SINO-SOVIET BLOC ECONOMIC ACTIVITES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010005-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 8, 2005
• Sequence Number: 5
• Publication Date: April 16, 1956
• Content Type: REPORT

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0R00070Q .W005-5 404
SECRET
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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /5
16 April. 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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SECRET
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WARNING
THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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S-E-C-R-E-T
CONTENTS
I. Summary of Events, 27 March - 9 April 1956 . . .
II. South and Southeast Asia . . . . . . . . . . . . .
Page
A. Indonesia . ? . . . . . . . . . . . . . . . . . . 2
B. Burma . . . . . . . . . . . . . . . . . . . . 3
1. Soviet Rice Agreement . . . . . . . . . . . 3
2. Chinese Communist Air Service . . . . . . . 5
C. India . . . . . . . . . . . . . . . . . . . . . 5
1. Soviet Shipping Agreement . . . . . . . . 5
2. Czechoslovak Power Plant . . . . . . . . . 6
3. Polish Trade Agreement . . . . . . . . . . 7
D. Afghanistan . . . . . . . . . . . . . . . . . . 7
III. Near East and Africa . . . . . . . . . . . . . . . . 8
A. Egypt . . . . . . . . . . . . . . . . . . . . 8
1, Bulgarian Trade Mission . . . . . . . . . . 8
2. Czechoslovak Cement Factory . , 9
3. Chinese Communist Trade Fair . . . . . . . 9
B. Sudan . . . . . . . . . . . . 9
C. Libya . . . . . . . . . . . . . . 10
D. Syria . . . . . . . . . . . . . . . . . . . . . 11
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I. Summary of Events, 27 March
9 April 1956.
During the period from 27 March to 9 April 1956 the most significant
Sino-Soviet Bloc steps toward the expansion of economic relations with
underdeveloped areas in the Free World were the Soviet offer of eco-
nomic assistance to the new government of Indonesia, the extension of
the Soviet-Burmese trade agreement to 5 years, and the conclusion of
an agreement between Bulgaria and Egypt.
The USSR not only offered economic assistance to the new govern-
ment of Indonesia but also began negotiations for a trade agreement be-
tween the two countries. Czechoslovakia is reported to have already
negotiated two agreements with Indonesia,. one for an enamelware plant
and the other with the Indonesian Tire and Rubber Company.
In another significant action in the South and Southeast Asia region,
Burma and the USSR extended to a period of 5 years a previously signed
barter trade agreement whereby Burma will export rice in return for
Soviet machinery, equipment, and consumer goods. As a result of the
extension, the Bloc may receive as much as 50 percent of the total rice
exports of Burma in future years.
A number of air and ocean freight agreements also were concluded
between the Bloc and countries in South and Southeast Asia during the
period. Regular air service between Burma and Communist China was
initiated on 11 April, and an air agreement between the USSR and
Afghanistan was signed on 24 March. India and the USSR agreed to
establish a shipping service consisting of 12 cargo vessels on 6 April.
* Although the main emphasis of the Biweekly is on economic
activities of the Sino-Soviet Bloc in underdeveloped areas of the
Free World, significant Bloc activities of this nature in areas
not considered underdeveloped also will be discussed.
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In the Near East and Africa, Bulgaria and Egypt signed a trade
agreement, and Egypt contracted with Czechoslovakia for the purchase
of a cement factory. The Chinese Communists opened a trade fair
in Cairo and sent a trade delegation, headed by the Chinese Minister
of Foreign Trade, to the Sudan. Syria ratified a trade agreement which
had previously been signed with East Germany.
In Latin America, Brazil confirmed a report that an East German
trade mission will arrive early in May for the purpose of negotiating
a trade agreement whereby the exchange of Brazilian coffee and cotton
for East German machinery will be facilitated.
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