SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020068-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 68
• Publication Date: August 12, 1963
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/196
12 August 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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Summary of Events
26 July - 8 August 1963
Under an economic aid agreement signed on 27 July, the USSR
extended a $38. 8 million credit to Iran to finance Iran's share of the
cost of Soviet equipment and services in the construction of a jointly
financed dam on the Soviet-Iranian border. The credit is for 12 years
at an annual rate of interest of 3. 6 percent, which is higher than the
usual Soviet charge of 2. 5 percent on development credits. The USSR
also agreed to implement projects to increase fish productivity and to
construct 11 grain silos, possibly under the terms of the trade agree-
ment signed in May 1963.
A shipment of Soviet arms, probably part of an arms agreement
negotiated in March, was delivered to Yemen in early July. The
materiel included about 30 T-34 tanks, 20 armored. personnel carriers,
20 jeeps, 20 120-mm mortars, and 12 85-mm field guns. Additional
military supplies may be forthcoming; a Yemeni mission, which de-
parted for Moscow in early July to discuss an economic and technical
cooperation agreement, reportedly will ask for weapons and other
military equipment.
An official of the United Nations Economic Commission for Africa
has reported a Soviet offer to establish a technical training institute
to accommodate 800 to 1, 000 Africans in the USSR. Previously the
USSR had offered to establish such an institute somewhere in Africa.
A Soviet economic delegation arrived in Algeria on 29 July for a
2-week investigation of Algeria's economic needs, particularly in the
industrial field. Upon conclusion of the survey, the delegation will
offer its evaluation and presumably make recommendations regarding
Soviet aid.
The USSR apparently has agreed to accept the return of 4 I1-18
and 1 An-12 transport aircraft purchased by Ghana under a Soviet line
of credit extended in August 1960. Four I1-18's remain in the Ghanaian
government-owned airline.
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In June, Senegal's Secretary of State for Planning and Development
signed an agreement for Soviet aid in expanding agricultural development,
the first Bloc aid project with a UAM country.
The USSR and Afghanistan agreed, on 25 July, on priorities for
Soviet aid to Afghanistan during the coming year, signed a project
survey agreement on 29 July, and reportedly negotiated the extension
of an additional $3. 5 million credit to Afghanistan. These developments
indicate the intention of the USSR to maintain its prominence in Afghan-
istan's development efforts.
In reply to Chinese Communist criticism, Pravda on 7 August pub-
lished a long justification of the Soviet program of aid to underdeveloped
countries. The full text of the article is not available, but one of the
many details reportedly included was the Soviet claim that credits
amounting to about $3. 4 billion have been extended thus far to the under-
developed countries.
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CONTENTS
Page
I. General . . . . . . . . . . . . . . . . . . . . . .
Soviet Reply to Chinese Communist Criticism of Aid
to Underdeveloped Countries . . . . . . . . . . . .
II. Middle East . . . . . . . . . . . . . . . . . . . .
A. Soviet Development Credit for Iran . . . . . . . 1
B. Soviet Arms Delivery to Yemen . . . . . . . . . 3
III. Africa . . . . . . . . . . . . . . . . . . . . . . 3
A. Proposed Soviet Technical Training Institute
for Africans . . . . . . . . . . . . . . . . . 3
B. Soviet Economic Delegation to Algeria . . . . . . 3
C. Return of Soviet Aircraft by Ghana . . . . . . . . 4
D. Soviet Assistance for Senegal's Agricultural
Scheme . . . . . . . . . . . . . . . . . . . 4
A. Further Implementation of Soviet Aid Program
for Afghanistan . . . . . . . . . . . . . . . . 5
B. Soviet Military Aid to Cambodia . . . . . . . . . 6
V. Brief Notes . . . . . . . . . . . . . . . . . . . . 6
Chile . . . . . . . . . . . . . . . . . . . . . . . 6
Kenya . . . . . . . . . . . . . . . . . . . . . . 7
Panama . . . . . . . . . . . . . . . . . . . . . . 7
Uruguay . . . . . . . . . . . . . . . . . . . . . 7
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