SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020025-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 25
• Publication Date: December 18, 1961
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/153
18 December 1961
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
RETUh N TO t:EcuhUS uP~NI 5X1
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J
Summary of Events
1-14 December 1961
On 7 December it was announced that Bolivia finally has approved
an offer by Czechoslovakia to construct and to equip an antimony
smelter in southwestern Bolivia. The plant is to be financed by a
Czechoslovak credit valid for 8 years at 5 percent interest, with
amortization to begin after a grace period of 4 years.
The Soviet-Afghan economic aid agreement signed in October 1961
provides for Soviet assistance in the amount of $196 million. The
agreement establishes two lines of credit on extremely liberal repay-
ment terms. In addition, 350 Afghan students are to study in the USSR.;
and increased numbers of Soviet technicians in Afghanistan will sub-
stantially augment the current figure of approximately 2, 000 Bloc
pe rsonnel.
Seven or eight Soviet military advisers who arrived in Kabul in
November are believed to be the vanguard of a new military mission
to Afghanistan. Although no major deliveries of Soviet materiel for
the ground forces have been reported in recent months, miscellaneous
army equipment as well as spare parts and ammunition undoubtedly
are continuing to arrive.
Although the Syrian regime that was established after the revolu-
tion of 28 September is more conservative than its immediate predeces-
sors, there is no indication that either it or the Bloc intends to circum-
scribe the Bloc's present economic aid programs in Syria. On the con-
trary, the Bloc appears willing to consider extending additional assist-
ance if it is requested.
Libya's Minister of Health recently announced that Libya once
again has "suspended" its acceptance of a Soviet offer of two hospitals
because of certain conditions attached to the offer.
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Implementation of the Soviet-Indonesian arms agreements of
January and June is now being accelerated. Preparations for training
air force personnel on surface-to-air missiles also are underway,
and two Soviet submarines are scheduled to be delivered in December.
The USSR is providing Indonesia a hospital on a grant basis. Both
the foreign exchange cost and the rupiah expenses of the hospital will
be funded by the USSR -- the first time that the USSR has used the
technique of a counterpart fund in Indonesia,
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I. Latin America . . . . . . . . . . . . . . . . . . 1
Czechoslovak Antimony Smelter for Bolivia . . . . . 1
II. Middle East . . . . . . . . . . . . . . . . . . . 1
A. Afghanistan . . . . . . . . . . . . . . . . . 1
1. Continuing Soviet Military Assistance
to Afghanistan . . . . . . . . . . . . . . 1
2. Soviet Aid for the Afghan Second Five Year
Plan . . . . . . . . . . . . . . . . . . 2
B. Syria . . . . . . . . . . . . . . . . . . 4
Status of Foreign Economic Assistance to Syria 4
III. Africa (Libya) . . . . . . . . . . . . . . . . . . 5
Apparent Rejection by Libya of a Longstanding Soviet
Offer of Two Hospitals . . . . . . . . . . . . . . 5
IV. Asia (Indonesia) . . . . . . . . . . . . . . . . . . 5
A. Further Deliveries Under the Soviet-Indonesian
Arms Agreements of 1961 . . . . . . . . . . . 5
B. Soviet Counterpart Fund for a Hospital
in Indonesia . . . . . . . . . . . . . . . . . 6
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