TRADE RELATIONS BETWEEN LATIN AMERICA AND THE SOVIET BLOC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP64-00014A000100130033-2
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 42
• Document Creation Date: December 9, 2016
• Document Release Date: June 23, 2000
• Sequence Number: 33
• Publication Date: February 1, 1956
• Content Type: IR

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COPY NO.
50
&Loa T
Intelligence Report
No. 7118
TRADE RELATIONS BETWEEN LATIN AMERICA
AND THE SOVIET -BLOC
DEPARTMENT OF STATE
Office of Intelligence Research
? Prepared by
Division of Research for American Republics
February 1, 1956
State Dept. declassification & release instructions on file
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s4mi Ifire
This report is based on information available through
December 31, 1955.
TABLE OF CONTENTS
Foreword
Abstract
A.
Description of trade of Latin America with
Page
tv
the Soviet bloc
1
1. Levels of trade
1
2. Composition of trade
2
3. Special features of the trade . . .
..
3
B.
Tactics utilized by the Soviet bloc in Latin
American trade relations
4
1. General nature of offers
4
2. Trade missions
6
3. Use of local organizations .
6
4. Offers of financial and technical
assistance
7
5. The Soviet Industrial Fair in Buenos Aires
0
0 .
7
6. Propaganda
?
IF ?
8
7. Trade agreements
9
C.
Prospects for Latin American trade with the bloc
.
? .
15
1. Major attractions ? . ? ?
?
?
.
15
2. Major obstacles
16
LIST OF TABLES
1.
Latin American trade with the Soviet bloc, 1938,
1950, and 1954
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II.
0014
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Latin American exports to and imports from
the Soviet bloc, 1938 '
20
III.
Latin American exports to and imports from
the Soviet bloc, 1950
22
IV.
Latin American exports to and imports from
the Soviet bloc, 1954 ? ?
?
?
24
V.
Latin American exports to and imports from
the Soviet bloc, 'January through June 1955 ?
.
26
VI.'
Bilate'ral trade and payments agreements in -
effect during 1950-55 between Latin American
Rf4ublicS and the Soviet bloc . ?
?
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Forewortii
The. Soviet Union, through the medium of?a widely published
Bulganin interview of January 16, 1956, served notice that?it,would
seek to expand bloc diplomatic, cultural, and economic relations
with Latin America. To date tne main Soviet bloc effort in Latin
America, aside from local 'Communist operations, has been in the field
of trade. TR 7118 reviews present Soviet bloc trade arrangements with
eLatin America and analyzes the trade ;a8 itThas developed in the period
1954-55. .
.This review indicates that, -while trade with the bloc remains
small in the context of total Latin American foreign trade, it has
been selective, directed mainly to countries' having ,surpluses and
balance of payments problems with traditional trading partners.
Hence the bloc is able to achieve disproportionate political and
propaganda advantagesfrom trade offers. Bloc bids for Latin
American surpluses provide especially useful grist to the Communist
propaganda mill, Bulganin's offer of development goods, including
oil industry equipment, points to another profitable area for
Soviet exploitation. Both Argentina and Brazil urgently need to de-
velop their oil resources to reduce a heavy drain on .dollar ex-
change. However, they are under nationalist pressure to reject
foreign private capital and cannot exploit oil resources to the ex-
tent required without foreign aid.
The logic of the Soviet approach via trade, and gestures to
aid underdeveloped economies,was. underlined by Latin American reac-
tions to the Bulganin interview. Reactions were generally sceptic-
cal, but with notable exceptions in Argentina, Brazil, and Uruguay. --
the bloc's main trading partners in Latin America. Favorable re-
sponses in these countries doubtless reflected some intangible ad-
vantages of doing business with the bloc as well as material gains
essentially limited at present trade levels. Thus there is the im-
mediate consideration of gaining bargaining power in relation to the
United States. There is also the advantage to these countries of in-
creasing their stature and prestige in international affairs, a con-
sideration that could become important should the Soviet Union achieve
a greater measure of respectability in the non-Communist world.
Soviet opportunities in Latin America are not comparable with
those in various Asian arid African countries: the Latin American
societies are more stable, and geographic and other factors work
against development of a "third position" in Latin America. Thus
equal success in detaching the area from the Western alliance would
require vastly greater effort, if indeed it were at all possible to
achieve.
Nevertheless, there are issues between the US and Latin
America, especially because of their close ties, that invite Soviet
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exploitation. Most important are the issues that arise from the
chronic complaints of .raw material producers in a world dominated
by industrial powers,- and from the urgency of Latin American govern-
ments to get US government financing for development. On the po-
litical side, Latin Americans sympathize with the colonial areas
and tend' to side with them on some issues in- the UN, often to the
benefit of the Soviet line; in the larger countries nationalism, re-
jecting unqUestiOning cooperatiOn with the United States, is increas-
ingly powerful. Thus Soviet trade and aid in Latin Ameriba, while
incapable of detaching the area wholesale from the United States,
has prospects of some succes8 in widening existing breaches and in-
creasing the total stock of disagreement and friction in the Western
Hemisphere.-
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Abstract
Latin American current trade with the Soviet bloc of about
4250 million per annum represents but 2% of its total trade with
the world, a proportion which does not exceed the prewar level.
Bloc trade, however, is assuming increasing importance in a number
of individual countries, representing 8% of Argentina's and 50/0 of
Uruguay's tradevtotal in 1954. Argentina, Brazil, and Uruguay
rank as the top Latin American traders with the bloc.
Bloc purchases also represent a significant share of the
principal exports of individual commodities of particular countries.
Bloc countries in 1954 took about a third of Argentina's shipments
of mutton and lamb as well as significant proportions of its rye,
linseed oil, quebraoho, and canned meat export?. Over half of
Brazil's shipments of salted hides and nearly a fifth of its iron
ore exports were to the bloc. Nearly three-fifths of Uruguay's
shipments of frozen moats and over half of its wool exports in 1954
went te the bloc. ahile such exports are insignificant compared to
total Latin American exports of a given commodity, bloc purchases
are impressive to the country concerned. In addition, such sales
serve to arouse interest in bloc trade in other countries confronted
with troublesome surpluses.
Goods supplied to Latin America by the bloc cover a wide
range. manufactures 1..edominate, although bloc deliveries of fuels --
petroleum and coal -- are increasing in importance. Over half of
Argentina's 1954 imports of coal and a significant proportion of
petroleum come from bloc sources.
Latin American trade with the bloc takes place, in the main,
under bilateral agreements. Faced with the necessity of balancing
trade under such agreements, Latin American governments are forced
to create a market for bloc goods by increased allocations of bloc
agreement currencies to the importers out of total exchange quotas
for given imports. However, the import of bloc products is ham-
pered by the reluctance of business groups to accept goods which
cannot be marketed competitively if quality and price are considered.
The fact that the bloc has been buying Argentine and
Uruguayan agricultural surpluses has been a strong stimulus to
closer commercial relations with the bloc. This interest is abetted
by local Comcainist and front groups, which stress the advantages
of trade and play up Soviet offers of assistance to other under-
developed areas. Increased trade with the bloc appears to the Latin
Americans to offer an opportunity to mitigate their balance of
payments problems by providing a new market for their goods, by
allowing them to acquire necessary goods without using their dollar
reserves, and by providing a bargaining point in economic negotia-
tions with other areas.
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A. Description of trade of Latin America with the Soviet Bloc
1.? Levels of trade
In the prewar years Latin American. trade with the countries
Which now constitute the Soviet bloc (excluding LastCermeny but in-
cluding Communist China) amounted to about 065 million, only 2% of
'total Latin American trade. 'Argdntina and Brazil aecounted for
nearly two-thirds of the trade with the bloc ceuntries. Czechoslo-
vakia and, to a lesser degree, Poland were the only bloc countries
with any substantial volume of trade with Latin America.
In the postwar period up to 1952 Latin American trade with
the bloc attained a peak of 0137 million in 1948. This was, however,
but 1% of the area's total foreign commerce. With the advent of the
Korean war trade fell to 0122 million in 1950, 0104 million in 1951,
and 452 million in 1952. Most of the Latin American countries had
scant economic relations with the bloc, for either political reasons
or lack of economic incentive. In no case did the bloc trade amount
to as much as 4% of any country's total trade, and only in the case
of Argentina did it exceed 2%,
The conclusion of trade agreements With the USSR by Argentina
and Uruguay in 1953 and 1954 marked an upturn in Latin American
trade with the bloc countries. The area's total trade with the bloc
rose to 070 million in 1953 and in 1954 reached a new high of 0252
million or about 2% of its world trade. Argentina with a total of
0173 million in 1954 and razil with 043 million continued to occupy
preeminent positions in Latin America's trade with the bloc.
Uruguay ranked third with an increase from 42 million in 1953 to
424 million in 1954.
The importanoe of bloo trade to the individual countries rose
appreciably in 1954; it represented 8% of Argentine's and 5% of
Uruguay's trade with the world in that, year.
Latin American trade with tile bloc in 1955 continued practically
at the 1954 levels. Argentina, Brazil, and Uruguay, which accounted
for 96% of total Latin American trede with the bloc in 1954, reported
such trade during. tae first six months of 1955 at 0130 million a
figure somewhat below the '4133 Million shown these three countries
in the first semester of 1954. b.ixport*s of these, three countries to
the bloc in the first half of 1955 totaled 058 million, considerably
below the value of their shipments to the bloc of 093 million .in the
comparable period of 1954, Imports from the bloc by these countries
during the first six months of 1955 rose to 472 million as compared
with 441 Million during: the first semester of 1954..
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2. Composition of trade
Fifteen commodities generally account for 757o of the total
trade of Latin America. The bloc has bought varying quantities of
seven of these major commodities. Latin America's exports to the
Soviet bloc are typically concentrated on a. few commodities. For
example Argentina's exports to the bloc have been dominated by
hides, wool, grains, linseed ,oil, and quebracho. Brazil has shipped
ooffee, cocoa, cotton, wool, sugar, salted hides, and iron ars. -Vir-
tually all of Uruguay's sales in Eastern urope are accounted for by
wool, hides, and meat. Mexico's shipments of coffee and henequen
and Cuban deliveries of sugar offer other examples.'
The bulk of Latin Ameridan exports continue to be ?directed to
its traditional markets in the US, UK, and Western Luropean nations,
but the demand for Latin Ameridan commodities in these, markets is
,ineUfficient to take the available supply. Unrealistic Latin
AMerican prices created by Overvaluation of ?currencies, and reflecting
an effort to Maintain favorable, terms of trade, haVe left Latin
America with significant exportable surpluses o The willingness of
the bloc countries to accept these surpluses, even at inflated
Prices has made trade offers by them particularly attractive to
Latin
prices,
countries. In the -caee of some commodities the bloc
has absorbed significant proportions of the total volume of ship-
ments- Argentina's shipments in 1954 of chilled mutton and lamb
to the bloc represented WA of the total volume exported; 32% , of
its rye; 20% of its linseed oil, 20% of its quebra.aho extract, and
15% of its canned meat also went to bloc countriee. Over 54% of
Brazil's shipments of salted hides, in 1954 went to bloc countries,
as did 17% of 13razills exports in 1954"?f, hematite (iron ore )
Uruguay's shipments of frozen meat to,the bloc in 1954 represented,
60% of the total volume exported, ancylls been estimated that over ,
50% of Uruguay's wool in the clip year 1954-55 went directly or in
directlyto bloc countries. While these amounts may,be,
ficant in relation to total Latin American exports of a given com-
modity, they a.re impressive to the country concerted.'? They also
serve 'to rouse interest in bloc trade in'ather countries having
surpluses.
Latin America imparta. a wide range of' products from the Soviet
bloc. aianufa.ctured goods predominate, This follows the pattern of
the prewar years when Latin American imports of Czechoslovak ahd
Polish goods included a wide variety of manufactured goods, in-
cluding machinery and industrial equipment. Although deliveries by
the blod of the latter have fallen below Latin American expectations,
some industrial equipment ( coal, mining machinery from Paland. and
Russia to Argentina) and textile 'raa.chinery.- (from Ciechoslovakia to
Mexico and Brazil) have been obtained from' the bloc countries. In
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general, bloc countries, especialIya,ftechosloVakiaandato aemeAe,
gree 'Poland, have supplied wide varieties ofmanufacturedaconsumer
goods inoluding.textile manufactures, chemical:and pharmaceutical
-
goods, glass, anda.ceramics*
An attempt to balance sizable debits resulting from export
shipment has led some Latin American countries to concentrate their
purchases of certain commodities in the bloc 'area.. Nearly 50% of
Argentine imports of coal in 1954 came from the bloo, 'primarily from
Poland; its imports of bloc oil and products have risen significantly;
and aver 5% of its fuel oil imports in 1954 came from the USSR. Over
76% of Argentine imports of railway and tram rails and over 70% of
imports of malleable or beaten iron pipe were obtained from the bloc,
primarily from the USSR. Over 30% of the total volume of cement im-
ported by Brazil in 1954 came from bloc countries; significant amounts
of iron and steel bars, wire, and tubes also were obtained there.
3* Special features of the trade
The US dollar is used as the currency of account in all payments
agreements between Latin America and bloc countries except alexico-
Czechoslovakia. Settlement of final balances as well as settlement
in excess of permitted swing credits are usually payable in gold,
dollars, or an agreed carrency. The moat notable example of the last
has been the agreem,nt between Uruguay and the USSR which provided for
settlement in sterling. Reciprocal swing oredits of moderate amounts
are almost always provided. In general,trade imbalances do not ex-
ceed reciprocal credit provided for in the agreements. The exception
was the size of the amounts due Argentina at the end of 1954, when
countries in the bloc area owed a total of *42.8 million in trade
balances, considerably in excess of the 425 million provided in in-
dividual agreements. Czechoslovakia and Hungary had exceeded credit
limits by the largest amounts.
Trade with the bloc appears to offer ta Latin American countries
an opportunity to ease their balance of payments problems by en-
larging the market for their exports goods .The attractiveness of
this trade is further enhanced by the willingness of the bloc to offer
prices higher than those which Latin American countries can bbtain in
their customary markets. Trade with the bloc, however, entails dealing
in inconvertible currencies, ,(although the dollar is used as the
currency of account, ,aince trade is eharaaeled'alithughtilateral-dlearing
aecounts , a oertain munwt ofa-latednvertibility cregtedl . -The
Latin American countries are therefore presented-with the alternae
tive of keeping trade with the bloc in balance Or accumulating cer-
tain amounts of inconvertible currencies, i.e extending credit to
the bloc. The process of balancing trade has not been easy. Mane
some diversion of import from usual sources of supply has been
effected, countries operating clearing accounts have encountered re-
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sistance from commercial groups to switching their purchases to the
bloc. The. business community findathat bloc products are not com-
parable in quality or are copies of products of outmoded equipment
of other countries, and theirLacquisition would present 'the problem
of uncertainty of replacements of parts and accessories.
The reluctance of the business community to utilize credits
outstanding in clearing accounts has led to sales of currencies in
such accounts at discount prices Under the "auction" system of
making foreign exchange available to importers in Brazil, "agree-
melt dollars" available in 1954 through the Czechoslovak and Polish ,
clearing accounts have consistently sold? below dollars obtained from
other sources.
An evaluation of the degree of utilization of swing credits
with bloc countries is not possible on the basis of available infor-
mation. In Argentina's case it is clear that in 1954 the bloc not
only made full use of such credits but also exceeded the stipulated
amounts. Argentina apparently has become aware of the dangers in-
herent in the accumulation of such credits and has insisted, in
formulating new agreements with the bloc, on a reduction of the
amount due by a step-up in the rate of deliveries',
B" Tactics utilized by the Soviet bloc in Latin American
trade relations
1. General nature of offers
," The upsurge of trade between Latin'America" and the Soviet bloc
since 195 has been aided by an unusual effort of the bloc to gait
a. more substantial commercial position in Latin America* Offers by
the bloc to intensify trade with that area are not wholly unwelcome
to the Latin American countries. The bloc has taken cognizance of
the fact that demand in Latin America's traditional markets has not
kept pace with the area's increased export capabilities and that a
sizable backlog of export goods has accumulated* It has shown a
readiness to acquire substantial quantities of these surpluses.
Purchase offers have generally,been.tailored to,fit the needs of par-
ticular countries and have been concentrated rather heavily on a few
commodities which have proved to be difficult to dispose of without
price sacrifices. In the case of Argentina and Uruguay the bloc
offered to purchase wheat, meat, MD010' and hides, and in the case of
Brazil, coffee, cotton, and iron ore* In Cuba the USSR bought '
500,000 tons of sugar in 1955 with a further 200,000 tons contracted
for, 1956. mexico's difficulties in disposing of all of its sugar ,
have elicited offers from the bloc. Although not yet reflected in,
trade returns, Colombia's agreement with -Last, Germany appears to
provide an additional market for its coffee. The Soviet Commercial
.Attach 4 in mexico, *Ale on a visit to BOgotA in December 1955, - -
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offered to buy 16,000 bags or more of Colombia's coffee. An un-
official agreement with East Germany announced in September 1955
appears to present Chile with an opportunity to dispose of substan-
tial amounts.of grain, wine, fodder, and other agricultural goods.
The interest in bloc offers is further enhanced by the willing-
ness of the bloc to offer higher prices than those which Latin
American countries can obtain in other markets. This factor has been
significant in Brazil's decision to ship sizable amounts of its iron
ore to Poland and Czechoslovakia. Czechoslovak offers to purchase
non-ferrous metals in Bolivia, above the price levels obtainable in
world markets, are clearly tempting. however, there have been
ntmerous complaints by importers that bloc goods available for im-
ports are in general overpriced as compared with Western goods.
Once trade, relations have been established th7ough purchases
of export surpluses, the next step has usually involved the setting
up of 'a market for bloc industrial goods, a step that is aided by the
accumulation of trade credits by the Latin American countries. Their
governments, faced with the problem of holding large amounts of incon-
vertible- currencies, are forced to participate, directly or indirect-
ly, in the formation of a market for bloc industrial goods. This
process has taken place in Argentina, Brazil, and Uruguay, ?where the
scarcity of hard currencies.. has forced increasing use of "agreement
dollars" in allocating exchange quotaS for imports. The absence of
sufficient allocations of other currencies results in a certain
switch to purchases from the blOc.,
Bloc effortsin the countries which. are Primarily mineral
Producers have taken a olig4tly different tack., In offers to these
countries the emphasis has been 9n getting rid of restrictions on
trade in strategic commodities! ,This has;not been successful with
respect to overt purchases, but the decision of the, Chilean Govern-
ment to lift its ban on nitrate shipments to Communist China and to
permit shipments of nitrates to China and North Korea, as well as to
Czechoslovakia, represents a s4eP -toward negPtiations over a broader
front that would perhaps, include strategic commodities,such as ,
Chile's copper.
The Soviet Union has not hesitated to use trade relations to
obtain diplomatic recognition. In renegotiating the trade agreement
with Uruguay, which had proven very profitable to that country, the
Soviet Trade Delegation in December 1955 propoSed an appendix to the
agreement that would have extended diplomatic status to its comJercial
representatives. This proposal had aroused the fears of the
Uruguayans that such an annex to a commercial agreement might allow
the Soviet Union to build a large. commercial staff in Uruguay with
diplomatic immunity that could be utilized for extensive undercover
work not only in Uruguay but also throughout South America, The
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proposed appendix was subsequently eliminated. Uruguay's advantageous
trade with the Soviet Union in 1954 apparently has also been a strong
factor in the Uruguayan Government's decision to reappoint a minister
to aoscow, where Uruguay has not had allinister since 1948.
2. Trade missions
Bloc diplomatic missions resident in Latin American countries
have generally been able to provide continuing service in trade re-
lation.
The use of the Moscow Conference of April 1952 and various
missions in 1963 and 1954 to further trade with the,bloc has been dis-
cussed in detail in IR 6173. During 1955 representatives of bloc coun-
tries made frequent visits to Latin America for the purpose of nego-
tiating new trade agreements or extending those that existed previously.
The ECLA conference in Bogota (August 29 - September 160 1955),
offered an opportunity for Czechoslovak and Polish representatives,
attending the conference as observers, to establish direct contact
with delegates from all the Latin American countries. A Latin
American delegate has indieated that, while these observers did not
initiate any formal :trade relations, they did press for intensifi-
cation of the trade with the bloc by pointing but the advantage of
such trade to the Latin American countries.,
A Colibriunist Chinese delegation chose the occasion of the second
general assembly of the Argentine Commission for Development of Trade
in June 1955 (see below under Use of Local Organizations) to meet
representatives from Argentina, brazil, Uruguay, and Chile. At that
time the Chinese representative mentioned that a new Chinese delega-
tion micht be sent to Argentina to arrange atrade'agreement between
the two countries.
;
The Soviet Corm ercial Attache in Aexico made a visit to
Colombia during the Bogota International Fair November 25 - December 11,
1955), where he made trade offers for coffee. The Soviet Ambassador
to aexico visited Ecuador and feru in December. It has been reported
that he made enticing offers of arms as well a$ financial assistance
to Ecuador.
3. Use of local organizations
??. ?... ?..
'Local Communist parties and Communist front organizations are
utilized extensively to promote extension of trade with the bloc.
The most active group concerned with bloc trade is the Argentine
Com ,ission for Development of-Trade. This group, like similar groups
in Western Europe and elsewhere, was founded in 1952 by delegates to
the Moscow .Economic Conference. Sparked by Communists, it include
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as members businessmen interested in East-West trade.' This organi-
zation appears well financed) it not only publishes a periodical,,
INTERCABIO (the only Latin American publication to send a represen-
tative to the Bandung Conference), but also issues an "information
bulletin" publicizing trade opportunities with bloc countries.
The activities of the Argentine group appear well coordinated
with its affiliates in other Latin American countries. Such groups
include the Bolivian Association for Development and Trade, the
Brazilian Office for Development of International Trade, the Committee
for the Development of Foreign Trade (Chile), the Mexican Institute'
for the Study and Development of International Trade, and the Uruguayan
Commission of Cooperation and Development of International Trade.
The second assembly of tae Argentine group in June 1955
(actually only the inaugural session was held, since the meeting was
interrupted by the Argentine revolution and did not reconvene) was
attended by delegates from all South American groups as well as rep-
resentatives of the USSR, Czechoslovakia, East Germany, Hungary, and
Communist China,
4. Offers of financial and technical assistance
The availability to the Latin American countries of technical
assistance, in the form of credits and technical services, is stressed
in bloc offers. The most significant move in this'respect in'Latin
America was the commitment which the USSR made in its August 1953
agreement with Argentina to supply v30 million worth of capital goods
on credit. The commitment, however, was not implemented, and the
offer was reduced by a subsequent protocol to a mere 04 million.
Czechoslovakia followed Suit in signing A new agreement with
Argentina in February 1955, and proMised to sUpply "appropriate- ,
financing" for capital goods ,up, to a possible 45 Million. Poland,
in the agreement signed in January 1955, promised to supply goods on
credit, although no definite amount was specified.
Offers of technical aid in the form of complete installation
of industrial plant and machinery as well as'of'personnel to train
local workmen have been made by satellite governmental however,
actual -examples of this form of technical aid are few. Czechoslovak
technicians have come to Mexico to help train'Mexican personnel in
use of Czech looms, and Hungarian personnel were reported in
Argentina helping to setup equipment purchased from Hungary.
5. The Soviet Induatrial Fair in Buenos Aires
The Soviet Industrial Fair of May - June 1955 served to ac-
quaint Argentine importers with Soviet industrial products. Some
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16 Soviet entities were represented; they displayed a wide variety
of products including heavy machinery, textilesocereals, and mis-
cellaneous industrial equipment. This fair provided an opportunity
for the. Soviet Union to point to the equipment displayed as evidence
of the high level of industrial development in the USSR. Although
no advertising or descriptive literature on the various exhibits
were available, publications in Spanish describing the USSR and its
political, social, and industrial progress were plentiful.
? The fair not only offered an OppertunitY:for'propaganda-in-,
Argentina?(it was well attendedl:but provided material for-distribu-
tion,throughout.Latin America...
? _
6. Propaganda
In fomenting Latin American-bloc trade and working to in-
crease its influenee in the area, Soviet propaganda, as found in
the Communist and the Communist front press in Latin America,
stresses three main themes: (1) the advantages of trade between
?
Latin America and the bloc, which are generally pictured in ex-
aggerated form; (2) the concern for the underdevelopment of Latin
America and the part that bloc equipment could play, if allowed;
in economic development (in this connection Soviet offers to Asian
countries are stressed); and (3) appeals to national interest and
pride, ted in with attacks on the United States and ref erenoes to
the "colonial" status of Latin American countries in the past.
These themes appear exei reappear with new variations and
some alteration to at local situations. In 1955 the growth in'
Argentine and Uruguayan trade under their agreements with the bloc
was used considerably as an example of the "way" for other countries
to follow.? The propaganda opportunities of the Soviet Industrial.
Fair in Buenos Aires were fully utilized. Stress was laid on the '
"technical aid" that would bo available to the Latin American coun-
tries if Sovieb equipment was acquired. Such aid -- as intimated
by the Communist el Siglo of Santiago; Chile would be freely
available without asking concessions, as "Standard Oil did ...."
The US.insistence upon the primary role of private capital
in the develepment.of,Latin America is constantly? criticized and
cited as an example of a desire by the United States to prevent
full development of the area.
Responsible officials of Latin American governments have
often made statements supporting the thesis that the bloc represents
a great potential market, thus tending to support the claims of'
Communist propaganda.
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7. Trade agreements
The minor importance of the trade in prewar years between
Latin America and the countries now in the Soviet bloc is empha-
sized by tne lack of a strong commercial policy governing relations
between the two areas. Many of the agreements of the prewar period
were no more than general most-favored-nation agreements, payments
arrangements, or special quota dispositions under international
commodity agreements.
Agreements signed in the postwar period have been of varying
types. For the most part the agreements cover both the movement of
goods and the means and method of payment. They generally specify
trade targets and list commodities to be exchanged with either
volume or value quotas. Payment provisions include the establish-
ment of clearing or compensation accounts, swing credits, and
eettlement in US dollars, other acceptable currencies, or gold.
More recent agreements also call for the extension of credit facili-
ties by the bloc partner for the purchase of capital goods by the
Latin American partner.
The various governmental or semigovernmental agreements (ex-
cluding any barter arrangements which are made from time to time
between governments or private individuals') now in force envisage
a trade level between Latin American and the bloc of about 0400
million.'
Auth-Lipa
Argentina has the largest trade with the bloc and the largest
number of bilateral agreements with that area. Trade pals visual-
ized in the agreements governing 1965 trade include Czechoslovakia,
v64 million; Hungary, 98625 million; Poland, 94903 million; and the
USSR, 4100 million. A semiofficial agreement between Instituto
Argentino para la PromociOn del Intercambio., a semiofficial organi-
zation for the development of rade, and cast Germany calls for :a
trade interchange of 941.2 million. These agreements call for
an annual trade total of 9263 million, which compares with actual
trade with bloc countries in 1954 of 40.73 million.
The Central Bank of Argentina reported that at the end of 1954
the countries in the Soviet bloc, with whom Argentina had trade?
agreements owed v42.8 million in trade balances. This debt was re-
ported as follows: USSR, 01306 million; Hungary, 91264 million;
Czechoslovakia, 91166 million; and Poland, 4566 million; Aumania
had a credit balance of 90.4 million with Argentina. This debt was
considerably in excess of the total of 925.0 million inswing
credits permitted by the agreements. In large part the credit'out-
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standing represented accumulations from previous years, particularly
in the case of the USSR, inasmuch as trade in 1954 with these coun-
tries WAS fairly even,.
The most important of the agreements is that signed with the
USSR on August 5, 1953, which originally provided for 0150 million
in trade both waft, including a Soviet credit of 030 million for
the Argentine purchase of capital equipment. (The Argentine
Government announced at the time this agreement was signed that
0150 million worth of goods would be exchanged, plus a credit of
030 million, and this figure has appeared widely in the press.
However, Embassy Buenos 4iires calculated the value of quotas at,
world prices, and estimated, he value of goods to be traded, exclu-
sive of the credit, at a considerably lower figure.)
Argentine exports to the USSR in 1953 (the USSR did not cora-
.
mence deliver
ies until the beginning of 1954) and 1954 plus imports
frem the USSR in 1954 disclose that actual trade fell below the an-
ticipated goals and that fulfillment of commitments was irregular.
Argentine shipments in 1953 and 1954 of cattle hides (20,827
tons), mutton (23,877 tons), and processed meat (13,004 tons) ex-
ceeded by a wide margin the tonnage specified in the agreement.
Pork shipments (3,001 tons) and linseed oil (74,184 tons) approxi-
mated the quotas of 3,000 and, 95,000 tons specified in the agree-
ment. Only 285 tons of quebracho were shipped, although Argentina
agreed to ship 15,000 tons. There were no shipments of wool,
sheepskins, and lard, although Argentina shipped 7,988 tons of ,
butter, which does not appear to have been included in the agreement.
1
- USSR deliveries, all in 1954, of agreement commodities were
fa less satisfactory. No overall measure of fulfillment can be
applied, since quotas were specified by quantity in some cases and
by values,in others. Russian shipments of crude (81,795 metric
tons) fell below the quota of 500,000 tons specified in the agree- .
ment. ,On the other hand, its L,hipments of gasoline, gas oil, fuel
oil, and other products, which agtregated p6 million, exceeded the
quota of 0500,000 set by the agreement. Pig iron shipments tv-
Russia of 42,709 tons exceeded the quota of 20,000 tons. Shipments
of sheet iron totaling 19,000 tons were below the 28,000 tons speci-
fied by the agreement. The deliveries of pipe (17,348 tons) were
less than half of the quota of 40,000 tons. Shipments of rails and
accessories were considerably in excess of the value quota set by
the agreement. Machinery and equipment deliveries by the USSR were
relatively small. Argentine imports of machinery in 1954 aggregated
about 050,0001 but the USSR did deliver in, 1954 over #,opo t9hs of
railway equipment valued at 03.7 million.
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Wag'
'
? The unrealistic nature of trade goals set by the original
trade agreement was apparently taken into consideration when an
additional protocol, establishing the levels of trade for 1955,
was signed on May 19, 1955. Trade levels fpr the year were set
at about 050 million each way. On the,Argentine export side the
wool and sheepskin quotas were reduced from 23,000 tons under the
1953 agreement to only 51000-6,000 tons, and linseed oil from
75,000 to 60,000 tons. Cattle hides, however, were stepped up
from 14,000 to 23,000 tons and mutton and lamb from 5,000 to 20,000
tons. Quebracho extract, for which a quota of 15,000 tons was set
in the 1953 agreement, was excluded entirely.
Argentine purchase of fuels from the USSR in 1955 Was put at
500,000 tons of fuel oil and 50,000 tons of gas oil, which repre-
sents little change from the provision of 500,000 tons of crude '
plus 0500,000 of unspecified petroleum products in the 1953 agree-
ment. On the other hand, no specific proVision was included for
coal imports in 1955, whereas 300,000 tons Were to be imported
under the 1953 agreement. Lampblack and pipe for oil fields were
also excluded from the new agreement. Asbestos was cut from 8,000
to 1,000 tons. A eizable reduction was made in the.quota for rails
and accessories, from 60,000 to 15,000 tons. Provisions for de-
liveries of other iron products, on the other hand, were almost
doubled: billets from 50,000 to 70,000 tons; pig iron from 20,000
to 50,000 tons; sheet iron from 30,090 to 60,000 tons; and iron
bars and sections from nil to 20,000 tons. Special steels were
. , ,
given as 50,000 tons under the new list, whereas in the 1953 agree-
ment only a value figure 7- p48 million -- waS shown. The new
,list contained several additions, e.g., spruce pine, 80,060 cubic
metres; cellulose, 5,000 tons; and aluminum, 2,000 tons.
The quota for capital goods to be supplied under the Soviet
credit to Argentina as noted above was cut from 030 million to 04
million in the new protocol. it appears probable that non-utiliza-
tion of the credit extended under the original agreement, as well
as its reduction under the 3,95 protocol, was due to Argentine re-
luctance to acquire equipment that, according to Argentine-business-
men who visited the USSR in l954, is inferior and obsolescent.
Equipment displayed at t4c Soviet Industrial Fair, which was held
in Buenos Aires from May7to June 3, 1955, did not appear a$ well
finished as corresponding machines from the United States and for
the most part seemed to be copies of relatively outmoded US or
Lurbpean models. Although the Argentine gpvernment is reported to
have acquired. some of the equipment shown at the fair, there is no
indication that sizable sales resulted, and most of the Soviet
machinery exhibited was sold at public auction.
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Preliminary reports of Argentine-USSR trade in 1955 indicate
that, while Argentine shipments to the USSR have -declined, receipts
fr* hussia have increased. During the first six months Argentine
trade with the USSR totaled 929.7 million (exports 99.2, imports
920.5), as compared with the total trade of 954.0 million in the
first half of 1954.'i.
The most important'Argentine exports to the USSR in.first
4#1f of 1965 Were linseed oil (14,149 tons), meats (11,770 tons).
salted hides (11,550 tons), and (2,065.tons).
Imports from the USSR by Argentina in the first half of 1955
were valued at 02045 million, as compared with 98.8 million in the
first six months of 1954. Receipts of Soviet goods included 295,920
metric tons of petroleum products (crude, 59,204 tons; fuel oi1
155,151 tons; gas oil, 71,614 tons; and diesel oil, 9,951 tons),
29,907 tons of pig iron, 17,257 tons of iron billets, 8,419 tons
of iron plate, and 2,561 tons of iron bars, as well as 13,361tons
of railway equipment.
Argentina's total trade (exports and imports) with Czecho-
slovakia, Hungary, Poland, and Rumania dame to about 0944 million
in 1954. Trade with these four sateliites showed a sizable increase
in 1955: expOrts in the first six Months .of 1965 totaled about 022
million and imports 035 million.' The annual trade that is indicated
by the half year's figure 91 0114 Mil/ion 'would be close to the ,
0122 million envisaged by-the agreeMents with these countries.'
Among the.iMportant shipments to these' Satellites were wheat and
onions to Czechoslovakia, sugar to Hungary, wheat and rye to Poland,
and quebracho to Rumania. AmOng the important comoodities received
by.Argentina from these countries were iron sheets, spruce pine,
miscellaneous machinery, and railway rails from Czechoslovakia,
railway equipment and iron bars from Hungary, coal, cement, and
spruce pine from Poland, and spruce pine from Rumania.
In the first six months of 1955 Argentina shipped butter,
onions, and sugar to Last Germany valued at a total of 01.7 million
under an IAPI agreement with that area which set a trade goal Of 041.2
million. No imports from Last Germany were reported.
Brazil
Brazil's trade with the blod countries amounted to 942 million
in 1954 and represented 1.5/0 of *azilts total trade. A significant
increase in this trade is indicated for 1955; the results for six
months of 1955 show a trade level with the bloc of nearly 034 million,
an annual rata of close to 070 million or two-thirds above the 1954
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level. Czechoslovakia has continued to lead in 1955 as 'Brazil's
primary bloc market and the leading source of Brazilian imports
from the bloc area, although trade with Hungary and Poland has
showed a sizable increase over 1954 totals. The direct trade
with the USSR in the first half ef 1955 took the form of Russian
purchase of 8,331 tons of sugar valued at about 0700,0000 Cotton sugar,
c000g, iron ore, and coffee, in that order, led among Brazilian
sales to the bloc.
Brazil has bilateral agreements with Czechoslovakia Poland,
and Hungary, but diplomatic relations with only the first two.
These agreements envisaged a trade level in 1955 of nearly 082
million, as compared with total trade with the countries in 1954 of
4P39.3 million.
It was reported in December 1955 that discussions leading to
a trade agreement with Rumania were in progress..
The Brazilian Government has been under considerable pre$Sure
to establish formal commercial relations with the USSR' and other
countries in the bloc with which *azil does not have agreements.
In addition to direct trade sizable amounts of brazWe exports to
'Western Europe are transshipped tb-bloc countries and it has been
reported that 4 significant preportion'of Brazilian wheat imports
from Finland in 1954 represented grain Of Soviet origin. Several
attempts by private concerns to formulate barter arrangements have
been reported. Among the most significant of these was a non-
governmental compensation agreement between a Brazilian firm and the
Deutscher Inner und Aussenhandel Komensation (the East German,
official trade organization), Which provided for an interchange of
06 million. The Brazilian Government, however, has discouraged
barter and triangular trading. It announced,by:the:Bazilian-
authorities in August 1955 that permission had been denied to two
European firms to act as intermediaries in trade deals between
Brazil and bloc countries. The Ministry of Foreign Affairs ex-
plained in a statement that permission was denied because it would
have "violated the principles of free foreign trade on which the
government's policy is based." It was emphasized, however, that
this refusal 'should not be interpreted as-an expression of lack
of interest in the development of trade with the bloc.
Agitation for trade with the bloc continues in Brazil. Vari-
ous business organizations have pointed out that'the possibility-of
trade expansion with the countries with which Brazil presently '
maintains formal commercial relations are limited and that the only
real opportunity for expansion Of Brazil's foreign trade lies'with
the bloc countries. In the election campaign of 1955 the three
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14
leading candidates adopted similar positions with regard to the
Soviet bloc. 4hile each avoided any'direCt coMatment to extend
diplomatic recognition to the Soviet Union -(diPlematic and.can-
sular relations have not been maintaindd.SinceI947) all expressed
the conviction that Brazil's economic interest would be served.by
a substantial expansion of trade with the bloc. In-Qctober1.955
the Rio de Janeiro correspondent of theLondon Financial Times
wrote that Juscelino. Kubitschek, the president-elect, would visit
Europe and would meet with Soviet trade interests and representa-
tives of other Communist countries. However, he did not visit
any bloc countries during his visit to Europe, and there is no
evidence that any muetings with bloc trade interests were .held.
Mexico
??????????ovem.....
Mexico has established bilateral trade arrangements only with
Czechoslovakia. The agreement,which was signed in November 1949
for the period up to December 31, 1954, contains a clause providing
for automatic two-year extensions beyond that date. No definite
trade targets are established. A five-year payments agreement
signed in Uctober 1950 is singular in that the clearing accounts
are carried in pesos-and crowns instead of dollars. The agreement
provides for a swine credit equivalent to 001 million. Actual
trade under this agreement has been relatively small. In 1954
Mexico exported only 033,000 and imported v855,000 from Czecho-
slovakia.
Paraguay
Paraguay has entered into bilateral trade arrangements with
Czechoslovakia, Hungary, and Poland. In 1954 total trade with the
first two countriespwith which agreements were signed in 1953, was
in the neighborhood of 0300,000.' The agreement With Poland was not
signed until November 1955.
EgV-a-Z
Uruguay has entered into trade or payments agreements with
Czechoslovakia, Last Germany, Hungary; Poland, Rumania, and the
USSR.*
The most important of these agreements is that signed with
the USSR in July 1954. It envisages a volume of trade valued at
v44.8 million. Under this agreement Uruguay has agreed to ship'
wool, hides, and vegetable oils in exchange for Soviet petroleum
products. Under the operation of the agreement Uruguay's trade
with the USSR rose from less than v300,000 in 1953 to nearly 420
million in 1954* Uruguay's trade operations with the USSR in
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1954 were extremely one-sided; its exports of;meats and wool aLgre-
gated 019.9 million as against imports of only 027,000. The favor-
able trade balance was settled by the USSR by transfer of sterling.
Uruguay's trade with the USSR in the first half of 1955 was
but a small proportion of its trade in the similar period of 1954.
Its exports during the first six months of 1955 were valued at
01.1 million as against exports of 09.7 million in the first half
of 1955. .Purchases by the USSR in the first semester of 1955 in-
cluded only 540 tons of wool and 568 tons of cattle hides and
sheepskins.
Uruguay nes looked hopefully to the Soviet bloc as a possible
market for its exports which have encountered increased competition
in the world market. In attempt is therefore made to Use existing
bilateral payments agreements with the bloc, and to negotiate new
ones to dispose of surpluses. Its exports to the bloc in 1954,
mostly to the USSR, represented 4041Arly,i 10;) of its total exports.
In contrast to the mountin:z, deficits in its overall trade balance,
it has built up sizable credit balances with the bloc countries.
This has led to pressure for a shift in normal import patterns away
from the US and Western turope. Importers are encouraged to utilize
creeits resulting from sales to the bloc, and increasinp, amounts of
bloc currencies are included in import quotas released by the Lxport-
Import Control Office. The reluctanbe of importers, irritated by
substaddard and overpriced: manufactured goods offered by the bloc
as well. as by the failure of the bloc to keep delivery dates and
other commitments, has led to the inclusion of increased amounts of
agreement currencies when allocating for the purchase of raw materials
and semimanufactured goods,
.The most recent example of the increased use of bilateral agree-
ment trading to promote the disposal of available surpluses is the
si ning of a com-ercial treaty* a commercial convention, and a pay-
ments agreement with Czechoslovakia in September 1955 (the previous
agreement was solely a payments arrangemedt). Surplus meat and wool
are to be exchanged against Czechoslovak steel and other metals and
miscellaneous equipment and machinery. The annual trade level' of
07 million envisaged in this agreement is more than double the 1954
level of 02.9 million. Uruguay's exports to Czechoslovakia in the
first half of 1,Y55 were valued at 01,651,000i as compared with
0869,000 in a similar period of 1954. The major portion 'of the /955'
exports represented shipments of 2,106 tons of frozen meats.
C. Prospects for Latin American trade with the bloc
1. ,jajor attractions
Latin American countries are receptive to bloc trade overtures
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as a possible solution of the economic problems that confront them.
(1) The bloc appears to provide a new market for Latin
American exports. Thus far, the volume of goods which the Latin
American countries have sent to the bloc has been relatively small
and'marginalpbut it has, in particular cases, made it possible to
dispose of bothersome surpluses. Other countries having surpluses
see in such trade an opportunity for the solution of their own
problems.
(2) Trade with the bloc permits the acquisition of nece-
sary goods without drawing upon scarce dollar reserves. Dollar ex-
penditures by Argentina and Brazil for fuel imports are particularly
heavy. Insofar as the bloc is willing to provide these commodities,
trade with the bloc offers to these countries an opportunity to
utilize their dollar reserves for other purposes.
, (3) The bloc is frequently willing to offer favorable
prices for Latin American goods. In this category, Polish offers
forA'azilian iron ore, Czechoslovak offers for Bolivian non-
ferrous metals, and hussian offers for Cuban sugar at prices higher
than these countries could obtain in other markets have made bloc
trade offers especially attractive.
(4) Latin Americans believe that trade with the bloc
improves their bargaining position in world markets and offers them
a talking point in economic negotiations with the US and Western
European countries.
2. Major obstacles
The development of trade between Latin America and the bloc
is hampered by the following factors:
(1) Bloc trade has limited possibilities. Contrary to
the impression created in Latin America the bloc probably will not
offer a wide market for Latin American goods. Bloc countries also
are large producers of agricultural goods and raw materials.
(2) Not all of direct trade with the bloc is,a net addi-
tion to demand for Latin American exports. Latin American countries
often fail to take into account that expansion of direct trade with
the bloc would be reflected in reduced sales to Western Luropean
countries which transship Latin American products to the bloc.
Among examples of this type of trade are shipments of coffee to
Last Germany via Nest Germany and Dutch purchases of Uruguayan wool
for transshipment to bloc countries.
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Nue
(3) The bloc market is not reliable. Experience with
Soviet bulk purchases in other areas indicates that transactions
have been largely dictated by special need for particular products
at a particular time Such purchases, in the past, have proved
temporary. There is no assurance for the Latin American countries
that Soviet bloc demand -would be sustained over the long run.
Uruguayan-USSR trade, which in 19$4 provided Uruguay with a market
for y20 'million worth of goods,,dwindled in 1955 to a mere fraction
of that level.
(4) Bloc goods have not been marketed competitively if
'quality and price are considered. The failure of importers to ac-
cept Soviet goods in sufficient amounts has been a feature of
Argentine-USSR trade. Soviet sources have ascribed this situation
to Argentine buyers' lack of acquaintance with Soviet products, but
to a large degree it has been due to the failure of these goods to
measuee up to standards set by US and West Europeangoods. or ex-
ample, defects found in a shipment of Czechoslovak: tires forced
the Bolivian Government to withdraw the entire shipment from sale.
mechanical defects of Czechoslovak trucks delivered to Brazil led
to their replacement by the Czechoslovak Government. And a ship-
ment of electrical precision instruments from Czechoslovakia to
Brazil was totally unusable and bore every evidence of having been
subjected to sabotage.
(5) Bloc trade exhibits the inherent defects of state
trading. Numerous instances have been reported of long delays in
delivery, difficulties in .correspondence, and other vexations in,
dealing with State trading organizations. The absence of servicing
and other facilities'lessensthe attractiveness of bloc, goods. The
sale of goods for purposes for which they were not intended, due to
the pressure on representatives of state organizations to establish
sales records, has also been reported.
to Bloc trade is deterred- by the absence of diplomatic
relations. Soviet:and/or satellite permanent diplomatic missions,
14 in all, are established in only five Latin American countries:
Argentina, Brazil, Uruguay, Mexico, and Ecuador. :The absence of
diplomatic relations between Brazil and th?SSR.is often cited
as an example of the inability of Brazil t6 expand it trade with
that country. Trade with the bloc, however, is riot excluded en-
tirely, since Latin American goods, unless strategic controls are
present, move freely in indirect trade with the bloc. In enly
two countries, Haiti and Honduras, are 'direct exports prohibited'
by law, even though imports 'from the bloc countries occur.
State -FD, Wash,, D. C.
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Table I. Latin American trade with the Soviet bloc, 1938, 1950, and 195/0
.(VaIttes,Inthousands of US dollars)
1938
1950
1954**
Exports
Imports
Exports
Imports
Exports
Imports
Argentina
% of total trade
15,000
3.3
14,000
3.1
49,747
3:5
32,800
3.0
90,485
8.5
82,684
7.6
Brazil
_
8,000
4.000
12,217
9,051
24,038
18,781
% of total trade
2.3
1.3
0.9
0.8
1.5
1.1
Chile
3,000
negl
1,005
321
2,039
125
% of total trade
1.8
3884-
0.3
0.1
0.5
***
Colombia
2,000
1,000
11
807
negl
1,221
% of total trade
1. 0.2
0.1
***
0.2
ilib,
0.2
Cuba
negl
1,000
5,646
783
800
600
% of total trade
is?
0.1
0.9
0.2
0.1
0.1
Mexico**
1,000
2,000
1,193
938
117
1,365
% of total trade
0.1
0.1
0.2
0.2
, -
-***
0.2
Peru
2,000
1,000
27
1,150
17
135
% of total trade
0.2
i:--;:*
is;-*
0.6
--x-it-:
0.1
Uruguay
1,000
2,000
1,813
2,059
23,748
2,563
% of total trade
0.2
. 0.2
0.7
1.0
9.5
0.9
Venezuela
,
1,000 -
1,000
n a
1,787
n a
1,600
% of total trade
0.1
0.1
-
0.1
0.2
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Table I. Latin American trade with the Soviet bloc, 1938, 1950, and 19514(continued)
(Values in thousands of US dollars)
1938
1950 1954*
Exports Imports Exports Imperts Exports Imports
Others
3,000
3,000
200
300
300
2,700
% of total trade
-X**
-MI* ?
***
Total
36,000
29,000
71,859
49,996
141,544
111,774
-)8f7
-X-4*
The totals exclude trade with East Germany inasmuch as Latin American trade statistics
do not report West and East Germany. separately.
Preliminary and partly incomplete.
Less than 0.05%.
negl Negligible
n a Not available
? ?
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Table II. Latin American exports to and imports from the Soviet bloc, 1938
:(Ir millions of US dollar equivalents)
Czechoslovakia
Hungary
Poland
Rumania
Exports
Imports
Exports
Imports
Exports
Imports
Exports Imports
Argentina
6
5
1
4
7
4
- 1
Brazil
4
3
-
_
3
1
- -
Chile
1
-
-
-
2
-
- -
Colombia
1
1
-
-
1
-
- -
til
rCI
Cuba
1
-
-
-
-
MI
tml
Mexico
1
1
-
-
1
1
- -
i
EI1
t-3
Peru
-
1
-
-
2
-
- ONO
Uruguay
1
1
-
1
-
-
- -
Venezuela
-
1
-
-
1
-
- -
Others
1
3
-
-
2
-
- -
*do.
Total 15 17 1 5 19 6
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amilna?
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Table II. Latin American exports to and imports from the Soviet bloc, 1938 (continued)
(In- millions of US dollar equivalents)
USSR China
Total with the bloc
Exports Imports Exports TmpOrtS
Exports
Imports
Argentina
1
15
14
Brazil
1-
8
4
Chile
3
Colombia
2
1
Ci)
bJ
i70
1-1
tz1.1
Cuba
1-3
Mexico -
1
Peru
2
1
Uruguay
1
2
Venezuela
1
1
Others
3
Total
????????????
36
Note: There was no trade between Latin America and Albania and Bulgaria in 1938. Trade
with East and West Germany is generally not separately recorded in Latin American
trade statistics, so East German trade is excluded from bloc totals.
? None.
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?
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Table III.
Latin American exports to and imports from the Soviet bloc, 1950
:?(InLmillions of US dollar equivalents)
Albania
Bulgaria
Czechoslovakia
Hungary
Exports
Imports
Exports
Imports
Exports
IL:ports
Exports Imports
Argertina
?
1.0
0.5
10.1
11.8
15.1
4.6
Brazil
8.0
8.3
*
*
0.2
0.1
?
*
?.Colozbia
*
*
*
0.7
*
*
Cuba
*
?
-;:-
0.6
*
...
,.
1,3
:Mexico
-X
),
-L
0.6
:,
0.1
t
Peru
NR
NR
_
*
,
1.0
?
-;',
Uruguay
_
_
1.0
1.4
0.2
i,
Nenez.k3la
NA
NA
NR
Ni
1.8
NA
NR
Othet'a--
.*.
*
:.
0.2
0.1
0.2
Total
1.0
..1???? ????????? ?????? ??????? damiPlim
0.5
19..5
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26.4
15.3 4.9
c-)
.-3
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Table III. Latin American exports to and imports from the Soviet bloc, 1950 (continued)
-(In millions of US dollar equivalents)
..u)
1=1
1-3
Poland
Rumania
USSR
China
Total with
the bloc
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports
Argentina
Brazil
Chile
Colombia
Cuba
Mexico _
Peru
Uruguay
Venezuela
Others ?
Total
9.7
1.6
0.8
*
*
_
*
0,6
NA
*
4.4
0.7
*
0,1
*
*
0.4
NR
13.0
*
*
*
*
-
14::-
13.0
11.5
-
*
_
0.2
NR
0.1..
NR
-
0.1
1.0
*
N:
*-__
-
*
*
*
*
NR.
*
0.8
2.6
-
5.5
0.2
*
*
NA
*,
9.1
0.2
0,1
*
0.2
0.1
*
NE
*
49.7
12.2
1.0
*
5.6
1.2
*
1.8
Ni..1.8
0.2
32.8
9.0
0.3
0.8
0.8
0.9.
1.1
2.0
0.3
_ .,...
u)
i Itil
0

+9
i -
12.7
5.6
11.8
1.1
*
0.6
71.7
49.8
* ?Less-than.$100,000. _
NA Not available.
NR None reported.
- None.
Note: Trade with East and Vest Germany is generally not reported separately in Latin American
trade statistics, so East German trade is excluded from bloc. totals,
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?
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Table IV. Latin American exports to and imports from the Soviet bloc, l954*
(In millions of US dollar equivalent)
Albania
Bulgaria
Czechoslovakia
East Germany
Hungary
Exports
Imports
Exports
Imports
Exports
Imports
Exports
Imports
Exports Imports
Argentina
?
_
11.5
11.9
0.2
NR
8.6
6.0
Brazil
NR
_
NR
12.2
13.5
NR
Nil
2.2
1.0
Chile
NR
NR
NR
0.5
**
NR
NR
0.4
Colombia
NR
NR
NR
NR
**
0.8
NR
Nil
et?tC
Cuba
NR
NA
NR
NA
*rc
o.6-im
NR
NA
NA
Mexico
NR
0.9
NR
NR
-;:-?rc
*k
Peru
NR
NR
?
? rrk
ER
NR
Uruguay
NR
NR
1.8
1.2
Nit
NR
1.1
1.3
Venezuela
NR
1.0
NR
Nt3
Others
0.2
1.9
NR
NR
0.1
0.4
Total
'**
-X-3
-g?
26.2
31.8
0.2
NA
12.4
8.7
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Icnt:
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Table IV. Latln -i=merican exports to and imports from tle Soviet bloc, 1954* (continued)
(In millions of US dollar equivalent)
Poland
Rumania
USSR
China
Total
Exports
Imports
Exports
Imports
Exports
imports
Exports
Imports
Exports
Imports
Argentina
21.0
21.6
6.6
6.5
36.4
36.6
6.2
NE
90.5
82.6
Brazil
6.1
4.3
1.0
NR
2.6
NR
24.1
18.8
Chile
1.1
NE
-N*
*.,-,
NE
kai.
9.0
x*
Colombia
NR.
**
78:
-
0.4
id:
1.2
Cuba
NE
NA
NE
NA
0.8
NA
NE
NA
0.8
0.6
a
Eekico
.-14-1 ?
**
**
48:
-14:-
7:8;z
0.4
**
1.3
1
Peru
-
_
_
**
**
0.1
**
OA
Uruguay
0.9
**
NR
NR
19.9*,,,,
i:--x--
NE
23.7
2.5
Venezuela
0.5
**
-14-*
-
0.1
-
1...6
Others
4**
0.2
48F?
0.2
0.3
2.7
Total
29.1
26.6
7.6
6.5
57.1
36.6
8.8
40/H.4.1=b????
1.2
141.4
111.7
0
Preliminary and partly incomplete.
Less than 450,000.
Jan.-Lug. only.
Not reported.
None.
Totals do not agree completely 'with Table I due to rounding of figures.,
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w
tz,
Approved For Release 2000/08123 : CIA-RDP64-00014A000100130033-2
J
Table V:' Latin AMerican exports to and imports fro& the Soviet bloc, January through June 1955*
(In millions of US dollar equivalents)
Albania - Bulgaria Czechoslovakia East Germany Hungary -
Exports Imports Exports Imports Exports Imports Exports Imports Exports Imparts
Argentina
NR
**
NR
1.5
9.9
1.7
0.7
6.3
Brazil
8.8
7.6
*it*
'3.1
2.8
Uruguay
1.7,
0.8
***
***
Q.9
0.4
Poland Rumania USSR China Total
Exports
Imports
Exports
Imports
Exports
Imports
Extorts
Imports
Exports
Impotts i
Argentina
17.4
14.8
2.3
4.0
9.2
20,5
1.1
NR
33.9
55.5
Brazil
5.4
5.0
*
NR
0.7
M
0.1
NR
18:1
15.4
Uruguay
1.9
NR
' VR
NR
NE
5.6
1.2
* PreliminarY
** Less than ,50,000.
*** Not reported separately.
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Table VI.. Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc*
Duration of agreement
Trade provisions
Payment provisions
Argentina -
Bulgaria
Argentina -
Czecho-
slovakia
June 1, 1949 - June 1,
1953. Since 1953 trade
has continued under
general terms of the
agreement.
July 17, 1947 -
December 31, 1951
Protocol to 1947
agreement signed
September 28, 1948
Protocol to 1947
agreementsigned
July- 29, 1949
September. 3, 1952
December 31; 1954.
. (This- agreement re-
placed agreement
signed June 2, 1947.
and protocols there-
to.)
First annual qubta prO7
vided for US 0 million
Argentine exports 'and
-'06..0 million imports
from Bulgaria.
Commodity quotas estab-
lished for 1947 and dur-
ation of agreement.
Established trade goals
of it,29 million each way.
Specified lists of goods
to be exchanged but no
'quantities or values
given.
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Made in dollars unless
.Otherwise agreed. Final
balance in gold or dol-
lars or by agreement, in
fully disposable foreign
exchange or goods.
Account in Czech crowns at
the Central Bank. Swing
credit of 20 million Ar-
gentine pesos; balance
payable in gold or by agree-
ment in fully disposable
currencies.
,Provided for .increase in
swing-credit to 50 million,
Argentine-pesOs:.
Clearing account in Czeoh -
crowns. Swing credit equal
to US $6.4 million. Excess
balance payable in gold or
?--dollam;, ?
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Table-VI,
Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc* (continued)
Duration of agreement
Trade provisions
Payment provisions
Argentina -
Czecho-
slovakia
February 11, 1955 -
February 10, 1958; tacit
annual renewal there-,
after. (This agreement
replaced the 1952
agreement.)
Argentina - Signed September 1954.
East Germany Duration not available.
Specified lists of ?
goods to be exchanged
to the value of US
b32 million each way
during the first year
of operation. Allows
for purchase by Ar-
gentina of. up to b15
million of Czech capi-
tal goods on credit.
Under subsidiary agree-
ment Argentina will buy
Czech goods up to a
value of US b10 million
and in return will sup-
ply a range of prOduets
to -a total of US $5
million. The difference
between Argentine imports
and exports will be uaed
to reduce Czech debt to
Argentina.
T:ade target b20.6 mil-
lion each way. Specified
lists of goods with value
'quotas....."?
Clearing account in dollars.
Swing credit equal to 6.4
million. Balance to be
settled in gold, dollars,
or other currency to be
arranged.
Compensation agreement be-
tween 1API and_Deuts_gileK
Inner-und ?Aussenhande17.--
KoTpensation.
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Approved For Release 2000/08/23 : CIA-RDP64-00014A000100130033-2
Table VL, Bilateral trade and payments agreements in effect during 1950-55 between
Latin ,_.meriean Republics and the Soviet bloc* (continued)
Duration of agreement Trade provisions Payment provisions
Argentina -
Hungary
July 29, 1948 - December Each cOuntrY to "facili-
tate" the acquisition of
specified products by
the other.
31, 1952
Protocol to 1948 agree-
ment; Signed by 25,
1950,
Septenber 8, 1953_-
September 7, 1956;
subject to tacit an-
nual renewal there-
after. . (This agree-
ment replaced the.
previous agreement
and protocols there-
to.)
Protocol signed
4ril 1954
Trade goals reported
about 00 million total.
Half of Hungarian de-
liveries to defray debt
to Argentina.
Dollar account in the Argen-
tine Central Bank; no credits
provided. Payments in ster-
ling, Belgiaft francs, Dutch
florins and Italo-Argentine
agreement dollars in equal
parts.
Provides for a swing credit
of 43 million, balance in ex-
cess payable in gold, dollars,
or by mutual consent, in
other currencies. Raised
swing credit to 0 million.
Clearing account in US dol-
lars. Swing credit of US
million. Balance in
excess of US 0 million
payable in free dollars
or gold.
-
Establishes annual trade
target-totalling US 8.25
million. Argentina to ex-
port raw hides for various
manufactured goads.'
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Table VI. Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics arid the ScViet bloc* (continued)
Duration of agreement
Trade provisions
Payment provisions
Argentina -
Poland
Argentina -
Rumania
December 21, 1948
December 31, 1951
? . :
October 3Q, 1952 7
December 31, 1954;
tacit annual re-
newal thereafter.
Protocol to 1952 aL:ree-
ment.. Signed January.
24, 1955; effective
January 1, 1955 -
December 31, 1955
October 20, 1947 -
July 3151950
July 25, 1951 - July
24,4952; tacit an,
nual renewal.
Established comriodity
schedules. .
Established lists of
goodS to be exchanged,
no value or volume in-
dicated.
Clearing account in US dollars.
Swing credit of US $5 million.
Balances to be settled in gold
or d011ars.
Clearing account in US dollars.
Swing Credit of US $5 million;
balance payable in gold.
Trade target of US 4y24,650,000
each way; specified lists of
goods the most important
of which are Argentine
exports of wheat 414 mil-
lion, salt hides 1;-)5.5
million, and Argentine im-
ports of coal a6.5 mil-
lion. Poland to facili-
tate export of capital
goods on installment
payment basis.
cuotas for Argentine ex- Clearing account in US dollars.
ports ..but. no specified
Rumanian produCts listed.
List of goods to be ex-
_changed but no value or
volume specified.
Clearing account in US dollars.
Balance settled in goods at end
of agreement. Only documentary
_
?
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Approved For Release 2000/08/23 CIA-RDP64-00014A000100130033-2
Table VL. Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc* (continued)
Duration of agreement
Trade provisions
Payment provisions
Argentina -
Rumania
Argentina -
USSR
? Brazil -
Czecho-
slovakia
This agreement was reached
by means of protocol pur-
porting to extend the agree-
ment of Oct. 10, 1947 which
expired July 31, 1950. It
is essentially- a new agree-.,
ment and reestablishes the
*)11ar trade account.de- -
,funct since that date.
Signed August 5, 19531 ef-.
fective August 15, 1953 -
August 14, 1954; extended
for a period of six
.months October 14, 1954.
Protocol to the 1953
agreement signed May 15,
1955 for the period Jan.
1, 1955 - December 31,
1955
November 15, 1946 -
November 14, 1948.
(This agreement was re-
jected by the Brazilian
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Specified list of goods
to be exchanged. Trade
target of US 4p150 mil-
lion both ways, includ-
-ing US 00 million of
capital goods to be sup-
plied to Argentina on
credit.
credits are to be extended
on either side.
Original trade targets
changed to US 650 million
each way. Apparently the
capital goods to be sup-
plied by USSR during 1955
scaled down to ?2+ million.
? List of goods to be ex-
changed.
Clearing account in US dollars.
Swing credit of 1l million ex-
cluding the US 400 million of
capital goods for which spe.,-,
cial terms are to be arranged.
.Brazil granted a $20 million
credit or payment to begin Jan.
1952. Czech clearing account
established in the Bank of
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Table VI. xaateral traue and payments agreements in effect during 1950-55 between
.Latin American Republics and the Soviet bloc* (continued)
Duration of a7reement
Trade provisions
Payment provisions
Brazil -
Czecho-
slovakia
Brazil -
Hungary
Senate on September 2,
1949.)
May 18, 1950 - May 17,
1952; tacit annual
renewal
Protocol to 1950 agree-
rilent effected by an ex-
change of. notes dated
July 31, 1952 to be
effect May 17, 1952 -
.may 17, 1953.
Protocol signed November
19, 1953, effective May
18,. 1953 - Lay 17, 1954-,.
Protocol signed Septem-
ber 10, 1954; -Duration
not known
April 26, 1954 - kpril
25, 1955; tacit annual
renewal
Brazilian exnorts set at
US $14 million; imports.
at US a6 million.
Lists. ofgoods in ef-
fect to May 17, 1951.
Brazil. Payment of balances
in US dollars or other accep-
table currency.
Clearing account in US dollars
established in the Bank of
Brazil, settlement in US
dollars.
Brazilian exports US 15
million; imports 16.2 mil-
lion can be increased by
$1.5 million if enough salted
Or'dried cow hides are avaj1_
-ableg
Established new lists of
goods.
Established new lists of
goods.
.Trede_t4rget.US. #20. mil- .Dollar.accounteatablished_in
lion each way. Commodity the Bank of Brazil.
lists established.
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Approved For Release 2000/08/23 : CIA-RDP64-00014A000100130033-2
Table VI. Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc .(continued)
Duration of agreement
Trade provisions payment provisions
Brazil - October 24, 1952 - Trade target each way of Dollar account in the Bank of
Poland October 23, 1953; tacit 6.6 million. Commodity Brazil.
annual renewal lists established. ,
Quotas in dollars.
Nexico -
Czecho-
slovakia
April 1, 1954 -
April 1, 1955
November 23, 1954 -
November 22, 1955
Signed November 9,
1949
December 31, 1954; tacit
two year renewal there-
after. (It is not clear
if it is an extension of
previous agreement signed
Aug. 17, 1947.)
October 20, 1950 - October
1955
,
Swing credit of 4v2 million. Dol-
lar accounts in the Bank of
Brazil and Narodowy Bank Polski.
Trade target of US n.0
million each wajr;' Speci-
fied goods tb be traded
but no quotas.
No trade target established.
Includes commodity lists but
no quotas.
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Establishes peso/crown accounts.
Provides for reciprocal swing
credit. It is not clear whether
the amount of 1 million estab-
lished by 1947 agreement is still
Table VI.
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Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc* (continued),
Duration of agreement
Trade provisions
Payment provisions
Paraguay - November 1953 - November
Czechoslovakia 1954
Paraguay -
Hungary
Paraguay -
Poland
Uruguay -
Czechoslovakia
November 1, 1953 -
October 31, 1954; tacit
annual renewal
Signed November 23, 1955 -
duration not available
Announced in August
Signed September 13,
No quotas established
No quotas established
No quotas established.
Other commodities for in-
terchange are listed.
1954 Reportedly 42.5 million
each way.
Trade target reported to
1955 be million both ways.
Uruguay - June 29, 1954 - June
East Germany 28, 1955
Uruguay -
Hungary -
Rumania
Uruguay -
Poland
1954
April 24, 1953 - April
23, 1954; tacit annual
renewal
Trade target 406 million
each way.
Details not available but set
up US 41 million swing credit.
Establishes a swing credit of
W4.00,000.
Information is not available.
Payment agreement with the
Bank of Uruguay.
Current payments in US dol-
lars. Swing credit of2
million.
Compensation accounts up to
$6 million opened in the
Banco de Uruguay and the
Deutsche Notenbank.
There appear to be confiden-
tial banking agreements with
these countries. Terms are
not known.
Clearing account in the Banco
de Uruguay.
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Approved For Release 2000/08/23 : CIA-RDP64-00014A000100130033-2
Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc* (continued)
?
Duration of agreement
Trade provisions
Payment provisions
Uruguay - July 28, 1954 - July 27, Annual trade target US
USSR 1956 ,:22.4 million each way.
USSR to ship petroleum
products for Uruguayan
wool hides and ve7e-
table oils.
1_0
1-3
* The agreements shem include only t ose reached between governments or agencies of
governments, agreements between trivate eAities as well as any barter or one-time
arrangements are excluoec.
Settlement of accounts in,
pounds sterling.
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Approved For Release 2000/08/23 : C1A-RDP64-00014A000100130033-2
Table VI., Bilateral trade and payments agreements in effect during 1950-55 between
Latin American Republics and the Soviet bloc* (continued)
Duration of agreement
Trade provisions . Payment provisions
Uruguay - July 28, 1954 - July 27, Annual trade target US Settlement of accounts in pounds
USSR 1956 $22.4 million each way. sterling.
ussa to ship petroleum
products for Uruguayan
wool hides and vege-
table oils.
The:agreements shown include only those reached between governments or agencies of govern-
ments; agreements between private entities as well as any barter or one-time arrangements
are excluded.
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