SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010062-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 62
• Publication Date: June 23, 1958
• Content Type: REPORT

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SECRET
BIWEEKLY REPORT
S1NO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /62
23 June 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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 Approved For Release 2005$ f ~IA-RDP92B01090R000700010062-2
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
Of lee 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
6 - 19 June 1958
The acceptance by the Argentine government on 18 June of a Soviet
offer to deliver 1 million metric tons of crude oil to Argentina during
the next 12 months highlights the economic activities of the Sino-Soviet
Bloc in underdeveloped countries of the Free World during the period
6 - 19 June' 1958. Two other Latin American countries, Brazil and
Uruguay, also have recently accepted Soviet offers of crude oil.
On 3 June, Pakistan signed a barter trade agreement with Communist
China under which China is to supply Pakistan with 150, 000 metric tons of
coal in exchange for about 15, 000 bales of cotton. Other Bloc economic
activity in South Asia includes a Soviet offer of a modern 50-bed hospital
to Nepal. The hospital would be built and equipped by Soviet technicians,
and 15 Nepalese students would be trained in Soviet medical institutions.
Two new Soviet tankers of 4, 000 deadweight tons each were delivered
in Djakarta in June, The vessels, valued at $3. 3 million, as well as
10 ships previously delivered in March totaling 23, 000 deadweight tons
and valued at $11. 5 million, were purchased from the USSR under the
$100-million Soviet credit to Indonesia. Othex Bloc activity in Indonesia
included the arrival of a Polish trade delegation in Djakarta to undertake
discussions on trade and shipping with the Indonesian Foreign Ministry.
Since mid-1956, Syria has been engaged in a program designed to
modernize-its basic air facilities to accommodate the aircraft purchased
from the Soviet Bloc. Bloc technicians and probably Bloc guidance have
been utilized to accomplish this purpose. Recent reports indicate that
the USSR and Czechoslovakia have supplied about 80 technicians who are
now engaged in construction work at Syrian military airfields. Existing
airfields are being modernized, probably with Bloc aid, at Damascus,
Hamah, Qamichliye, Deir Ez Zor, El Quseir, and Nairab. New air-
fields are being constructed, also probably with Bloc aid, at Risafah,
Ar Raqqah, Dumayr, and Palmyra.
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CONTENTS
Page
I. General (Soviet Bloc Assistance in Syrian Airfield
Construction) . . . . . . . . . . . . . . . . . . .
II. South Asia . . . . . . . . . . . . . . . . . . . . 5
A. Barter Agreement Between Pakistan and Com-
munist China . . . . . . . . . . . . . . . . 5
B. Soviet Offer to Nepal of a "Gift" Hospital . . . . . 6
III. Southeast Asia (Indonesia) . . . . . . . . . . . 6
A. Indonesian Purchases of Tankers and Textiles
Under Soviet Credit . . . . . . . . .. . . . . . 6
B. Polish Delegation in Djakarta for Discussion of
Trade and Ships . . . . . . . ... . . . . . 6
IV. Latin America . . . . . . . . . . . . . . . . . 7
A. Acceptance by Argentina of Soviet Offer of Crude
Oil . . . . .. . . . . . . . . . . . . . . . 7
B. Conditional Acceptance by Brazil and Uruguay
of Soviet Offers of Crude Oil . . . . . . . . . . 7
Illustrations
Following Page
Figure 1. Activity of the Soviet Bloc in the Development
of Syrian Airfields (Map) . . . . . . . .
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