SOVIET AND EAST EUROPEAN MILITARY TRANSFERS TO NON-COMMUNIST LDCS

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Sanitized Copy Approved for Release 2011/05/27 'CIA-RDP85T00283R000300040008-3 q I CiS~ : ?ia i; Soviet and East European Military Transfers to Non-Communist LDCs ray" a ~~v GI 83-10278 December 1983 463 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 _3ecref Soviet and East European Military Transfers to Non-Communist LDCs This paper was prepared by the Communist Activities Branch, Office of Global Issues. It was coordinated with the Department of State and the Defense Intelligence Agency.l Comments and queries are welcome and may be directed to the Chief, Communist Activities Branch, Secret G183-10278 December 1983 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Summary Information available as of l November 1983 was used in this report. Soviet and East European Military Transfers to Non-Communist LDCsfl After nearly three decades, arms transfers remain the Soviet Union's primary and most effective means of gaining entry and extending its influence in the Third World. As a result of the rapid growth and commercialization of its military sales program in recent years, Moscow's earnings from arms transfers now surpass all other Soviet commercial ties with the non-Communist less developed countries (LDCs)-accounting for 25X1 The USSR concluded just over $9 billion worth of new military agreements with non-Communist LDC governments in 1982-up sharply from the year before-as Kremlin leaders took steps to recoup lost momentum and prestige in the Middle East and to strengthen military ties with New Delhi. As part of these initiatives, Moscow displayed an increased willingness to extend concessionary credit terms on new purchases and to provide preferred clients with a wider selection of some of its most up-to-date weapons systems. Iraq, Syria, and India were the main beneficiaries, accounting for nearly 90 percent of all Soviet arms accords signed in 1982. Relatively smaller, but significant, new Soviet arms commitments also were extended to Angola, Mozambique, Kuwait, Peru, and Nicaragua. Eastern Bloc suppliers handling orders from both combatants. East European military agreements in 1982 fell back from the record set in 1981, but still managed to top the $1 billion mark for the second consecutive year. The Iran-Iraq war again was the major factor, with some faced by some of Moscow's oil-exporting clients: Preliminary results for 1983 indicate that the value of new Soviet arms agreements will fall well below recent annual levels and are likely to total only some $3-5 billion, with India, Angola, and possibly Libya the principal customers. The drop appears to result from the need of major buyers to ab- sorb large outstanding equipment orders and from financial constraints Warsaw Pact deliveries of weapons, related material, and services re- mained heavy in 1982 and are estimated to be worth at least $7.7 billion. Following previous patterns, deliveries were concentrated in the Middle East. Syria and Iraq, which restocked depleted inventories of air and ground equipment, accounted for nearly half of all Warsaw Pact deliveries. Military shipments to Angola, Mozambique, India, and Nicaragua also showed large increases from the year before. 25X1 Secret G183-10278 December 1983 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 The provision of more sophisticated weapons to LDC armed forces has led to an icnreased need for Soviet Bloc training and servicing. In 1982 a record 20,000 Soviet and East European military specialists were stationed in the non-Communist Third World-twice the number abroad just five years before. The 1983 figure for Soviet military presence abroad will be even higher as a result of the dispatch of several thousand additional air- defense-related technicians to Syria The precarious situations that threaten wider conflict in the Middle East are likely to provide Moscow greater latitudes of action in the coming months. This, along with the promise of new major arms deals with key So- viet clients and the introduction of new Soviet weapons into Third World inventories during 1983, signals continued success for Moscow's enduring military transfer program. Explanation of Terms This annual report is based on data from a variety of sources, including unclassified publications. It recounts Warsaw Pact military transfers to non-Communist less developed countries. The term military transfers includes both the sale and grant of military equipment and related services, such as advisory support, training, and construction of military facilities. Military transfers encompass signed agreements, commitments, or accords which constitute aformal declaration of intent. The terms deliveries and shipments are used to indicate the actual movement of The data on military transfers reflect the latest information available and supersede data in our previous publications. Values of military agree- ments and deliveries are based on Soviet trade prices that are usually The non-Communist less developed countries referred to in this report include all countries of Africa except the Republic of South Africa; all countries of East Asia. except Australia, Hong Kong, Japan, New Zealand, and the Communist states of Kampuchea, Laos, and Vietnam; Malta, Portugal, and Spain in Europe; all countries in Latin America except Cuba; and all countries in the Middle East and South Asia except Israel. Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 i A. Warsaw Pact Military Transfer Programs in 1982: A Regional Analysis B. Soviet Bloc Military Agreements With LDCs: Agreements Concluded and Equipment Delivered, 1955-82 27 Figure 1 Figure 2 Soviet and East European Military Soviet and East European Military Agreements and Deliveries, 1955-82' Deliveries, 1955-82 Percent a Data for 1980-82 may understate actual deliveries by as much as two billion because of increased Soviet efforts to conceal military cargo shipments. Middle East 75.0 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 25X1 Military Transfers to Non-Communist LDCs Perspective For nearly three decades the Soviet Union and its Warsaw Pact allies have pressed to gain influence in non-Communist Third World countries through mili- tary assistance programs.' While experiencing some reverses, such as in Indonesia, Egypt, Sudan, and Somalia, the permanence and resolve of the Kremlin's "penetration" strategy cannot be disputed. Indeed, the growing instability and armed conflict in the Third World since the early 1970s have provided not only fertile ground for new Soviet successes (Angola, Ethiopia, and Nicaragua) but the opportunity to earn needed hard currency from LDC purchases of arms Moscow found early on that arms transfers were the most direct and fastest route to influence in the LDCs. Newly independent Third World states often could obtain economic aid from the West but not the military assistance that many clamored for most. Offering a wide assortment of weaponry, along with rapid delivery, training, and generous repayment terms, the USSR soon parlayed its initial arms deals with Afghanistan and Egypt into a $500 million a year program. The 1967 and 1973 Arab-Israeli con- flicts spurred rapid growth in Soviet military transfers and, together with the sharp rise in international oil prices, led Moscow to concentrate on Middle Eastern clients. By the mid-1970s the Soviet Union had become the world's second-largest supplier of military equipment. The soaring demand for new and better armaments by oil-rich nations in the Middle East and others with access to Arab wealth and Soviet willing- ness to make available many modern weapons on short notice set the stage for full-scale competition with Western arms suppliers. Moscow temporarily overtook the United States as the leading arms pro- vider to the Third World in 1980-81, concluding agreements worth more than $20 billion, or about a Table 1 USSR: Military Agreements With LDCs 1970-72 (annual average) 1973 1974 The escalation of OPEC petroleum prices beginning in 1973 coincided with a rapid rise in Soviet military equipment prices, as Moscow capitalized on the new- found Arab wealth. To boost its increasingly commer- cially oriented arms sales campaign, the USSR added more and larger carriers to its merchant fleet and in 1975-76 began a construction program that would triple the size of its principal arms export facility in the Black Sea. The results have been impressive: the volume and value of Soviet arms deliveries more than doubled in 1978-82, compared with the previous five- year period. During this period almost three-fourths 25X1 of the arms delivered-valued at $23 billion-went to Soviet Military Agreements: The Recent Record Soviet arms agreements climbed to $9.1 billion in 1982, 40 percent higher than the year before and well above the average for 1973-81 (table 1). Agreements 25X1 25X1 remained heavily concentrated among a few promi- nent clients-Iraq, Syria, and India-who accounted for nearly 90 percent of the new orders. Accords with Libya, Kuwait, Afghanistan, Angola, and Peru ac- counted for most of the remainder. For 1983, Soviet arms commitments to non-Communist LDCs are expected to drop back to $3-5 billion, as major Middle Eastern buyers pause to absorb large military orders placed in 1980-82. A large new arms pledge to Angola and ongoing negotiations with India, Libya, and Ethiopia for additional modern weapons are likely to generate the bulk of Moscow's 1983 arms agreements. Moscow Adjusts Program. Moscow adjusted its mili- tary transfer practices in 1982 both to bolster its flagging influence in the Middle East and to accom- modate the worsening economic climate and increased competition from Western arms suppliers. The great- er willingness to offer more of its advanced weaponry at more concessionary terms and with some debt rescheduling were prominent features of agreements negotiated in 1982. In fact, over the last two years more new Soviet modern weapon systems have been promised or sold to LDC clients than in any period since the 1973 Arab-Israeli war (table 2). Moscow's greater willingness to make available for export more equipment from its current family of modern weapons reflects the realization that arms offerings had to be upgraded to meet LDC demands for more advanced systems-even at the risk of compromising military technology information. Although not conclusive, there is evidence suggesting that the large recent-year sales of late-model MIG fighters and armored vehi- cles to cash-paying Middle Eastern customers have caused some delays in promised exports to Eastern The military resupply accords signed with Iraq and Syria in 1982 underscored Moscow's desire not only to recoup lost influence and prestige but, in the case of Iraq, to prevent further erosion of its arms market to France and other Western suppliers. The softer repay- ment terms and inclusion of newer model tanks, more sophisticated fighter aircraft, and air defense missile systems contained in the latest Iraqi and Syrian agreements represent a change of course for Moscow in dealing with its major Arab clients F_~ Table 2 Advanced Soviet Weapons Systems Recently Offered or Sold to LDCs Angola India Kuwait Libya SA-8 antiaircraft missile system Kresta-class guided missile cruisers SS-21 surface-to-surface tactical missile systems AT-5 antitank missile system MIG-27, -29, -32 fighters AN-32 transport aircraft Helix ASW helicopters T-72 tanks (improved models) MIG-27 fighters SA-8 antiaircraft missile system MI-17 helicopters Improved armor (T-72s, BMPs) Improved radar and communications SA-8 antiaircraft missile system SA-8 antiaircraft missile system MIG-27 fighters Haze ASW helicopters Improved armored vehicles Improved electronic equipment SA-5 and SA-8 antiaircraft missile systems SS-21 surface-to-surface tactical missile systems MIG-27 fighters M-17 helicopters Haze ASW helicopters Improved armor, radar, and communications New agreements with India last year showed yet another advance in Soviet arms export policy-the licensed sale of military production technology hereto- fore not available to countries outside the Warsaw Pact. About a third of the $3 billion in new Soviet- Indian agreements last year will cover licenses to produce MIG-27 aircraft in India. Although a follow- on to the MIG-21 production program in India, the MIG-27 represents a significant advance in Soviet Sanitized Copy Approved for Release 2011/05/27: CIA-RDP85T00283R000300040008-3 technology transfer to a non-Communist country, The granting of softer financial arrangements to Iraq, both in terms of hardware sophistication and fabrica- India, and Syria last year marked a shift, if not a tion techniques. India will become the only other reversal, in the USSR's commercial arms sales policy country to produce this swing-wing, high-performance instituted in the mid-1970s. Following OPEC's initial Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 petroleum price hikes in 1973/74, Moscow progres- sively instituted sharp increases in the prices charged for its weapons and military services and furthermore demanded repayment in hard currency from all but a very few select clients. This was particularly the case for arms transfers to the radical Middle Eastern oil- producing states and those countries receiving Arab financial assistance. Most of Syria's agreements with the Soviet Union, for example, have been funded from The apparent return to a more concessional policy on arms sales not only underlines the political impor- tance Moscow places on the program, but demon- strates how quickly the program can be adjusted to accommodate Soviet foreign policy initiatives and changing economic conditions. The improved sales terms awarded to Iraq and India almost certainly were prompted in large part by those countries' recent efforts to lessen their dependence on the USSR for military support. Iraqi purchases of Western military equipment since the start of its war against Iran now amount to over $12 billion-about four times the purchases of Soviet equipment-and includes much more advanced weaponry than that previously sup- plied by Moscow. The Soviet response of offering comparable equipment at cheaper prices and at better terms to key recipients illustrates Moscow's resolve to maintain a competitive edge in arms sales and also thwart Western inroads into strategically important Arms Deliveries Also Surge. The volume of Soviet military deliveries increased dramatically in 1982 and remained at peak levels through the first six months of 1983, spurred largely by record backlogs and heavy resupply efforts to Iraq and Syria. The estimated value of Soviet military deliveries in 1982, based on observed shipments, amounted to just over $6 billion (table 3). Increased efforts to conceal Soviet unload- ings, including more nighttime deliveries, denied a full accounting of transfers, especially to Iraq and Syria. As a result, we believe the value of Soviet deliveries may be understated perhaps by as much as $1-2 Syria and Iraq accounted for almost one-half of all ground weapons, aircraft, and surface-to-air missiles delivered by the USSR over the past 18 months. Table 3 Million US$ USSR: Estimated Value of Military Deliveries to Major Clients, 1982 6,080 840 Libya .685 Syria 1,800. Other 950 Angola, Mozambique, and Nicaragua also experi- enced sharp increases in Soviet military deliveries. Increased threats from South Africa led Moscow to bolster the defenses of its southern African patrons with record shipments to Angola that included the country's first guided-missile patrol boats and T-62 medium tanks, as well as two more squadrons of MIG-21 fighters. Capabilities have been bolstered more recently by the arrival of MI-24 helicopter gunships and SA-8 mobil air defense missile systems, which presumably will be manned by Cuban person- nel. Moreover, to better protect Mozambique's south- ern flank, Moscow introduced several types of ground equipment, including new armored personnel carriers, tanks, and tracked bridging equipment Soviet-sponsored deliveries to Nicaragua jumped from $6 million in 1981 to $50 million last year in response to intensified rebel activities. Following pre- vious patterns, Soviet merchant ships delivered only military support items, such as trucks, with lethal Soviet hardware routed to Nicaraguan ports via Alge- rian and Bulgarian arms carriers. Major items re- ceived in 1982 included additional T-55 tanks, Mana- gua's first BM-21 mobile rocket launchers, and mobile radio intercept stations to locate guerrilla 25X1 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Table 4 Eastern Europe: Arms Agreements With LDCs Annual Average 1970-77 1978 1979 1980 1981 1982 Jan-Jun 1983 Total 337 518 827 2,399 1,222 521 Bulgaria 11 160 162 247 126 222 Czechoslovakia 189 82 94 385 268 80 East Germany 18 100 209 68 319 97 Hungary 46 39 78 347 141 45 communications sites' Cuba and East Germany pro- vided antiaircraft guns and transport vehicles, respec- tively, from their own stocks. The pace of overall military deliveries quickened in the first half of 1983, with the USSR supplying AN-26 transport aircraft, MI-8 helicopters, and military trucks for the Nicara- Cuba reportedly doubled the security contingent during the A Profitable Program. The financial returns derived from military transfers surpass those from all other Soviet commercial relations with Third World coun- tries. Hard currency returns from military sales dur- ing 1980-82 are estimated to have been about $7-8 billion per year, or about 15 percent of Moscow's total hard currency earnings. These new totals are larger than earlier estimates because of new findings that indicate earnings from follow-on sales, support pack- ages, military construction projects, and technical services are much higher than earlier thought. The huge backlog of orders for Soviet weaponry, together with increased demand for costly new hardware and military technical services, ensure steady if not grow- Eastern Europe: Augmenting the Soviet Arms Program East European military transfers add an important dimension to the USSR's arms export program, generally complementing Soviet shipments of more sophisticated fighter aircraft, naval combatants, and surface-to-air missiles, by supplying large quantities of older model ground weapons and combat/trainer aircraft. The Eastern Bloc countries also serve as key sources of military training and provide technical Although the value of new agreements was down from the 1981 peak, East European suppliers enjoyed an- other good year in 1982 by capitalizing on the continuing heavy demands generated by the Iran-Iraq war (table 4). About one-half of the $1.2 billion in new East European arms accords in 1982 were divided between the two combatants, with Czechoslovakia, East Germany, and Poland accepting orders from both sides. Since the fighting erupted in September 1980, East European countries have garnered more than $2 billion in arms contracts from Iran and Iraq. With no prospect in the near term for a decrease in the fighting between Iran and Iraq, East European 25X1 25X1 25X1 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 secret Table 5 Eastern Europe: Military Deliveries to Regions and Major Recipients Annual Average 1970-77 1978 1979 1980 1981 1982 1983 Jan-Jun Total 209 551 641 555 1,242 1,622 677 Middle East/North Africa 167 413 509 465 1,132 1,520 636 Algeria 0 25 25 25 25 0 3 Syria Other 3 0 26 22 0 6 0 0 Mozambique 1 22 _ 19 29 2 10 0 Tanzania 1 18 14 10 10 10 0 Other 5 5 3 12 31 13 0 East European arms deliveries reached a record $1.6 billion in 1982, $380 million higher than in 1981 (table 5). Iraq alone received materiel worth more than $800 million, mostly expendable items, such as artillery ammunition, small arms, and spare parts. Preliminary data for the first six months of 1983 suggest that Libya was the largest recipient of East European military equipment, some of which was likely earmarked for Libyan-backed rebels in Chad. Military Technical Servicei: Higher Level of Support Technical services continue to be a key element of Warsaw Pact military programs. Paralleling the upswing in arms transfers, some 20,000 Warsaw Pact-along with 38,000 to 45,000 Cuban-military personnel were posted to 34 LDCs in 1982 (table 6). This level was increased in 1983 by the addition of several thousand Soviet personnel in Syria. Most of the 25-percent increase in the Soviet overseas presence during 1982 was directed to Middle Eastern clients: ? Moscow sent about 500 more technicians and sol- diers to Syria, primarily to man the new SA-5 25X1 missile installations. This augmentation raised Sovi- et military presence to about 3,500-the largest Soviet military advisory group in the non-Commu- nist Third World community. Early this year, Mos- cow dispatched another 3,500 military personnel, mostly for air defense activities. ,I 1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Table 6 Military Technicians in LDCs, 1982 USSR Eastern Europe Total a 57,780-64,980 17,450 2,630 37,700-44,900 Middle East-North Africa 11,800 10,435 b 1,365 NA ' Sub-Saharan Africa 41,385-48,585 4,440 1,250 35,695-42,895 Latin America 2,245 225 15 2,005 South Asia 2,350 a Numbers are rounded to the nearest five. b In early 1983 an estimated 3,500 additional Soviet technicians were dispatched to Syria in conjunction with the new SA-5 missile installations. ? The Soviet presence in Iraq doubled to 1,000 follow- ing the full-scale resumption of military deliveries last summer. ? Another 500 Soviets went to North Yemen, raising the number there to 1,200-a threefold increase since 1981. Large Soviet contingents also continued to provide advice, technical support, and instruction in Algeria, nearly half of total shipments, while transfers to Libya,-India, Ethiopia, and Angola also should show higher totals for 1983. Current deliveries continue to be characterized by high proportions of late-model, sophisticated weaponry for these high profile clients. While arms deliveries should remain strong, the level of new Soviet military commitments over the next few years will be governed largely by political dynamics in the Middle East and by the procurement cycles of Looking Ahead Arms transfer initiatives taken since the beginning of 1982 to bolster Moscow's position with key LDC allies seem to be continuing in 1983. A prime example of the Kremlin's increased willingness to provide top- of-the-line weaponry was spotlighted in October with the delivery of the Soviet's latest tactical missile We expect Soviet arms deliveries to hit a new high in 1983 and remain heavy through 1985-driven largely by the record order backlogs built up over the past several years. Iraq and Syria continue to account for Moscow's major arms recipients. As indicated earlier, 25X1 Soviet arms agreements for 1983 will probably show a steep decline from the $9.1 billion recorded in 1982. 25X1 Angola has been the only recipi- , 1 .1 f ent negotiating major purchases, but the discussions will likely extend into 1984 before any agreements are signed. Given the frequency of African and Middle Eastern LDC military trade delegation visits to Mos- cow and East European capitals during 1983, we expect a number of modest follow-on arms accords 25X1 25X1 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 In Central America, Soviet Bloc and Cuban efforts .will remain focused on strenghening Nicaraguan mili- tary capabilities. Although no new arms agreements were reported during the first half of 1983, outstand- ing military commitments, the continued shuttling of Nicaraguan military delegations to Havana and Mos- cow, and embarrassment over Grenada suggest that additional military support will be forthcoming. Stepped-up military actions by the anti-Sandinista forces punctuated by the first air- strikes of the conflict have triggered public statements by Managua that it will seek to acquire combat aircraft to protect its airspace. Such announcements have been antici- pated for some time, given the improvements to Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 I Nicaraguan airfields and the training of Nicaraguan pilots in Cuba and Eastern Europe since 1979. Be- cause of their fears of further provoking the United States, Havana and Moscow probably would accede to such a request but only if the felt the regime were in imminent danger of collapse. Over the longer term, we believe the changes in Soviet arms transfers policies seen recently have positioned the Soviet Union to better react to new opportunities to supply military hardware and technical services to Third World requesters. The recent export of more sophisticated Soviet weapons on attractive terms should mute longstanding LDC complaints about receiving outmoded Soviet equipment. In addition, the further expansion of Nikolayev South-the main Soviet arms export terminal in the Black Sea-will improve Moscow's capability to deliver larger volumes of heavy weapons and equipment on short notice. These and other refinements, including high-level personnel changes in its foreign-assistance apparatus, underline the continued priority the Kremlin places on arms transfers as a viable instrument of foreign East European arms suppliers should also be able to capitalize on their recent successes in the coming years. Aggressive marketing tactics, along with at- tractive prices and quick turnaround on orders have contributed to a reputation of being a reliable alterna- >I Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 I Secret q Appendix A Warsaw Pact Military Transfer Programs in 1982: A Regional Analysis Table A-1 Middle East-North Africa: Soviet Bloc Military Agreements and Deliveries Concluded and Military Presence During 1982 Eastern Europe Soviet and East European Military Agreements Deliveries Agreements Deliveries Agreements Deliveries Presence b Total 6,839 5,971 5,706 4,451 1,133 1,520 11,800 Algeria 3 840 0 840 3 0 1,515 Iran 218 160 11 100 207 60 250 Iraq 3,388 1,660 3,003 838 385 ?822 1,100 Jordan 1 85 1 85 0 0 35 Kuwait 258 NA 258 NA NA 0 0 North Yemen .58 130 35 39 23 91 1,200 South Yemen NA 53 0 53 NA NA 1,100 ? Values of military agreements and deliveries are based on Com- munist donor export prices and are adjusted for changes in the- dollar value of the currencies denominated in foreign trade transac- tions. In cases where actual values are not known, Soviet export prices of similar equipment are used as surrogates. b Presence figures are rounded to nearest five and represent the number of persons present for a period of one month or more. The Middle East-North Africa: The Major Soviet Target The Middle East continued to be the focus of Soviet Bloc military transfers in 1982, accounting for two- thirds of all new arms accords (table A-1). The stalemated war in the Persian Gulf and the crisis in Lebanon last year presented opportunities for Moscow and its allies not only to recoup prestige and influence lost over the last three years but also to play a more active role in regional affairs. New Warsaw Pact arms agreements with Middle Eastern countries reached a near-record $6.8 billion and promised an array of weapon systems never before sent to LDCs: ? Iraq was promised at least $3 billion worth of updated armaments, including MIG-27 ground attack aircraft, more advanced air defense equip- ment, and late model T-72 tanks. Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Secret ? Syria received an additional $2 billion in military equipment credits to replenish and upgrade its inventories depleted during the Lebanon debacle, replacements to include the first Soviet export of MIG-23 Flogger G interceptors, SA-5 surface-to- air missiles, and MI-17 helicopters. ? Libya purchased $750 million in military equip- ment, despite some problems over past-due payments. East European arms suppliers enjoyed another profit- able year in the Middle East, even though orders were only half the 1981 record of $2.4 billion. Iran and Iraq again were the major buyers, with a combined total of almost $600 million in new contracts, mostly for high expenditure items such as munitions, small arms, spares, and transport vehicles. East Germany's $200 million agreement to supply military spare parts and support equipment to Iran was the largest single transaction. Elsewhere, Libya authorized Czechoslo- vakia to proceed with construction of a $200 million tank repair facility, and the new socialist government in'Greece signed its first military accord with a Communist state-Romania-in seven years. The volume of Soviet and East European arms deliv- eries to the region reached new highs in 1982, spurred by heavy resupply efforts to Iraq and Syria. Algeria received near-record shipments of Soviet equipment, the result of the $3 billion purchase agreement signed Soviet military transfers to the Middle East proceeded apace in 1983. Indeed, based on deliveries monitored through June, arms and related equipment transfers for the year should top last year's total. Overall arms commitments to the region, however, may drop in value. Ongoing negotiations with Libya over another multibillion-dollar purchase may be finalized this year if Colonel Qadhafi shows some restraint in support of the Chadian rebels. Improved Soviet rela- tions with Syria and Iraq could tempt Moscow to expand its military commitments in the face of the growing threats against both regimes. Even so, it is doubtful that 1983 Soviet arms pledges will come close to matching the emergency relief seen the year before. Country Highlights Algeria. Algeria signed no new arms accords in 1982 with Moscow, underscoring its determination to diver- sify its arms sources and reduce its dependence on the USSR for military equipment. The absence of new accords may also reflect Algerian concern with the disappointing performance of Soviet MIG fighters and SAM batteries in the Lebanese war. Neverthe- less, some $840 million in deliveries were received under the $3 billion 1980 accord. First-time deliveries to Algeria in 1982 included: ? SA-8 mobile surface-to-air missile batteries. ? SA-3 missile batteries that will improve medium- altitude air defense capabilities. ? 152-mm self-propelled guns. ? MIG-23 Flogger B fighters equipped with a better engine, avionics, and armaments than the stripped- down model normally exported to LDCs. Iran. While Tehran has come to depend on the supply of Soviet-type weaponry from North Korea and radi- cal Arab countries, Moscow continues to maintain a significant but low-keyed arms supply relationship with Iran. We believe that some $100 million worth of spare parts, munitions, and ordnance were shipped overland from the USSR last year. A new $11 million contract for additional Soviet equipment was signed Cut off from its traditional sources of major weapons by an embargo, Iran experienced more success last year with alternate suppliers-North Korea, Libya, Syria, and several East European countries-in filling its essential war needs: ? East Germany agreed to supply $200 million worth of nonlethal equipment. ? North Korea signed $65 million worth of new military contracts and shipped $360 million in arms to Iran, including T-62 tanks, BM-10 rocket launch- ers, artillery pieces and mortars, and large quanti- ties of AT-3 antitank and SA-7 surface-to-air mis- siles. 25X1 II Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 ? Libya and Syria both increased their support last year, providing Soviet-model tanks, artillery, infan- try weapons, and other equipment worth over $350 Iraq. The estimated $3 billion in new Iraqi military agreements with the USSR in 1982 represented a substantial paring down of a $10 billion wish list submitted to Moscow earlier in the year. Following several exchanges of high-level delegations, Moscow agreed in April to sell an estimated $2 billion worth of advanced MIGs, new air defense systems and ground equipment. After the Iranian summer offensive, Baghdad requested additional military assistance; the USSR eventually agreed in December to supply an- other $1 billion in arms, including MIG-27 ground attack aircraft and large numbers.of advanced model T-72 tanks. The latest accord also included an easing of payment terms, underscoring the shift in Moscow's military transfer program from the hard commercial terms of past years. Eastern Europe supplemented Soviet support with $385 million worth of new mili- tary agreements, including 25 used MIG-21s from The Warsaw Pact accounted for the majority of war- related deliveries to Iraq last year, even though shipments from Western countries continued to mount. The lifting of the Soviet embargo caused Soviet arms transfers to triple in volume in 1982. More than 100 Soviet merchant ships deposited more than 150,000 metric tons of military cargo at Kuwaiti to a record $820 million as a result of orders placed in 1981. Equipment delivered by the East Europeans consisted largely of older, less sophisticated weapons a minimum value of $840 million, with the actual amount believed to be much higher. Soviet deliveries included Iraq's initial receipt of MIG-25s, some 65 other fighter aircraft, and more than 200 T-72 tanks. Deliveries from Eastern Europe climbed Libya. Libyan difficulties in meeting its repayment obligations to the Soviet Union apparently were not serious enough to damage the mutually beneficial arms relationship. Moscow sold $385 million worth of military equipment to Libya in 1982, raising total agreements signed since the 1973 Middle East war to more than $15 billion. Pending large new agreements 25X1 together'with a $7 billion backlog of undelivered orders, ensures large-scale deliveries of Soviet weap- ons well into the middle of the decade. Much of the equipment is intended to upgrade Libya's already overstocked arsenal, but some is also earmarked for Third World dissident groups and governments friendly to Libya. The $685 million in Soviet deliver- ies in 1982 included Libya's first SA-8 surface-to-air missile systems. 25X1 Large purchases of Soviet equipment continue to be supplemented with contracts from Eastern Europe. In 1982 Libya placed $360 million in new orders with East European countries, some of which was designat- ed to further implement ambitious Libyan plans for a domestic military production capability. (A $650 mil- lion deal with Yugoslavia for an explosives factory is Syria. Moscow eased the considerable strain in USSR-Syrian relations caused by its limited arms support during Israel's drive into Lebanon by rapidly replenishing Syrian equipment losses and significantly upgrading Syrian defenses with better quality Soviet weapons. The new defense pact, worth at least $2 billion, provides for the introduction of: ? The USSR's most advanced version of its MIG-23 interceptor (Flogger G), making Syria the first LDC to receive this fighter. ? The first SA-5 surface-to-air missile systems outside the Soviet Union (construction for the sites at Dumayr and Horns began in December 1982; the facilities are to be manned by Soviet technicians). ? MI-17 helicopters (advanced version of the MI-8 with more speed and a larger payload) to provide heliborne support to commando operations. ? Additional SA-8 and SA-9 surface-to-air missile batteries. ? More sophisticated command and control systems 25X1 and electronic countermeasure equipment to jam Moscow more than doubled its military advisory presence in 1982 to about 3,800 and further under- scored its increased support of the Assad regime with a greater show of Soviet naval units off the Syrian and Lebanese coasts. Late in the year, the USSR report- edly agreed to ease terms for the arms ordered in the aftermath of the fighting with Israel by deferring Soviet efforts to mend fences showed signs of success by yearend. Syrian officials changed the tone of their public comments, putting Soviet-Syrian relations on a he USSR, meanwhile, refused to sign a more explicit mutual defense pact with Syria for fear of being drawn into a military confrontation with New East European arms accords with Damascus consisted of a $36 million contract with Bulgaria for military support materials and a small contract with Czechoslovakia for military trucks. Prague delivered $130 million in arms ordered under contracts conclud- ed in the late 1970s, including L-39 trainer aircraft, BMP armored vehicles, and a large number of sup- Jordan. Moscow followed up its 1981 arms break- through in Jordan with prompt delivery of most of the air defense equipment ordered and the deputation of the first Soviet military technicians to Jordan] I We expect King Hussein to continue to fend off Soviet offers to expand military supply relations. Follow-on orders to supplement the SA-8 purchase are expected, but these are likely to remain small. Kuwait. Kuwaiti relations with the USSR were bol- stered by a $260 million arms deal in 1982-the first in five years. The March agreement, which calls for the introduction of the SA-8 air defense missile system and additional heavy artillery, is viewed as a continuation of Kuwait's policy to appear relatively independent of any one superpower for arms, rather than an attempt to reduce its reliance on Western sources. According to the US Embassy in Kuwait, Kuwaiti military officers opposed the SA-8 purchase. Western arms continue to flow into the country at the rate of $100 million or more annually and remain the In anticipation of the delivery of the new SA-8 system, Moscow also received approval to train Kuwaiti air defense personnel in the USSR. Kuwait apparently also agreed to permit a small contingent of Soviet military technicians to enter the country to instruct Kuwaiti units on the SA-8 system. Until now, Kuwait has relied on Soviet-trained Arab allies, such as Iraq, for technical assistance. = Morocco. The Polisario's use of advanced Soviet equipment against Moroccan forces and Moscow's heavy military support to Algeria and Libya kept political relations with the USSR cool. Relations with East European countries, however, showed improve- ment with the signing of a $40 million military agreement with Romania-Rabat's largest arms accord with a Communist country. The pact, an outgrowth of a close relationship that has developed over the past 20 years, calls for delivery of 122-mm rocket launchers, ZPU-2 antiaircraft guns, grenade launchers, and 7.62-mm machineguns. North Yemen. North Yemen's dependence on Soviet military equipment continued to deepen as the USSR agreed to provide Sana $35 million in additional military assistance early in 1982. The accord calls for MI-8 helicopters, and unconfirmed reports indicate that additional SU-22 fighters and Sana's first T-72 tanks may also be included. Although down in volume from the year before, Soviet arms deliveries in 1982 substantially upgraded South Yemen's military capa- bilities with the receipt of its first Osa-II missile attack craft, Yevgenya-class minesweepers, and 50 new BMP infantry combat vehicles. Sana obtained another deferment of its arms payments to the Soviet Union last year, complementing the rollover granted 25X1 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Secret East European countries continued to supplement Soviet agreements with new accords: ? $10 million from Czechoslovakia for four L-39 jet trainers. ? $12 million from East Germany for vehicles and unidentified materials. ? $1 million from Romania for uniforms. Poland and East Germany were responsible for most of the $90 million of East European arms shipped to South Yemen. No new military agreements were concluded with Moscow, and Soviet arms deliveries dropped to their lowest level in five years ($53 million) as shipments under earlier arms orders wound down. US Embassy reporting indicates that both the eco- nomic and military debts owed to the USSR (estimat- ed at $1 to $1.5 billion) were deferred by Moscow for Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Table A-2 Asia: Soviet Bloc Military Agreements and Deliveries Concluded and Military Presence During 1982 Eastern Europe - Soviet and East Euro ean Militar Agreements Deliveries p y Presence b Total 3,162 1,142 3,131 1,120 31 22 2,350 Afghanistan 175 160 169 154 6 6 2,000 r Bangladesh 8 . 0 8 0 0 0 0 India 2,979 982 2,954 966 25 16 350 Pakistan NEGL 0 0 0 NEGL 0 0 a Values of military agreements and deliveries are based on Com- munist donor export prices and are adjusted for changes in the dollar value of the currencies denominated in foreign trade transac- tions. In cases where actual values are not known, Soviet export prices of similar equipment are used as surrogates. b Presence figures are rounded to nearest five and represent the number of persons present for a period of one month or more. r Number directly associated with the Afghan armed forces. The USSR committed $3.1 billion in new military support to South Asian countries in 1982, nearly 95 percent of which was earmarked for across-the-board upgrading of the Indian defense establishment (table A-2). Moscow again emphasized its special relation- ship with New Dehli by offering to provide some of its most sophisticated conventional weapons and by agreeing to provide advanced weapons production technology to improve India's growing domestic Country Highlights Afghanistan. Despite some slippage in 1982, the USSR moved forward with its plan to expand and upgrade the Afghan defense establishment. The Afghan Air'Force continues to receive the most attention. In 1982 the USSR transferred 14 SU-22 fighter-bombers and 15 MI-8 helicopters to the Afghan Government. Only a few of these aircraft represented replacements for battle losses. Moscow also agreed last year to supply the Afghan Air Force with two squadrons of MI-24/25 helicopter gunships, which reportedly will be used to support combined Soviet-Afghan troop operations against the rebels located around the capital. Along with the infusion of new and better aircraft, the USSR is investing heavily in improving Afghanistan's military infrastructure. Soviet building projects ear- marked for the Afghans include several NCO and officer training schools, new barracks, a military vehicle.repair shop, and a large medical treatment More evidence of East European military cooperation surfaced last year. For the first time, Hungary was noted as a supplier of military equipment, although no details were available on the types of goods being supplied. Bulgaria delivered substantial amounts of quartermaster goods, and Czechoslovakia reportedly accepted 100 Afghan officers and enlisted personnel for instruction in the repair of tanks and heavy 11 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 secret Figure 5. Soviet Military Delegation to New Delhi Indian Defense Minister Venkataraman wel- comes his Soviet counterpart General Ustinov and Admiral Gorshkov to Nov Delhi in March 1982. Minister of Defense Ustinov headed, a 140- man Soviet military trade delegation-the larg- est and most prestigious to visit a non-Bloc India Apparently alarmed over India's recent arms diversification efforts with Western suppliers, Mos- cow took unprecedented steps in 1982 to revitalize its military-assistance relationship. In March, Soviet De- fense Minister Ustinov visited New Delhi as head of the largest and highest ranking Soviet military dele- gation ever sent to a non-Communist country. According to the Indian press, the delegation of 83 members (including the Army and Navy Chiefs of Staff) offered to sell the Indians some of Moscow's most advanced weapon systems at concessional prices and terms. Moreover, the Soviet arms proposals included advanced military production technology and licenses to produce a range of Soviet hardware in India-Moscow's first substantial offer to export sophisticated military technology outside the Warsaw ? The Army will receive hundreds of "improved" versions of T-72 tanks and BMP armored fighting vehicles (and probably production technology for both). ? The Air Force will receive several hundred domesti- cally produced MIG-27 ground attack fighters, the India's equipment orders this year raised the value of Soviet arms accords signed since Prime Minister Gandhi's return to power in 1980 to almost $6 billion, 50 percent more than the value recorded over the previous two decades. In contrast, highly publicized purchases from Western suppliers during the same period have amounted to just over $2 billion. The commitments already made by Moscow since 1980, coupled with large, new agreements we expect to be signed over the next few years, will effectively ensure the continued dominance of the USSR in India's military modernization and expansion program. By playing Moscow against its Western competitors, New Delhi has garnered not only modern weapons and production technology from both the Soviets and the West but also substantial price and financing Follow-on discussions resulted in the signing of a series of new arms accords worth an estimated $3 billion. Each of the three Indian armed services will benefit over the next five years: ? The Navy will add at least nine surface combatants and four F-class submarines over the next five years to its Indian Ocean fleet. Sanitized, Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Secret Table A-3 Latin America: Soviet Bloc and Cuban Military Agreements and Deliveries Concluded and Military Presence during 1982 Soviet, East European, and Cuban Military Agreements Deliveries Agreements Deliveries Presence b Total 167 176 141 140 Argentina NA 0 0 0 Nicaragua 61 86 35 50 24 26 2 10 2,090 (2,000) Peru 106 90 106 90 0 0 0 0 ISO Suriname NA NEGL 0 0 0 0 NA NA NA a Values of military agreements and deliveries are based on Com- munist donor export prices and are adjusted for changes in the dollar value of the currencies denominated in foreign trade transac- tions. In cases where actual values are not known, Soviet export prices of'similar equipment are used as surrogates. b Presence figures are rounded to the nearest five and represent the number of persons present for a period of one month or more. The figures in parentheses refer to the number of Cuban military personnel included in the total. The Caribbean and Central America: Expanded Commitments Soviet Bloc efforts to support radical regimes in the Caribbean and Central America led to some $60 million in new regional military agreements in 1982, backstopping the $105 million in accords signed the previous year (table A-3). Nicaragua accounted for virtually all these accords, pushing arms deliveries to a record level last. year ($50 million worth) and expanding foreign advisory and technical support: Although small by contrast, Cuban assistance to Grenada-highlighted by a new arms delivery and further progress on military-related construction- kept Havana's close relationship with that leftist government intact until the assassination of Prime Minister Bishop in October 1983. Suriname, a coun- try Castro had unsuccessfully courted in the past, received its first Communist-supplied materiel in Country Highlights Grenada. Cuba continued to support the leftist regime with arms and construction assistance until its demise in October 1983. Just prior to the downfall, Havana delivered: ? At least five armored personnel carriers. ? Sixty to 100 army trucks. ? Field artillery. ? Small arms and ammunition. Cuba also stepped up the pace of construction at Point Salines International Airport scheduled for comple- tion in 1983. Although ostensibly a commercial facili- ty, it also could accommodate jet fighters and military Sanitized Copy Approved for Release 2011/05/27 CIA-RDP85T00283R000300040008-3 secret transport aircraft. Cuba also neared completion on a large military camp at Calivigny, for use by the Cubans to train Grenadian troops. In contrast, the USSR maintained its low profile rovidin only a small. police training program Nicaragua. In the face of the increased threat to the Sandinista regime, Cuba and the Soviet Bloc pledged additional military support in 1982, including agree- ments for arms and the dispatch of additional military personnel to Nicaragua. Valued at about $60 million, these accords reflect: ? Soviet commitments (an estimated $35 million) for tanks, other ground force weapons, and MI-8 helicopters. ? East German accords ($25 million) for trucks and other nonlethal materiel. The value of military deliveries from Soviet Bloc and Cuban sources spiraled to an estimated $85 million in 1982. Key deliveries included: ? A dozen BM-21 rocket launchers (Nicaragua's first) provided by the USSR via Algeria in April. ? About 25 additional T-55 tanks from the USSR, doubling the size of the armor inventory. Two AN-26 transport aircraft, purchased under a December 1981 agreement to help establish a trans- port capability, arrived in Cuba in late November but were not transshipped to Nicaragua until early 1983. Nicaragua remains highly dependent on foreign tech- nicians and advisers. The Cubans, whose military presence rose to as many as 2,000 during 1982, train Nicaraguan troops, advise Nicaraguan officers in counterinsurgency operations, and construct airfields Despite Managua's past denials that it plans to acquire combat aircraft, airfield construction in Nica- ragua and pilot training in Cuba and Eastern Europe suggest that fighter planes eventually will be based in Nicaragua. At least six airfields are being constructed or improved to handle jet fighters, and the first 25X1 25X1 based m u a. The recent aerial strikes against 25X1 Nicaraguan targets by antigovernment rebels may provide Managua and its Soviet-Cuban supporters with the justification to speed up delivery of combat 25X1 25X1 ened relations with Cuba in 1982 as part of his often- stated policy to reorient the country away from total dependence on the West. As a result, Suriname received small arms from Cuba-the first such deliv-. 25X1 cry from a Communist country-and sent at least 10 South America-Limited Gains for Moscow The USSR's longstanding efforts to expand military supply relationships in South America again met with little success in 1982. Soviet efforts to exploit the Falklands-induced rift between Argentina and some major Western suppliers by offering to sell Buenos Aires military equipment were unsuccessful. Peru remained the Soviets' only arms client on the southern continent, signing new agreements last year worth more than $105 million. 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Country Highlights Argentina. The USSR attempted to capitalize on the Falklands conflict to add Argentina to its list of arms clients. Despite repeated offers, however, Buenos Aires refused to buy Soviet weapons for political and technical reasons. East European suppliers fared little better: only Romania has signed a military accord with Argentina, and that was a minor agreement concluded in January 1982 for artillery tubes. 25X1 Peru. The USSR's role as an aircraft supplier to Peru and its involvement in the maintenance of Soviet- supplied armaments remained the basic bond between the two countries in 1982. Moscow won another $105 million in contracts for MI-8 helicopters, land arma- ments, some munitions, spare parts, and technical support. Arms deliveries in 1982-which included additional SU-22 fighter/trainers and MI-8 helicop- ters-were worth about $90 million, pushing total Soviet military shipments to Peru since 1975 to more than $1.1 billion. Lima, nonetheless, has persistently. resisted Soviet efforts to gain influence through mili- tary assistance by emphasizing the commercial nature of the relationship and limiting the presence and activities of Soviet advisers. Moscow's desire to main- tain its position in Peru was reflected in its willingness in mid-1983 to refinance Lima's military debt. Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Secret I Table A-4 Sub-Saharan Africa: Soviet Bloc and Cuban Military Agreements and Deliveries Concluded and Military Presence During 1982 Total ? USSR Eastern Europe Soviet, East European, and Cuban Military Agreements Deliveries Agreements Deliveries Agreements Deliveries Presence s 172 420 138 366 34 54 41,340- 48,540 (35,695- 42,895) Angola 119 201 100 - 180 19 21 1 26,700- 31,700 (25,000- 30,000) Cape Verde 0 0 0 0 0 0 20 (NA) Congo 0 0 0 0 0 0 810 (700)? Equatorial Guinea 0 0 0 0 0 0 15 (NA) Ethiopia 10 110 10 110 0 0 11,300- 13,300 (9,000- 11,000) Guinea 19 0 19 0 0 0 65 (15) Guinea Bissau NA 9 0 9 NA NA 115 ' (50) Madagascar 0 0 0 0 0 0 160 (NA) Mali I I 1 1 0 0 150 60 10 10 1,600- 1,800 (800- 1,000) Sao Tame/Principe 0 0 0 0 0 0 50 (50) Seychelles 0 1 0 1 0 0 10 (50) Sierra Leone 0 0 0 0 0 0 10 (10) Sudan 5 0 0 0 5 0 0 Tanzania 0 12 0 2 0 10 Zambia ? NA 13 0 0 NA 13 ? Presence figures are rounded to nearest five and represent the number of persons present for a period of one month or more. The figures in parentheses refer to the number of Cuban military personnel included in the total. n Most of the Cubans are located in Cabinda and support the Cuban military forces in Angola. c We believe a new large military agreement was concluded in 1982, however, details are not yet known. Sub-Saharan Africa: Focus on Established Clients Although Warsaw Pact military agreements with Sub-Saharan clients identified in 1982 totaled only $170 million-less than 10 percent of the value of 1981 accords-we believe actual commitments were much greater because of new, but undefined, Soviet arms agreements with Angola and Mozambique (table A-4). Moscow's military assistance relationships in Sub-Saharan Africa continued to be focused on a Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 narrow range of countries notable for their strategic locations and radical politics. Angola, Ethiopia, Mozambique, and Guinea accounted for virtually all observed military accords concluded last year. Soviet Bloc military deliveries to Sub-Saharan Africa in 1982 amounted to $420 million, down considerably from the levels of the late 1970s. Reduced transfers to Ethiopia-Moscow's largest regional client-account- ed for much of the decline. In southern Africa, the growing threat from UNITA guerrillas and South Africa sent arms deliveries to Angola and Mozam- bique sharply higher. Cuba sent more troops to Angola for the same reason. The Cuban augmenta- tion, coupled with more East European arrivals, raised the regional presence of Warsaw Pact and Cuban troops, technicians, and advisers to at least Despite Moscow's dominant position in the Sub- Saharan arms market, the Soviets failed to obtain more strategic concessions. Congo, Guinea, and Mad- agascar continue to withhold access to naval and air facilities that Moscow desires for reconnaissance ac- tivities. Ethiopia, although allowing the USSR limited use of a Soviet-built facility on Dahlak Island, again refused Soviet requests for full control over the island. Country Highlights Angola. Military setbacks and heavy government casualties stemming from more aggressive actions by UNITA guerrillas and South African troops precipi- tated sharp increases in Soviet and Cuban support to Angola last year. Moscow delivered a record $180 million worth of identified military equipment in 1982, more than twice the level of recent years. This increase largely reflects the arrival of more advanced, higher cost weapons, including Angola's first Osa-II missile attack craft, T-62 tanks, and BMP armored reconnaissance vehicles, as well as two more squad- rons of MIG-21 fighters and various early warning radar stations. Additional T-55 tanks, armored per- sonnel carriers; artillery, and hundreds of military transport vehicles rounded out Soviet equipment deliveries for the year. Cuba delivered its first weap- ons to Angola in five years, including tanks and artillery, to replace some of the losses sustained by Cuban forces in skirmishes with UNITA insurgents. 25X1 Havana also raised the number of Cuban troops to an estimated 25,000 to 30,000 to stiffen southern defenses and man some advanced equipment provided Ethiopia. Ethiopia's nearly $2 billion in backlogged military orders from the USSR was largely responsi- ble for the lack of new agreements. Only one accord with Moscow-a $10 million deal for 300 military trucks-was signed in 1982. Moreover, the estimated $110 million in new Soviet equipment deliveries, which included tanks, APCs, artillery, heavy trans- port vehicles, and additional coast patrol craft, Mutual concessions by Ethiopia and the USSR during Chairman Mengistu's October 1982 visit to Moscow appear to have strengthened the bonds between the two countries and paved the way for additional assist- ance. In return for Mengistu's agreement to move forward with the establishment of an Ethiopian Com- munist party, the USSR promised further relief of Ethiopia's large military debt (estimated at $2-3 billion) and pledged additional arms. Specific agree- ments apparently were not concluded. The Ethiopian Guinea. Moscow continued to provide the bulk of Guinea's military equipment in 1982, signing a $20 million agreement for improved versions of the MIG- 21 fighter and pilot training. Elements in Guinea's military would like to shift some purchases to West- ern suppliers, but financial and political constraints 25X1 25X1 25X1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Mozambique. Mozambican's expanding ties with Western powers apparently did not adversely affect its relationships with Communist countries in 1982. Although some Mozambican officials questioned the wisdom of relying on Communist countries for mili- tary equipment and services, these reservations have not yet become serious enough to damage the ties forged during Frelimo's long liberation struggle. Mos- cow and Maputo concluded a large, new arms accord in the first half of 1982. Although no information on the size and scope of the agreement is available, subsequent deliveries of light armored vehicles and bridging equipment suggest that it is tailored to help the Mozambican armed forces cope with the South African-supported insurgents. Hungary also conclud- ed a $10 million military accord last year, bringing identified alltime military agreements with Warsaw Zambia. The good will generated by Moscow's sale of $250 million worth of military equipment in the mid- 1970s is being eroded by Lusaka's difficulty in meet- ing scheduled payments. The USSR has accepted cobalt in partial settlement, but Zambia was still in arrears at yearend. No new military agreements were signed with the USSR in 1982, and no new equipment 1 25 Secret Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 ~ secret Soviet Bloc Military Agreements With LDCs: Agreements Concluded and Equipment Delivered, 1955-82 a Concluded Delivered Concluded Equipment Delivered USSR Eastern USSR Eastern USSR Eastern USSR Eastern Europe Europe Europe Europe Total 78,477 9,357 56,820.. 7,018 Sudan 100 18 100 II Africa-Sub-Saharan 7,475 686 5,463 607 Tanzania 340 93 337 75 Angola b 782 222 774 204 Togo - 0 0 0 0 251 41 244 41 Zimbabwe 0 0 0 0 Cape Verde 65 - 0 58 0 Asia-East 890 223 884 223 Central African 8 0 3 0 Burma NEGL I NEGL I Republic Indonesia 878 217 872 ' 217 Kampuchea c 12 2 12 2 Philippines 0 1 0 1 Equatorial Guinea 25 0 21 0 South Korea 0 2 0 2 Ethiopia 3,942 109 2,252 109 Thailand 0 0 0 0 Gabon 0 NA 0 0 Asia-South 12,937 439 7,032 376 Gambia NEGL 0 NEGL 0 Afghanistan d 2,887 90 1,271 42 Bangladesh 75 NEGL 67 NEGL India 9,912 314 5,631 299 Maldive Islands NEGL 0 NEGL 0 Nepal 2 0 2 0 Liberia 0 0 0 0 Pakistan 48 35 48 35 Madagascar 110 5 98 5 Sri Lanka 13 0 13 0 Mali - 161 0 132 0 Europe 28 0 0 0 Mozambique 318 123 290 93 Spain 28 0 0 0 Nigeria 214 22 186 19 Latin America 1,535 39 1,185 11 Rwanda 0 0 0 0 Argentina 0 NA 0 0 Sao Tome and Principe 2 0 2 0 Colombia 1 7 1 7 Senegal 0 NA 0 NA Grenada 1 0 1 0 Seychelles 8 0 8 0 Honduras 0 NEGL 0 NEGL Sierra Leone 2 NEGL 2 NEGL Nicaragua 137 31 56 3 Somalia 402 16 402 16 Peru 1,396 1 1,127 1 Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 secret Soviet Bloc Military Agreements With LDCs: Agreements Concluded and Equipment Delivered, 1955-82 ? (continued) Agreements Concluded Equipment Delivered Agreements Concluded Equipment Delivered USSR Eastern Europe USSR Eastern Europe USSR Eastern Europe USSR Eastern Europe Middle East/ 55,612 7,969 42,256 5,801 Libya f North Africa Mauritania 0 4 0 4 Morocco 74 73 43 33 Cyprust 18 34 18 4 North Yemen 982 329 897 310 Egypt 4,141 929 4,141 510 Oman 0 0 0 0 Greece I 84 1 84 South Yemen 1 157 24- 1 089 24 Iran 1,955 260 1,820 67 Syria , 13,766 1,040 , j,417 I 1,039 Iraq 12,890 2,621 9,452 2,146 Tunisia 0 0 , 0 0 Jordan 226 0 85 0 Turkey 7 0 7 0 Kuwait 309 NA 52 0 United Arab Emirates 0 2 0 2 Lebanon 12 12 12 10 ? Values of military agreements and deliveries are based on Com- munist donor export prices and are adjusted for changes in the dollar value of the currencies denominated in foreign trade transac- tions. In cases where actual values are not known, Soviet export prices of similar equipment are used as surrogates. Because of rounding, components may not add to totals shown. b Excludes $151 million worth of Soviet commitments and $1 million worth of Romanian commitments to Angola made before independence in November 1975. The USSR recommitted $59 million of the original amount in March 1976 when the Neto regime assumed power. Aid transactions prior to formation of the Communist government in 1975. d Excludes Soviet equipment transfers used exclusively by Soviet troops. Outstanding orders for most equipment were canceled when the program became inactive. rOf the East European delivery total of $1,463 million, $68 million was delivered on Soviet account under the Soviet-Libyan arms accord of 1974. Sanitized Copy Approved for Release 2011/05/27 : CIA-RDP85T00283R000300040008-3 secret