CONTENTS AND SUMMARY OF EVENTS (AUGUST 1975)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01098A000600080003-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 20
• Document Creation Date: November 16, 2016
• Document Release Date: February 28, 2000
• Sequence Number: 3
• Publication Date: August 1, 1975
• Content Type: SUMMARY

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CONTENTS AND SUMMARY OF EVENTS
(August 1975)
Page
Mexico Signs Cooperation Agreement with CEMA . . . . . . . . . . . . . .
In August, Mexico signed a general cooperation agreement with the
Council for Mutual Economic Assistance, similar to the pact signed by Iraq
last month.
Near East and South Asia
25X1 B
Bangladesh To Repay Soviet Wheat Loan . . . . . . . . . . . . . . . . . .
Bangladesh plans to buy 40,000 tons of wheat on Western markets this
year as a first payment on a Soviet wheat loan.
Romania Expands Ties with Egypt and Iran . . . . . . . . . . . . . . . . . 2
Romania signed protocols in August to implement a number of large
development projects in Egypt and Iran, two of its major aid recipients.
Iraq Receives Further Soviet Aircraft Deliveries . . . . . . . . . . . . . . . 3
25X1 B
The arrival of = MIG-23 jet fi hters in August brings the number of
MIG-23s in the Iraqi air force to
Kuwait Military Negotiations with the USSR. . . . . . . . . . . . . . . 3
Official Kuwaiti sources denied reports that the USSR has refused to
supply arms to Kuwait.
First Soviet Petya Class Destroyer Escort to Syria . . . . . . . . . . . . . . 3
On 25 July, Syria received a Petya II class destroyer, now the largest
combatant in the Syrian inventory.
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Syria 'To End Soviet Petroleum Activity . . . . . . . . . . . . . . . . . . . 3
Syria's oil minister announced in mid-August that Soviet oil exploration
activities will be terminated in favor of Western-type concession arrange-
ments.
Economic ... ................................ 4
Military .... ................................ 7
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COMMUNIST AID AND TRADE ACTIVITIES
IN LESS DEVELOPED COUNTRIES
August 197-5
Latin America
Mexico Signs Cooperation Agreement with CEMA
On 13 August, Mexico signed a cooperation agreement with the
Economic Assistance, calling for the establishment of
Council a joint for Mutual commission to explore cooperation in oil and natural gas. The
agreement appears to be general in nature and probably is similar to one
signed by Iraq last month. (For Official Use Only)
Near East and South Asia
Ban ladesh To Repay Soviet Wheat Loan
Bangladesh will buy 40,000 tons of wheat on Western markets this
year to make its first payment on a 200,000-ton Soviet wheat loan.
According to the agreement the Soviet wheat, valued at $35 million when
it was shipped in 1973, is to be repaid in kind over five years beginning in
1975. Because of reduced world market prices for wheat, this year's
repayment to the USSR will cost less. Nevertheless, the repayment will
contribute additional strains on Dacca's already poor balance of payments.
(For Official Use Only)
September 1975
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Romania Expands Ties with Egypt and Iran
Romania signed a series of protocols in August to expand existing
economic relations with Egypt and Iran. The new accords underline
Romania's drive to expand equipment markets in the Near East.About one-
half of Bucharest's $1.3 billion in Third World aid has been concentrated in
this area. (For Official Use Only)
A protocol with Cairo calls for a joint Romanian-Egyptian bank,
Romania's first such venture in the Third World. The bank, to be located in
Egypt, is capitalized at $25 million with 49% Romanian ownership. Under
Egyptian law, the bank will be permitted to conduct transactions in local
and foreign currencies. Industrial agreements signed at the same time
call for implementation of projects agreed to under earlier credits: soda
and sulfuric acid plants, the Hamrawein phosphate complex, a petrochem-
ical project, and an agricultural corm?lex:. Romania offered $100 million in
new development credits to be made available when the $125 million
worth of aid still outstanding under existing credits is drawn. (For Official
Use Only)
Romania signed agreements with Iran to provide cement plants,
bakeries, machine tool plants, and a sodium silicate plant. Technicians will
undertake feasibility studies for expanding a chemical plant at Shiraz,
electrification of the Bandar Abbas railroad, building an oil refinery and
petrochemical plant, and prefabricated housing projects. Aid to agricul-
ture also will be increased through the construction of grain silos and cold
storage facilities in Iran. (For Official Use Only)
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Iraq Receives Further Soviet Aircraft Deliveries
25X1 B
25X1 B
MIG-23 Floggers and - MIG-
21s arrived at the Iraqi port of Umm Qasr in late August. This delivery
will bring the number of MIG-23s in the Iraqi air force to
25X1 B The total number of MIG-21s now stands at
25X1 B The shipment provides evidence that the USSR is honoring prior
military agreements with Iraq, despite the strains that have developed
between the two countries. (Secret)
Kuwait Military Negotiations with the USSR
Official Kuwaiti sources denied reports that the USSR refused to
supply arms to Kuwait during the August: visit of a military delegation to
Moscow. Earlier this year, the Kuwait press reported a Soviet offer to
exchange military equipment for crude o:il. (Unclassified)
First Soviet Petya Class Destroyer Escort to Syria
Syria apparently received a Petya II class destroyer escort from the
USSR on 25 July. The Petya becomes the largest combatant in the Syrian
inventory. Besides Syria, only India has received an export model of the
Petya II, armed with two twin 76.2-mm gun mounts, two five-tube 21-inch
torpedo mounts, and two 16-barrel 200-mm ASW rocket launchers. It also
has a minelaying and depth-charge capability. (Secret)
Syria To End Soviet Petroleum Actives
Syria's oil minister announced in mid-August that Soviet oil explora-
tion activity has failed to meet expectations and that Damascus would
terminate Soviet-assisted oil exploration in favor of Western-type
concession arrangements. (Unclassified)
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Under recent concessions granted to Western firms, Syria will repay
exploration and development expenses from production only if oil is found.
Under the Soviet program, Syria must pay for Soviet equipment and
services even if the venture fails. Beyond the possible financial advan-
tages, however, Western technology is considered superior. (Unclassified)
Nonetheless, Soviet credits totaling $50 million, have been the major
support for establishing Syria's national oil industry, an industry that
currently produces about 160,000 barrels a day. (Unclassified)
OTHER ACTIVITIES
Economic
Africa
Somalia. A Somalian fishing industry official was in Moscow during
August to negotiate implementation of fisheries projects under a recent
$60 million Soviet credit to Somalia. (Unclassified)
Sudan. Sudan announced in August that a Bulgarian delegation is
expected soon in Khartoum to sign a $20 million credit agreement. The
accord probably will reactivate 1967 credits that have gone unused. Sofia
probably plans to go ahead with meat and vegetable processing facilities
called for under the original agreement. (Unclassified)
Uganda. The USSR presented a preliminary mineral exploration report
prepared by Soviet geologists in Uganda earlier this year. This is the first
reference to Soviet assistance to geological exploration in Uganda.
Further Soviet activity in this field probably would require new credits, as
most of the $15 million in aid previously provided has been used.
(Unclassified)
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Zaire. At a meeting of their joint commission in mid-August,
Romania and Zaire discussed formation of a joint agricultural and
livestock development company. (Unclassified)
Latin America
Bolivia. Bolivia has approved the final designs for a second Soviet tin
volatization plant, with a total cost of $15 million. Installation of the first
unit at Potosi has been plagued with delays and cost overruns. Original
estimates put the cost of each plant at $8.5 million, of which $6 million
represented Soviet equipment to be financed with a $28 million Soviet
credit. (For Official Use Only)
Dominican Republic. Romania has purchased $16 million worth of
sugar from the Dominican Republic so far this year. Trade between the
two countries previously had been negligible. (Unclassified)
Jamaica. A Chinese textile team arrived in Jamaica in mid-July to
study several textile projects first discussed when Jamaica established
diplomatic relations with China in March 1974. (For Official Use Only)
Colombia. Colombia signed contracts valued at $21 million to
purchase buses from Hungary and streetcars from the USSR. The National
Federation of Coffee Growers is acting as intermediary in the $12 million
Soviet deal and will finance the sale of streetcars to Bogota over 10 years
at 15% interest. The Hungarian buses will be financed under a trade
agreement. (Unclassified)
Chile. China has entered negotiations with Chile to purchase
chemical products, presumably nitrates. Last year, Chile sold about 65,000
tons of nitrates to China, but shipments in 1975 have been negligible.
(Unclassified)
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Near East and South Asia
Afghanistan. On 22 July, Czechslovakia signed a $6.5 million aid
contract to provide buses for a transportation project in Kabul and agreed
to assist a powerplant at Herat. (Unclassified)
Egypt. Egypt recently announced the completion of two poultry
combines, a vegetable dehydrating plant, and a meat processing plant
constructed by Bulgaria under credit agreements valued at $37 million.
(Unclassified)
Iran. The USSR signed a contract on 6 August to begin electrification
of the 90-mile rail line from Tabriz to Julfa, on the Soviet border. The
USSR extended $18 million in credits in 1968 for rehabilitation of the line.
(Unclassified)
Pakistan. Chinese experts arrived in Pakistan early in August to work
out final details on construction of a sports complex at Islamabad,
scheduled to begin in October. The $35 million complex, to be completed
for the 1976 Asian Games, is being financed under a 1970 credit for $200
million. The two sides also recently agreed to start work on a $2.9 million
textile complex in Punjab under the same credit. (Unclassified)
Sri Lanka. At the close of trade talks in Moscow in August, it was
announced that Soviet-Sri Lanl