SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010060-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 60
• Publication Date: May 26, 1958
• Content Type: REPORT

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SECRET
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BIWEEKLY REPORT
S1NO - SOVIET BLOC
,.ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /60
26 May 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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 RDP92BOl090R000700010060-4
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THIS MATERIAL CONTAINS INFORMATION AFFECT-
ING THE NATIONAL DEFENSE OF THE UNITED STATES
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.
These biweekly reports on "Sino-Soviet Bloc Economic Ac-
tivities in Underdeveloped Areas" are prepared and issued
by a Working Group of the Economic Intelligence Commit-
tee, including representatives of the Departments of State,
the Army, the Navy, the Air Force, Commerce, and Agricul-
ture; the International Cooperation Administration; the
Office of the Secretary of Defense; and the Central Intelli-
gence Agency. Their purpose is to provide up-to-date fac-
tual information on significant developments in the eco-
nomic relations of Sino-Soviet Bloc countries with under-
developed countries of the Free World. The EIC-R-14 series
of reports, under the same title, provide periodic summaries
and analytical interpretations of these developments.
Printed and Disseminated by the
Central Intelligence Agency
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Summary of Events
9 - 22 May 1958
The possible withdrawal of Soviet economic aid from Yugoslavia
is the most significant recent development in the economic activities
of the Sino-Soviet Bloc in underdeveloped countries of the Free World.
Postponement on 17 May of the meeting of the Yugoslav-Soviet eco-
nomic commission seems to indicate that an earlier (9 May) Soviet
threat to withdraw economic assistance from Yugoslavia will be car-
ried out. To date, only about $52 million of the $304 million in
Soviet credits extended to Yugoslavia since the 1955 rapprochement
have been drawn.
Czechoslovakia is continuing to develop its economic ties with
Indonesia. On 9 May a new trade agreement between Czechoslovakia
and Indonesia was signed at Djakarta. In mid-April the Indonesian
government sinne
contract for the acquisition of Czechoslovak hydroelectric power
generating equipment. It is also reported that Czechoslovakia is
planning to offer a bid to construct for Indonesia on credit three
steam powerplants worth about $40 million.
In the Middle East the government of Yemen has concluded an.
economic aid agreement with the USSR for $15 million for the con-
struction of port facilities at Ras al-Khatib and a similar agreement
with Communist China for $16 million for the construction of the
Hudaydah-Ta'izz road and the development of eight small industrial
projects. The USSR has also offered Yemen. $10 million for air-
ports, gasoline storage tanks, and miscellaneous public works and
unconditional aid in the fields of irrigation, dam construction,
mineral exploration, and sanitation. In Egypt and Syria, earlier
Soviet agreements continue to be implemented.
? On 2 May, Brazil purchased from Poland 14 freighters valued
at $24. 1 million. Seven of the ships are scheduled for delivery in
1959 and seven in 1960.
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Since 1955 the Sino-Soviet Bloc haig concluded agreements with
7 underdeveloped countries of the Free World for the installation of
17 complete textile plants. In additiohi, the Bloc is providing textile
machinery and spare parts for existing textile factories in a few of
these countries. The total value of these installations is not known,
but it is estimated that credits totaling in excess of $10 million have
been extended by the Bloc to finance a portion of the costs.
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S-E-C -R-E-T
CONTENTS
I. General (Development by the Sino-Soviet Bloc of
Textile Plants in Underdeveloped Countries of
the Free World) . . . . . . . . . . . . .
II. Southeast Asia (Indonesia) . . . . . . . . . . .
A. New Czechoslovak-Indonesian Trade Agree-
ment . . . . . . . . . . . . . . . . .
B. Contract for Czechoslovak Electric Power
Page
Equipment . . . . . . . . . . . . . . . . 5
III. Middle East . . . . . . . . . . . . . . . . . .
A. Implementation of the Soviet-UAR Economic
Agreements . . . . . . . . . . . . . .
B. Economic Aid to Yemen . . . . . . . .
IV. Latin America (Brazilian Purchase of Polish
Ships) . . . . . . . . . . . . . . . . . .
V. Europe (Possible Soviet Withdrawal of Economic
Aid to Yugoslavia) . . . . . . . . . . . .
Map
Following Page
Textile Plants to Be Constructed in Underdeveloped
Countries of the Free World by Countries of the
Sino-Soviet Bloc . . . . . . . . . . . . . . . .
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