SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020048-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 48
• Publication Date: November 5, 1962
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/176
5 November 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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Summary of Events
19 October - 1 November 1962
The Soviet and Iranian Governments have agreed to exchange instru-
ments of ratification on the transit agreement signed in April 1957.
In late October a group of 49 Soviet technicians arrived in Iraq re-
portedly to construct surface-to-air missile sites. Contractual provision.
has been made for well over 100 Soviet military engineers and technicians
to set up missile bases in Iraq and train Iraqis in their operation and
maintenance. Missile equipment was first delivered in mid-October, and
more may be forthcoming early in November.
The USSR has granted recognition to the new Yemeni Government and
agreed to provide a new economic credit. Additional military assistance
has been made available through the United Arab Republic.
A protocol to the Sino-Ghanaian agreement on economic and technical
cooperation, concluded during President Nkrumah's visit of last year to
China, was signed on 18 October. This represents the first action toward
implementation of the agreement.
Senegal has become the first member of the Afro-Malagasy Union to
accept Bloc diplomatic representation. The recent arrival of Soviet dip-
lomats in Dakar came as a surprise to Prime Minister Dia, whose govern-
ment had taken no action on an agreement for diplomatic exchanges signed
last June in the USSR.
Soviet support for Communist China's position in the Sino-Indian
border dispute apparently has resulted in the cancellation of the Decem-
ber delivery of MIG-21's to India.
According to Indonesian Foreign Minister Subandrio, the USSR has
agreed to defer all but $7. 5 million of Indonesia's $28 million repayment
obligation on military credits that fell due in October 1962. The USSR
is now considering a request for consolidation and rescheduling of future
payments over a longer term, but there is evidence of Soviet reluctance
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in this matter. Soviet response to Indonesia's problems may be indi-
cated by a reported offer of a new $100 million credit for financing im-
ports of spare parts and raw materials. In addition, it is likely that
the USSR has agreed in principle to Indonesia's making a substantial
part of future repayments in export commodities.
In response to a request from Souvanna Phouma, the USSR is to pro-
vide Laos with a gift of nine transport aircraft and one helicopter together
with several crews to train Laotian pilots.
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Page
I. Latin America . . . . . . . . . . . . . . . . . . . 1
Tentative Brazilian Approval of Polish Offer of Air-
craft . . . . . . . . . . . . . . . . . . . . . .
II. Middle East . . . . . . . . . . . . . . . . . . . 1
A. Soviet-Iranian Transit Agreement . . . . . . . . 1
B. Status of the Soviet Missile Program in Iraq . . . 2
C. Soviet Aid to the New Yemeni Government . . . . 2
III. Africa . . . . . . . . . . . . . . . . . .
A. Protocol to Sino-Ghanaian Agreement . . . . . . 3
B. Agreements Between Niger and Czechoslovakia . . 3
C. First Soviet Diplomatic Mission to a UAM Country
(Senegal) . . . . . . . . . . . . . . . . . 4
IV. Asia . . . . . . . . . . . . . . . . . ... . . 4
A. Suspension of Deliveries of Soviet Aircraft to,
India . . . . . . . . . . . . . . . . . . . . 4
B. Soviet Concessions to Indonesia on 1962 Repay-
ments . . . . . . . . . . . . A ? ? e
4
C. Soviet Gift of Aircraft to Laos .. . . . . . . . . 6
V. Brief Notes . . . . . . . . . . . . . . . . . . . . 6
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