SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP92B01090R000700020017-1
Release Decision:
RIPPUB
Original Classification:
C
Document Page Count:
11
Document Creation Date:
December 16, 2016
Document Release Date:
August 2, 2005
Sequence Number:
17
Case Number:
Publication Date:
August 28, 1961
Content Type:
REPORT
File:
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BIWEEKLY REPORT
S1NO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/145
28 August 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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Summary of Events*
11-24 August 1961
Cuban Minister of Industries Guevara revealed at the Inter-
American Economic and Social Council meeting in Uruguay that the
Sino-Soviet Bloc has extended to Cuba economic credits totaling
$357 million. This figure includes credits worth $112 million that
had not been announced previously -- $100 million from the USSR
and $12 million from Poland. He further asserted that Cuba was
negotiating for additional credits of $100 million from unspecified
countries.
Two Hungarian technicians recently arrived in Brazil to conduct
water well drilling operations in the drought-ridden northeast. Their
arrival marks the beginning of what probably will be a steady influx
of Bloc technical personnel who will participate in Brazil's develop-
ment program. Before the arrival of the technicians, President
Quadros directed his Foreign Minister to make certain that the Bloc
specialists would be given all possible cooperation in their efforts.
The vast deposits of oil shale in Brazil continue to be of interest
to the USSR. Although Petrobras, the government-owned petroleum
monopoly of Brazil, has applied to the Export-Import Bank for a loan
to finance the construction of a prototype shale-oil plant in the State
of Parana, a group of engineers from Petrobras has accepted an in-
vitation to visit the USSR to study Soviet oil-shale operations.
Communist China announced the extension of $19. 6 million to
Ghana for the purchase of equipment, machinery, and materials
and for the financing of Chinese technical assistance. The credit is
interest-free and is to be repaid within a period of 10 years (beginning
on 1 July 1971) in goods or foreign exchange.
An unclassified table summarizing the number of Bloc economic
technicians in underdeveloped countries, July-December 1960 and
January-June 1961, is included in this issue on p. 7.
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Cambodia has announced that Czechoslovakia will provide three
factories having a total value of $13. 7 million. Cambodia also has
recently purchased from the USSR two 11-14 aircraft valued at $457, 000,
and Prince Sihanouk has accepted a helicopter as a gift from the Soviet
Government.
Poland has extended a credit of $30 million to Indonesia for use in
the construction of industrial projects, including a cement factory, a
coal mine, and a smelter. A trade protocol signed at the same time
calls for an increase in trade between the two countries.
A Sino-Ceylonese agreement signed in August for delivery of a
textile mill to Ceylon represents the first project to be implemented
under the $15. 8 million grant extended by Communist China in
November 1957. Further negotiations for utilization of the grant
are currently underway.
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CONTENTS
Page
I. Latin America . . . . . . . . . . . . . . . . . . . 1
A. New Bloc Credits to Cuba . . . . . . . . . . . . 1
B. Brazil . . . . . . . . . . . . . . . . . . . . . 2
1. Soviet Interest in Brazilian Oil Shale . . .
2. Hungarian Technical Assistance in North-
eastern Brazil . . . . . . . . . . . .
Chinese Communist Credit to Ghana . . . . . . . . . 4
III. Asia . . . . . . . . . . . . . . . . . . . . . . . 5
A. Textile Mill for Ceylon from Communist China 5
B. Current Developments in Economic Relations
Between Cambodia and the Bloc . . . . . . . . . 5
C. Extension of Polish Credit to Indonesia . . . . . . 6
Table
Bloc Economic Technicians in Underdeveloped Countries,
July-December 1960 and January-June 1961 . . . . . . . 7
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program. Most of those who entered have done so quietly and for the
purpose of servicing or installing Bloc machinery and have departed
as soon as the job was completed. With the exception of the visit in
early 1960 of the group of Soviet shale technicians who were brought
in to consult with a private company, Bloc personnel generally have
not undertaken exploratory or survey work. (FOR OFFICIAL USE
ONLY)
Preliminary arrangements for the Hungarians to enter
Brazil probably were made in May, when a large Brazilian economic
mission visited Budapest and signed economic and technical assistance
agreements. Before the arrival of the technicians, President Quadros
directed his Foreign Minister to make certain that the Bloc specialists
would be given all possible cooperation in their efforts. (UNCLASSI-
FIED)
During Prime Minister Nkrumah's recent visit to Communist China,
Peiping announced the extension of a credit of $19.6 million to Ghana.
The credit is available for a period of 6 years, interest free, and is to
be repaid in goods or foreign exchange over a 10-year period beginning
1 July 1971. The credit will be used to purchase equipment, machinery,
and materials and to finance technical. assistance.
Although Nkrumah has completed an extensive tour of the Commu-
nist world, the Chinese Communist credit is the only new Bloc economic
aid commitment to Ghana that has been announced. The USSR, however,:
has agreed in principle to extend additional aid. Before Nkrumah's
visit the USSR, Czechoslovakia, Hungary, and Poland had extended a
total of $88. 4 million in credits to Ghana. Communist China had not
previously extended any economic assistance to Ghana.
Ghana is the second African country to receive credits from Peiping
(a $25 million credit was extended to Guinea last September), and Pei in
al
o has agreed in principle to extend economic aid to Mali.
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Bloc Economic Technicians in Underdeveloped Countries a/*
July-December 1960 and January-June 1961
Area and. Country
January-June 1961
July-December 1960
Total
8,220
6,510
Latin America
570
290
Argentina
50
55
Brazil
10
10
Chile
5
5
Cuba
500
220
Ecuador
5
0
4,755
4,390
Afghanistan
1, 910 b/
1, 650 b/
Greece
5
5
Iran
70
60
Iraq
480
400
Pakistan
5
5
Turkey
60
70
UAR -- Egypt
630
530
UAR -- Syria
415
540
Yemen
1,180 b/
1, 130 b /
1,640
540
Ethiopia
120
40
Ghana
205
100
Guinea
1,200
400
Mali
45
0
Morocco
5
0
Somali Republic
5
0
Tunisia
60
0
* Footnotes follow on p. 8.
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Bloc Economic Technicians in Underdeveloped Countries a/
July-December 1960 and January-June 1961
(Continued)
Area and Country January-June 1961 July-December 1960
Asia 1, 255
1, 285
Burma 25 60
Cambodia 310 235
Ceylon 45 40
India 640 735
Indonesia 180 165
Nepal 55 50
Europe 0
Yugoslavia 0
a. Minimum estimates (rounded to the nearest five) of the number of
persons present for a period of 1 month or more,
b. Including technicians and laborers.
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