SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020019-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 19
• Publication Date: September 25, 1961
• Content Type: REPORT

Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
Copy N? 445
SECRET
BIWEEKLY REPORT
S1NO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/147
25 September 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
25X1
SECRET
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
 Approved For Release 200510S'(JItEW92B01090R000700020019-9
Summary of Events
8-21 September 1961
The USSR has withdrawn from the Euphrates Valley project in the
Syrian Region of the United Arab Republic. This project was to have
been built by the USSR under the credit of $150 million established by
the Soviet-Syrian aid agreement of October 1957. Almost one-half of
this line of credit had been obligated for the Euphrates Valley project,
which now will be constructed by West Germany.
The Congo (Brazzaville), Niger, Dahomey, and Senegal -- four
members of the Union of African States and Madagascar (UAM) ('a
confederation of former French colonial territories) -- are sending
economic missions to the Bloc.
President Nkrumah?s plans to send a large number of Ghanaian
cadets to the USSR for military training suggest that negotiations for
military assistance took place during his recent visit to Moscow.
Although there is substantial opposition to this development among
the British-trained high command of the Ghanaian army, it remains
to be seen whether Nkrumah can be influenced to alter his plans.
Guinea and Communist China have agreed on a list of projects to
be built under the line of credit of $25 million extended in September
1960. A National Assembly building, a series of small hydroelectric
dams, and a number of small factories are to be constructed.
A Soviet ship has offloaded another shipment of arms at Casablanca --
the fourth-Soviet delivery since December 1960. Inasmuch as Soviet
arms have not been seen in the Moroccan army, previous deliveries
probably were destined for the Algerian rebels.
Credit agreements between Indonesia and five Bloc countries have
been concluded recently. Total Bloc economic aid commitments to
Indonesia now amount to more than $600 million.
Czechoslovakia will assist Indonesia in the field of mining and
processing of raw materials under a credit of unspecified amount
Approved For Release 2005/08 92B01090R000700020019-9
 Approved For Release 2005/0 ( p92BO1090R000700020019-9
extended in May 1961 during President Sukarno's visit to Prague. The
agreement incorporates such standard terms as repayment in 10 annual
installments at Z. 5 percent interest, but it is unusual (1) in that repay-
ment will be largely in theraw.materials produced by the facilities con-
structed, without the option of repayment in convertible currency, and
(2) in that amounts of these raw materials in addition to those supplied
as repayment will be delivered to Czechoslovakia for a period (and in
quantities) to be determined later.
A protocol to the Chinese Communist - Nepalese aid agreement of
March 1960 was signed early in September providing for a tannery and
a shoe factory to be built in Katmandu.
Approved For Release 2005/0d*fqP92B01090R000700020019-9
 Approved For Release 2005/QS" P92B01090R000700020019-9
CONTENTS
Page
I. Middle East . . . . . . . . . . . . . . . . . . . 1
Soviet Withdrawal from the Euphrates Valley Project
in the UAR - - Syria . . . . . . . . . . . . . . . 1
II. Africa . . . . . . . . . . . . . . . . . . . . . 3
A. African Economic Missions to the Bloc . . . . 3
B. Possible Soviet Military Assistance to Ghana . . 4
C. Chinese Communist Aid Projects in Guinea . . . . 4
D. Delivery of More Soviet Arms to Casablanca . . . 5
III. Asia . . . . . . . . . . . . . . . . . . . . . . . 6
A. Indonesia . . . . . . . . . . . . . . . . . . 6
1. Bloc Economic Aid to Indonesia
2. Unusual Terms of the Indonesian-Czechoslovak
Credit Agreement . . . . . . . . . . . .
B. Protocol to the Chinese Communist - Nepalese
Aid Agreement . . . . . . . . . . . . . . . . 9
Approved For Release 2005/08/22 : CIA-RDP92B01090R000700020019-9
SECRET
 25X1 Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
Next 8 Page(s) In Document Exempt
Approved For Release 2005/08/22 : CIA-RDP92BO109OR000700020019-9
 Approved For Release 2005/ON7 'P92BO1090R000700020019-9
Approved For Release 2005/0f/2Cr ffP92BO1090R00070002001 9-9