SOVIET, JAPANESE, AND WESTERN EUROPE ECONOMIC AID TO EGYPT, SYRIA, IRAQ, AND TURKEY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001900030027-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 20, 2016
• Document Release Date: August 17, 2005
• Sequence Number: 27
• Publication Date: July 15, 1974
• Content Type: MF

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 Approved For Release 2005/12/14: CIA-RDP85T00875R001900030027-6
15 Juq No. 197 4
MEMORANDUM FOR: Mr. J. Thomas c rew
Chief, Near East Division
INR, State Department
SUBJECT : Soviet, Japanese, and Western
Europe Economic Aid to Egypt,
Syria, Iraq, and Turkey
Attached are data you requested this morning
prepared this response. Please contact either of them
if we can be of further assistance.
?-'25X1
Ottice of Economic Research
Attachment:
As stated
Distribution: (S-5332)
Orig & 1 - Addressee
1 - n/npn
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STAT
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Current Status of Economic Aid to
Selected Countries of the Near East
1. Soviet Economic Aid to Selected Countries
of the Near East
No important changes have been noted in the character
or magnitude of Soviet economic aid to Egypt, Iraq, Syria,
and Turkey during the past 18 months.
Nevertheless, Moscow continued its support for projects under
construction, even after hostilities began in October in spite
of its overwhelming priority to military aid. (Table 2)
Some new economic aid -- possibly totaling
several hundred million dollars -- may have been provided to Syria
during Asad's April visit to Moscow. This aid is needed to
complete the last stages of construction and ancillary facilities
for the Euphrates Dam. In June 1974, the Soviets also agreed
to provide grant aid to Egypt for minesweeping in the Gulf of
Suez. At that time, Moscow indicated that it would help Cairo's
recon:trtil-"tion effort, particularly the replacement of Soviet-
aided facilities destroyed in the October War. No new credits
are known to have been extended for this work, however.
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Major Soviet Aid Projects Currently Under
Construction in Near East Countries
Egypt
Iraq
Projects
(and amount of aid)
Aluminum Plant
($53 million)
Land Reclamation
($100 million)
Helwan Steel Mill
($161 million) plus
additional credits
that should be made
available for further
expansion
Petroleum development, a
refinery and 2 pipelines
(over $110 million)
Partial operation to be on
line 9/74; expansion plans
being studied.
1964 and 1971 About one-half of work has
been completed,
Completed 1st stage expansion
to nearly 1 million tons
annually.
Now scheduling expansion to
1.5 million tons.
1969 and 1971
Major development at North
Rumay
lah in advanced stage.
Capac
ity now at 360,000
b/d,
to ri
se to
840,000 b/d
by
late
Other
1975.
areas
still to be
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developed and refinery still
to be bu .~ One pipeline
complete; a second under
construction
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Major
Co
Soviet Aid Projects Currently Under
nstruction in Near East Countries
(Continued)
Projects Year
(and amount of aid) Credits Extended Stage of Construction
Syria
Petroleum Development
(x%50 million)
Railroad construction
and modernization
($50 million)
Euphrates Dam
($133 million)
Steel Mill
($420 million)
1966 Completed First stage in
1973 and work proceeding
on installation of turbines
1957 and 1972
1957 and 1972
1967, 1969 and
1972
Soviet-developed fields in
NE Syria. Soviet aid accounts
for most of Syria's
160,000 b/d crude oil
production capacity.
Major construction completed
with about $10 million
still to be used for
modernization
Scheduled completion date
for first of 2 blast
furnaces in 1975, with
1st stage steel output
in 1976.
Turkey
CIA/OER
Jul 74
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Nevertheless, Mos:ow's interest in these four countries
has not waned. Soviet commitments to them total almost
$2.6 billion, or about 30% of all Soviet economic aid to the
Third World. Deliveries to these countries, which exceeded
$1.4 billion at the end of 1973, also represent about 30% of
total Soviet aid deliveries until that time.
The fact that new undertakings in the past 18 months
may have been less than in some other similar period is of
no significance. There is more than $1.1 billion of aid still
to be drawn under previous commitments and there has been no
reduction in delivery levels. Economic aid deliveries totaled
some $150 million in 1.973, up about 20% from 1972.
2. Japanese Economic Aid to Selected Countries
of the Near East
Japan had extended almost no economic aid to these
Eastern Countries before the oil crisis. Its commitments
for 1973 were only about $25 million; divided roughly equally ;
between Egypt and Turkey. (Table 3) Thus far in 1974, however,
the figure for official aid is in the $450 million - $700 million
range. Roughly $240 million was extended to Egypt,. including
$140 million of the first stage clearing and widening on the Suez
Canal. The remaining $100 million will be divided among project
and commodity assistance. Moreover, Tokyo may provide an additional
$140 million for widening and deepening the Suez Canal in
later stages.
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Japanese Economic Aid Commitments
to Selected Near East Countiies
Million US $
19 73 1974
TOTAL
26
Egypt
12
Iraq
Negl.
Syria
Negl.
Turkey
14
620
240
250
130
N.A.
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The $1 billion aid package publicized for Iraq
includes about $750 million in private credits under government
guarantee. The remaining $250 million still is in the
negotiating stage because of a failure to agree on the price
Japan will pay for Iraqi crude. Aid to Syria, totaling
$130 million, is for an oil refinery and irrigation projects.
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3. Official. West European Aid to Selected Countries
of the Near East
The tabulations below reflect our current knowledge of
economic aid provided by Western Europe to Egypt, Iraq, Syria,
and Turkey. Precise data are lacking for 1973, but the level of
aid is estimated to approximate that in 1972.
Official West European Aid to ? Selected.
Countries of.the Near East
1972 ?.a/
Million US $
Commitments
Deliveries
Egypt
71
19
Iraq
2
3
Syria
1
1
Turkey
22
82
Major Official Economic Commitments
from Western Europe to Selected Countries
of the Near East
January-June 1974 a/
Recipient
Egypt
65
b/
Iraq
N.A.
c/
Syria
Turkey
N.A.
N.A.
a. Excludes EEC aid.
b. Consists of capital aid of $58 million
from West Germany and $7 million development
credit from Denmark.
c. A $500 million aid package from France
consists of official quarartees on private
export credits. In March, Italy signed an
economic agreement with Iraq of an unspecified
value.
CIA/OER
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