SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020036-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 36
• Publication Date: May 21, 1962
• Content Type: REPORT

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SECRET
25X1
BIWEEKLY REPORT
SINO -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/164
21 May 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
25X1
SECRET
GROUP 1
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Summary of Events
4-17 May 1962
The USSR probably has extended to Cuba another credit of $100 million
for economic development. Soviet economic credits to Cuba, which now total
$300 million, are for the purchase of 20 industrial plants. Initial deliveries
of equipment for several of these installations began recently.
Possibilities for the expansion of trade between Brazil and the USSR have
been enhanced considerably since the resumption of diplomatic relations be-
tween the two countries in December 1961. The trade protocol signed on
7 May envisages almost a 100-pev,-cent increase in the total trade above that
registered in 1961. The total trade turnover in 1961 amounted to almost
$40 million.
The Economic Planning Board of Iraq recently awarded to a Bulgarian
firm. a contract for construction of the first stage of a new international air-
port at Baghdad. The first stage is to cost about $13. 2 million out of an
estimated total of $42 million for the entire project.
A Soviet freighter recently arrived in Casablanca with approximately
1, 500 tons of light arms and ammunition for the Moroccan armed forces.
Although Morocco previously assured US officials that no Soviet military
technicians would be allowed to enter the country, Soviet military technicians
will be involved in maintaining and instructing in the use of the materiel.
India reportedly has purchased 25 Mi-4 helicopters from the USSR, thus
raising the total number of these helicopters in the Indian air force to at
least 40. India also is considering the purchase of at least a squadron of
MIG-21 jet fighters and 12 additional An-12 transports as well as an agree-
ment to manufacture the MIG-21. under license.
Under the new Soviet-Indonesian arms agreement, Indonesia is to re-
ceive additional missiles, aircraft, and submarines. The value of this new
agreement -- $70 million ?-- raises the estimated value of the total Bloc
military aid to Indonesia to about $920 million.
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Yugoslavia has made its first substantial purchase of Soviet military
equipment since the Tito-Stalin break in 1948. This equipment includes
at least 20 T-54 medium tanks and 12 SU-100 self-propelled assault guns.
There also are reports that Yugoslavia will get MIG fighters from the
USSR.
In the past few months the USSR has stepped up its drive to extend its
international air routes to countries in Africa and Latin America. Although
regular air service from the Bloc to these areas is not always economically
profitable, it has considerable propaganda value and, in addition, facilitates
the movement of Bloc technical and military personnel to underdeveloped
countries where the Bloc has aid programs.
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Page
I. General . . . . . . . . . . . . . . . . . . . . . 1
Expansion of Bloc Civil Air Routes in Africa . . . . . 1
II. Latin America . . . . . . . . . . . . . . . . . 4
A. Relations Between Brazil and the USSR . . . . . 4
B. Extension of Additional Soviet Credit to Cuba . . . 5
III. Middle East . . . . . . . . . . . . . . . . . . . 7
Award of Iraqi Airport Contract to a Bulgarian Firm 7
IV. Africa . . . . . . . . . . . . . . . . . . . . . . 7
Delivery of More Soviet Materiel to Morocco . . . . . 7
V. Asia . . . . . . . . . . . . . ... . . . . . . . . 8
A. Indian Purchases of Soviet Aircraft . . . . . . . 8
B. New Soviet-Indonesian Arms Agreement 9
VI. Europe . . . . . . . . . . . . . . . . . . . . . . 9
Yugoslav Purchases of Soviet Military Equipment . . . 9
Map
Soviet and Czechoslovak Civil Air Routes to Asia, Africa,
and Latin America . . . . . . . . . . . . . . . . . .
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