Economic b/
Military
3,171
2,398
773
1,688
1,078
610
Afghanis tan
245
213
32
Ethiopia
102
102
0
Guinea
36
36
0
Iran
6
6
0
Iraq
257
138
120
Pakistan
3
3
0
Turkey.
United Arab Republic
17
17
0
Egypt
658
343
315
Syria
304
177
128
South and Southeast Asia
1,264
1,101
163
Burma
17
17
0
Cambodia
34
34
0
Ceylon
58
58
0
India
723
723
0
Indonesia
412
249
163
Nepal
20
20
0
* Footnotes for the table follow on-p. 6.
UNCLASSIFIED
MORI/CDF
Aacroved_For.Release2005/08/16 : CIA-RDP93BO1194R001000080001-2