SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010006-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 8, 2005
• Sequence Number: 6
• Publication Date: April 30, 1956
• Content Type: REPORT

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SECRET 7r ~~II
BIWEEKLY REPORT
SINO -SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /6
30 April 1956
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED S`L'ATES
WITHIN THE MEANING OF THE ESPIONAGE LAWS,
TITLE 18, USC, SECTIONS 793 AND 794, THE TRANSMIS-
SION OR REVELATION OF WHICH IN ANY MANNER TO
AN UNAUTHORIZED PERSON IS PROHIBITED BY LAW.
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S-E-C-R-E-T
1. Summary of Events, 10 - 23 April 1956 . . . . . . . I
II. Sino-Soviet Bloc . . . . . . . . . . . . . . . . 2
A. New Soviet Tactics at a Session of ECE . . 2
B. International Trade Fairs . . . . ... . . . . . 4
Page
III. South and Southeast Asia . . . . . . . . . . . . .
1. Polish Trade Agreement . . . . . . . . . 5
2. Bulgarian Trade Agreement . . . . . . . . 5
B. Cambodia - Communist China . . . . . . . . . 6
IV. Middle East and Africa . . . . . . . . . . . . . 6
A. Egypt . . . . . . . . . . . . . . . . . . . 6
1, Resales of Cotton . . . . . . . . . . . . . 6
2. Soviet Barter Agreement . . . . . . . . 7
B. Sudan . . . . . . . . . . . . . . . . 7
1. Soviet Technical Assistance . . . . . . . . 7
2. Sino-Sudanese Trade . . . . . . . . . . . 8
C. Iran-Polish Agreement . . . . . . . . . . . . 8
D. Soviet Tanker Chartered to Carry Aruba .Oil
to Israel . . . . . . . . . . . . . . . . . . 9
E. Soviet Arms Offer to Lebanon . . . . . . . . . 9
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V. Latin America . . . . . . . . . . . .
A. East Germany. - Chile .
B. Czechoslovakia - Paraguay .
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S-E-C-R-E-T
SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS*
I. Summary of Events, 10 - 23 April 1956.
Sino-Soviet Bloc efforts to expand economic relations with under-
developed areas in the Free World during the period from 10 to 23
April 1956 were concentrated largely in the negotiation of trade agree-
ments. An additional tactic of Bloc policy that was significant, al-
though not concerning an underdeveloped area, was the Soviet offer
to aid Western Europe which was voiced at a session of the United
Nations Economic Commission for Europe (ECE) on 9 April.
The attempt to use the ECE as a means of disrupting current
international agreements included an implicit offer to supply coal and
petroleum to Western European countries, a resolution to expand
economic cooperation on an all-European basis, and a proposal to
establish a special committee to study peaceful uses of atomic energy.
The implementation of the recently reported trade agreement be-
tween Poland and India underlines the sharply increased trade be-
tween these countries wherein Indian imports from Poland have in-
creased about tenfold in 2 years. Also in South and Southeast Asia,
a trade and payments agreement was signed between Communist
China and Cambodia on 24 April.
In the Near East the new Soviet-Egyptian barter agreement, signed
on 17 April, was concluded despite the inability of the Egyptians to ob-
tain assurances from Czechoslovakia that Egyptian cotton purchased
by the Bloc would not be resold in the West. The Egyptian government
* Although the main emphasis of the Biweekly is on economic
activities of the Sino-Soviet Bloc in underdeveloped areas of the
Free World, significant Bloc activities of this nature in areas
not considered underdeveloped also will be discussed.
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apparently is not too disturbed by the resale of cotton, because the ex-
port of cotton to the Bloc has jumped from 10 percent of total exports
during 1953-54 to an expected 33 percent during 1955-56.
Other Sino-Soviet Bloc economic activities in the Near East: and
Africa during the period included a reported offer of technical assistance
by the USSR to the Sudan and further trade talks between Communist
China and the Sudan, the signing of a trade agreement between Poland
and Iran on 16 April, a Soviet offer to supply arms to Lebanon, and the
reported chartering by Israel of a Soviet oil tanker to carry fuel oil
from Venezuela to Israel.
In Latin America an East German trade delegation established a
permanent office in Santiago, Chile The delegation was in Chile to
discuss the implementation of a barter agreement previously concluded
between the two countries. In addition, equipment for a flour mill was
shipped to Paraguay by Czechoslovakia, a transaction presumably
within the framework of the trade agreement signed between the two
countries in October 1953.
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