COMMUNIST AID AND TRADE ACTIVITIES IN LESS DEVELOPED COUNTRIES, MARCH 1975

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01098A000500040003-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 20
• Document Creation Date: November 16, 2016
• Document Release Date: April 27, 2000
• Sequence Number: 3
• Publication Date: April 1, 1975
• Content Type: REPORT

Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
Secret
No Foreign Dissem
Communist Aid and Trade Activities
in Less Developed Countries, March 1975
Secret
ER RP 75-13
April 1975
Approved For Release 2000/06/01 : CIA-RDP79T01098A000500040003-5,.
Copy No..
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 015319
Exempt from general declassification schedule
of E.O. 11652 exemption category:
058(1), (2), and (3)
Automatkalty daclass$led on:
Date Impossible to Determine
Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
No Foreign Dissem
During March, Iran continued efforts to assure future supplies of food and
raw materials from Communist sources with the extension of a $160 million credit
to Bulgaria, to be repaid in agricultural products, and an offer of a $200 million
advance payment to North Korea against raw materials imports. Egypt, Iraq, and
Syria agreed in principle to the establishment of a joint Soviet-Arab bank. Soviet
relations with India grew cooler with Moscow's demand that New Delhi revalue
repayments on outstanding debts by up to $500 million. Soviet jet fighter deliveries
to Egypt, resumed in February, continued during the month. Indian dissatisfaction
with proposed Czech jet trainer delivery schedules may mean a large new contract
for Polish trainers.
Approved For Release 2000/06/O ~R IA-RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79T01098A000500040003-5
SECRET
No Foreign Dissem
CONTENTS AND SUMMARY OF EVENTS
(March 1975)
Page
Proposed Soviet-Arab Bank . . . . . . . . . . . . . . . . . . . . . . . . 1
The formation of a joint Arab-Soviet bank will be discussed with Egypt-
ian, Iraqi, and Syrian officials in Moscow in May.
No disbursements have been made under the CEMA International Invest-
ment Bank fund, the Communist multilateral institution formed in 1974 to
channel aid to LDCs.
Congolese President Visits Moscow . . . . . . . . . . . . . . . . . . . . 1
The USSR and Congo announced new agreements in mining, industry,
health care, and geology during the Moscow visit of Congo's President.
Gambia Requests Military Equipment from the USSR and China . . . . . . 2
Gambia has requested grant aid from the USSR and China to upgrade the
capabilities of its 600-man police force.
Recent Moroccan Relations with the USSR and China . . . . . . . . . . . . 2
In mid-March, Morocco accepted its first Chinese development credits, but
rejected a Soviet bid to construct additional power facilities.
French Firm Participates in Soviet-Nigerian Steel Plant
Negotiations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A French consulting firm employed to mediate differences over a Soviet
steel plant proposal has recommended that Nigeria accept Soviet plans for a
one-million-metric-ton-capacity steel mill.
vt
Approved For Release 2000/06/Q cRLPIA-RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
No Foreign Dissem
Page
High-level Soviet delegations visiting five Latin American countries during
March offered credits for the purchase of Soviet power generating and other
equipment and discussed purchases of agricultural products.
New Chinese Credit to Guyana . . . . . . . . . . . . . . . . . . . . . . . . 4
China agreed to provide $10 million in additional development credits to
Guyana.
Afghanistan and USSR Sign Annual Barter Agreement . . . . . . . . . . . 4
Afghanistan will continue to exchange natural gas and cotton for Soviet
petroleum products and sugar under the 1975 barter agreement between the
two countries.
Bangladesh Negotiating First Hungarian Credit . . . . . . . . . . . . . . . 5
Bangladesh is completing negotiations on a $10 million Hungarian com-
modity credit, Budapest's first credit allocation for commodity purchases.
Soviet Fighter Aircraft Deliveries to Egypt . . . . . . . . . . . . . . . . . . 5
25X1 B Soviet fighter aircraft deliveries to Egypt, resumed in February, are likely
to total Iaircraft in the next few months.
India Considering Purchase of Polish Trainer Aircraft . . . . . . . . . . . .
India is reevaluating the Polish TS-11 trainer, rejected last year in favor of
the Czech L-39, because of slow delivery schedules proposed under the
Czech contract.
Approved For Release 2000/06/01V: CIA-RDP79TO1098A000500040003-5 RET
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
No Foreign Diasem
Page
Maintenance of Soviet Aircraft Purchased by India . . . . . . . . . . . . . 6
25X1 B
India received EMIG-21 s in mid-March, believed to be aircraft returning
from overhaul in the USSR.
USSR Demands Revaluation in Indian Repayments . . . . . . . . . . . . . 6
The USSR has demanded that India revalue repayments on outstanding
debts to the USSR by almost $500 million because of the decline in the
value of the rupee.
Iraqi-Hungarian Military Negotiations . . . . . . . . . . . . . . . . . . . . 6
25X1 B
During the first quarter of 1975, Iraqi-Hungarian negotiations were under
way on several military supply contracts with a minimum value of ^ 25X1 B
Iraq Signs New Agreements with the USSR . . . . . . . . . . . . . . . . 6
During March, Iraq signed a contract calling for Soviet participation in a
$300 million powerplant at Nasiriyah, as well as a trade protocol for 1975.
Iran Extends Large Credit to Bulgaria . . . . . . . . . . . . . . . . . . . . 7
Iran will provide its first development credit to a Communist country
under a $160 million agreement to assist Bulgaria's agriculture and livestock
industries. ^
Iran and North Korea Negotiate Major Trade Deal . . . . . . . . . . . . . . 7
Iran and North Korea signed a letter of understanding specifying total
trade approaching $700 million over the next 5 years. Tehran reportedly has
offered a $200 million advance payment against imports.
Approved For Release 2000/06/015E&A-RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
CONFIDENTIAL
Page
Large New Romanian Contract with Syria . . . . . . . . . . . . . . . . . . 8
Syria has ratified a contract allocating $95 million of Romanian develop-
ment credits to finance foreign exchange costs for a superphosphate plant at
Horns.
Other Activities
Economic .................................. 8
Military ................................... 12
Approved For Release 2000/06/01 'CIA-RDP79T01098A000500040003-5
CONFIDENTIAL
 Approved For Release 2000/06/01 : CIA-RDP79T01098A000500040003-5
SECRET
No Foreign Dissem
COMMUNIST AID AND TRADE ACTIVITIES
IN LESS DEVELOPED COUNTRIES
March 1975
Proposed Soviet-Arab Bank
The Cairo press reported in March that Egypt, Syria, and Iraq have approved
in principle the establishment of a joint Arab-Soviet bank. No other details were
revealed. The Arab League had previously endorsed the concept of joint-venture
banks with socialist countries. The proposal is expected to be discussed further
when officials of the three countries attend celebrations for the 50th anniversary
of the Soviet Foreign Trade Bank in Moscow in May. (Unclassified)
CEMA Bank Fund for LDCs Inactive
Private criticism by LDC officials of the Communist multilateral institution
for channeling aid to LDCs came to light during the month. The CEMA
International Investment Bank fund, designed to provide credits for
CEMA-sponsored projects in the Third World, has not extended a single credit
since it began operation in January 1974. Several LDCs reportedly have applied
for credit, but have been turned down because the proposed project was not
significant enough for CEMA financing or because the hard currency component
was too high. The capitalization of the fund was announced at I billion rubles,
plus an unspecified amount of hard currency. It also is possible that transactions
have been held up because member countries have not fully subscribed to their
share in the fund. (Confidential)
25X1A
Africa
Congolese President Visits Moscow
Congolese President Ngouabi made his first state visit to the USSR in late
March in an attempt to improve the indifferent relations that have prevailed between
Note: The substance of this publication has been coordinated with the Bureau
of Intelligence and Research of the Department of State, with the Defense
Intelligence Agency, and with the Agency for International Development.
Comments and queries regarding this publication are welcomed. They may be
directed to of the Office of Economic Research, Code 143,
Extension 5291.
Approved For Release 2000/06/01 s4-RDP79T01098A000500044QA~-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
the two countries in the past few years. The two sides announced new economic
and technical agreements in industrial development, mining, health care, and
geology. Inasmuch as most of the US $18 million in Soviet economic assistance
provided earlier has been drawn down, new credits would be required to implement
the new agreements. (Secret)
25X1 B Ngouabi probably requested a speed up in Soviet military support. Only half
of the Soviet military equipment contracted for through 1970 has
been delivered. (Secret)
Gambia Requests Military Equipment from the USSR and China
Gambia is pressing Communist donors to increase the capabilities of its only
defense element - a 600-man police force - by providing small arms, antiaircraft
and coastal guns, a patrol craft, and a gunboat on a grant basis. Peking reportedly
already has agreed in principle to an early 1975 Gambian request and will send
a technical team to Banjul to study arms requirements. Gambian President Jawara
planned to ask the USSR for the same items during his visit to Moscow in March.
(Secret No Foreign Dissem)
Recent Moroccan Relations with the USSR and China
Morocco and China signed their first economic cooperation agreement in
Peking in mid-March. Under the pact, China will provide at least $40 million for
the construction of a 60,000-seat olympic sports stadium in Rabat. Peking also
agreed to assign medical teams to southern Morocco and to establish three
acupuncture clinics. (Secret No Foreign Dissem)
The two sides also concluded a new long-term trade agreement to exchange
Chinese tea for phosphates. The new pact replaces former barter arrangements with
hard currency settlements. In 1973, Morocco supplied 75% of China's phosphate
rock imports, about 30% of China's total consumption requirements. Peking's aid
initiatives may have been dictated by its desire to assure supplies of this important
raw material over the long term. (Secret No Foreign Dissem)
Soviet economic interests in Morocco reportedly received a setback later in
the month when Rabat rejected a preliminary multimillion dollar Soviet bid to
construct a powerplant at Kenitra. Moscow has protested the decision, but King
Hassan is said to oppose further Soviet assistance to Morocco's vital public utilities.
Soviet-built generating facilities already account for one-third of Morocco's electric
power output. (Secret No Foreign Dissem)
Approved For Release 2000/06/012: CIA-RDP79TO1098A000500040003-5
SECRET
 Approved For Release 2000/06/01 : E DP79T01098A000500040003-5
French Firm Participates in Soviet-Nigerian
Steel Plant Negotiations
A French consulting firm was employed to mediate Soviet-Nigerian differences
over the preliminary report for a proposed steel plant in Nigeria. Nigerian officials
disagree with Soviet projections on capacity, location, infrastructure requirements,
and the timing of construction. (For Official Use Only)
The French firm, which already is involved in planning for several reduction
plants in Nigeria, has recommended that the USSR proceed with plans for a
one-million-ton-capacity plant. Lagos objects to the long lead time (nearly 10 years)
required to put the plant on stream because domestic demand for steel is increasing.
In the meantime, Nigeria intends to go ahead with independent plans to build
five 500,000-ton direct reduction plants, two of which are to be completed by
the end of Nigeria's third development plan (1975-80). (For Official Use Only)
Soviet-Nigerian negotiations on the steel plant have grown increasingly bitter,
as the Nigerians have become restive with Soviet foot-dragging. Preliminary studies
of Nigerian resources were begun by Soviet geologists in 1968, but the proposal
for the complex was not submitted until October 1974. It still is not clear that
agreement on the financing of the project has yet been reached. (Confidential)
Recent Soviet Trade Initiatives in Latin America
The USSR conducted a dynamic trade campaign in Latin American countries
during March as high-powered delegations visited Argentina, Brazil, Colombia, Peru,
and Uruguay to discuss conclusion of trade and aid contracts. (For Official Use
Only)
Soviet officials offered Colombia and Peru 10-year financing for purchases
of machinery and capital goods. A delegation led by Deputy Minister of Foreign
Trade Manzhulo signed an open-ended agreement with Colombia for 5% credits
repayable over 10 years after one year's grace. Colombia hopes to finance Soviet
participation in two hydroelectric projects under the new agreement. Moscow
appears particularly interested in selling subway and textile equipment to Peru,
but no firm agreements were reached. A Soviet offer to provide 10-year equipment
credits repayable at 3%-3.5% is still under study by Peru. (For Official Use Only)
Approved For Release 2000/06/01 :s RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
Promotion efforts in Argentina and Brazil were concentrated on sales of
equipment for hydroelectric projects. The USSR reportedly obtained a contract
for the Sobradenho power project in Brazil under the Patolichev protocol, believed
to have been renegotiated recently. The original 1966 protocol provided $85 million
in trade credits. The terms of the new deal are not known, but Brazil was seeking
to tie equipment purchases to the sale of Brazilian manufactures. Contracts under
the renewed protocol will supplement exchanges under existing trade accords that
call for an estimated annual turnover of $250 million, with the USSR importing
Brazilian coffee and sugar in return for petroleum products. Argentine and Soviet
officials discussed Soviet supply of designs and equipment for power projects and
signed a sales contract for Argentine beef. (For Official Use Only)
Talks in Uruguay also centered on Soviet beef purchases. An estimated $70
million beef deal has been under negotiation since January. If concluded, it would
represent Moscow's first beef purchase from Uruguay and would account for nearly
one-half of Uruguay's annual beef exports. In late March, the USSR delivered
353,000 barrels of petroleum to Uruguay, its first shipment to the country since
the mid-1960s, when the USSR was one of Uruguay's major crude oil suppliers.
(For Official Use Only)
New Chinese Credit to Guyana
On 14 March, China extended an additional $10 million credit to Guyana
to finance equipment and technical services. The agreement reportedly will become
effective on 1 January 1976 and may be used for hospital construction or a small
steel mill. Chinese pledges to Guyana now stand at $36 million, repayable over
10 years after 10 years' grace. China's earlier assistance is for construction of a
textile mill, a brick and tile factory, and a glass plant, but little has been drawn.
(For Official Use Only)
Near East and South Asia
Afghanistan and USSR Sign Annual Barter Agreement
Afghanistan and the USSR signed their annual barter protocol in February
calling for the exchange of Soviet petroleum products and sugar for Afghan natural
gas and cotton. The petroleum and gas trade alone will reach a value of $70 million
in 1975. Soviet petroleum products will fill more than two-thirds of Kabul's annual
4
Approved For Release 2000/06/0k t 1A-RDP79TO1098A000500040003-5
 Approved For Release 2000/06/01 :S ~ATRDP79T01098A000500040003-5
Bangladesh is completing negotiations with Hungary for a $10 million
commodity credit. The agreement is Budapest's first with Dacca and represents
the first Hungarian credit allocation for commodities. Terms of the agreement and
types of commodities involved were not reported. Hungarian exports to Bangladesh
have concentrated heavily on machinery and chemicals, with only minor commodity
trade in the past. (Unclassified)
Soviet Fighter Aircraft Deliveries to Egypt
25X1 B
25X1 B
The USSR is continuing to deliver fighter aircraft to Egypt under an arms
agreement reached in 1973. The USSR resumed shipments in February, and
deliveries in March included0 MIG-21s and E SU-20 fighter bombers. Deliveries
of fighter aircraft to Egypt under prewar contracts are likely to total ?MIG-21s,
I SU-20s, and. MIG-23s in the next few months. (Secret No Foreign- Dissem)
25X1 B
India Considering Purchase of Polish Trainer Aircraft
The slow delivery schedules proposed for the Czech L-39 trainer/light attack
aircraft ordered last December* may result in Indian orders for the Polish TS-1I
trainer instead. Indian air force officers were in Poland in March to reevaluate
the aircraft, which was rejected in favor of the L-39 last year. A Polish negotiating
team, scheduled to visit India later this spring, is expected to offer quick delive
25X1 B
25X1 B
25X1 B of aircraft on favorable terms. Warsaw reportedly is asking 25X1 B
per aircraft,
(Confidenti
25X1 B
requirements of roughly 5,000 barrels per day. Afghanistan is one of two foreign
suppliers of natural gas to the USSR, providing about 20% of Moscow's imports.
Iran delivers the remainder. (Confidential)
Bangladesh Negotiating First Hungarian Credit
The Indian air force's shortage of trainer aircraft apparently has become more
critical since it ordered the L-39, known to be in short supply, last year. The
T-6 trainer now in use is to be phased out this year, and the domestic HJT-16
trainer cannot be produced in needed quantities. (Confidential)
* See the Monthly Report dated January 1975.
Approved For Release 2000/06/01 SEe--RDP79T01098A000500040003-5
 Approved For Release 2000/06WRiTCIA-RDP79TO1098A000500040003-5
25X1 B Maintenance of Soviet Aircraft Purchased by India
25X1 B
USSR Demands Revaluation in Indian Repayments
but these are believed to be Indian air force fighters returning from overhaul in
the USSR. India has shipped a minimum of .MIG21 s to the USSR during 25X1 B
the past ear. The air force la ed by maintenance problems, hopes eventually
to have of its estimatedwMIG21s overhauled in the USSR. -TU-124 25X1 B
transports also will be flown to the USSR for overhaul later this year. (Secret
No Foreign Dissem) 25X1 B
Strains in the Soviet-Indian economic relationship were further exacerbated
in March by Soviet demands that India revalue repayments on outstanding debts
to the USSR by almost $500 million because of the decline in the value of the
rupee. Moscow is invoking a gold clause in its previous aid contracts that specifies
the gold content of the Indian rupee in which repayments are to be made. New
Delhi claims that agreements currently in force call for repayment in rupees at
a fixed rate of principal and interest, but Moscow insists on revaluing accounts
outstanding based on the changed value of the rupees, as provided in most of
its agreements. High-level meetings on a new rupee-ruble exchange rate were
convened in mid-March, but no agreement was reached. (Secret)
Iraqi-Hungarian Military Negotiations
25X1 B
During the first quarter of 1975, Iraqi-Hungarian negotiations were under way
on several military supply contracts valued at a minimum of Some
of these accords probably were signed. (Secret No Foreign Dissem)
Hungary is a relatively new military supplier to Iraq. Since concluding its
first agreement in late 1971, Budapest has sold Iraq equipment valued at
million.
25X1 B
25X1 B
25X1 B
Iraq Signs New Agreements with the USSR
A Soviet industrial delegation to Baghdad signed a contract to build a
powerplant at Nasiriyah, costing almost $300 million. The Soviet portion of the
project - the installation of four 120,000-kw turbines, with associated civil
B
Approved For Release 2000/06/c Ic:RLqIA-RDP79TO1098A000500040003-5
 Approved For Release 2000/06/01 :tDP79T01098A000500040003-5
engineering and technical services - will be financed under a $222 million credit
extended in 1971. The first unit is to be in operation in three years. The Nasiriyah
plant will be the third Soviet power project in Iraq and reportedly will largely
satisfy the requirements for electric power in the industrial south. (For Official
Use Only)
The Soviet Deputy Foreign Trade Minister also was in Baghdad during the
month to conclude a trade protocol for 1975. Iraqi petroleum deliveries on Soviet
account probably were a major topic discussed. No value for proposed exchanges
this year was announced, but last year's turnover was reported at $1.3 billion.
(For Official Use Only)
Iran Extends Large Credit to Bulgaria
In early March, Iran completed negotiations on its first development credit
to a Communist country. Tehran will provide Bulgaria's agricultural and livestock
industries with $160 million to produce goods for export to Iran. The credit will
be drawn down over the next four years. The credit differs from the $15 million
accord with Poland in 1973 that provided financing for imports of Iranian goods.
(For Official Use Only)
Iran is pursuing other credit arrangements with Communist countries. Tehran
and Moscow are working out details of a February Iranian agreement in principle
to provide credits to the USSR to build a paper complex; repayment will be in
plant products. Tehran recently offered a $100 million credit to Warsaw to help
establish a Polish paper plant in which Iran would hold equity - an arrangement
prohibited by Polish law. Romania has requested a $250 million credit from Iran,
which probably would be repaid in agricultural products. (Secret No Foreign
Dissem)
Iran and North Korea Negotiate Major Trade Deal
Iran and North Korea signed a letter of understanding in March calling for
two-way trade of up to $700 million over the next 5 years. Iran reportedly offered
a $200 million advance payment against imports, similar to terms offered over
the past few months to several other Communist countries. A formal 5-year
agreement is expected to be signed later this spring. (For Official Use Only)
Approved For Release 2000/06/01 ?6RRDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
SECRET
Under the agreement, Iran would purchase 1 million tons of corn, 1 million
tons of steel ingot, and 500,000 tons of cement, as well as fertilizer and food
products. No mention was made of proposed North Korean imports. Iran's
willingness to extend advance payments is part of a continuing effort to assure
the procurement of commodities in short supply now and to hedge anticipated
future shortages. Until now, Iranian trade with North Korea under their first
agreement, signed in 1973, has been negligible. (For Official Use Only)
Large New Romanian Contract with Syria
Syria has ratified a contract signed during Romanian President Ceausescu's
visit to Damascus in February, allocating $95 million of Romanian development
credits to finance foreign exchange costs for a triple superphosphate plant at Horns.
About half of the cost of the 450,000-ton plant will be financed by Romania.
Almost $35 million of the credits will be provided in hard currency for equipment
from third countries, with the remainder going for equipment and materials from
Romania. The Syrian-financed portion consists of $50 million for local costs and
$25 million for foreign technical services and licenses. (For Official Use Only)
OTHER ACTIVITIES
Economic
Africa
General. The Zambian Foreign Minister, Congo's Prime Minister, and trade
officials from Burundi and Tanzania visited China during March. (Unclassified)
Algeria. President Boumedienne attended ceremonies marking the launching
of the first vessel constructed at the Polish-built pilot shipyard in Oran. The small
shipyard was designed to train Algerians for a larger shipyard now being constructed
under Polish credits provided in 1973. (Unclassified)
The Algerian Secretary of State for Planning traveled to Moscow to negotiate
an agreement on further Soviet assistance to irrigation projects. Meetings will be
conducted within the framework of the Algerian-Soviet joint commfttee.
(Unclassified)
Dahomey. The President of Dahomey has called upon the USSR to apply,
in practical concrete terms, the cooperation agreements currently in force between
s
Approved For Release 2000/06/2E'~R IA-RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : &RDP79T01098A000500040003-5
the two countries. The President told the Soviet ambassador that he wished to
see these accords implemented within the next few months. Dahomey's Foreign
Minister departed for discussions in Moscow in late March. The President also
reviewed the status of aid programs with the Chinese ambassador. In 1972, China
provided $44 million in development credits to Dahomey. Chinese technicians
already have begun surveys for a cigarette factory and a stadium under the
agreement. (For Official Use Only)
Ethiopia. An Ethiopian delegation visited Bulgaria, Czechoslovakia, and
Romania to seek assistance for development projects. Although the three countries
expressed support for Ethiopian plans, no new economic commitments were made.
(Unclassified)
Equatorial Guinea. A trade mission from Equatorial Guinea was in Peking
during the month, presumably to negotiate exchanges for 1975. (Unclassified)
Ghana. Ghana and Bulgaria signed a new 5-year trade agreement on 27 March
that eliminates barter accounts in favor of hard currency settlements. Over the
past few years, Ghana has signed similar agreements with several East European
countries. (Unclassified)
Guinea. Guinea and China signed their annual protocol on trade for 1975,
as well as an agreement on commodities to be imported under existing credits
to support Chinese project activity. (Unclassified)
Morocco. The USSR is to provide technical assistance to Morocco's merchant
marine under an agreement signed in March. Soviet navigators and engineers will
train local personnel aboard Moroccan merchant ships. (Unclassified)
Mozambique. China has promised financial and technical assistance to
Mozambique after it gains independence on 25 June 1975. (For Official Use Only)
A Romanian delegation was in Mozambique in late March to attend the first
working session of a mixed commission for economic cooperation set up in
December 1974. (For Official Use Only)
Sudan. The Sudanese-Chinese protocol for 1975 calls for balanced trade of
$82.8 million, of which $37.5 million represents Sudanese cotton exports. Sudan
will import textiles, construction materials, sugar, and other commodities.
Settlements are to be made in hard currency. (Unclassified)
Approved For Release 2000/06/01 :s61WRDP79T01098A000500040003-5
9
 Approved For Release 2000/06/AdRE1CIA-RDP79T01098A000500040003-5
Tunisia. Tunisia's Prime Minister departed for Peking on 30 March for
substantive discussions on implementation of projects under China's $40 million
credit agreement. (For Official Use Only)
Indonesia. The USSR purchased 38,000 tons of rubber directly under its 1974
trade agreement with Indonesia, compared with 11,000 tons in the previous year.
Moscow has offered to buy 50,000 to 60,000 tons in 1975. Soviet machinery
exports to Indonesia quadrupled in 1974 over 1973. The USSR is supplying
machinery and equipment for at least three textile mills. (Unclassified)
Singapore. The Singapore delegation that visited Peking recently reportedly
obtained Chinese agreement to work toward redressing the trade imbalance between
the two countries, which favors China. A Chinese delegation will be sent to
Singapore soon to discuss the question. (Confidential)
General. Chinese economic and trade exhibitions opened in Jamaica and
Panama City during March. (Unclassified)
Costa Rica. The Costa Rican Prime Minister traveled to Romania in March
to discuss the development of economic cooperation and expansion of trade.
(Unclassified)
Guyana. Guyana's Prime Minister concluded talks in Romania on 7 March
with the signing of an agreement on economic and technical cooperation, and a
protocol on Romanian assistance for geology, mining, and oil. (Unclassified)
Mexico. Mexico announced plans to negotiate a technical agreement with China
to exchange experts in agriculture. (Unclassified)
Peru. Bulgaria and Peru agreed to set up a joint economic committee to plan
development activity under 'a $10 million Bulgarian credit extended in 1971.
(Unclassified)
Near East and South Asia
Bangladesh. Bangladesh has been invited to send a five-man delegation to the
April Canton Fair with a detailed list of proposed exports. (Secret No Foreign
Dissem) f
10
Approved For Release 2000/06/(3AcRClA-RDP79T01098A000500040003-5
 Approved For Release 2000/06/01 : sq R-?~tDP79T01098A000500040003-5
The USSR and Bangladesh are studying establishment of a joint fishing venture
in the Bay of Bengal. The USSR would supply equipment and training for the
venture. (Unclassified)
Egypt. A new rolling mill delivered by East Germany to the metal fabrication
complex at Abu Zaibal will begin trial operations soon. The old facility was
destroyed by Israeli aircraft in 1970. (Unclassified)
An Egyptian economic committee led by the Economic Cooperation Minister
left Cairo for discussions in Poland and Romania on the setting up of joint projects
in Egypt. The two countries have been active in Egypt's mineral, petroleum, and
light industrial development under credits totaling almost $260 million.
(Unclassified)
Greece. The Bulgarian-Greek trade agreement signed in late February calls for
valuation of goods against a basket of European currencies rather than gold and
raises the swing limit to $5 million. The agreement calls for $110 million in trade,
a 50% increase over that in 1974. (Unclassified)
Iraq. Expansion of activity in agriculture, food processing, and land
reclamation are on the agenda of the seventh session of the Bulgarian-Iraqi joint
economic committee meeting scheduled at Sofia in late March. Bulgaria is to
construct six food processing plants under a 1970 credit. (Unclassified)
Pakistan. Hungary will set up an experimental water supply plant in Pakistan
in conjunction with an offer of technical assistance for a hydrological survey of
underground water resources for irrigation, as well as water supply units. No
financial arrangements were announced. (Unclassified)
South Yemen. An East German delegation was in South Yemen during March
to select a site for a model cotton farm, to be established under an agricultural
agreement signed last year. (Unclassified)
Sri Lanka. On 14 March, Prime Minister Bandaranaike officially inaugurated
the Pugoda textile mill constructed with Chinese assistance. Work on the
$1.6 million plant started in 1965 but ceased when the government changed. The
project was reinitiated in 1971, and Peking agreed to construct an associated
finishing mill. In addition to the Pugoda complex, Peking plans to build an
$8 million textile complex at Minneriya under existing credits. (Unclassified)
Approved For Release 2000/06/01 : ,IRDP79T01098A000500040003-5
 Approved For Release 2000/06/0~tREClA-RDP79TO1098A000500040003-5
Turkey. On 12 March, Turkey and the USSR signed a 1975 protocol calling
for a trade turnover of $180 million, about the same level as actual exchanges
in 1973. However, in recent years Soviet-Turkish trade has exceeded planned levels
by $20-$30 million annually. (Unclassified)
Military
India. The results of Soviet Defense Minister Grechko's visit to India in late
February are not known, but the supply of large combat ships, minesweepers, and
ground forces equipment was discussed. New Delhi turned down Soviet requests
to permit establishment of Russian air and naval bases in India. (Confidential)
Sri Lanka. Seven Sri Lanka navy personnel began a six-month course in the
USSR prior to delivery of a naval training vessel offered to Colombo by the USSR
last November. (Confidential)
Syria. The USSR is preparing a number of AN-26 short-haul transport aircraft
for delivery to Syria in late summer.
25X1 B The AN-26 is primarily a cargo carrier,
although it also has an air-drop capability. (Secret No Foreign Dissem)
25X1 B
12
Approved For Release 2000/06/Mc CIA-RDP79TO1098A000500040003-5
 Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5
Secret
Secret
Approved For Release 2000/06/01 : CIA-RDP79TO1098A000500040003-5