COMMUNIST AID AND TRADE ACTIVITIES IN LESS DEVELOPED COUNTRIES, OCTOBER 1975

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500230032-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 19
• Document Creation Date: December 9, 2016
• Document Release Date: February 11, 2000
• Sequence Number: 32
• Publication Date: December 1, 1975
• Content Type: REPORT

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Secret
NOFOfN
(S'Pe in-vide cover)
Commun:ict Aid and Trade Activities
in Less Developed Countries October 1975
Secret
ER RP 75-33
December 1975
Copy N2 492
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NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
DISSEMINATION CONTROL ABBREVIATIONS
NOFORN- Not Ralalisablo to Foreign Nationals
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Contractor/ Consultants
PROPIN- Caution-Proprietary Informal, n Involved
USIBONLY- USIB Departments Only
ORCON- Dissemination and Extraction of Information
Controlled by Originator
REL. . . - This Information has been Authorized for
Release to ...
Classified by 01319
Exempt from General Declaadficodon Schedule
of E,O, 11 A12 ?umption cat?goryt
? e1S (2), and (3)
Autoaicarly declassified ont
dote impossible to determine
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Nujurn
CON'I'E.N'1'S ANI) SUMMARY OF EVENTS
(October 1975)
highlights
? The USSR signed Its first economic cooperation agreements with Cyprus
and the Malagasy Republic. The amounts of aid involved were not
specified.
? Peking extended its first aid to Gabon, a $25 million credit.
? Eastern Europe pledged aid to the Congo and Egypt totaling $35 million.
? Morocco ordered a slowdown in economic negotiations with the USSR to
limit increases in Soviet activities in Morocco.
? Peru is considering major new purchases of Soviet arms.
? The USSR has agreed to provide Syria with additional sophisticated
weapons.
j'e
Articles
Iran-USSR Economic Relations Continue To Warm . . . . . . . . . . . . . t
Assesses the growth of Soviet-Iranian relations.
Soviet Arms Sales to Peru . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Examines Soviet efforts to increase its share of the Peruvian arms
market.
Soviet Trade with Less Developed Countries, 1974 . . . . . . . . . . . . . 5
Summarizes Soviet-LIX' trade performance in 1974.
Other Activities
Economic . . . . . . . . . . . . . . . . . . . . . .. . .. . . . . . . . . 8
Military . . . . . .. ... . .. . . . . . . . . . . . .. . . . . . . . . 14
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Nofur,i
COMMUNIST All) AND 'l'RAUE ACTIVI'T'IES
IN LESS DEVELOPED COUNTRIES
OCTOBER 1975
IRAN-USSR ECONOMIC RELATIONS CONTINUE TO WARM
25X1A
Soviet-Iranian economic relations are entering a new phase as Tehran, with its
increased wealth, is shedding its client status. A recent agreement calls for
cooperative efforts to undertake, in both countries, projects whose estimated
eventual cost could run as high as $3 billion. 'T'ehran also became an aid donor, when
it recently agreed in principle to provide credits for a paper complex in the USSR.
Soviet Economic Aid to Iran, 1963-75
The changing relationship t.; built .rn more than a decade of nmtutually beneficial
arsangetnents made possible by their common border. Beginning with an agreement
in 1963 to build a border dart, Soviet aid has expanded to about $800 million and
includes a steel mill, a gas pipeline, and smaller industrial and agro-industrial
facilities (sec the map).
'The dam's power and water for irrigation is allocated in equal shares to Iran
and the USSR. The gas pipeline from the Iranian gas fields to the Soviet border
enables Iran to sell a former waste product to service its economic and military debt
to the USSR. Moscow is using the gas to meet the growing energy requirements in
Azerbaijan a.nd the Transcaucasus while saving the costs of transporting gas from
distant fields. The gas deal also allows the release of some Soviet gas -'or ~alle at
higher prices in Western Europe. The steel mti. -.gas providcJ by the Soviets at a time
when no other country was willing to finance it. Projects contemplate:! under tl>-;
15-year cooperation ag rcement signed in 1972 are a further expression of their
mutual economic interests. A second border dam and gas pipeline are planned, anu
capacity at the steel mill is to be nearly tripled by 1978; September protocols
provide for electrifying a 90-mile line from Tabriz in Iran to Jolfa on the Soviet
border and for studies to build a 100-mile railroad from Mashad in Iran to Tedzhen
in the USSR. Negotiations also are in progress for another 200-mile line from Qazvin
Note: The substance of this publication has been coordinated with the Bureau
of Intelligence and Research of the Department of State, with the Defense
Intelligence Agency, and with the Agency for Internat: anal Development.
Comments and queries regarding this publication are welcomed. They may be
directed to of the Office of Economic Research, Code 143,
Extension 5291.
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(?11i~)Illll
swl
to Astara, on the Soviet border. 'I hese transport links will help accommodate the
growing Soviet-Iranian trade as well as the increasing amount of' Fast European
goods being shipped to Iran through the USSR.
Some of these new projects will likely be covered by the $250-$300 million in
aid still outstanding under old credits. Moscow has usually carried through with its
aid pledges despite changing circumstances and will be willing to accept payment in
natural gas. Some will likely be flnan::ed by Iran or jointly, but the Soviets will
continue to provide the equipment and technical assistance.
Military Aid
Although Tehran relies on the West for all sophisticated weapons, it has
purchased $825 million of Soviet military support equipment and arras since 1967
for its ground forces. The ability to pay for military goods with natural gas was an
important factor in Iran's decision to buy this equipment.
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The rising trade between the two countries
has reflected the expanding Soviet aid program.
By 1973, trade had risen to eight times the 1962
level; total trade shot up another 75'/0 in 1974.
For the first time iio three years the USSR ran a
nonmilitary trade surp;us----$47 million (see the
tabulation)---as increased exports of machinery
and equipment, building materials, chemicals, and
edible oils exceeded expanding imports.
Million US
Soviet exports
185
351
Soviet imparts
188
304
Natural gas
91
175
Other
97
129
Nonmilitary trade
balance
-3
4.47
The trade is small when viewed as part of each country's total foreign trade. It
is less than 3% of both Soviet exports and imports and 1% and 5`lo in the Iranian
case. Iran in 1974, nevertheless, was the USSR's third largest trading partner in the
developing world. (Secret Noforn) ^
SOVIET ARMS SALES TO PERU
Moscow has mounted a campaign to increase arms sales to Lima, its only Latin
American military aid client. Previous Soviet arms agreements with Peru, totaling as
high as $130 million, were concluded with the army. The Peruvians now are
considering Soviet offers made to an all-service delegation that was in Moscow in
August.
Lima has expressed an interesi in air defense equipment-radar, antiaircraft
artillery, and missiles-and MIG-21s. The navy, which has sidestepped previous
Soviet overtures, also is considering up to six Osa or Nanuchka class guided-missile
patrol boats.
The Soviet-Peruvian military supply relationship dates back only to 1973, when
Lima turned to Moscow because of continuing restrictions on US sales and the
inability of West European countries to meet Lima's requested delivery schedules for
equipment.
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Soviet prices and repayment terms were also favorable--l0 years at about YX)
interest and acceptance of Moscow's military aid confirmed Lima's "nonaligned"
stance. Lima has signed two agreements thus far with the USSR.
? The first, in 1973, included more than 200 T-55 tanks and 122-millimeter
(nun) and 130-mm howitzers. Truck-mounted BM-21 rocket launchers
and ZStl-23-4 antiaircraft guns were also delivered.
ZSU-23-4 23-MM Self-Propelled Antiaircraft Gun
? The second, concluded early this year, is a $30 million order for 30 MI-8
helicopters, all delivered.
Although initially satisfied with Soviet ground equipment, Peru now is facing
problems with tank maintenance because of the need for frequent repairs and a lack
of spare parts. The Peruvian army is uneasy over the growing number of Soviet
military advisers that accompany arn.s arrivals and the extensive training of
Peruvians in the USSR. About 50 Soviet advisers are now in P-ru and about 150
Peruvian military personnel are training in the USSR.
Peru is also discussing arms purchases with a number of Western countries,
including the United States, but these sources cannot mat%;h the combination of
price, credit terms, performance, and delivery schedules of the Soviet equipment
oft'crs. Thus, despite its preference for Western equipment and Lima's concerns over
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file Soviet presence, we expect recent Soviet-Peruvian discussions to result in orders
for high performance aircraft and naval vessels. Moscow would like to demonstrate
its ability to compete in this market in order to stimulate sales elsewhere in Latin
America. (Secret Noforn)^
SOVIET TRADE WITH LESS DEVELOPED COUNTRIES, 1974
Soviet-LI)C trade increased in 974
but at a slower pace than in 1973. Most of
the growth resulted from higher prices
rather than volume gains. Soviet 1974
imports from LI)Cs reached $3.3 billion
(see the chart and the table), tip more
than a third from the previous year
mainly because of rising pi ices for oil and
other primary products. Export; rase
more slowly, up 17%% to $4.8 billion, as a
consequence of reduced military deliver-
ies. These trends caused the Soviet trade
surplus with the LDCs to shrink from
$1.7 billion in 1973 to $1.5 billion in
1974. As in previous years the main
ingredient of the Soviet surplus was mili-
tary sales. In 1974 the Soviets ran a $0.5
billion deficit in nonmilitary goods sales
to the LDCr,, which was offset by nearly
$2 billion in military goods deliveries.*
Moscow's Trading Partners
Soviet Foreign Trade
with LOU, 1974
$4.A $3.3
'Dtladnnc? between bWt npocwd Soviet uiport)
to t DCs and the sum,-welon of idontl$id Soviet
exports to LDCs.
LDCs accounted for about 157o of
Soviet trade in 1974, the same as in 1973. The Soviet share in LDC global trade,
however, fell slightly to 2%.
? Soviet exports cannot be fully identified by either type of commodity or destinatioi. A large lifference
exists between what the Soviets report as total exports to LDCs and tto total derived by adding amounts
they list for individual LDCs. We believe this export residual includes mcstiy military goods.
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:ioviet Expnrls to and Ingwrtifrom IJ)Cs'
Million US S
1974
Total trade2
Exports
4,063.8
Imports
2,410.8
Exports
4,761.4
Imports
3,272.0
Unallocated resl.Iwil'
2,150.8
35.9
2,028.8
32.2
LUC total
1,()07.(;
2,374.9
2,732.6
3,239.8
Africa
284.6
267.3
445.9
335.0
Algeria
87.3
70.3
145.6
81.0
Cameroon
0.9
4.7
1.3
14.9
Central African Republic
0.5
....
0.7
....
Congo
1.6
3.5
2.6
2.6
Dahomey
1.8
2.8
2.1
....
Ethiopia
2.2
3.0
3.4
4.8
Ghana
13.1
37.8
33.4
32.5
Guinea
56.4
2.6
29.6
6.5
Ivory Coast
5.3
8.4
11.4
25.9
Kenya
0.3
0.5
0.8
Libya
19.0
41.0
37.6
....
Malagasy Republic
....
0.4
....
0.9
Mali
3.0
0.7
5.5
0.9
Morocco
38.2
35.2
71.4
43.6
Nigeria
14.8
39.0
28.4
92.9
Rwanda
0.4
0.5
1.0
....
Senegal
6.6
....
21.5
....
Sierra Leone
1.6
2.0
1.4
Somalia
15.5
1.5
22.2
2.6
Sudan
3.4
....
5.0
3.2
Tanzania
0.8
3.4
3.0
3.7
Togo
1.9
....
2.2
....
Tunisia
7.8
7.3
10.7
11.9
Ubanda
1.2
3.2
1.2
6.3
Zambia
0.4
....
4.2
Europe
42.0
14.3
170.9
38.1
Malta
1.5
....
1.6
1.2
Portrr.gal
....
....
8.3
0.8
Spain
40.5
14.3
161.0
36.1
East Asia
18.8
144.4
23.2
305.6
Burma
2.6
0.7
4.1
0.4
Indonesia
3.6
5.7
10.6
26.3
Malaysia
1.2
130.5
0.9
248.2
Singapore
8.6
4.3
5.9
17.8
Thaliar-_'.
2.8
3.2
1.7
12.9
Latin A nerica
34.1
367.0
144.0
408.9
Argen-ina
6.1
97.5
7.9
173.6
Bolivia
5.4
16.5
5.4
15.0
Brazil
12.5
157.3
118.8
147.8
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Sovlct Exports to and Intlmrts from LUCN1
(Continued)
Million US $
Latin America (Continued)
Colombia
Exports
1.!
Imports
12.5
Exports
1.3
Imports
5.7
Costa Rica
0.3
6.9
0.8
2.1
Dominican Republic
....
21.1
....
....
Ecuador
0.3
0.()
0.7
5.8
1,11 Salvador
....
5.0
....
....
Guatemala
5.8
....
....
Guyana
....
9.3
0.3
5.9
Jamaica
....
5.3
....
12.5
Mexico
0.7
0.1
1.4
1.7
Peru
5.8
20.8
6.1
6.2
Uruguay
1.1
7.2
1.0
32.6
Venezuela
0.8
0.8
0.3
....
Near East and South Asia
1,527.5
1,581.9
1,948.6
2,152.2
Afghanistan
45.5
48.3
81.6
80.0
Bangladesh
58.7
13.2
52.8
23.9
Cyprus
10.3
6.9
14.2
11.9
Egypt
374.2
356.3
397.7
563.4
Greece
57.5
49.4
117.5
87.0
India
300.8
494.1
355.6
456.8
Iran
185.4
188.5
350.8
303.5
Iraq
191.0
257.3
240.6
357.4
Jordan
3.4
....
3.2
....
Kuwait
10.7
....
6.2
....
Lebanon
15.5
10.3
33.7
9.8
Nepal
0.9
0.4
2.8
....
North Yemen
4.6
0.3
11.2
0.1
Pakistan
17.0
32.1
39.9
32.5
Saudi Arabia
3.9
....
3.7
....
South Yemen
15.5
0.1
19.9
0..
Sri Lanka
8.5
9.2
x.9.3
15.8
Syria
97.3
63.0
92.5
135,0
Turkey
126.8
52.5
95.4
75.0
1. Data arc from the official Soviet foreign trade yearbook for 1974, converted at $1.35 per ruble for 1973
and $1.32 per ruble for 1974.
2. Greece, Malta, Portugal, and Spain have been added to the LDC total shown in the yearbook.
3. Residuals are computed by subtracting the summation of trade for individual less developed countries from
the total for Sovict-LDC trade listed in the foreign trade yearbook.
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India, Egypt, Iran, and Iraq together accounted for about, a half of Soviet 1974
trade with the Third World. Egypt relied most heavily on this exchange as 25% of its
trade was with the USSR: India's share was 81/0, Iraq's 6`%o, and Iran's 3'%o. Moscow
ran nonmilitary trade deficits with all these countries, except for Iran.
Elsewhere, rising prices accentuated Soviet deficits with major raw materials
suppliers. Moscow's traditionally large deficit with Malaysia grew as rubber prices
spiraled. Although Moscow was able to ease its Latin American deficit through oil
sales to Brazil, the deficit remained at more than $250 million because of large
agricultural purchases from Argentina and Brazil.
Price increases also affected traditional trading patterns. Soviet nonmilitary
trade with Syria showed a deficit for the first time because of higher prices paid for
Syrian oil and cotton. Nigeria was propelled into second plaro ;;+ong African
partners because of a 65% increase in the pt ice of cocoa beans. Algel'a, which
imported more Soviet building materials and edible oils at higher prices, remained
Moscow's largest African trading partner. Petroleum exports to Morocco helped to
increase the USSR's usual surplus with Africa. (Unclassified).
Economic
General. Romanian economic relations with the Third World focused on
African countries. Bucharest signed its first trade and cooperation agreements with
Guinea-Bissau and signed an annual trade protocol with Guinea. Increased Romanian
economic activity is envisioned under protocols signed with Sudan and Mali. In
Sudan, Romania will participate in developing machine building, chemical, mining,
and timber industries, presumably to be financed under a 1971 $75 million credit
agreement. A series of joint ventures in mining, petroleum, light industry, and
agriculture are planned in Mali. A team of Romanian geological experts is expected
soon in the Ivory Coast, following October discussions on mining cooperation.
(Unclassified)
During October, the USSR inaugurated service on a new shipping line serving
East African ports. (Unclassified)
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Algeria. Under a $68 million contract, Czechoslovakia and East Germany
will jointly build a factory to produce pumps for water, chemical processing, and
petroleum. The terms of the contract are probably commercril. (Unclassified)
Congo. Bi igaria agreed early in October to provide $10 million in credits
for Congolese development projects. Contracts were signed for feasibility studies
on stock-breeding complexes, and a joint company was established for exploration
and exploitation of phosphates and other minerals. (Unclassified)
Gabon. On 21 October, China agreed to provide $25 million in credits to
Gabon for agricultural machinery and light industrial projects. The terms are
somewhat harder than for most recent Chin' se agreements - 5 years' grace followed
by 10 years for repayment. (For Official Use Only)
Guinea. Guinea has terminated its bilateral clearing account arrangements
with Bulgaria, Czechoslovakia, and Romania and plans to renounce all of its
remaining clearing agreements. A hard currency trade and payments agreement
signed with Romania on 2 October is expected to serve as a prototype for
agreements with other Communist trading partners. Guinean trade officials claim
that its exports to Communist countries have been undervalued and that hard
currency settlements will enable it to maximize the benefits from that trade. (For
Official Use Only)
Liberia. The USSR told the Liberians it was willing to finance a fishing
venture, a citrus processing plant, and an animal feed plant. The fishing project
includes trawlers, modification of docking facilities, and construction of a processing
plant. Liberian officials are expected to veto the Soviet proposals. (Secret Noforn)
Libya. The October visit of the Czech premier to Libya apparently dealt
largely with political issues. The only economic agreement calls for establishing
an interministerial commission to study means to broaden industrial cooperation.
(Confidential)
A Libyan oil delegation in Bucharest signed agreements to obtain Romanian
equipment and technical assistance for oil drilling and exploration and for the
construction of petrochemical and fertilizer plants. The terms of the agreements
were not revealed. (Unclassified)
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Malagasy Relnchlic. The USSR and the Malagasy Republic signed im economic
cooperation agrecivent in October under which the USSR will provide a 150-kw
transmitter, educational equipment and technical assistance, a feasibility study for
it cement plant, and assistance Ior mining research. The USSR also agreed to study
Malagasy proposals for it clam, agro-industrial projects, and road construction. A
trade agreement signed at the same time calls for establishing it Soviet commercial
office in Tananarive to expand trade between the two countries. (Confidential)
Morocco. The Moroccan government has ordered it slowdown in economic
aid negotiations with the USSR. It wants to limit any increase in Soviet activities
or presence in Morocco at this time. Negotiations on the Meskala phosphate
development project reportedly will be affected by the new instructions. The
agreement for the project was schedul';d for signature by the end of 1975. (Secret
Noforn)
Nigeria. A team of Chinese technicians arrived in Lagos to assist in the
development of small-scale metal, woodworking, and leather industries in Nigeria.
(Unclassified)
Rwanda. A Rwandan delegation was in Peking in early October, probably
to discuss procurement of commodities under Rwanda's S22 million Chinese credit.
(Unclassified)
Somalia. Somalia and Hungary signed their first long-term trade agreement
and a technical assistance agreement during the visit of the Hungarian President
to Mogadiscio. Hungary h ,,,s promised aid in agriculture, animal husbandry, and
technical training. (Unclassified)
Burma. A 21-member Burmese government industrial delegation arrived in
China on 24 October, probably to discuss Chinese economic assistance proposals
reportedly made to the Burmese Foreign Minister in September. (Confidential)
Indonesia. A team of Soviet engineers recently completed a study for a
hydroelectric plant in Indonesia, the first of six projects planned under an economic
agreement concluded last December. A contract is expected to be signed by the
end of the year. (Confidential)
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l'hll/pp/lIvs. the Philippines announced that :1 Soviet dclevalion is expected
in Manila in November lo continue negotiations on the estahlishnuent of diplomatic
relations. (tlnclassific'.l)
Slirya/,nre. An official trade delegaflon departed for a two-we k visit to China
at the invitation of' ('hincse Trade officials. Members Include government officials
and representatives of Singapore's ii ulufacturing, Iratting, and banking sectors. (For
Official Use Only)
Europe
Portugal. During President Costa (;oines' October visit, the USSR and Poland
promised no aid and deferred final decisions on trade deals. In slid-October fit,-
USSR did agree to purchase about $18 million worth of agricultural goods, and
Poland continued discussions on contracts for repairing Polish ships and constructing
transport equipment in Portugal. Warsaw also is considering 811 agreement to provide
technical assistance to Portugal's fishing industry. (Confidential Noforn)
The first session of the Bulgarian-Portuguese Joint 1?cononlic ('onlrtlission
resulted in long-term agreements on economic cooperation and merchant shipping.
(Unclassified )
Argentina. The Fast German Foreign Trade Minister arrived in Argentina on
14 October for talks on expanding trade. Formal trade exchanges between the
two countries were renewed last year Following a 12-year hiatus. (Unclassified)
Brazil. Romania has offered petrochemical plants to Brazil tinder I2-year
credits similar to the $150 million credit extended ea.-lier this year for steelmaking
equipment. (Unclassified)
Ale,tico. On I October Mexico and the USSR signed an agreement on joint
research in nine fields, including energy, geology, and oceanography. (For Official
Use Only)
Peru. On 30 September, East Germany announced the purchase of $28 million
of Peruvian metals, including copper, silver, and zinc, the first major order under
a May agreement to expand trade. (For Official Use Only)
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Ilnlgary recently extended Peril i $1(1 million saipplicrs credit fc-r wheat and
o(hcr food, Repayment is (hlce two years after delivery at Ti", interest, (Ilrlchlssificd)
it jyl-a-rklar. 'l'llc USSR and Afghanistan iccently signed cmitracts for Soviet
project surveys that will he Iinanced under a I97S aid agteement. Surveys will
be made for four bakr'ries, a large grain silo in Mcv.ar-i-Sharif, and two flour mills.
(I Inclassif ie(l )
('rprux. On I October ('yprus announced its first economic and technical
cooperation agreement with the USSR. The new accord puts no dollar value on
the assistance, hilt is a general framework agreement under which Moscow will
extend credits for specific prcri,~cts after studies ,Ire cconlpleted. Projects mentioned
include clams and a new airport at Nicosia. Farber this year ('yprus bought two
fertilizer plants from the IISSIR under long-term credits, (tJnclassiiied)
I;f;-y-l. On 30 September Ilungary extended $25 million in five-eight year
credits for machinery and equipment for P.gyp1ian development projects. l gypt
and Ilungary also agreed to settle their trade accounts in hard currency be 'ining
I January 1970. (11nclassified)
Irrdiu. The Soviet Union will begin delivery in 1970 of $20 million worth
of equipment for the Mathura oil refinery. Financing for the 120.000 b/d plant
is from a 1966 Soviet credit. (Unclassified)
Iran. A 4 October protocol provided for the liulga:ian sale to Iran of railroad
passenger cars, 400 freight cars, and various agricultural products. hue two sides
also plan to cooperate in agro-industrial enterprises in Iran under $20 million in
previously extended Bulgarian trade credits. A delegation will visit Tehran soon
to discuss these projects, including poultry raising, dairies, and canning plants.
(Unclassified)
Prague has agreed to supply equipment to expand the ('tech-built Tabriz
machine tool plant and construct several agricultural projects. In return, Tehran
will sell machinery and possibly gas to Prague. A joint ministerial commission will
meet later this year for further discussions on these projects. It also will consider
new Czech proposals to set up a brass factory and cement and power plants in
Iran. (Confidential)
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ilndcr a Polish- Iranian agtcemenf signed in October animal trade is rxpectrt
141 tine to 5100 million throuyli incrra nr(1 cxcIi Itigcs of Iranian industrial goods
and Polish ngticiullutal products, fritilircr, and shipq. Poland also agreed to set
III; projects in Iran, including textile and sugar stills and a tin cYmCrntration plant.
A polish del(Nali(.,i is expected in Iran soots lo discuss additional project proposals
including a cheese factory in Iran and a paper mill III Poland, Tehran trportr(liy
agreed to provide a $2(X) million advance payment to obtain nerded Polish gotuls.
(Unclassified)
Iraq, Oil 3 Octohcr the IISSR signed if contract to modrrnire a nuclear energy
center in Iraq, under a ,hmv 1975 agreement for coop-ration in the peaceful to es
of atomic energy. Financial arr:u-genients for the prc'je.ct were not discl-sed, but
a Soviet foreign aid organization is involved. (Secret Not'orn)
'i'he ('hairumui of the Polish State Council paid a mid-October visit to Iraq
to (Ilickrss Polish economic aid for various projects presumably under a 1972 S IM
million credit. The joint Iraqi-Polish ('(.niniissioti will continue Ihese discussions
at its annual meeting in early i)ecernher. (Unclassifie(l)
The USSR and Iraq recently signed a contract for exploitation of file 1-mmis
oil field in southern Iraq, cxlxctrd to produce at least 50,00( barrels of crude
a day. The USSR has done exploratory work in the field under credits extended
in 1969 and also will help coastnict a ,.:.s separation unit, a pumping station,
storage tanks, a power plant, and a 50-60-111ile pipeline connecting the new field
with other Iraqi pipelines. Finiincing arrangements for the estimated 550 million
program were not announrd. (Unclassified)
Jordan. On 19 October Romania signed further agreements to eynand tile
Az-Zarga oil refinery. The two sides also discussed Romanian participation in oil
and water j Tospccting, a new oil refinery, a cement plant, and several agricultural
projects, probably on commercial bass. (Unclassified)
Kuwait. Kuwait has concluded two agreements with Poland, one on economic
and technical cooperation, the other on trade and payments. Poland will cooperate
in developing Kuwait's petrochemical industries, presumably with a view to securing
long-term supplies of Kuwaiti oil. (Unclassified)
t '~istan. An aid protocol signed in late 7ctober portends increased Romanian
rarticipation in Pakistan's industrial dcve!opment under SS6.5 million of credits
extended in July 1973. Romania wi!! help set up : dairy, textile mats, and food
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prrscrvatiot- :n-d stotagc plants and will drill Inc nil near Rawalpindi. Ilnmania
also rxptrsced interest in helping construct an nil refinery at Mult:ttt .::-1 conducting
pl-nsph:-t' rxph)ratinr- in the Ihvara district. (IInclassilicd)
,S'nrrllr Yemen. The IISSI( and 5uutu Yemen recently signed cnntrac-Is for
SO-virt :tic) lot txdrnlrutn exploration. Moscow will prospect for nil in the rant
and cot-dlict an aerial yrophysical survey. under a 1972 $40 million credit
agreen-r.nt. (Unclassified)
Military
25X1 B
Alull. Mal, received- MUG-15s, via Guinea, under a I)rcctnlrzr 1974
agreement, and Moscow was preparing to ship Mali's-AN-26 transport aircraft
under a 1975 agrectneut. (Secret Noforn)
25X1 B
Alururrr,. 'thte II55K made deliveries in October of rocket launchers trucks,
and mall arms contracted for by Morocco in July. (("onfidential)
25X1 B
Nigeria. In October Moscow ' orttplctcd the first phase of deliveries of Ml(;-2I
aircraft expected under a 1974 agreement with Nigeria. Since July. Lagos has
25X1 B received at least- MI(;-21 Fishhed aircraft (of which at least. are ready for 25X1 B
operation). Nigeria will recr4vc an additional aircraft under the same 25X1 B
agreement. In I)rce tnhrr. 1-3 Nigerians will begin training on these aircraft in the
USSR. (Secret Noforn)
Tanwnia. Peking currently is helping Tanzania to construct a military and
political academy at Munduli. The school, scheuded for early 1976 completion.
ha, a planned enrollment of 960 cadets. (Unclassified)
25X1 B
The USSR recently delivered E 130-mm artillery pieces and an unknown
number of SAM-7 missiles. The equipment, part of a $40 million 1974 agreement,
was acc: mpanied by 15 instructors. (Secret Noforn)
25X1 B 25X1 B
Zaire. [hiring October, Zaire rcccived? 130-mm guns,. jeep-mounted
rocket launchers, ando torpedo boats as grants from North Korea. (Secret Nofon,)
25X1 B
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Near Fast anti South Asia
25X1 D
25X1 D
South }'c rrrr--. Moscow tieliveretiMl(;-2I airctal't to Aden in late September. 25X1 B
part of a 1913 $35 million agreement, hrinyhir. to- the nomber delivered ter 25X1 B
South Yemen this year. (Secret Noforn)
,tiYr/a. The IISSR conclud--d a major new arms agreement with Syria. during
president Asad's October visit 'o Moscow. Asad was seeking MI(:-25 reco..naiss.rnce
aircraft, as well as additional Ml(;-23 jet fighters and surface-to-air missile
equipment. Acquisition of the MI(;-25 Foxhat would he a feather in Asad's political
cap both as a demonstration of Syrian strength and of Soviet support for its policies.
(Confidential)
Since midyear, Syria also h;as siy,ttrd at least two important arms agreements
with ('i.echoslovakia. In June, Damascus contracted to bu'trucks, mainly Tatra
148s for towing artillery pieces. Syrian President Asad's September trip to Prague
rclxortedty resulted in an order fo. L-39 jet trainer aircraft and possibly some
arm-)red vehicles. (Secret Noforn)
25X1 B
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