SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010016-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 9, 2005
• Sequence Number: 16
• Publication Date: September 17, 1956
• Content Type: REPORT

Approved For Release 2005/08/22 : CIA-RDP92BO109OR0007DOW0016-3 ,7,
Copy r-`,'
SECRET
BIWEEKLY REPORT
SING -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /16
17 September 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
Approved For Release 2005/08/22 : CIA-RDP92B01090R00070001 0016-331 i' X356
 Approved For Release 2005/08/22 : CIA-RDP92B01090R000700010016-3
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.
Approved For Release 2005/08/22 : CIA-RDP92B01090R000700010016-3
 Approved For Release 2005/08/22 : CIA-RDP92B01090R000700010016-3
CONTENTS
Page
I. Summary of Events, 28 August-10 September 1956 . . . 1
II. South Asia . . . . . . . . . . . . . . . . . . . . 3
A. India . . . . . . . . . . . . . . . . . . . . .
1. Purchase of Rice from Communist China . .
2. Visit of Pharmaceutical Delegation to USSR . .
B. Afghan Arms Agreement with the Soviet Bloc . . .
A. Negotiation of Aid Agreement Between Indonesia
and the USSR . . . . . . . . . . . . . . . . . 5
B. Burmese Economic Relations with the Sino-Soviet
Bloc . . . . . . . . . . . . . . . . . . 5
C. Malayan Trade Mission to Communist China . . . 6
D. Further Developments on Discussions Between
Laos and Communist China . . . . . . . . . . . 6
IV. Middle East .
A. Syria . . . .
7
1. Syrian Announcement of Arms to Jordan . . . 7
2. Cement Plant Contract to East Germany . . . 8
3. Arrival of Chinese Communist Trade
Delegation . . . . . . . . . . . . . . . 8
B. Iranian. Trade Agreement with the USSR . .
C. Egyptian Wheat Purchase Agreement with the
USSR . . . . . . . . . . . . . . .
- iii'.
S-E-C-R-E-T
Approved For Release 2005/08/22 : CIA-RDP92B01090R000700010016-3
 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3
SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
I. Summary of Events, 28 August-10 September 1956.
The most significant features of the Sino-Soviet Bloc effort to expand
economic relations with the Free World during the period 28 August-
10 September 1956 are (1) the negotiation of an agreement between
Indonesia and the USSR whereby the USSR will extend to Indonesia eco-
nomic and technical aid amounting to about $US 100 million, ** (2) the
extension of military aid, presumably in the form of Soviet Bloc arms,
by Syria to Jordan, and (3) the disclosure that Burma's difficulties in
trading with the Bloc have been alleviated, thereby enabling the Burmese
to increase their trade with Czechoslovakia.
The announcement in Syria that $7 million in military aid will be
extended to Jordan is an indication that Jordan, previously reluctant to
accept Bloc arms in view of its commitments to the UK, is now willing
to receive large stocks of Bloc arms indirectly. Burma's difficulties
with the Soviet Bloc were relieved somewhat by the transfer of 5 mil-
lion pounds sterling ($14 million) from Burma's barter trade account
with the USSR to its account with Czechoslovakia, thus enabling the
Burmese to obtain desired products from the Czechoslovaks.
In South Asia, India signed an agreement to purchase 60, 000 tons
of rice from Communist China, and Afghanistan has announced the
purchase of arms and ammunition from the USSR and Czechoslovakia.
Although the main emphasis of the Biweekly is on economic activ-
ities 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.
S-E-C-R-E-T
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3
 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3
Sino-Soviet Bloc economic activities in the Far East not only include
the bettering of Burmese-Bloc relations and the Soviet-Indonesian aid
negotiations, mentioned previously, but also involve discussions between
both Malaya and Laos with Communist China. An unofficial Malayan
trade mission is now in China to discuss trade between the two countries.
The Prime Minister of Laos has, however, denied that Chinese represent-
atives were invited to Vientiane to discuss economic aid to Laos, as
reported earlier by the Chinese.
In the Middle East, Syria offered military aid to Jordan, awarded a
contract to East Germany for the construction of a cement plant in
Aleppo, and received a Chinese Communist trade delegation. Iran
renewed a trade agreement with the USSR, an action which may mean.
a revision of the Soviet policy of limiting trade with Iran, and Egypt
purchased 200, 000 tons of wheat from the USSR.
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3
 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3
Next 8 Page(s) In Document Exempt
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700010016-3