COMMUNIST CHINA'S GRAIN IMPORTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP70T00666R000100140017-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 8
• Document Creation Date: December 16, 2016
• Document Release Date: March 23, 2005
• Sequence Number: 17
• Publication Date: October 15, 1962
• Content Type: REPORT

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COMMUNIST CHINA'S GRAIN IMPORTS
1. Deliveries of grain from the West have totaled about 10 million
tons since 1961, valued at about $650 million.'
B. Peiping has claimed "slightly better" harvests this year
but tight food situation expected to require further food
imports in 1963.
II. Chinese successfully meeting payments for unprecedented grain
imports.
A. Have stemmed depletion of foreign exchange holdings by:
1. sharp cutback in non-food imports;
2. substantial', short-term credits from Western grain
suppliers;
3. expansion of exports to the West; and
4. Selling silver.
III. Soviets have given Chinese little aid.
A. Soviets loaned Chinese 500,000 tons of sugar and have ex-
changed grain shipments where mutually convenient.
B. Chinese have had to cut back sharply on imports of Soviet
equipment in order to pay for Western grain imports.
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Communist China: Grain Imports from the West
1960-1961 1962
Country (thousand tons) (thousand tons)
Argentina 45 600
Australia 2,510 1,405?
Burma 370 200,
Canada 2,410 2,150
France 300 400'
Rhodesia --- 350
Union of S. Africa 650'
West Germany 180 69
TOTAL =4
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15 October 1962
BLOC MILITARY AND ECONOMIC ASSISTANCE TO INDONESIA
I. The Bloc has extended more credit assistance to Indonesia
than-to any other non-bloc underdeveloped country in the world.
A. The bulk of this has been in the form of militaryaid.
1. More than $1 billion in arms aid. credits have been granted
to Indonesia, of which 80 to 90 percent has already
been supplied.
B. Bloc economic aid -- in the form of credits -- has been sub-
stantial, amounting to more than $350 million.
1. Most of this assistance, however, still is to be delivered.
C. Indonesia now is deeply indebted to the Bloc financially, if
not morally as well.
1. Djakarta's repayments for Bloc aid this year amount to
$65 million.
2. These repayments will rise to more than $100 million by
1965 and then gradually decline to no less than about $25
million a year from 1970 to 1980.
II. Indonesia,. in addition to receiving more Bloc arms aid. than any
other underdeveloped country, was the first to be promised guided
missiles, TU-16 bombers, MIG-21 fighters and a variety of other
materiel including a heavy cruiser.
A. Prior to the Bloc's recent upsurge in arms aid to Cuba,
Indonesia had received faster delivery of equipment than any
other nation.
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1. In an effort to arm Indonesia as much as possible
before its final showdown with the Dutch over West
New Guinea, Moscow speeded up deliveries of arms to
the point that the equipment was arriving in Indo-
nesia before personnel had been trained to operate it.
2. Training programs both in the USSR and Indonesia also
were greatly accelerated. The Soviet equivalent of a
MAAG mission, headed by an Admiral, also was estab-
lished in Indonesia. There are well over 1,000 Soviet
military technicians there at present.
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5. Deliveries of Bloc arms, many of which are naval
vessels, are still being made to Indonesia.
III. Little of the Bloc's economic aid commitments to Indonesia has
been implemented thus far, largely because the normal lack of
speed in such programs and because of Djakarta's preoccupation
with the West New.Guinea issue.
A. Mikoyan's visit to Indonesia in late August apparently was
partly devoted to planning the use of the available Soviet
aid credits.
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&NSA
additional $100 million credit to satisfy immediate
Indonesian needs.
B. Other Bloc countries, particularly Rumania, Poland and
Czechoslovakia, have recently made efforts to carry out
their economic aid programs.
IV. Indonesia, now deeply indebted to the Bloc (largely because of
the arms aid), asked Moscow earlier this month to reduce and
extend the annual installments for arms.
A. This year's payment is $32 million. The payments will
rise to almost $100 million by 1965, then will gradually
decrease through 1980.
B. Although the USSR apparently wants to be paid on time for
its aid, it appears likely Moscow will make some accommo-
dation for Indonesia rather than force Djakarta into a
position of feeling it has to default on, its obligations
to the USSR.
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BLOC AID TO CAMBODIA
1. Since 1956 the bloc has extended over $65,000,000 in economic
assistance to Cambodia, the majority of which has been grant
aid provided mainly by China and the USSR.
A. Although the bloc has not provided Cambodia with any
military aid to date, there are indications that some
limited form of military assistance may be extended --
particularly by Communist China.
1. Earlier this month Vice Premier Chen Yi informed
Cambodia that an outstanding arms offer of several
years ago was still valid.
2. Peiping's'gesture comes at a time when Cambodia is
re-examining its position on foreign military aid in
connection with Sihanouk's efforts to obtain inter-
national guarantees of Cambodia's neutrality.
II. The bloc has made modest progress under its economic aid pro-
gram.
A. China has completed the construction of a textile factory,
a plywood factory and a paper factory. Chinese technicians
have completed its geological survey, begun in 1957, as
well as the survey of the Phnom Penh -Sihanoukville rail-
road. Preliminary work on the iron and steel mill to be
built with Chinese assistance has been finished but there
is no indication as to when construction will begin.
B. The USSR finished construction of a hospital at Phnom Penh
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and Soviet construction of a technological institute is
progressing rapidly.
C. After prolonged negotiation an implementing agreement was
reached with Czechoslovakia for the construction of three
small factories -- a tire factory, a sugar refinery and a
tractor assembly plant.
III. In spite of some difficulties with bloc assistance, its aid
has received wider and more favorable publicity in official
statements and in the Cambodian press than has Western aid.
A. Nevertheless, Cambodia is at the present time dependent
on foreign grant aid -- mainly from the US -- for balance
of payment support and for development.
1. For 1962, the US has offered $23,900,000 in the form
of grant economic aid and technical assistance, bring-
ing the total US economic aid program to Cambodia
since 1951 to $251,400,000.
2. The US is also providing almost $11,000,000 in mili-
tary assistance this year to Cambodia.
a. Cambodia has expressed dissatisfaction over the
extent and delivery of US military equipment and
the prospect of the withdrawal of the US military
mission has just been raised by the Cambodian
Defense Minister.
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