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-RDP92B01090R000700020092-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 2, 2005
• Sequence Number: 92
• Publication Date: July 13, 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 1/220
13 July 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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Summary of Events
26 June - 9 July 1964
The scope of Soviet assistance for India's petroleum industry
will expand as the result of recently concluded agreements. A ship
equipped with modern geophysical equipment will be provided to
India to undertake offshore petroleum exploration activities, and
Soviet petroleum technicians will be provided to operate the equip-
ment. To date the USSR has extended about $148 million in economic
credits to India for petroleum exploration and development and re-
finery construction. Indian purchases of Soviet petroleum products
also have been increasing; Soviet petroleum sales have increased
from 23, 000 tons in 1960 to about 750, 000 tons in 1963. Current
oil trade negotiations reportedly involve possible Indian imports of
more than 2 million tons over a period of 3 to 4 years.
Under a recently negotiated trade protocol the USSR has made
a significant trade concession to Indonesia by providing for Indo-
nesian imports from the USSR on a 1-year deferred-payment basis.
This is the first time that the USSR is known to have granted such
liberal trading terms to a less developed country of the Free World.
The payment deferral will allow Indonesia to use approximately
$10 million in foreign exchange for additional imports or to meet
pressing repayment obligations. In addition, the USSR is continuing
to encourage Indonesia to maintain a surplus on its current commer-
cial trade account; this trade surplus then can be used to meet re-
payment obligations on Soviet long-term credit extensions.
Information recently received indicates that the Soviet-Indonesian
arms agreement of November 1963 provides for more equipment than
previously had been reported. The equipment is now valued at $51. 6
million; equipment for the Indonesian navy accounts for $24. 9 million,
for the air force $18. 5 million, and for the army $3. 2 million, with
the residual covering miscellaneous civilian-type vehicles for all
three services.
The USSR has concluded a trade agreement with Cyprus for
Soviet purchases of 10, 000 tons of cognac alcohol in return for
Cypriot purchases of 400, 000 tons of fuel oil. The agreement will
provide fuel oil for the Cyprus Electricity Authority at a favorable
price and assures Cyprus of a market for a significant part of its
surplus vine products. The USSR reportedly also has offered Cyprus
a long-term credit equivalent to $84 million. Economic assistance
of this magnitude, however, at this time, appears highly improbable.
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The USSR reportedly has expressed interest in extending economic
aid to Jordan. Although no details of a Soviet proposal are known, it
is believed that Jordan may be interested in obtaining assistance for
a potash plant. Although past Soviet offers of aid have not been accepted,
Jordan's increasing desire to develop its potash industry plus inaction
on the part of Western sources of economic assistance has increased
the likelihood that current Soviet overtures will be received more
favorably.
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Page
I. Asia . ... . . . . . . . . . . . . . . . . . . . . . 1
A. Soviet Assistance for India's Petroleum Industry . 1
B. Indonesia . . . . . . . . . . . . . . . . . . . 2
1. Special Soviet Trade Concession . . . . . . 2
2. Additional Information on the Soviet-
Indonesian Arms Agreement of November
1963 . . . . . . . . . . . . . . . . 2
A. Soviet Aid and Trade Overtures to Cyprus . . . . 3
B. Possibility of Soviet Economic Aid to Jordan . . . 4
III. Brief Notes . . . . . . . . . .
Bolivia . . . . . . . . . . . ... . . . . . . . . . . 4
Ethiopia . . . . . . . . . . . . . ... . . . . . . 5
India . . . . . . . . . . . . . . . . . . . . . . . 5
Syria . . . . . . . . . . . . . . . . . . . . . . . 5
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