SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010066-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 66
• Publication Date: August 18, 1958
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/66
18 August 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
0066-8 370
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WARNING
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
1 - 14 August 1958
These deliveries of Soviet
arms to Syria highlight recent developments in the economic activities
of the Sino-Soviet Bloc in underdeveloped countries of the Free World.
Also in Syria, the Development Board accepted a Bulgarian offer to
build the Ar-Rastan dam in 28 months for $8.65 million.
On 8 August the government of Pakistan signed barter agreements
with Communist China and Poland. China will provide 100, 000 metric
tons of rice, and Poland 50, 000 metric tons of coal. Both Bloc coun-
tries will receive Pakistan cotton in return, and China will also receive
jute.
In Southeast Asia, Burma signed a long-term trade agreement with
East Germany, and Indonesia signed a similar pact with Poland. Both
agreements replace earlier pacts which had expired.
In late July, Tunisia renewed its trade and payments agreement
with the USSR and its trade agreement with Bulgaria. Each pact pro-
vides for increased trade between Tunisia and the Bloc country.
Argentina contracted to purchase 2 million metric tons of coal
from Poland. Payment is to be made in Argentine exports. The coal
is probably earmarked for the state-owned railroad system and will
reportedly fill about 25 percent of Argentine coal requirements over
the next 4 years. Also in Latin America, a Soviet official visited
Santiago, Chile, on a trade promotion mission. He discussed prices
and iuantities:of goods available for purchase by the USSR but placed
no orders.
A case study of Afghanistan's economic relations with the USSR
and Czechoslovakia reveals that credit agreements are implemented
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by means of contracts with Bloc firms which specialize in the export
of complete industrial plants and equipment and in the provision of
technical specialists. These Bloc organizations work closely with
the Afghan Ministries of Public Works and of Mines and Industries,
/A statistical supplement summarizing
Sino-Soviet Bloc trade and trade agree-
ments with selected underdeveloped
countries of the Free World since 1954
is contained in this issue. 7
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I. General (Afghanistan: A Case Study in the Implemen-
tation of Bloc Economic Assistance) . . . . . . . . 1
II. South Asia (Pakistan Barter Agreements with Com-
munist China and Poland) . . . . . . . . . . . . . 7
III. Southeast Asia . . . . . . . . . . . . . . . . . . 7
A. New Trade Agreement Between Burma and East
Germany . . . . . . . . . . . . . . . . . . 7
B. Indonesian-Polish Trade Agreement . . . . . . . 8
IV. Middle East and Africa . . . . . . . . . . . . . . 9
A. Syria . . . . . . . . . . . . . . . . . . . . 9
1. Delivery of More Soviet Arms . . . . . . .
2. Acceptance of Bulgarian Offer to Build
Ar-Rastan Dam . . . . . . . . . . . . .
B. Renewal of Tunisian Trade Agreements with the
USSR and Bulgaria . . . . . . . . . . . . . . 10
1. Tunisian-Soviet Trade and Payments Agree-
ment . . . . . . . . . . . . . . . . . . 10
2. Tunisian-Bulgarian Trade Agreement . . . . 11
V. Latin America . . . . . . . . . . . . . . . . . . 11
A. Argentina . . . . . . . . . . . . . . . . . 11
1. Contract for the Purchase of Two Million Tons
of Polish Coal . . . . . . . . . . . . . . 11
2. Implementation of Soviet Offer of Develop-
mental Assistance to the Petroleum Industry 12
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B. Visit of Soviet Trade Mission to Chile . . . . .
Statistical Supplement
12
Table 1. Sino-Soviet Bloc Trade with Selected Under-
developed Countries of the Free World,
1954, 1956, 1957 . . . . . . . . . . . . . .
14
Table 2. Trade and Payments Agreements in Force
Between the Sino-Soviet Bloc and Under-
developed Countries of the Free World,
31 December 1953 - 30 June 1958 . . . . . . .
17
Table 3. Trade of Selected Underdeveloped Countries
with the Sino-Soviet Bloc as a Percentage
of Each Country's Total Trade, 1955-57 . . . .
20
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