ACTIVITIES OF COMMUNIST COUNTRIES IN THE WORLD WHEAT MARKET DURING OCTOBER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01676R000400140010-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: August 1, 2003
• Sequence Number: 10
• Publication Date: November 9, 1966
• Content Type: MF

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DDI Yc
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9 Nov 1966
MOM= : The Honorable Dean Busk
The Secretary of State
Aetivities of Communist Ontxiee in
the World Wheat ?ballet During
October
I have attached our analysis of Communist activities
in the world wheat sextet. Ails Communist China's pur-
chases were the major development, our paper also covers
the latest activities of the USSR and Eastern SU:wean
countries.
is/ Richard Helms
Riohard Balm
Director
Attachment:
Sdhject paper
CONCUR:
8 NOV 1966
R. J. SMITH
Deputy Director for Intelligence
Distribution: (S-2064)
Orig. & 1 - Addressee 1 - St/PR
4)- DCI-ER 1 - St/CS
1 - DDI 1 - D/R
, v ,
2 - OD/ORR kl held) 1 - R/AG
1 - Ch/E
OD/ORR: (4 Nov -66)
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Activities of Communist Countries in the
World Whelt Market During October
During October, the sailor Communist activity in the world
wheat market was Communist China'a purchase of 1.5 million tons
of Australian wheat at a cost of about US $100 million. The
contract calls for delivery by June 1967 and includes In option
for the purchase of an additional 150,000 tons. To date, known
purchases of wheat by Communist countries for deliver, daring the
consumption year 1966/07 (July-JUne) total alanat 11 million tons.
Additional purchases miy boost this to some 15 million tees (see
table).
The Chinese have purchased. nearly 5 million tons of whaatfroe
the Tree World for 1966/67 delivery* to date, compared with an
annual average for recent years of about 6 million tons. In view
of Its rather unfavorable crop prospects, China may need to import
more than this =Nal tverage if it is to avoid . decline in food
commotion. It can do so fraa Canada, which has harvested
record crop, Ind possibly also from Argentina. The Chiaese,
reportedly, have imdicated a willingness to buy any qpantity of
wheat Argentina will be ,ble to *pure.
The only known Soviet activity in the world whe,t market during
October wus the s-le of 200,000 tons of -wheat to Alseria for delivery
during the next three months. The Soviet Union has harvested a
bumper crop, estimated at more than 65 million tons. Last spring
the UM purchased almost 4 million tons from Canada and France for
delivery by July 2967. These imports, combined with the harvest,
will permit the USSR to replenish its seriously depleted whalt
reserves.
The Bast Nuropeus countries have contracted for About 2 million
tons of wheat from the Free World for delivery in 1966/67, or
apprOximately half their estimated requirements from this source.
Only Mend and Bulgaria were ACtiVe in the Free World wheat market
in October. Noland purchased between 200,000 amd 300,000 toms from
France, under an earlier Agreement for the purchase of 500,000 tome.
10?1???????????????a?mwaraPoo?
We , ume that China 1411 purchase 2.5 million toms this con-
sumption year from Canada--that is, one third of the maximum of
7.5 million tons specified in the three-year agreement, August
1966444 2969. TO site only one actual contract has been signed,
which called for delivery of 1..6 million toms by DeceMber 1966.
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In add/. on, the US authorized z-1 second Commodity Credit Corporation
loan of 5 million to Roland, including $17.5 minims to buy
270,000 tone of wheat. Bulgaria ban been negotiating fOr the
purchase of 50,000 tone of DS whe-A for Shipment to Brazil.
November 1966
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Iable
at Imports by tbe Communist
Countries fros tbe nee Oorld
Consumption Years 1964/65-1966/61
Tons
1965/66
19614165 1.1tEERE5E
boated
Agressons as or Total
2.3
9.0
3.9
3.9
5.5
6.4
4.8
6.5
Nalstiorn
5.0
4.7
2.1
4.5
Total
1248
20.1
10.3
az2,
lie4
Scrvinftil9i. kb
wir alt
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