SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010067-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 67
• Publication Date: September 1, 1958
• Content Type: REPORT

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SECRET l1VV
25X1:
BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR-1 /67
1 September. 1958
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
25X1
SECRET
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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 .-Evert
15 2c. .august 1 /58
Xrgentina has reportedly accepted a Soviet offer of equipment
worth $100 million for the development of its petroleum industry.
This agreement, if implemented, will be the largest single deal con-
cluded by the Soviet Bloc in Latin America. Other Bloc economic
activity in Latin America includes a Soviet offer to Brazii of a new
$20-million bilateral trade agreement under which Brazil would
export coffee and other agricultural and mineral products in exchange
for petroleum and other Soviet products including petroleum develop-
ment equipment.
On 19 August, India signed a $21-million contract with Czecho-
slovakia to acquire machinery and equipment for a foundry to be
located in Bihar state in northeastern India. Civil air flights be-
tween New Delhi and Moscow began on 14 August under the Indian-
Soviet bilateral civil air agreement signed on 2 June. Ceylon has
approved a plan to equip a textile factory with Chinese Communist
machinery.
Six Cambodian officials left for Moscow on 20 August to resume
negotiations for an economic and technical aid agreement. On 22 August,
Thailand lifted its embargo on rubber exports to Communist China and
North Korea, thereby ending the controls over these exports which it
had imposed in compliance with the UN resolution of May 1951 regarding
trade with these countries.
The first scheduled commercial air service between a Bloc
country and an Arab state was inaugurated on 18 August when a
Czechoslovak Tu-104 landed in Cairo. Czechoslovakia has con-
cluded civil air agreements with Egypt and Syria, and similar
agreements between Rumania and the UAR await ratification.
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The USSR has granted Iceland a credit equivalent to $3, 2 million
to cover payment by Iceland for twelve 250-ton fishing boats being
built in East Germany. The loan will be repayable in Icelandic ex-
ports over a period of 12 years and will carry interest at the rate of
2.1/2 percent.
Over the past 2 years, countries of the Soviet Bloc and Yugo-
slavia have engaged in survey and construction activities aimed at
developing existing as well as new port facilities for both commer-
cial and military uses at Alexandria and Abu Qir in Egypt; at Latakia
and Minat-al-Baydah in Syria; and at Al-Hudaydah, Salif, Ras-al--
Kathib, Minat-al-Hamdani, and Mocha in Yemen.
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I. General (Soviet Bloc Assistance for Development
of Port and Naval Facilities in the United Arab
Republic and Yemen) . . . . . . . . . . .
Page
A. Egypt . . . . . . . . . . . . . . . . . . . . 2
1. Naval Facilities . . . . . . . . . . . . . . 2
a. Alexandria . . . . . . . . . . . . . . 2
b.. Abu Qir . . . . . . . . . . . . . . . 2
2. Commercial Facilities (Alexandria) , .
B. Syria . . . . . . . . . . . . . . . . . . . . 4
1. Latakia . . . . . . . .. . . . . . .
2. Minat-al-Baydah . . . . . . . . . .
1. Salif . . . . . . . . . . . . . . . . . . . 6
2. Ras-al-Kathib . . . . . . . . . . . . . . 6
3. Minat-al-Hamdani . . . . . . . . . . . . 7
4. Mocha . . . . . . . . . . . . . . . . . . 7
1. Indian-C ze choslovak $ 21-Million Equipment
Contract Under Previous Agreement . .
2. New Delhi - Moscow Air Service . . . .
B. Ceylonese Approval of Chinese Communist Aid
for Textile Mill . . . . . . . . . . . . . . . 9
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Page
A. Cambodian Economic Delegatioz.to
Moscow . . . . . . . . . . . . . .
B. Lifting of Thai Embargo on Rubber Ship-
ments to Communist China . . . . . .
IV. Middle East (United Arab Republic) . . . . . 11
A. UAR Air Pacts with the Soviet Bloc . .
B. Reported UAR - East German Technical
Cooperation Agreement and $20-Million
Credit Offer . . . . . . . . . . . .
V. Europe (Soviet Grant to Iceland of $3. 2-Million
Credit)
VI. Latin America (Soviet Petroleum Deals with
Latin American Countries)
Following Page
Figure 1. Selected Port and Naval Facilities in the
UAR and Yemen (Map) . . . .
Figure 2. Naval Base Facilities Under Construc-
tion at Minat-al-Baydah, Syria, 1957
(Photograph) . . . . . . . . . . .
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