SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020006-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 6
• Publication Date: March 27, 1961
• Content Type: REPORT

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SECRET
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/134
27 March 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
444
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Summary of Events*
10 - 23 March 1961
The USSR and Mali have concluded an economic and technical coop-
eration agreement providing for a long-term Soviet credit of $44. 4 mil-
lion for various developmental projects. A contract also was signed to
purchase commercial aircraft, helicopters, and airport equipment, pre-
sumably under a separate credit. A trade agreement concluded at the
same time provides for most-favored-nation treatment and the exchange
of Soviet industrial products for Malian agricultural commodities.
The Bloc's much-publicized assistance program in Cuba seems to
have made only slight progress. Of the numerous projects envisaged in
the long-term credit of $245 million extended in 1960, no more than
about half a dozen have made any headway. Bloc technicians, however,
continue to arrive in Cuba, and much preliminary work probably has
been done.
The visit of a team of Soviet experts to the Lower Helmand
Chakhansur region of Afghanistan for 5 days early in March has given
rise to rumors that the USSR has agreed to build a dam in this sensi-
tive area adjacent to the Iranian border.
The Bulgarian firm Technoexport has announced completion of the
wall of the Muhradah Dam on the Orontes River in. Syria. This dam is
part of the second major project in the Ghab Valley development pro-
gram.
Soviet technicians have arrived in Yemen to undertake a survey of
the Hudaydah-Ta'izz road project. **
* Unclassified tables showing Bloc trade with underdeveloped countries
during 1959 and the first half of 1960 and the number of trade and pay-
ments agreements in force between the Bloc and underdeveloped coun-
tries as of the end of 1959 and the end of 1960 are included in this issue
on pp. 10 and 13, respectively.
** A map showing the location of the proposed road is included in this
issue following p. 3.
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Two Soviet technicians reportedly are examining the feasibility of
constructing a shipyard at Alhucemas on the Mediterranean coast of
northern Morocco. A Moroccan newspaper has stated that the Soviet
team also will make a study of a proposed iron and steel plant in the
same area.
Sixteen Bulgarian architects and engineers have arrived in Tunisia
to work with the Secretariat of Public Works and Housing. The group
will be employed on public roads and urban development projects in all
sections of the country.
The recent purchase by India of 32 cargo planes worth $26 million
from the USSR represents substantial Soviet support for New Delhi's
border development program, which is aimed at strengthening India's
position in the frontier zone in order to meet the threat posed by Com-
munist China in this disputed region. A transaction of this magnitude
is of particular interest against the background of Sino-Soviet differ-
ences regarding Soviet assistance to India and of the strained Sino-
Indian relations arising from the border conflict.
King Mahendra of Nepal recently expressed a desire to reduce
and eventually to eliminate Soviet aid. He also asserted that his coun-
try would not accept any further aid from Communist China.
The University of Peoples Friendship in Moscow, recently renamed
Patrice Lumumba Friendship University, intends to more than double
its present enrollment of 500 students when the new academic year be-
gins on 1 September. Reports indicate that the current enrollment drive
will emphasize an increase in the number of students from Africa, and
Soviet authorities have mentioned a goal of 300 new admissions from
Africa for the coming year.
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CONTENTS
Page
II. Middle East . . . . . . . . . . . . . . . . . 2
A. Visit of Soviet Experts to Lower Helmand
Valley of Afghanistan . . . . . . . . . 2
B. Completion of Syrian Dam by Bulgaria . . . 2
C. Soviet Survey for New Road in Yemen . 2
A. Malian Acceptance of a Large Soviet
Credit . . . . . . . . . . . . . . . . 3
B. Arrival of a Second Group of Bloc
Technicians in Tunisia . . . . . . . . . 4
C. Soviet Survey of a Shipyard Project
in Morocco . . . . . . . . . . . . . . 4
A. Implications of Soviet Support for India's
Border Development Program . . .
B. Current Nepalese-Bloc Relations .
Enrollment for the Second Year at Patrice
Lumumba Friendship University . . . . . . 8
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1. Sino-Soviet Bloc Trade with Selected Under-
developed Countries of the Free World,
1959 and First Half 1960 . . . . . . . . .
2. Trade and Payments Agreements in Force
Between the Sino-Soviet Bloc and Under-
developed Countries of the Free World,
31 December 1959 and 31 December 1960 13
Map
Following Page
Major Road Construction in Yemen, March 1961 . . 3
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SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
The Bloc's much-publicized program to assist Cuba's industrial de-
velopment appears to have made only slight progress to date. Of proj-
ects to be financed under the $245 million** in long-term credits extended
in the past year, no more than about half a dozen have made any notice-
able headway. Bloc technicians, however, continue to arrive in Cuba,
and much preliminary work probably has been done.
Early in February, Cuba: announced that Soviet technicians had ar-
rived to help in the construction of two Soviet-supplied industrial enter-
prises, the first Soviet projects to be started. These installations, a
machine shop and an implements plant, had top priority after Cuba was
cut off from its normal US suppliers. The machine shop will be designed
to repair machinery for sugar mills and petroleum refineries as well as
construction machinery and to manufacture up to 4, 000 tons of spare
parts annually. Some additional plants apparently are in various stages
of construction, and machinery has entered the country for still others.
These plants include factories from Czechoslovakia for the production of
bicycles, pencils, and domestic appliances and one or more factories
furnished by East Germany. There is no evidence that construction has
begun on such previously publicized major projects as the automobile
industry complex, the petroleum refinery, or the steel mill.
* Although the main emphasis of the Biweekly Report 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.
** Unless otherwise specified, all dollar values in this report are in
terms of US dollars.
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Enrollment for the Second Year at Patrice Lumumba Friendship
University
The USSR has selected the period from 1 February to 31 March for
conducting an enrollment drive for the 1961/62 academic year at the
University of Peoples Friendship, which was recently renamed the
Patrice Lumumba Friendship University. The institution reportedly
will more than double its present registration of 500 students when the
second academic year commences on 1 September.
The current enrollment drive is centered on increasing the
number of African students at the university, and Soviet authorities
have mentioned a goal of 300 new students from Africa for the
1961/62 academic year. Although the USSR has given no breakdown
of current enrollment, apparently fewer than 100 students are now in
attendance from Africa. The change in the institution's name may have
been designed to interest prospective students from this continent.
Formal academic training at the university will get underway
for the first time in September, in view of the fact that instruction
during the year has been confined to a preparatory program concen-
trating on the study of the Russian language. This fall the class of
1960/61 presumably will undertake studies in one of the six faculties --
engineering, agriculture, mathematical and natural sciences, medicine,
history and philology, and economics and law. *
The new institution began operating in October 1960 using make-
shift facilities and with only about half of the 500 students originally
anticipated because some foreign governments were unwilling to allow
students chosen solely by the USSR to go to Moscow for training. ** The
Soviet authorities relented, however, and allowed the objecting govern-
ments to participate in the selection of students for the new institution.
See the Biweekly Report of 14 March 1960.
See the Biweekly Report of 24 October 1960.
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Because of this concession, the quota for the first class was met by the
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The USSR probably established the university because it would
lend itself more directly to Soviet propaganda purposes than existing
student- exchange programs. Soviet propaganda media have stressed
the role taken by students from the University of Peoples Friendship in
the Moscow demonstrations following the death of Lumumba, and elab-
orate coverage was given to the r aming of the institution by the Soviet
Government.
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Sino-Soviet Bloc Trade with Selected Underdeveloped Countries
of the Free World a/*
1959 and First Half 1960
Million US $
1960
1959
1959
Area and Country
(First 6 Months)
(First 6 Months)
(12 Months)
1,
300.7
1,085. 5
2,
289. 9
207.0
139. 6
Argentina
61.5
48.9
103. 3
Brazil
60.4
53. 1
104.5
Chile b/
--
0.5
1.0
Colombia
2. 3
1.9
5. 3
Cuba b/
63. 0
0. 8
18. 0
Ecuador
--
0. 1
0. 2
Mexico
1.4
2. 0
3.9
Peru
0. 6
0. 5
0. 9
Uruguay
17.8
28.4
40.8
Venezuela
--
3.4
7.9
452.3
412.4
788. 0
Afghanistan c/
26.2
26. 2
52. 5
Greece d/
52. 5
33. 3
75. 9
Iran c/
27. 0
27. 0
59. 1
Iraq
20. 2
8. 8
24. 3
Israel
3. 7
6. 5
11.4
Jordan c/
1. 5
2. 0
5. 6
Lebanon c/
3. 9
4. 3
11.4
Pakistan
28.4
10. 1
18. 8
Turkey
43.8
48.4 83.4
UAR Egypt
225.6
228.1 413.4
UAR -- Syria
19.5
17.7 32. 2
Footnotes for Table 1 follow on p. 12.
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Sino-Soviet Bloc Trade with Selected Underdeveloped Countries
of the Free World a/
1959 and First Half 1960
(Continued)
Million US $
1960 1959 1959
Area and Country (First 6 Months) (First 6 Months) (12 Months)
95. 7
Ethiopia - - - -
Ghana 29.8 6.4 16.4
Guinea 7. 1 14. 2
Morocco 20.7 10.0 29.8
Sudan d/ 15.6 8.1 26.4
Tunisia 4. 4 2.8 8.9
345.8 301.9 696.6
Burma 18.7 13.9 28. 4
Cambodia 8. 3 3. 2 8. 7
Ceylon 36.2 29.0 60. 1
India 92. 5 88. 7 207. 4
In.doneu is 81. 0 55. 6 141.5
Laos - - e% - -
Malaya and Singapore 103.4 108.6 245. 0
Thailand d/ 2. 8 2. 9 5. 5
Vietnam 2.9 --
Europe
225.1 197. 2
Iceland 20.1 25.8 51. 0
Portugal 5. 7 6. 8 11.4
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Sino-Soviet Bloc Trade with. Selected Underdeveloped Countries
of the Free World a/
1959 and First Half 1960
(Continued)
Million US $
1960 1959 1959
Area and Country (First 6 Months) (First 6 Months) (12 Months)
Europe (Continued)
Spain d/
17.3
21.9
40.4
Yugoslavia
182. 0
142.7
321. 1
a. These data are based on official trade statistics of the Free World
countries involved (with the exception of Afghanistan). All values have
been rounded to the nearest $100, 000. A dash (--) entry indicates that
no figure for trade is known, although some trade may have taken
place. Because of rounding, figures may not necessarily add to the
totals shown.
b. Trade figures for January-December 1959 are at an annual rate for
Chile and Cuba, and the figure for January-June 1960 for Cuba is
estimated.
c. The trade figure for January-June 1960 is estimated on the basis of
data for January-June 1959.
d. The trade figure for January-June 1960 is in some cases extrapolated
from available data covering less than the 6-month period.
e. Less than $50, 000.
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Trade and Payments Agreements in Force
Between the Sino-Soviet Bloc and Underdeveloped Countries
of the Free World a/*
31 December 1959 and 31 December 1960
Area and Country
Estimated Number
as of 31 December 1960
Estimated Number
as of 31 December 1959
Total
206
196
Latin America
35
26
Argentina
6
7
Brazil
6
6
Colombia
4
5
Cuba
11
0
Mexico
1
1
Uruguay
7
7
Middle East
73
75
Afghanistan
4
4
Greece
7
7
Iran
4
4
Iraq
11
11
Israel
4
4
Lebanon
6
8
Pakistan
4
4
Turkey
7
7
UAR -- Egypt
11
11
UAR Syria
9
9
Yemen
6
6
Africa
31
27
Ethiopia
2
2
Ghana
2
0
Guinea
6
5
4-1 Footnote for Table 2 follows on p. 14.
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Trade and Payments Agreements in Force
Between the Sino-Soviet Bloc and Underdeveloped Countries
of the Free World a/
31 December 1959 and 31 December 1960
(Continued)
Estimated Number
Estimated Number
Area and Country
-as of 31 December 1960
as of 31 December 1959
Africa (Continued)
Mali
1
0
Morocco
7
7
Sudan
6
7
Tunisia
7
6
Asia
41
42
Burma
8
9
Cambodia
6
5
Ceylon
7
7
India
10
11
Indonesia
10
10
Europe
26
26
Ic eland
6
6
Portugal
4
4
Spain
6
6
Yugoslavia
10
10
a. Including agreements known to be in force, agreements that are
assumed to have been tacitly renewed, and newly signed agreements of
uncertain date of entry into force. Agreements include government-
to-government agreements as well as nongovernmental agreements;
the latter are listed only when they assume the practical character-
istics of government-to-government agreements. Barter agreements
and contracts are not included.
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