SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020043-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 43
• Publication Date: August 27, 1962
• Content Type: REPORT

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SECRET COPY N? 391
25X1
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/171
27 August 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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Summary of Events*
10-23 August 1962
On 3 August an East German industrial exhibition opened in Sao
Paulo, Brazil. The exhibition, which will.run through 26 August, in-
cludes models of complete industrial plants. Although aware that the
Brazilians are chiefly interested in finding new markets for their own
surpluses, the East Germans may feel that explicit Brazilian willing-
ness to expand trade with Bloc countries and the heavy import taxes
imposed by Common Market countries on coffee may augur well for
increased East German - Brazilian trade.
Since late in July a large number of Soviet ships have been deliver-
ing military equipment to Cuban ports. Part of the cargo reportedly
has consisted of electronics vans, tanks, and many loaded trucks.
Soviet military technicians and construction personnel also have been
arriving recently in Cuba. The time of arrival of these deliveries
indicates that agreement on this equipment was reached before Raul
Castro's mid-July visit to Moscow.
Iraq's Economic Planning Board has approved the Czechoslovak
project report on the Samarra power station, and the Czechoslovaks
have been authorized to proceed with the project's second stage, which
involves the preparation of designs and technical specifications. If
the Planning Board accepts subsequent Czechoslovak estimates for con-
structing the power station, construction presumably will be carried
out under the 1960 Czechoslovak credit of $33. 6 million, only a small
part of which has so far been used.
Algeria has received substantial relief aid from the USSR, Poland,
and Bulgaria and reportedly also is to receive assistance from Com-
munist China. Ten thousand tons of Soviet food; a medical team, foods,
and medicines from Poland; and a medical group from Bulgaria have
already arrived, and China has announced its intention of sending
1 2, 000 tons of wheat, rolled steel, and medicines.
An unclassified appendix summarizing Bloc economic credits and
grants extended to underdeveloped countries, 1 January 1954 - 30 June
1962, is included in this issue on p. 8.
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The Republic of Somali has accepted a Soviet offer to train 50 pilots
and mechanics in the USSR within the next 2 years, The Somali defense
establishment apparently accepted the Soviet offer without the approval
of the Council of Ministers, and the Prime Minister was forced into
backing the military after the UK and Italy did not provide satisfactory
offers of pilot training.
Following a visit to Eastern Europe, Tanganyika's Prime Minister
Bomani stated that Polish and Czechoslovak missions, soon to arrive
in Tanganyika, would negotiate agreements for developmental and tech-
nical aid.
A meeting on 24 July between Soviet Deputy Premier Mikoyan and
Brigadier Aung Gyi, present acting head of the Burmese Union Revolu-
tionary Council, reportedly has resulted in agreement on the construc-
tion of a chemical fertilizer plant in Burma. As it becomes more
evident that the Revolutionary Government is prepared to resume the
acceptance of foreign economic aid, some Burmese are reported to
express concern over the increasing Bloc share in such assistance.
India's Defense Minister Menon has announced that India, under an
agreement signed with the USSRNis to produce Soviet jet engines for
installation in the Indian-designed HF-24 supersonic fighter. This is
the first instance of an agreement by the USSR to license the manufac-
ture of Soviet military equipment outside the Bloc. An Indian delega-
tion is now in Moscow negotiating the purchase and manufacture of
MIG aircraft.
A Chinese Communist offer to build at least five airstrips in Nepal
has been accepted by the Nepalese Government. Chinese strategic
interest in the project may be related to the reported location of three
of these airports near the Sino-Nepalese border. Although the airstrips
probably will not be asphalted, they will provide greatly improved access
to several more remote areas of the kingdom.
Fourteen Pakistani students are to leave for teb.hnical training in
the USSR as part of the $30 million Soviet agreement for technical aid
to Pakistan in oil exploration.
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1. East German Trade Fair in Sao Paulo 1
2. Establishment of a Polish Consulate
in Porto Alegre . . . . . . . . . . . . . 2
B. Arrival in Cuba of Soviet Military Equipment
and Technicians . . . . . . . . . . . . . . . 2
Iraqi Approval of Czechoslovak Plans for the Second
Stage of the Samarra Power Station . . . . . . . . . 3
A. Soviet, Polish, and Bulgarian Relief Aid
for Algeria . . . . . . . . . . . . . . . . . 3
B. Soviet Training for Somali Pilots and Aircraft
Mechanics . . . . . . . . . . . . . . . . . 4
C. Negotiations for Economic Aid to Tanganyika . . . 4
IV. Asia . . . . . . . . . . . . . . . . . . . . . . . 5
A. Soviet Aid to Burma . . . . . . . . . . . . 5
B. Manufacture of Soviet Jet Engines in India . . . . 6
C. Chinese Communist Airstrips in Nepal . . . . . 6
D. Soviet Training of Pakistani Petroleum
Technicians . . . . . . . . . . . . . . . . . 7
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Appendix
Page
Sino-Soviet Bloc Economic Credits and Grants Extended
to Underdeveloped Countries of the Free World,
1 January 1954 - 30 June 1962 . . . . . . . . . . . . . 8
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UNCLASSIFIED
APPENDIX
Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/*
1 January 1954 - 30 June 1962
Million Current US $
Area and Country Total
Credits
Grants
Total
4,904
4,748
156
Latin America
567
567,
0
Argentina
104
104
0
Bolivia
2
2
0
Brazil
4
4
0
Cuba
457
457
0
Middle East
1,133
1, 127
6
Cyprus
1
1
0
Iran
6
6
0
Iraq
216
216
0
Syrian Arab Republic
178
178
0
Turkey
17
17
0
United Arab Republic
(Egypt)
671
666
5
Yemen
44
43
1
Africa
678
664
14
Ethiopia
114
112
2
Ghana
200
200
0
Guinea
125
119
6
Mali
100
100
0
Morocco
5
5
0
Somali Republic
63
57
6
Sudan
25
25
0
Tunisia
46
46
0
Footnotes for the appendix follow on p. 9.
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Sino-Soviet Bloc Economic Credits and Grants
Extended to Underdeveloped Countries of the Free World a/
1 January 1954 - 30 June 1962
(Continued)
Mill ion.Current US $
Area and Country
ITibthl
Credits Grants
2,410
2,274
136
Afghanistan
4;'515 b/
515 b/
0
Burma
93
93
0
Cambodia
65
8
57
Ceylon
58
42
16
India
950
946
4
Indonesia
641
640
1
Nepal
55
0
55
Pakistan
33
30
3
Europe
116
116
0
Iceland
5
5
0
Yugoslavia
111
111
0
a. Not including military credits and grants.
b. Although some grant aid is included, a breakdown is not possible.
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