SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010003-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 3
• Publication Date: March 19, 1956
• Content Type: REPORT

Approved For Release 2005/08/22: CIA-RDP92B010V8g0700N!003-7 395
SECRET 11~,
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /3
19 March 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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WARNING
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES,
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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S-E-C-R-E-T
CONTENTS
I. Summary of Events, 28 February - 12='March 1956. 1
II. Background Notes on Items of Special Interest . . . . . 2
1. New Developments in India ? 2
2. Soviet Credit to Afghanistan . . . . . . 5
3. Soviet Technological Institute in Burma . . . 6
4. Sino-Japanese Commercial Agreements . . . 7
5. Egyptian-Czechoslovak Cotton Disagreement 9
6. Soviet Air to Libya . . . . . . . . . 10
7. Soviet-Yugoslav Mineral Negotiations . . . . 10
8. Sino-Soviet Bloc Trade with Latin America 12
B. Military . . . . . . . . . . . . . . . . . . . 13
1. Egypt . . . . . . . . . . . . . 13
2. Syria . . . . . . . . . .
3. Other Middle East Countries . . . . . . . 14
4. Afghanistan . . . . . . . 14
5. India . . . . 15
6. Latin America . . . . . . . . . . . . . . 16
A. Economic . . . . . . . . . . .
III. Other Significant Developments .
A. Technical Aid . ; 16
1. Offers , . . .
2. Acceptances . . . . . . . . . . . . . . . . 17
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B. Industrial Installations . . . . . . . . . . . . .
Page
1. Offers . . . . . . . . . . . . . . . . . . 17
2. Reported Acceptances . . . . . . . . . . . . 17
C. Trade Agreements . . . . . . . . .
1. USSR-Yemen . . . . . . . . . . . . . . .
2. Poland and Rumania-Ceylon . . . . . . . ? .
1.8
1.9
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SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
I. Summary of Events, 28 February - 12 March 1956.
The most significant Sino-Soviet Bloc efforts to expand economic
relations with underdeveloped areas in the Free World during the
period 28 February to 12 March 1956 were the formal acceptance by
India of Soviet aid for the construction of a steel plant, the Soviet
delivery of equipment for a mechanized farm in India, trade discus-
sions between Communist China and Japan, and the Soviet offer to
finance the development of mineral deposits in Yugoslavia.
The integrated steel plant to be erected at Bhilai, India, by the
USSR will have a capacity of at least 1 million metric tons** and will
place the USSR in competition for the first time with Western enter-
prises constructing comparable plants on foreign soil.
In South Asia, the USSR also signed an agreement with Afghanistan
specifying the nature of technical assistance offered to that country and
sent a team of Soviet specialists to Burma to 4id in the planning and
operation of a Technological Institute in Rangoon. East Germany and
India discussed the tentative location of a raw film factory; and Czecho-
slovakia signed a contract for the delivery of a cement factory and a
sugar refinery to India. Ceylon signed a trade agreement with Poland
the first agreement it has made with a Sino-Soviet Bloc country except
for the rice-rubber barter agreement with Communist China -- and. is
now negotiating an agreement with Rumania,
* Although the main emphasis of the Biweekly is on economic ac-
tivities of the Sino.Soviet Bloc in underdeveloped areas of the Free
World, significant Bloc activities of this nature in areas not con-
sidered underdeveloped also will be discussed.
** Tonnages throughout this report are given in metric tons.
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