SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020077-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 77
• Publication Date: December 16, 1963
• Content Type: REPORT

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Copy N? 449 25X1
BIWEEKLY REPORT
S1NO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/205
16 December 1963
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
RETURN TO RBCORDS (;ENTER
IMMEDIATELY AFTER USE
SECRET
JOB _ BOIL
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AND DECLASSIFICATION
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Summary of Events
29 November - 12 December 1963
Poland has renewed an offer to build a power station in Brazil, a
project that has lain dormant since Brazil signed contracts for a $26
million thermal electric powerplant and $7. 5 million worth of railroad
track in December 1962.
Soviet deliveries of military equipment to Cuba appear to have been
accelerated during the past 10 weeks. Included in these shipments have
been medium tanks, armored personnel carriers, artillery, and an
An-12 transport aircraft. The first of several SO-1 class submarine
chasers is now en route to Cuba.
Between mid-December and February 1964, Chinese Communist
Premier Chou En-lai and Foreign Minister Ch' en I will visit eight or
more African countries, including recipients of Chinese economic aid.
The Chinese Communist credit to Algeria of $50 million reportedly
is interest-free and repayable over a 10-year period beginning in 1970.
A significant proportion of this credit may be in hard currency.
The USSR and Czechoslovakia are providing equipment and tech-
nical assistance for a Kenya National News Agency to be established
soon after independence on 12 December. In addition to providing
$140, 000 worth of teleprinters and equipment, the USSR will train
Kenyan journalists and teletype operators while Czechoslovakia has
promised financial aid and scholarships. Reportedly the Kenyans
have agreed to construction of a powerful Soviet radio transmitter
on Kenyan territory in return for this aid.
Indonesia has announced that an agreement has been reached for
Soviet participation in the Indonesian rubber and fisheries industries
on a production-sharing basis. Assistance to Indonesia's rubber
industry would be of great importance. Much of Indonesia's small-
holder rubber has been piling up since the break in trade relations
in Malaysia and the loss of access to Singapore's processing and
marketing facilities.
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A Czechoslovak delegation is in Indonesia to discuss means for
implementing unused Czechoslovak credits extended in July 1960.
This agreement is:now scheduled to expire at the end of 1963.
Hungarian-Indian economic relations are expected to increase
significantly within the framework of a new 5-year trade agreement
and a line of credit to finance imports for industrial development.
Letters have been exchanged for a line of credit of $25 million.
Burma has reached agreement with Communist China for the con-
struction of two bridges over the Salween River. These construction
projects will be the first to be implemented under the January 1961 line
of credit of $84 million.
The USSR has offered an unspecified amount of economic aid to
the opposition Malta Labor Party (MLP). The offer reportedly is
contingent on the accession to power by the MLP after independence
is granted next year and on the MLP's declaration of complete neu-
trality.
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IN L
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CONTENTS
Page
I. Latin America . . . . . . . . . . . . . . . . . . 1
A. Renewed Polish Offer to Build a Powerplant in
Southern Brazil . . . . . . . . . . . . . . .
B. Recent Soviet Military Deliveries to Cuba . . . .
II. Africa . . . . . . . . . . . . . . . . . . . . . . 2
A. African Tour Planned by Chou En-lai and
Chen I . . . . . . . . . . . . . . . . . . . 2
B. Details on the Chinese Credit to Algeria . . . , 2
C. Soviet and Czechoslovak Aid to the Kenya News
Media . . . . . . . . . . . . . . . . . . . . 3
III. Asia . . . . . . . . . . . . . . . . . . . . . . . 3
A. Progress Under the Chinese Communist Aid
Program in Burma . . . . . . . . . . . . . . 3
B. India . . . . . . . . . . . . . . . . . . . . . 4
1. Expansion of Hungarian-Indian Economic
Ties . . . . . . . . . . . . . . . . . . 4
2. Recent Developments in Soviet Military Assist-
ance to India . . . . . . . . . . . . . . . 5
C. Indonesia . . . . . . . . . . . . . . . . . . . 6
1. Czechoslovak Economic Discussions with
Indonesia . . . . . . . . . . . . . . . . 6
2. Joint Indonesian-Soviet Production-Sharing
Agreement . . . . . . . . . . . . . . . . 6
IV. Europe . . . . . . . . . . . . . . . . . . . . . 7
Soviet Offer of Economic Aid to the Malta Opposition
Party . . . . . . . . . . . . . . . . . . . . . . 7
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Page
Brazil . . . . . . . . . . . . . . . . . . . . . . 8
Latin America . . . . . . . . . . . . . . . . . . 8
Somali Republic . . . . . . . . . . . . . . . . . . 9
Map
Burma: Projected Chinese Communist Economic Aid
following page . . . . . . . . . . . . . . . . .
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