SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010013-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 13
• Publication Date: August 6, 1956
• Content Type: REPORT

Approved For Release 2005/08/22: CIA-RDP92 011090R0 80010013,E
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SECRET
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /13
6 August 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET -, A U G 195
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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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CONTENTS
Page
I. Summary of Events, 18 July-1 August 1956 . . . . 1
II. South Asia . . . . . . . . . . . . . . . . . . . 2
A. Pakistan-Hungarian Trade Agreement . . . . 2
B. Afghan-Czechoslovak Arms Agreement . . . . 3
C. Indian Farm-Study Delegations to Communist
China . . . . . . . . . . . . . . . . . 3
A. Implementation of Burmese Trade Agreements
with the Sino-Soviet Bloc . . . . . . . . . . 4
B. Developments in Indonesian - Sino-Soviet Bloc
Economic Relations . . . . . . . . . . . . 5
IV. Middle East . . . . . . . . . . . . . . . . . 6
A. USSR and the Aswan Dam . . . . . . . . . . 6
B. Egyptian-Rumanian Trade Pact . . . . . . . 7
V. Latin America: Uruguayan-Soviet Trade
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SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
1. Summary of Events, 18 July-1 August 1956.
Significant events in. Sino-Soviet Bloc economic relations with
the underdeveloped areas of the Free World during the period
18 July-1 August 1956 included a reported agreement for the pur-
chase of Czechoslovak arms by Afghanistan and statements by high
Soviet officials that gave rise to the question of possible Soviet
financial participation in the Aswan project.
An agreement for the purchase of Czechoslovak arms by
Afghanistan was reported but not confirmed, The value of the
arms is reported to be US $13 million, ** and it is further stated
that the agreement has no connection with the $104-million Soviet
credit extended to Afghanistan in January 1956. Also in South
Asia, two Indian delegations were scheduled to visit Communist
China to study techniques of farming and agricultural production.
In the Far East the recent improvement in the international
rice market, coupled with Burmese dissatisfaction with the Sino-
Soviet Bloc barter agreements, has prompted Burma to announce
a policy favoring cash customers. As a result, both the USSR and
Czechoslovakia are having difficulties obtaining rice under their
trade agreements with Burma. The Burmese government is, how-
ever, continuing its efforts to obtain Bloc equi went. The Bloc
continued its economic offensive in Indonesia,
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* Although the main emphasis of the Biweekly is on economic activi-
ties of the Sino-Soviet Bloc in underdeveloped areas of the Free World,
significant Bloc activities of this nature in areas not considered under-
developed also will be discussed.
** Unless otherwise specified, all dollar values in this report are
in terms of US dollars.
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Indonesia is dissatisfied with its bilateral
agreements with some Bloc countries and that it intends to replace
them with arrangements for trade on a convertible basis. Indonesia
will make no final decisions on additional Bloc offers of foreign aid
until the end of the year, when President Sukarno will have completed
his state visits to most of the Communist capitals.
The position of the USSR in regard to the Aswan Dam remains
unclear. When questioned in Moscow about the withdrawal of US
and UK assistance, Soviet Foreign Minister Shepilov was :noncommittal
regarding the dam, but he indicated that the USSR is prepared to
assist Egypt in industrializing. No definite conclusions can be drawn
from the ambiguous statements from Moscow and Cairo. During the
period, Egypt signed a 3-year trade agreement with Rumania.
In Latin America the Uruguayan government authorized the
Foreign Minister to sign three agreements governing trade relations
with the USSR: a treaty of commerce and navigation, a commercial
agreement, and a.payments agreement.
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