SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020035-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 35
• Publication Date: May 7, 1962
• Content Type: REPORT

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BIWEEKLY REPORT
SINO -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/163
7 May 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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Summary of Events
20 April. - 3 May 1962
The poor sugar harvest now underway in Cuba means that Cuba
must either cut back its commitments to Bloc countries or else reduce
its exports to the rest of the world. If sales to other countries are
reduced, Cuba will lose badly needed convertible earnings, and if its
exports to the Bloc are cut back, commercial credits will be required
in order to maintain critical imports of Bloc goods at the levels called
for in the trade agreements. Recent negotiations with Bloc countries
indicate that Cuba's sugar commitments to certain Bloc countries have
been reduced and that the USSR has extended $100 million in additional
aid to Cuba. Although the press has stated that this new assistance will
be utilized for the purchase of industrial installations, it is possible, in
view of the repayment arrangement (through the trade protocol) and
Cuba's pressing financial difficulties, that this aid may be used to finance
commercial imports from the Bloc during the present sugar crisis.
Deliveries of Soviet arms to Iraq in April reportedly included tanks,
tank transporters, artillery, radar, and other equipment. In addition,
three Soviet subchasers may be en route to Iraq.
Burma reportedly has canceled an agreement for two Soviet aid pro-
jects and also has decided not to accept Soviet assistance in the construc-
tion of another installation. In contrast to these developments, Chinese
Communist survey teams are arriving in Burma on schedule to determine
the feasibility of the projects to be constructed under the January 1961
credit of $84 million.
The initial delivery of Soviet surface-to-air missile training equip-
ment is expected to reach Indonesia in May. Additional Soviet ground
force equipment was delivered in April. Although Soviet materiel
apparently has been reaching Indonesia on or ahead of schedule, Indo-
nesia's Foreign Minister Subandrio nevertheless has gone to Moscow
in an effort to expedite future deliveries of arms.
On 25 April, Niger signed a trade agreement with the USSR.
Niger's president reportedly refused a Soviet offer of a large credit
on condition that Niger establish diplomatic relations with the USSR.
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On 25 April, Soviet Premier Khrushchev announced the appointment
of Mikhail A. Lesechko as chairman of the Commission for Foreign
Economic Affairs. This organization, which has been in existence for
about 2 years, apparently was created to coordinate the foreign eco-
nomic relations of Soviet ministries and committees. Public disclosure
of the existence of the commission at the recent session of the Supreme
Soviet may presage the development of new or more consistently ad-
ministered programs in Soviet economic relations with foreign countries.
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CONTENTS
I. General . . . . . . . . . . . . . . . . . . . . . 1
Soviet Commission for Foreign Economic Affairs . . . 1
II. Latin America . . . . . . . . . . . . . . . . . . 1
Implications of the Poor Cuban Sugar Harvest . . . . 1
III. Middle East (Iraq) . . . . . . . . . . . . . . . . 4
Delivery of Soviet Arms . . . . . . . . . . . . . . 4
IV. Africa (Niger) . . . . . . . . . . . . . . . . . . 4
Commercial Agreement with the USSR . . . . . . . . 4
V. Asia . . . . . . . . . . . . . . . . . . . . . . . 4
A. Status of Bloc Economic Assistance to Burma 4
B. Expected Delivery of Soviet Missile Equipment
to Indonesia . . . . . . . . . . . . . . . . . 5
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