SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700010114-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 16, 2016
• Document Release Date: August 10, 2005
• Sequence Number: 114
• Publication Date: June 20, 1960
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC-WGR 1/114
20 June 1960
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, 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
3 - 16 June 1960
Cuba has signed a trade-and-payments agreement and a $20 million
credit agreement with Czechoslovakia. The nature of the first agree-
ment has not been disclosed. Concerning the credit agreement, Premier
Castro revealed in a speech of 11 June that the credit would be used to
equip factories to be constructed in accordance with Cuba's plans for
industrialization.
A Cuban trade mission has arrived in Moscow, and Soviet techni-
cians and survey teams are already active in Cuba. These activities
appear to be the first steps in an intensive effort to utilize the $100 mil-
lion credit that the USSR granted to Cuba in February 1960.
Numerous overtures for increasing trade and broadening other eco-
nomic relations with Burma have been made by countries of the Sino-
Soviet Bloc in the past few weeks -- probably because the Bloc antici-
pates that the U Nu government may be more receptive to Bloc offers
than the previous Ne Win regime. The USSR has offered to build two
roads for the Burmese,
11
A Czechoslovak offer of a line of credit of 10.5 mil-
lion has just been accepted by the Burmese Government, and an East
German trade delegation has made several unofficial economic proposi-
tions to the Burmese foreign office.
The USSR and Indonesia have signed a contract for the construction
of a steel plant in western Java. The installation, which will cost $60
million and have a capacity of 100, 000 tons per year, will represent the
first step in Indonesia's grandiose plan for developing a heavy industrial
base. Construction of this plant will put such heavy demands on Indo-
nesia's inadequate supplies of technical and managerial manpower that
the larger industrial complex, even if feasible in engineering terms,
will remain a distant dream for some time to come.
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Czechoslovakia has offered Mali a barter agreement providing for
the purchase from Mali of peanuts, phosphates, and hides and skins in
exchange for Czechoslovak machinery and agricultural equipment. Al-
though Mali leaders have not yet accepted the proposal, they are ex-
pected to conclude barter agreements with countries of the Bloc in order
to demonstrate Mali's independence. Poland and East Germany are
also reported to have proposed establishing barter arrangements with
the Government of Mali.
Forty Chinese Communist agricultural experts have arrived in
Guinea. Rumors persist that eventually from 400 to 600 Chinese Com-
munists will come to Guinea to assist in agricultural projects.
The USSR recently gave the Greek Orthodox Church in Lebanon
equipment worth $1. 5 million for a hospital and a school which the
church operates in Beirut. The gift includes surgical and X-ray equip-
ment, apparatus for the medical use of cobalt, and other clinical
equipment and supplies for the hospital.
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CONTENTS
Page
A. Renewed. Sino -Soviet Bloc Economic Activity
in Burma . . . . . . . . . . . . . . . . . .
$. Contract for Soviet Steel Plant in Indonesia . . . 2
A. Czechoslovak Trade Overture to the Federation
of Mali . . . . . . . . . . . . . . . . .
B. Arrival of First Chinese Communist Rice
Experts in Guinea . . . . . . . . . 4
C. Soviet Gift to Greek Orthodox Church
in Lebanon . . . . . . . . . . . . . . . . . 5
III. Latin America (Cuba) . . . . . . . . . . . . . . . 6
A. Efforts to Implement the Soviet Credit Agree-
ment . . . . . . . . . . . . . . . . . . . . 6
B. Cuban-Czechoslovak Trade-and-Payments
and Credit Agreements . . . . . . . . . . . . 8
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