LETTER TO MR. WILLIAM F. FINAN FROM H. GATES LLOYD
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4x1sT80,T nnara
urice H. Stan*
lkireau of the Budget
iashington Z5. D. C.
Dear Mr. Stens:
The bureau of the Budget staff analysis of Free erl4 and
ino"5oviet economic aid activity forwarded in draft with your
letter of 15 July 1959, has been studied by appropriate members
of my staff. and I am pleased to give yeu their comments along
with some of our views pertaining to the subject. An elaboration
of our thoughts is contained in a recent report entitled "Sino-
Soviet Bloc Economic Policies in Underdeveloped Countries of
the ffree 'World," CIA/R.R. 3943, published by this Igency in
April 1959.
As your paper inTlies, certain useful purposes can be served
by comparing the total expenditures entailed in Bloc and Free
:iorld foreign aid activities, but such comparisons can also be
extremely misleading if the dollar figures are taken out of the
context of the social-economic.pcditical milieu in which these
expenditures are being roade and by which their effects are being
supplemented or counteracted.
Although the general concluions point to the concentration
of Bloc economic assistance, there is no mention of the equally
great concentration of Western assistance and investment. Much
of the 1r ree World assistance is directed toward underdeveloped
areas that are firmly committed to the wrest. According to the
annual ICA publication, Mutual Security PrtAintrv. outh Korea.
3outh Vietnam and Taiwan alone have been receivinv about 33
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instructions apply.
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percent of U.S. gcvv.znineutsl help while nearly 90 percent of
assistance from stern governmamts has been channeled
towards British and French overseas territories. A comparison
of assistance expenditures and investments that is limited to
those uncommitted countries in which both the Bloc and the *sat
have chosen to compete would show a considerably smaller dis-
parity between Bloc and Free World programs. In about oste-
third of these countries. Bloc aid cocoa-litotes:to actually exceed
those of the U.S. for the period under considerstion. In addition,
he number of countries in which the West simply is not competing
is growing and inchtdes a few key countries like Ethiopia and
Guinea, which until very recently wore securely in the Western
c amp.
It might be useful to point out hers that the cepa:ditties of
he Bloc for extending foreign aid are *abject to two influences:
(1) the rapid growth of total output in the Bloc countries. and
(Z) the fact that aid to Free world underdeveloped countries
represents only a part of total Soviet foreign aid. Daring the
years lffSh through 19511. for example. Soviet credit* and grants
to the European Satellites accounted for one?isall of total Soviet
credits and grants. Wave China, struggling for rapid industriali-
sation, has provided nearly $500 million in assistance to other
Bloc countries during the past five years. Obviously Bloc as-
sistance to Free *orld countries could be expanded by redi-
recting its flow away front other countries tiff the Bloc.
The following minor and specific cortirrents relate to the
tables and the explanation of the tables.
a. The instalment (p. 4 that sorts "5 no-Soviet commitment
figures include what are really barter trade agreements" is
not accurate. bloc credit agreements generally provide for
repayment in goods over a period of years (usually twelve).
This maims that the Bloc agrees to purchase goods from the
borrowing country in a volume and at a price to be determined
at the time of repayment.
b. Since December R. 1951. **vend credit. have been ex-
tended by the Moe, the total of whtcli amounts to $435 minion.
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c. Although the figures on Americans abroad (p. 3 and
Table VII) include a significant number of individuals who
are not engaged in development activity, the figures on Bloc
personnel include only persons who are associated with such
work. It also should be noted that the method of counting
heads is dissimilar. The ICA data, for example, refer to
the number of individuals present at a post in an underde-
veloped country on 31 December 1958. The Bloc figures,
on the other hand, refer to the mmiber in underdeveloped
countries for one month or longer during the period 1 July -
31 December 1958. This number has increased during the
past six months to nearly 4,700.
d. In our view, the wording for the row heading (Table 1),
which now reads "Net Effect on Balance of Payments, Free
World," should be changed. At least one item (i.e., rein-
vested earnings) that is included in this total has only an
indirect effect on a balance of payments or an effect that
is not directly rneasureable. We suggest a heading such
as "Total Public Assistance and Net Private investment and
Donations." We feel that the statement in the conclusion
(paragraph 3), comparing aid in 1960, should also be changed
to read"... one-eighth of the current rate of total public
assistance and private investment from Free Norld coun-
tries."
Pleas* call upon us again in case your staff wishes to pursue
further any of the points raised hare.
Distribution:
Orig. & 1 - Addressee
- DCI
1 - DDCI
1 - DD/I
2 - AD/RR
1 - Ch/E
1 - D/S
1 - S/
.5-4,0r/15/72`
ORR/D/
?
S1SRED
'lien W. &Junes
Director
AlTROVED:
-
/ Deputy Director Intelligence
19F9
(30 Jul 59)
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hu rice H. Stans
Bure u of he Budget
Wash 25. D. C.
Dear J4r. tans:
The Bu eau of the Budget staff analysis oflree world and
Sino-Soviet cortornie aid activity, forward/in draft with your
letter of 15 3. y 1959, ha* been studied by ropriate members
of my staff, em pleased to give heir comments along
with someviews pertaining to tb subject.
F., .4.:0...L. . r..-gistry
?7' r
EI
Ate agree with general t.nor,?L this conclusions presented
in he draft. ln fact; they parallel1in many respects those found
in a recent report snit ed "Sin* *vie' t Bloc Economic Policies
In Underdeveloped Counties offr. Eree World," CIA/R.R. 59-13,
published by this Agency iA11 1959.
We heartily concur with most in the General Con-
clusions that "the problem rais4 by Bloc aid programs do not
appear to be a function amount. it of selectivity, propaganda
activities method of adyninistrationIpd similar matters." While
certain useful purposeeican be served h,y comparing the total
amounts of Bloc and 17res World foreign kid activities, such com-
parisons can also be/extremely rnisleading\if the dollar figures
are taken out of the iontext of the social-economic-political
:nitieu in which t e expenditures are being made and by which
their effects are being supplemented or counteracted.
Nithougii thi?igeneral conclusions point to the concentration of
economic assistance, there is no mention of the equally great
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concentration of Western assistance and investment. Much of the
Free World assistance is directed toward underdeveloped areas that
are firmly committed to the West. According to the annual ICA publi-
cation, Mutual Security Program, South Korea, South Vietnam and
Taiwan alone have been receiving about 35 percent of U.S. governmental
help while nearly 90 percent of assistance from other Western govern-
ments has been channeled towards British and French overseas terri-
tories. A comparison of assistance expenditures and investments
that is limited to those uncommitted countries in which both the Bloc
and the West have chosen to compete would show a considerably smaller
disparity between Bloc and Free World programs. In addition, the
number of countries in which the West simply is not competing is
growing and includes a few key countries, like Ethiopia and Guinea,
which until very recently were securely in the Western camp.
It might be useful to point out here that the capabilities of the Bloc
for extending foreign aid are subject to two influences: (1) the rapid
growth of total output in the Bloc countries, and (2) the fact that aid
to Free World underdeveloped countries represents only a part of
total Soviet foreign aid. During the years 1936 through 1958, for ex-
ample, Soviet credits and grant* to the European Satellites accounted
for one-half of total Soviet credits and grants. Even China, struggling
for rapid industrialisation, has provided nearly $300 million in as-
sistance to other Bloc countries during the past five years. Obviously
Bloc assistance to Free World countries could be expanded by redi-
recting its flow away from other countries of the Bloc.
The following minor and specific comments relate to the tables
and the explanation of the tables.
a. The statement (p. 2) that some "Sino-Soviet commitment
figures include what are really barter trade agreements" is
not accurate. Bloc credit agreements generally provide for
repayment in goods over a period of years (usually twelve).
This means that the Bloc agrees to purchase goods from the
borrowing country in a volume and at a price to be determined
at the time of repayment.
b. Since December 31, 1958, several credite have been ex-
tended by the Bloc, the total of which amounts to $435 million.
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c, Although the figures am *.croricasta Aar
Table VU) feelside significant =oche1 ladividuals who ore
net engaged in develepr,ent activity, the figures on Slat person
nal include only pontos* who are associated wicks each work.
If also eittrald be meted that the method et cafastuas laisAgo Is
sienitsr. tip* ICA ditta, or ernattple? rater to Ave austatter ol
individual* present at 4 pada in an underdeveloped casuistry on
Il December 1951. are Bloc agar's ank tne *toter head, ?Mot
to Zito *amber outiordeveleped countries tor ;ma month or
loagir during fit* perle4 I Ally - II Doceaber t 75d. risie
number bee increased daring the past Mx 11103412111 to isearly
4, M.
oar view, Us* ~thug for the row beaglitas (VOA* 1)
which maw mid* "NM Liteet onkcal-ewe* of Patyrreuts? kroe
Weritl." should he charged. Several itetrs to. g., reitavested
earnings and Pi- 4St3 traisisactiegts) alia1 itt? iscide4 is tilt*
total have only an isdirect *fleet as *helmet* at payment* or
an effect that is sot directly weioussable. c suggest a
heading each as "rote* Public Aestistasscs and Diet Lolling*
Investment and Dsftens,' ws teel that the sualieritad in
the eauctuitteit tioaregralott $), coutparing aid in 1440, ehoold
eles be Changed to read "... one?eighth of the entreat rate
of total public assisuance and ?rival* iirreatmemt from kr..
*KA cowatrics."
KOMI* gin upon are Again in cause year matt wilF16041 to perms
fortis*r any of the points raised hare.
Oistribution:
brig. & I - Addressee
I - DDCI
1 - DD/f
2 - AD/RR
Cb/E
DIS
SiTT
"Prtr RPIPACP 2()
i?aceT-ely,
rt: (-3 r
----
4-4614413M76R000800020048-2
25X1
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EXECUTIVE OFFICE OF
BUREAU OF THE BUDGET
WASHINGTON 25, D. C.
My dear Mr. Du13.es:
0048
?7-1
Executive fieguatzi t
11' F 195V
We would appreciate very mu Ch your views on the
enclosed draft Bureau of the Budget staff analysis of
Free-World and Sino-Soviet Economic Aid Activity.
Certain of the data contained in the report are based
On infOrmation prepared in your agency.
We should very much like to receive sucb Garments
as you might have by August 1, 1959.
Staff of the Bureau of the Budget are available for
any eenaultation deemed detirable.
Copies of the tables are also being sent to The
Acting Seeretary of State, The Secretary of the Treuw,
The Acting Secretary of Commerce., the Special Assistant
to the President for National Security Affairs, and the
Chairman of the Council on Foreign Scowaie policy.
Sincerely yours,
(signed) Maui io i. StanS
Honorable Allen V. Nunes
Director, Central Intelligence
Agency
Washington, 25, D. C.
Enclosures
Director
WHIM
WI ArrACHSINT
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EXPLANATION OF THE TABLES
These tables are a comparison of economic aid activity in the under-
developed areas by the Sino-Soviet Bloc, the Free World, and the International
Agencies for the years 1954 through 1958, Statistics on the Free World include
Government programs, private investment and an estimate of private donations.
The International Agencies can be considered essentially an activity of the
Free World inasmuch as the Bloc supports only one of them, the United Nations
Technical Assistance agency. There are seven tables in all:
I - Summary of Expenditures by the Free World and Sino-Soviet
Bloc on Economic Assistance to the Underdeveloped areas,
1954-1958
IIA - Regional Comparison of Net Expenditures by Sino-Soviet
Bloc and United States Government on Economic Aid,
1954-1958
- Unexpended Balances and Unused Credits by Region, 1958
III - Commitments of Sino-Soviet Bloc Assistance (Economic and
Military) by Source, 1954-1956.0.'
IV - Detail of Sino-Soviet Bloc Aid, 1954-1958
V - Free World Government Economic Aid Expenditures in
Underdeveloped areas, 1954-1958
VI - Free World Private Investment in Underdeveloped Areas,
1954-1958
VII - Comparison of Technicians and Other Professionals in
Underdeveloped Areas, 1958
The underdeveloped areas of the world are defined as the Middle East;
Asia, except Japan; Africa, except the Union of South Africa; Latin America;
and three countries in Europe, Portugal, Spain and Yugoslavia. Greece and
Turkey are included as part of the Middle East.
The tables cover the past five years, 1954 through 1958, but the
time period for each statistical series is not always the same. Figures for
the Sino-Soviet countries, UN agencies, private donations and private invest-
ment are for the calendar year. Figures for governments are for the fiscal
year of the government concerned, thus: USA, July 1-June 30; UK, April 1-
March 31, etc. Government figures for comparable time periods are not avail-
able. Bovever, the time differences involved make no appreciable effect on
either the magnitudes of the totals or their trend.
Sino-Soviet Bloc
The figures for the Sino-Soviet Bloc, except repayments, have been
taken from the Economic Intelligence Committee publication, "Sino-Soviet
Bloc Economic Activity in the Underdeveloped Areas." Repayments have been
estimated, on the basis of discussions wia013tdikigagi9teoRioetedier to
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point up the small amount of repayments of Sino-Soviet credits thus far.
The official exchange rate of four rubles to the dollar has been used. While
this rate represents an over-evaluation of the ruble insofar as internal
Russian prices are concerned, in world trade, Russian export prices have
almost always approximated world price levels. It is also known that the
cost of several particular projects, such as the steel mill in India, is
reasonable by Western standards.
Although some of the Sino-Soviet commitment figures include what are
really barter trade Agreements, the total of Sino-Soviet trade with Free World
underdeveloped countries has not been covered in the presentations on Bloc
economic activity. Comparisons of Bloc trade with Free World trade have not
been included in these tables.
Almost the whole of Bloc assistance is in the form of loans. Of the
total of $2.4 billion, only $98 million has been granted, and all of it in
the economic program, as follows (figures in millions): Cambodia - $34;
Burma - $30; Ceylon - $16; Nepal - $12; Egypt - $5; and India - $1.
Communist China has made $61 million of the grants, Russia, $37 million.
Since December 31, 1958, the terminal date of the tables, the
pattern of Bloc commitments has remained unchanged with one important
exception a commitment of $137 million in economic aid to Iraq hail been
added to
exception,
military commitment of $118 million, made in October, 1950.
Private Investment
In the area of private investment, figures for the United States
are rather good, but for other countries they are incomplete. From 1954 to
19570 direct investment by other countries was $3,640 million. Several
hundred million dollars of portfolio investment are readily identifiable
and so the figure on the table has been rounded up to $4 billion. Figures
for short and medium term investment by non-Americans are not available,
but this type of investment is becoming increasingly important for the
lesser-developed countries. West Germany is the leading supplier of
these credits after the USA.
Of the $4.5 billion of American private investment in the under-
developed areas tram 1954-1957, about $1 billion represents the short-term
financing of ordinary commercial transactions. Such financing frequently
helps countries with temporary balance of payments troubles, but probably
should not be considered AS a development activity. It is worth noting
that before and after World War I portfolio investment was the favorite
form of long-term capital investment. Not until after WW I/ did direct
investment become the common form of long-term investment, and not until
three years ago was interest in portfolio investment renewed. Since 1956
portfolio investment by the U. S. has increased about three times over the
level of the early 1950s. It has also been increasing, but more slowly,
in Western Europe. (Only $40 million of American private investment is
covered by the Investment Guaranty Program.)
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- 3 -
Technical and Related Personnel
Figures on Free World personnel, except American, are not available.
Bence, the table it limited to a comparison of the United States and the Bloc.
For this country, employees of private companies are shown as well as Govern-
ment personnel, inasmuch as both are required to make a true comparison
between the United States and the Bloc. The figures in the "private" column
are the total number of "principals" reported in the OCB study on Americans
overseas.
There is no way of identifying the number of non-government persons
engaged in activities of direct benefit to the country of residence. In many
of the Latin American countries there are a number of self-employed profes-
sional people. There are many others in non-development commercial activities,
such as the luxury trades or international passenger, shipping, and airline
companies. Some are in the twilight zone. In spite of theme reservations,
it is probably not unreasonable to assume that at least three quarters of
the number in any of the Latin American countries are associated with
development-type activities.
In Africa, the Riddle East, and Asia it can be assumed that virtually
all Americans are engaged in activities of direct benefit to the country,
except in Lebanon, where it can be assumed that the percentage so engaged is
very small.
There is one general exception in all countries - missionaries
wholly engaged in religious activities. These, however, are rather few,
probably no more than a third of the approximately 27,000 American mission-
aries abroad, because much missionary activity today is of a public welfare
sort - schools, hospitals and clinics, even agricultural technical assist-
atleet.
The personnel table is limited solely to persons engaged in economic
activities. It is in no way a measure of the number of persons from either
the Bloc or the Free World Who are engaged in political, propaganda, and other
non-economic activities.
* * * * * * * * * * *
NOTE: ONLY THE BIRO-SOVIET BLOC STATISTICS ARE SECRET, ALL OTHERS ARE
UNCLASSIFIED.
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General Conclusions of Comparison of Sino-Soviet Bloc and
tseeozma-recraarxrdw----
A brnrr
The material contained in this study covers the years 1954
through 1958 and was derived from documents published by official
agencies, U. S. and international. A few of the figures have been
estimated or interpolated, and have been no indicated. The magnitudes
of the totals have not been affected by these methods. The principal
conclusions of the study are:
1. On a world-vide basis, Soviet economic aid activity in
the past five yearn has been dwarfed by U.S. activity, public
and private. Activity by other free meld countries is also
much larger than the Bloc's.
2. Bloc activity is concentrated in a few countries. In
Syria, Egypt, and Afghanistan, Bloc activity is much larger than
all Free World programs, government and private, combined.
Though Bloc expenditures in India appear to be large, they are
much less than Free World aid. Bloc assistance to Yugoslavia
had bean large, but was cancelled about a year ago.
3. Through 1958, Bloc expenditures have been relatively
high in the military program, relatively low in the economic
program. However, on the basis of present commitments, expendi-
tures on economic aid can be expected to rise rapidly while
military expenditures Will taper off. Total expenditures should
reach an annual rater of one half billion dollars by 1960 or
shortly thereafter. Even at this level Bloc aid would be only
one-eighth of the current rate of the net outflow of resources
from Free World coUntrieS. Thus, the problems raised by Bloc
aid programs do not appear to be a function of amount, but
of selectivity, propaganda activities, method of administratiOn,
and similar matters.
4. In any comparison of technical and related personnel
of the Soviet Bloc and U.S., the figures are overwhelmingly
in favor of the U.S.
SECRIer
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TABLE I
Summary of Expenditures by the Free World and Sino-Soviet Bloc on Economic Assistance to the Underdeveloped Areas, 1954-1958
(millions of dollars)
1954 - 1957
1958
TOTAL
Unexpended
Balances
& unused
credits
Loans and
Grants
Repayments of
principal and
interest
Net
Expenditures
Loans and
Grants
Repayments
Net
E*penditures
Loans and
Grants
Repayments
Net
Expenditures
Sino-Soviet Bloc.
250
5
245
150
20
130
400
25
375
1,200
Free World - Public
U.S. A
6,976
699
6,277
2,173
256
1,917
9,149
955
8,194
3,557 .,'
Other Government Y
4,091
83
4,008
1,301
60
1,243.
5,392
143
5,249
1,584 21,
IBRD and IFC
495
115
380
285
60
225
780
175
605
648
Other UN Agencies 27
371
-
371
95
95
466
-
466
n.a. 2/
Total
11,933
897
11,036
3,854
376
3,478
15,787
1,273
1:4,514
n.a.
Free World - Private Investment
U.S A
Other country
Subtotal
Private Donations 2/
Total
Net effect on balance of payments,
Free World
New Invest.
& Reinvest.
earnings
Remission
of
22E21210_
5,466
3,400
Net new
investment
Investment
Earnings_
Net
Investment
Earnings
Net
5,650
14,000
184
600
1,800
1,200
1,800
1,00O
o
200
7,450
5,200
------
7,266
41o0
184
800
9,650
950
8,866
784
950
3,000
250
2,800
200
250
12,650
1,200
-------
11,666
984
1,200
-.-
10,660
8,866
1,734
12,770
3,250
2,800
450
3,928
13,850
11,666
2,184
16,698
y Does not include uncommitted spending authority, e.g., borrowing authority of Export-Import Bank
2/ Western Europe, Canada, Australia, New Zealand, Japan and India
2/ United Nations Technical Assistance (MITA), United Nations International Children's Emergency Fund (UNICEF), United Nations Relief and Works Agency for Palestine Refugees (UNRWA),
and United Nations Korean Rehabilitation Agency (UNKRA).
The United Nations definition of an obligation is services rendered or goods delivered. Hence, any carryover of unliquidated obligations merely represents the normal time lag in making
payments. Most European countries also base their budgets on expenditures rather than obligations, and what we call unexpended balances do not exist. There is, however, a carryover of
what we call contract authority, but no figures are available. The figure of 1,584 is the unexpended amount of Japanese reparation payments.
!/ About 80% American. Principal categories are gifts to Israel from private Americans, private American foundations, foreign missions, and German restitution payments to individuals
resident in Israel.
.11 The figures on this line have been rounded on the Summary Table and differ from the detail on Tables IIB, III and IV by $1 million,
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TABLE IIA Regional Comparison of Net Expenditures by Sino-Soviet Bloc and
U. S. Government on Economic Aid, 1954-1958
Far
East
Near East
So. Asia
Africa
Latin
America
Western
Europe
Undistributed Total
Sino-Soviet Bloc
80-
182
o
3
134
- 399
Less Repayments 2/
-25
Net Total
--'17
U.S. Government
4 187
2,038
114
795
ilo61
ivadtt 8,194
Mutual Security Program
3,814
1,127
62
224
490
_ 5,717
X-M Bank: Gross
(82)
(64)
(29)
(826)
(29)
- (1,030)
Less Repayments
(34)
(56)
(13)
(507)
13.2)
- (_635)
Net
48
8
16
319
4
- 395
P.L. 48o, Titles II & III
131
258
36
82
175
- 682
Title I
194
611.11.
o
170
392
1,1100
TABLE IIB Unexpended Balances and Unused Credits by Region, 1958
Sino-Soviet Bloc
198
866 y
2
101
34
0
1,201
-
U.S. Government
81.1.1
837
127
764
109
879
3,557
Mutual Security Program
814
634
97
90
73
135
1,843
X-M. Bank
27
203
30
674
36
0
970
P.L. 48o
_
_
-
744
711.11.
2/ Repayments of Bloc credits cannot be distributed by region.
12/ Of which UAR - $367 million and India-$188 million.
'14
SOURCES: Regional distribution of
figures on Tables IV and V
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TABLE III
Commitments of
Sino-Soviet Bloc Assistance (Economic and Military) by Source, 1954-1958
(millions of dollars)
1954
1955
1956
USSR
5.8
115.5
542.7
European Satellites
5.0
223.3
119.3
Czechoslavakia
5.0
214.6
90.1
Poland
-
23.2
East Germany....
-
8.7
2.9
Bulgaria, Hungary,
Rumania
-
-
3.1
Communist China
-
55.4
Total
10.8
338.8
717.4
Et
1957
1958
Total
Economic
Military
245.5
702.2
1,611.7
1,254.0
357.7
21.4
2/2:1
648.9
227.0
421.9
16.4
82.7
408.8
100.9
307.9
155.5
178.7
64.7
114.0
2.3
30.1
11-4.0
43/4.0
-
2.7
11.6
17.4
17.4
-
20.0
43.6
119.0
119.0
286.9
1,025.7
2,379.6
1,600.0
779.6
Source: Sino-Soviet Bloc Economic Activity
in Underdeveloped Areas
1 July - 31 December 1958
(EIC-R14-86)
Approved For Release 2003/05/23 : CIA-RDP80601676R000800020048-2
10
SECRET
TABLE ror
Sino-Soviet Bloc Aid, 1954-1958
(millions of dollars)
Egypt
Syela
UAR
Indonesia
India.. ..... .....
Yugoslavia
Afghanistan.......... .
Argenina
c
Iraq
Yemen
Ceylon
Burma
Cambodia.
Nepal
Turkey
Iceland ...
Iran
Ethiopia
Brazil
ill
.
.. .
..
. a/
Commitments-
Obligations
Expenditures
Economic
Military
Total
Economic
Military
Taal
442.1
168.6
Economic
Military
Total
311.0
194.6
315.0
127.7
626.0
322.3
127.1
40.9
315.0
127.7
9.1
20.8
265.0
127.7
274.1
148.5
505.6
194.0
304.1b/
163.1-
126.6
102.1
-
/42.3
58.0
34.2
34.0
12.6
12.5
4.6
2.3
2,0
2.0
442.7
169.5
-
..
32.4
-
118.0
17.0
.
-
-
-
.
-
_
...
T375 -
363.5
304.1b/
163.1-
159.0
102.1
118.0
59.3
58.0
34.2
34.0
12.6
12.5
4.6
2.3
2.0
2.0
168.0
106.6
304.1
163.1
94.8
34.1
37.6
15.4
7.5
28.4
12.6
12.5
4.6
2.3
2.0
2.0
442.7
169.5
32.4
118.0
17.0
IND
SO
610.7
276.1
304.1
163.1
127.2
34.1
118.0
54.6
15.4
7.5
28.4
12.6
12.5
4.6
2.3
2.0
2.0
1,775.2
29.9
55.0
116.9
132.0
37.8
1.0
tan
2.4
9.0
4.2
7.5
1.5
2.0
392.7
58.0
32.14
17.0
111??
.Mk
.1MO
gle
422.6
113.0
116.9
1320
70.2
1.0
17.0
2.4
9.0
4.2
7.5
1.5
2.0
1,600.0
779.6
2,379.6
995.6
779.6
399.2
500.1
899.3
Commitments
Economic Aid 1,600
Military Aid 780
Pipeline Table
Obligations
995
780
pir Grants are $98 mil., of which $61 mil. from:China and $37 mil. from
Russia. Major re-CI:pleats are Cambodia, Burma, Ceylon, and Nepal.
12/ Net after suspension of $244 mil. in early 1958.
2/ ExCludes $137 mil. in economic aid eammitted in April 1959.
U
Unexpended
Expenditures Balance 12/31/58
1400 1,200
500 280
Sources: Sino-Soviet Bloc Economic Activities
in Underdeveloped Areas 7/1-12/31/58 BIC R14-56)
Soviet Economic Aid, Joseph Berliner, Praeger,
New York, 1958
Approved For Release 2003/05/23 : CIA-RDP80601676R000800020048-2
-
TABLE V
Free World Governmental Economic Aid Expenditures in Underdeveloped Areas - 1954-1958
(millions of dollars)
LS A
1954-1957
1958
Grants
6,976
Loans
Repaymenta
get Total
Grants
Loans
Repayments
Net Total
Grants
6,076
5,394
-
682
3.901
9,149
(
(
(4,823-
4,311
-
512
2,910
338
412
112
104
139
105
371
1,141
445
696
-
_2447
189
0
17
1
51
0
495
699
6,277
1,253
1,003
-
170
991
--517-
146
137
1411
38
37
62
95
-07"
-
2,173
256
1,917
1,012
U,933
241
458
-
83
---TE-
24
0
6
0
29
0
115
4,515
238
512
1,012
4,008
532
198
334
388
310
--irr
44
0
17
1
0
21
285
79
177
60
--zr-
11
0
0
0
8
0
60
1,202
157
170
388
1,400
15,787
MSP
Ex-in Bank"
P.L. 4802 Y
Titles n and m
Title I
Other Government
France
IRE
0ermany
Canada
Australia
Other Went limp. &
Commonwealth
2,599
503
412
123
105
161
105
751
-171-
300
31,036
--24-
179
137
61
39
29
83
320
--or
225
3,478
2,227
484
549
156
142
176
167
466
--gr
India and Jaw
International Agencies .......
man, ItgorA, Diffk, UNICEF !!/
IRRD and IFC
Total Government
371
1495
115
897
0
285
3,854
0
60
376
Loans
1,673
643
1,030
445-
233
0
34
2
51
21
780
0
780
Total
Unexpended balances
& Unused Credits
Repayments
Net Total
955
8,194
3,557
-----
320
5,717
1, 943
635
355
970
682
1,400
744
10
5,249
n.a.
-65--
3312
n.a.
35
682
n.a.
0
549
n.a..
6
184
n.a.
0
144
n.a.
37
190
DA.
0
188
1,584
175
-----_6--
648
...2.104,16
n.a.
175
605
648
1,273
14,514
n.a.
2/ P.L. 480 has been handled as followes Figures for Titles II and III represent deliveries and are entered in the oGranti column; figures for Title I represent deposits and are a combination of both country uses and U. S. uses,
lees Treasury dollar receipts from sales of P.L. 480 currencies. These have been taken out of the total since they represent a loss of dollar income to the country. Thus, the figures for Title I assume that all commodities
delivered represent an offset in the foreign exchange requirements of the recipient countries except for this dollar loss. The best measure of benefit to the country is the commodity import without foreign exchange lose,
rather than the share of sales proceeds used for country purposes.
1/ Contributions to the international organisations are not included in the country figures, but are shown instead as expenditures by the International Agencies.
Sources:
U.S. Budget
Annual Reports of Export-Import Bank
11 Statistical Yearbook, 1958
Foreign Grants and Credits by the U. S. Government - published quarterly by the Dept. of Cammerce
/international Economic Assistance to the Lees Developed Countries, 1957/58 - United Nations
Annual Reports of IBRD
Annual Reports of IFC
Approved For Release 2003/05/23: CIA-RDP80601676R000800020048-2
Semi-Annual Reports on P.L. 460 - prepared by
the Department of Agriculture
Contributions of Members and Associated Countries
4 , a
Outside Europe - MC, December, 1957
Approved For Release 2003/05/23 . CIA-RDP80601676R000800020048-2
TABLE VI Free World Private Investment in Underdeveloped Areas, 1954-1958
(Millions of dollars)
1954 1957 1958 (Est)
Remissions
Direct Short-
A. U.S.A. Oil Other Total Portfolio Term Total
Latin America
Asia, Middle East, Africa
IBRD and IFC
(1470)
(1332)
2802
( 717)
( 155)
872
(2187)
(1487)
3674
513 608 3923
305 258 1435
292 - 292
um -767 -5-6-5-0-
of
Earnings
Net
Effect
Invest-
merit
Remissions
Net
Effect
3145
788
-
-
2321
-886
-
-
-
292
5466
184
1555-
1855-
0
1954 - 1957
1958 (Est)
Invest-
Net
B.
Other Countries,
Total Investment
Earnings Remitted
Net Result
merit
Remissions
Effect
Direct Investment Only
France
1760
1900
-1100
United Kingdom
1400 )
Germany
175 )
,MP
Switzerland
170 )
1300
580
Sweden
55 )
Netherlands
35 )
Other Countries
45 )
361g) 12/
3200 12/
440
1200
1000
200
5/ Includes reinvested earnings as well as_new investment.
NOTE: It has been necessary to estimate or interpolate some of the figures on European and Commonwealth private investment and
for all countries for the year 1958.
SOURCES: UN Statistical Yearbook, 1958
The International Flow of Private Capital, 1956-1958 - UN
Balance of Payments Yearbook - IMF
Survey of Current Business - published monthly by the Department of Commerce
Economic Development of Overseas Countries and Territories Associated with OEECAletber Countries, OEEC, August 1958
W On the Summary Table these figures have been increased to 4,000 and 3,400 respectively in order to show the effect of
identifiable portfolio investment. Country detail of such investments is not available.
Approved For Release 2003/05/23 : CIA-RDP80601676R000800020048-2
a
pproved For Release 2003105123 . C - OB01676R0 20048-2
TABLE VII
Comparison of Technicians and other Professionals in Underdeveloped Countries, 1958
a/
AMERICANS
-
ICA Internationalb
5irea-e-Contractor
Organizations-1
Riddle East
613
183
Egypt
Syria
(1)
(0)
(0)
(0)
Sub-total united Arab Republic
1
0
Yemen
0
0
Turkey
129
64
Iran
249
90
Iraq
70
11
Israel, Lebanon, Sudan, Jordan
164
18
Regional
0
0
Asia
1 676
22.?.1
Afghanistan85
-L---
128
Burma
12
0
Cambodia
97
192
Ceylon
37
17
India
126
47
Indonesia
110
70
Pakistan
180
219
Taiwan, Korea, Laos, Nepal, Philippines,
Tballand, Vietiima.
1,029
951
Regional
0
0
Africa
452
137
Ethiopia
114
60
Geum, Liberia, /Alva; Morocco, Nigeria,
Tunisia, Somalia, Fed. of Rbod. A
Nyamland
338
77
Nest Europe
101
9
Yugoslavia
33
9
Greece
30
0
Spain
38
0
Latin America
9141
90
Argentina
6
0
Brasil
130
25
Mils
57
10
Mexico
11
4
Other
737
61
3,783
2043
'addle East
613
_s
183
Asia..
1,676
1,624
Africa
452
137
Western Europe
101
9
Latin America
941
90
Sub-total - Government
Private
77 9,668 ,
n.a. n.a.
n.a. n.ii?
22 447
O 0
8 707
9 550
6 542
32 7.422
0 0
87.
-
19.522
4 13
5 141
O 322
6 104
17 2,218
6 1,109
10 732
39 14,883
O 0
29 8,21j6
2 289
27 7,857
6
6 1,022
0 4,212
0 3,218
125 47,065 ,
0 2,424
13 4,060
lo 934
30 18,494
72 22,153
324 92,853 ,
77 9,668
87 19,522
29 8,246
6 8,452
125 47,065
Total
USSR
Czechoslavakia
East Germany
10,541
425
195
195
.
,
n.a.
I, 145
95
145
n.a..
11 165
25
25
470
(310)
(120)
(170)
0
' 100
60
10
908
5
15
15
898
10
0
0
629
, n.a.
n.a.
n.a.
Y,636
0
0
0
0
0
0
0
22,909
1 295
145
40
-L.--
230
530
70
0
158
75
o
o
611
20
0
0
164
25
0
0
2,408
495
25
0
1,295
150
45
40
1,141
0
5
0
16,902
0
0
0
0
0
0
0
8,7614
25
0
0
465
25
0
0
SINO-SOVIET BLOC
Hungary,
Bulgaria,
Poland
Rumania
Communist
China
International
Organizations
Total
235
30
4
El_
150
.-
1
535 ?
60
-
1
275
(210)
-
(2)
(810)
0
30
. 200
25
7
-
60
0
-
10
n.a.
n.a.
-
60
0
0
1
1
0
0
1
1
60
55
23
1,618
0
0
2
60e
o
10
1
86
0
30
0
50
0
10
0
35
30
0
0
550
30
5
19
289
0
0
o
5
0
0
0
0
0
0
1
1
0
0
1
26
0
0
0
25
8,299
8 568
8452-.1.-----
o
lo
o
5
o
o
o
0
o
0
1
2
1
17
1,070
4,242
10
o
0
5
0
o
0
o
0
o
2
o
12
5
3,256
0
0
0
0
0
0
0
40,221
5
13
o
142__.
o
o
60
1,430
0
5
o
40
o
o .
45
4,218
0
3
o
2
o
0
5
1,011
o
5
o
o
o
o
5
10,539
5
o
o
o
o
o
5
23,023
o
o
o
o
o
o
o
99,003,
1 76o
353
332
30
2,805
-A----
425
195
.235 ,
1,95
235
-..--.
30
4
1,084
10,541
22,909
1,295
145
40
60
55
23
1,618
8,764
25
o
o
o
0
1
26
8,568
10
5
o
o
o
2
17
48,221
5
13
o
42
o
o
60
ICL: Direct Eire 3,783 Sources, ICA Personnel Strength Monthly Report for December 31, 1958
Contractor 2,043 5826 - T03P-Report an Learicans Abroad July 16, 1958
Inter. Organization 324 ginooSoviet Bloc Economic Activities in Underdeveloped Areas, July 1 -Dec. 31, 1958, EIC4L14-56
;
Fl
eta 15195-
Figures an personnel of other Free World countries are not available.
All Americans employed in underdeveloped countries by International organizations are assumed to be engaged in activities of direct benefit to the country, an assumption which can be regarded as at least 90% correct.
Approved For Release 2003/05/23 : CIA-RDP801301676R000800020048-2