SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020055-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 55
• Publication Date: February 11, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/183
11 February 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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Summary of Events
25 January - 7 February 1963
Czechoslovakia reportedly has liberalized the terms of the credit
that it extended to Bolivia in 1962 for the construction of an antimony
smelter. The Czechoslovaks hope to assure implementation of the
contract by extending the repayment period from 8 to 20 years, by giv-
ing a longer grace period, and by canceling the gold clause.
Jordan has approached the USSR for assistance in petroleum ex-
ploration, but no reply has been received. This request stems from
Jordanian dissatisfaction with US policy toward Nasser and the Yemen
Arab Republic.
The government of the Central African Federation (formerly the
Federation of Rhodesia and Nyasaland) has received an inquiry from
the USSR regarding a possible purchase of 500 to 600 tons of cobalt.
No decision has yet been made, and the government has indicated that
no export permit will be issued without consultation with the United
States.
A further delivery of Soviet materiel to Morocco, including anti-
aircraft guns and gun directors, was made late in January. This de-
livery probably represents part of the materiel contracted for under
the Soviet-Moroccan arms agreement of January 1962.
Activity under the Soviet aid program has increased in the northern
part of the Somali Republic. Technicians have arrived to undertake
engineering and technical surveys for the Berbera port development
project, completion of which is scheduled for 1965. Somali apprehen-
sion over the number of Soviet technicians to be engaged on a large-
scale agricultural project apparently has been overcome, and the
initial group has arrived.
A Soviet offer to supply a number of MIG aircraft and to train
Cambodian personnel reportedly is being negotiated by the Cambodian
Government. Although the Soviet authorities have expressed willingness
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to conduct training in the recipient country, Cambodia prefers to send
its personnel to the USSR.
Soviet delivery to India of four MIG-21 aircraft appears to be immi-
nent. These aircraft may be intended either for training purposes or as
prototypes in connection with Indian plans to manufacture MIG-21's under
Soviet license. The plan to manufacture the Soviet Mi-4 helicopter,
however, has been discarded. An Indian official has stated that the USSR
has proposed a significant increase in its economic assistance and trade
program.
Indonesia has concluded contracts with Poland and Czechoslovakia
for the construction of two cane sugar mills. These projects will be
financed under existing lines of credit. Under the terms of the Polish
agreement, 80 percent of the estimated $6. 4 million foreign exchange
costs will be financed on credit. Indonesia, however, is hopeful of a
liberalization of these terms.
Indonesia's optimism on receiving Khrushchev's earlier assurances
that the USSR was prepared to take all possible steps to ease Indonesia's
debt repayment problems now appears to have been somewhat premature.
The high-level Soviet economic delegation scheduled to come to Djakarta
in mid-December to work out the new payment arrangement still has not
arrived. Moreover, the USSR appears to be pressing the Indonesians to
meet their debt obligations when due and to be demanding payment in
"hard currency" commodities such as rubber.
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CONTENTS
A. Liberalization of the Terms for a Czechoslovak
Antimony Smelter in Bolivia . . . . . . . . . .
B. Soviet Credit of $15 Million for Cuban Development
Project . . . . . . . . . . . . . . . . . . .
Jordanian Request for Soviet Assistance in Petroleum
Prospecting . . . . . . . . . . . . . . . . . .
A. Bloc Economic Activity in East Africa . . . . . .
B. Polish-Algerian Agreements . . . . . . . . . .
C. Possible Sale of Cobalt by the Central African
Federation to the USSR . . . . . . . . . . . .
L. Soviet Arms Delivery to Morocco . . . . . . . .
E. Increased Soviet Activity in the Somali Republic . .
Page
A. Soviet Offer of MIG Aircraft to Cambodia . . . . . 4
B. Soviet-Indian Relations . . . . . . . . . . . . . 5
C. Indonesia . . . . . . . . . . . . . . . . . . . 5
1. Contracts for Czechoslovak and Polish
Sugar Mills . . . . . . . . . . . .
2. Possible Soviet Easing of Debt Repayment
Terms . . . . . . . . . . . . . . .
V. Brief Note . . . . . . . . . . . . . . . . . . . . 7
Uruguay . . . . . . . . . . . . . . . . . . . . . 7
- iii -
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