AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES IN LESS DEVELOPED AREAS OF THE FREE WORLD

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020090-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 90
• Publication Date: June 15, 1964
• Content Type: REPORT

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BIWEEKLY REPORT
AID AND TRADE ACTIVITIES
OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS
OF THE FREE WORLD
EIC WGR 1/218
15 June 1964
PREPARED BY THE WORKING GROUP
ON COMMUNIST AID AND TRADE ACTIVITIES
IN LESS DEVELOPED AREAS OF THE FREE WORLD
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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AND DECLASS flCATIDN
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Summary of Events
29 May - 11 June 1964
During May, Algeria received 100 armored vehicles from the
USSR -- allegedly to be used to equip the first of five planned experi-
mental divisions. The delivery reportedly consisted primarily of
T-34 tanks as well as a few T-54 tanks and some self-propelled guns.
Because of Ghana's shortage of foreign exchange and favorable
trade balance with the USSR, the Ghanaians have signed a contract
with the USSR for the purchase of 500, 000 tons of crude oil to be de-
livered over the period June-December 1964. The Soviet crude oil
will be refined at the GHAIP refinery at Tema, which is jointly owned
by Ghana and AGIP, a subsidiary of the Italian petroleum monopoly ENI.
President Karume of Zanzibar (Vice President of the Union of the
Republics of Tanganyika and Zanzibar -- URTZ) has announced that
Communist China has extended an interest-free credit of $14 million
to Zanzibar. In addition to granting Zanzibar $518, 000 earlier this
year, Communist China has delivered 25 tractors, other agricultural
equipment, and consumer goods. Meanwhile, the URTZ officials
announced that they were sending a mission to Communist China on
8 Jurie.
Recent reports indicate increasing Rumanian participation in the
minerals industries in Burma. Since March, four Rumanian geologists,
one of whom will take over the post of chief adviser to the People's Oil
Industry (POI), have arrived. Technical training also is being provided
in Rumania for four senior Burmese officials of the POI. Indications
are that the Rumanians also may be asked to assist in the development
of iron, tin, and wolfram mines and in the gem-mining industry in.
Burma.
Soviet military assistance to Cambodia, which was apparently nego-
tiated in the USSR in April, will be delivered in two installments, the
first of which is expected to reach Cambodia this summer. Although
this first delivery, consisting of two MIG-17 jet fighters, twelve 76-mm
guns, eight 85-mm antiaircraft guns, fifteen 82-mm mortars, thirty-
six machineguns, and 500 submachineguns, will be a gift, the second
shipment presumably will be on credit.
Indonesia's inability to meet its financial obligations to Czecho-
slovakia has resulted in an alteration of the latter's aid program and
a rescheduling of Indonesia's military aid repayments. Two Czecho-
slovak aid projects reportedly will be postponed because of Indonesia's
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failure to make the required downpayment for the projects. Indonesia's
military repayment obligations have been rescheduled by the "suspen-
sion" of the 1963 installment and the extension of the repayment period
until 1970.
The overthrow of President Goulart in Brazil has been followed by
an apparent pause in the course of Brazil's economic relations with at
least one of the Communist countries. A Committee of the Brazilian
Congress has announced its intention to review all of Brazil's interbank
agreements with foreign countries, including Communist China. A re-
view also may be made of all bilateral trade-and-payments agreements,
including pacts negotiated during 1961 with six Eastern European Com-
munist countries, an unratified pact with Cuba, and possibly the new
trade agreement signed with the USSR early in 1964,
Although Hungarian and Bulgarian proposals were not made at the
same time, both countries have signed basically similar trade offers
with Uruguay. Up to $22 million worth of industrial items, including
railroad rolling stock, track, related equipment, and a concrete crosstie
factory, will be supplied by Hungary and Bulgaria in return for meat,
wool, hides, and other Uruguayan raw materials.
The government of Cyprus, after extending civil air rights to the
USSR in February 1964, has granted aviation rights to the civil air-
lines of East Germany and Hungary. The East German line Interflug
has been given a temporary permit:to operate a scheduled service be-
tween East Berlin and Nicosia during the next 6 months. The air agree-
ment between Cyprus and Hungary provides for service between and
beyond the two countries, indicating that Hungary, with Greek concur-
rence, may plan to integrate the Cyprus service into its prospective
route to the Arab Middle East.
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A. Additional Soviet Arms for Algeria . . . . . . . 1
B. Ghanaian Contract for Soviet Crude Oil 1
C. Chinese Communist Credit for Zanzibar . . . . . 2
II. Asia . . . . . . . . . . . . . . . . . . . . . . . 2
A. Rumanian Participation in the Minerals Industries
of Burma . . . . . . . . . . . . . . . 2
B. Soviet Military Aid to Cambodia . . . . . . . . . 3
C. Indonesian Repayments Problems with Czecho-
slovakia . . . . . . . . . . . . . . . . . . . 3
A. Relations of the New Brazilian Government
with Communist Countries . . . . . . . . . . . 4
B. New Hungarian and Bulgarian Trade Offers
to Uruguay . . . . . . . . . . . . . . . . . 5
IV. Middle East . . . . . . . . . . . . . . . . . . . 6
East German and Hungarian Civil Air Agreements
with Cyprus . . . . . . . . . . . . . . . . . . . 6
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