SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010112-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 112
• Publication Date: May 23, 1960
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/112
23 May 1960
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, U.S.C., SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
These biweekly reports on "Sino-Soviet Bloc Economic Ac-
tivities in Underdeveloped Areas" are prepared and issued
by a Working Group of the Economic Intelligence Commit-
tee, including representatives of the Departments of State,
the Army, the Navy, the Air Force, Commerce, and Agricul-
ture; the International Cooperation Administration; the
Office of the Secretary of Defense; and the Central Intelli-
gence Agency. Their purpose is to provide up-to-date fac-
tual information on significant developments in the eco-
nomic relations of Sino-Soviet Bloc countries with under-
developed countries of the Free World. The EIC-R-14 series
of reports, under the same title, provide periodic summaries
and analytical interpretations of these developments.
Printed and Disseminated by the
Central Intelligence Agency
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 Approved For Release 2005/08/2UCR.g 'P92B01090R000700010112-6
Summary of Events-
6-19 May 1960
Afghanistan has recently confirmed reports of an important oil
and gas strike in the vicinity of Andkhui, a small town about 25 miles
from the Soviet border. This strike is the first major discovery un-
der the intensive, Soviet-assisted program of petroleum exploration
and exploitation now being carried out in northern . Afghanis tan. Pre-
liminary indications are that productip.n from this field will be con-
siderably in excess of Afghanistan's needs.
On 7 May, India signed an agreement with Poland for the utiliza-
tion of a credit of approximately $30 million for the purchase by India
of Polish machinery and industrial equipment. Repayment will be in
rupees in eight annual installments at 2. 5 percent interest.
The USSR has agreed to send 18 doctors and 6 interpreters to
help staff the 500-bed gift hospital in Phnom Penh. The USSR will
also build a dormitory for the staff, train 20 Cambodian doctors,
and supply medicines sufficient for 2 years.
Brazil is reported to be considering a Polish offer to build a
$30 million steel plant,with repayment over an 8-year period. So
far this year, Brazilian trade with the Bloc has been below the level
agreed on, and further delays in the exchange of goods may cause
Brazil to reappraise its trade relations with the Bloc.
The Bloc program of economic aid in Indonesia is slowly moving
forward. The Indonesian Government is unwilling to give high pri-
ority to Bloc construction projects (with the exception of the Asian
Games Stadium in Djakarta -- whose completion in time for the Asian
Games in 1962 is a point of national honor), and it is unwilling to ad-
mit a sufficient number of Bloc technicians to complete the projects
quickly.
Communist China has given Guinea 10, 000 tons of rice. This
gift is in addition to a previous grant of 5, 000 tons that was delivered
in July 1959.
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CONTENTS
Page
1. General (Status of Bloc Aid Program in Indonesia) . . 1
II. Asia . . . . . . . . . . . . . . . . . . . . . . . 3
A. Indian-Polish Credit Agreement . . . . . . . . 3
B. Cambodia . . . . . . . . . . . . . . . . . . 4
1. Soviet Staffing of Gift Hospital . . . . . . . 4
2. Inauguration of Aid Projects by Chinese
Communist Premier . . . . . . . . . . . 4
III. Middle East and Africa . . . . . . . . . . . . . . 5
A. Important Oil and Gas Discovery in Afghanistan 5
B. Chinese Communist Gift of Rice to Guinea . . . . 6
IV. Latin America (Recent Developments in Soviet Bloc
Economic Relations with Brazil) . . . . . . . .
Map
Following Page
Soviet Bloc Projects in Indonesia, May 1960 . . . . . . 1
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