SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010099-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 99
• Publication Date: November 23, 1959
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/99
23 November 1959
GD y
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
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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, U.S.C., 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, th 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
Central Intelligence Agency
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Summary of Events*
6 - 19 November 1959
Communist China and the USSR, have agreed to permit Burma to
draw on its Soviet clearing-account credit to pay a longstanding barter
debt to China. As of June, Burma still owed China $2 million under a
clearing account that was terminated in 1957, and its credit balance in
the Soviet clearing account was $4. 3 million.
Czechoslovak economic aid and trade activity increased sharply
throughout Africa during October and November. A. number of Czecho-
slovaks have arrived in Addis Ababa for final negotiations on the imple-
mentation of a $20 million credit agreement; an agency for the sale of
Skoda automobiles, trucks, and motorcycles is soon to be established
in Guinea; and Libya has been offered Czechoslovak machinery and
complete factory installations on liberal credit terms.
Libya has announced that it has approved an agreement with the
USSR for the construction of two gift hospitals.
Western European ports are frequently used as transshipment
points for Latin American exports destined for countries of the Soviet
Bloc. Because Free World statistics do not identify these indirect
shipments as exports to the Bloc, the true magnitude of Latin American
trade with the Bloc is understated to the extent that such shipments
have taken place. Statistics recently made available show, for example,
that seven Latin American countries during 1958 shipped a total of
37, 809 tons of merchandise indirectly 1to coun-
tries of the Bloc.
Bloc countries, particularly Czechoslovakia and Hungary, are sell-
ing increasing amounts of agricultural machinery to Brazil and reportedly
are cutting seriously into the Brazilian market for US tractors.
* An unclassified table summarizing Sino-Soviet Bloc credits and grants
extended by the Bloc to underdeveloped countries of the Free World as
of 15 November 1959 is included in this issue on p. 5.
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CONTENTS
Page
I.
IL
Southeast Asia (Settlement of Burmese Barter Debt
to Communist China) . . . . . . . . . . . . . . .
Middle East and Africa . . . . . . . . . . . . . . .
A. Czechoslovak Activity in Africa . . . . . . . . .
1
B. Renewed Libyan Interest in Soviet Hospitals . . .
3
III.
Latin America . . . . . . . . . . . . . . . . . .
3
A. Indirect Exports by Latin America to the Bloc . .
3
B. Bloc Agricultural Equipment in Brazil . . . . . .
4
Table
Sino-Soviet Bloc Credits and Grants Extended to Under-
developed Countries of the Free World, I January 1954 -
15 November 1959 . . . . . . . . . . . . . . .
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