SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020079-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 79
• Publication Date: January 13, 1964
• Content Type: REPORT

BIWEEKLY REPORT
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SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/207
13 January 1964
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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Summary of Events
27 December 1963 - 9 January 1964
The high level of Soviet military deliveries begun in October con-
tinued through December with arms shipments arriving in Syria, the
United Arab Republic, Iraq, and Algeria.
Brazil and Bulgaria signed a new trade protocol to the 1961 trade
and payments agreement. It is reported that the :protocol provides for
substantial future exports of Brazilian iron ore -- 300, 000 metric tons
in 1964, increasing to 2 million metric tons in 1970.
The USSR has informed Brazil that the 1963 commitment to deliver
500, 000 tons of wheat cannot be fulfilled; only half of the amount has
been delivered. Furthermore, it is probable that the USSR will not be
able to meet the 1964 quota of 600, 000 tons. The Soviet Government
reportedly blamed the failure to meet delivery quotas in 1963 on "excep-
tionally unfavorable conditions of food supply in the USSR. "
The Ethiopian Government announced in late December that the
USSR will proceed with construction of the oil refinery at Assab. Imple-
mentation of this project will result in the first substantial drawings on
the $100 million Soviet credit extended in 1959.
In his recent tour to the USSR the Indonesian Defense Minister
failed to obtain substantial economic, military, and diplomatic support
for Indonesia. Although he trade limited purchases of military equip-
ment from the USSR under credits previously extended, no new credits
were granted. Additional Soviet weapons will be forthcoming, but financ-
ing will be under existing lines of credits. The longstanding Indonesian
request for a weapons assembly plant was turned down by the USSR.
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Page
I. General .. . . . . . . . . . . . . . . . . . . . 1
Continuation of Soviet Arms Shipments at High Level 1
II. Latin America (Brazil) . . . . . . . . . . . . . . 2
A. Soviet Inability to Meet Wheat Commitments
to Brazil . . . . . . . . . . . . . . . . . . 2
B. New Brazilian-Bulgarian Trade Protocol . . . . 2
III. Africa . . . . . . . . . . . . . . . . . . . . . . 3
Ethiopian Announcement of a Soviet Aid Project . . . 3
IV. Asia . . . . . . . . . . . . . . . . . . . . . . . 4
Results of Indonesian Defense Minister's Tour
to the USSR . . . . . . . . . . . . . . . . . . . 4
Burundi . . . . . . . . . . . . . . . . . . . . . 4
Cambodia . . . . . . . . . . . . . . . . . . . 4
Chile . . . . . . . . . . . . . . . . . . . . . . 5
Morocco . . . . . . . . . . . . . . . . . . . . . 5
Pakistan . . . . . . . . . . . . . . . . . . . . . 5
Somali Republic . . . . . . . . . . . . . . . . . . 5
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