(Classified)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82S00205R000100140029-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 9, 2016
• Document Release Date: March 12, 1999
• Sequence Number: 29
• Publication Date: December 19, 1967
• Content Type: REPORT

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1. Prince Sihanouk's recent revelation of a Cambodian agreement
to provide rice to the Viet-Congin exchange for dollars precludes
_small amounts of rice now acquired from Cambodia. A year old
goverTment purchase. program to channel the country's entire surplus
of rice through government agencies has, had only limited success.
-Rice production declined (partly due to natural causes), some illegal
cross-border trade continued despite favorable government prices,
and the government has been unable to obtain sufficient rice to meet
the demand- of a strong foreign market.
2. VC/VVA purchases have accounted for a relatively small ?
'portion -- probably less than 3.percent --cf Cambodian rice crops
that have ranged from 2.1 to 2.8 million tons a year since 1960.
Vietnamese communist purchases. of Cambodian rice-are estimated -to have
* In s, press conference in Phnom Penh on 26November 1967;- Sihanouk
was quoted es follows:
"We hove node e verbal ecreement with the Viet Cong con-
cernirg trade. The Viet Con buy our rice, medicines, and
other go7)ds sue pay with dollars. Mere is no reason for
us to refrain from trading with them, since we have .com-
mercial dealings even with the Saigon. Government, North
Vietnam, end everybody." -
The agreement referred to probably was mo0e late in 1965.
Sihanouk implies that it is still effective.
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totaled about 5,000 tons
to 30,000 tons in 1966.
20,000 tons.* Cambodian
in 1965 and to have reached a peak of 20,000
This year'a total probably will not exceed
rice markets ST* so fragmented, and the
3. The current rice crop appears to be larger than that of'1966.
If current expectations are realized, Cambodia's exports of rice and
rice derivatives -. all government controlled -- should increase to
between 300,000 and looloopo tons in 19600-compared with an estimated
volume of approximately 250,000 tons in 1967. Basting commitments
to foreign buyers probably cover a large share of the crop now being
harvested and Cambodian 0ff1,eiA1a All 1^r^-bil ty would feel tha'',,
their best interests would lie in honoring the commitments rather
than risk losing established customers in favor of short term gains.
* In addition small volunes of rice are known to be smuggled
across the border, particularly in the delta region.
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Furthermore, rice acquired on the domestic market could not be
legally exported except through government channels. A significant
increase in the domestic price of rice would probably have the
counter-productive effect of attracting illegal rice imports from
neighboring Thailand and South Vietnam.
5. Principal importers of Cambodian rice are listed in the
following tabulation.
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it_l_..nci_l_slioschas!,,re of Cambodian Rice end itu Derivati s
1.0 an,:i ______
.. - Jan - Dc 196'6 jan - June 1:4
thousulsd 7-1-,0 1,3 ) sand ra---1 ,,i IA1
ic tons1211119,:ila)(metric tons) (millions)
Total
1A10
24.2
121
Colonial
Area
61
9.5
23
4 2
pore
44
3.7
19
2.3
Cospainist China
22
2.8
10
1
Hong Kong
/4
L.T
24
4.0
Poland
12
LI
0
0
East Germy
1.0
0
Czechoslovakia
1.1
9
1,7
France
4
0.5
1
Other 13tzopeu
Countri
1.4
4
0.7
India
Nog.
041
3. ?
1.8
0
0
1.5
Indonesia
3
0.4
2
0.3
Other Countries
1
-0.3
3
0.7
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