SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020031-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 31
• Publication Date: March 12, 1962
• Content Type: REPORT

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BIWEEKLY REPORT
SINO - SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIG WGR 1/159
12 March 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
ECONOMIC INTELLIGENCE COMMITTEE
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Summary of Events
23 February - 8 March 1962
Uruguay has agreed to sell 20, 000 tons of meat to the USSR at prices
considerably below the world market. In conjunction with the Uruguayan
contract, other recent Soviet purchases of meat in the Free World will
help alleviate the situation in the USSR caused by internal difficulties in
production of livestock and by reduced imports of meat from Communist
China.
Continued Soviet interest in Chile has been evidenced by an offer to
construct a copper refinery. Chile, however, has indicated to the USSR
its interest in a petroleum refinery.
Conclusive evidence has been received that Morocco has agreed to
accept a significant amount of arms and other military equipment from
the USSR. Most of this materiel will be paid for by barter through
arrangements included under the regular Soviet-Moroccan commercial
agreement.
Prospects for the new Soviet aid agreement with Burma to construct
a national theater and a dam and irrigation project are uncertain follow-
ing the overthrow of the U Nu government. Preliminary reports indicate
that the new government may drop the national theater project but probably
will strongly support agricultural development. In this situation the dam
and irrigation project may now receive more attention and support than
under the previous government.
The Indian air force has purchased 20 Mi-4 helicopters from the
USSR. At least 9 of these aircraft have been delivered, and 11 reportedly
are being delivered. Purchase of 10 more Mi-4's is now under negotiation.
A site for surface-to-air missiles is under construction in West Java,
Indonesia. An 80-man Soviet training mission will train Indonesian anti-
aircraft units in the use of Soviet missiles.
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Indonesia has accepted a Soviet offer to train 100 petroleum tech-
nicians in the USSR. This group represents all the trainees in the
petroleum industry that Indonesia intended to send abroad for instruction.
Nepal has purchased two helicopters from the USSR. This transac-
tion represents the first Nepalese purchase of Bloc aircraft, although
Nepal has received a gift of an I1-14 transport from the USSR and has
been promised three aircraft from Communist China.
A survey of available Bloc aid agreements with underdeveloped
countries permits certain generalizations concerning the costs that
must be borne by the recipient countries. Such costs are divided be-
tween those representing foreign exchange outlays and those represent-
ing local currency expenditures. Although the foreign exchange costs
of Bloc technicians generally are covered by the lines of credit for
developmental projects, the local costs are direct outlays of the re-
cipient country and add to the total cost of a Bloc project. In general,
local costs directly attributable to maintaining Bloc technicians are
estimated to equal from 20 to 25 percent of the foreign exchange costs.
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Page
I. General . . . . . . . . . . . . . . . . . . . . . 1
Bloc Technical Assistance to Underdeveloped Countries:
Representative Sample Costs of Bloc Technicians . . 1
II. Latin America . . . . . . . . . . . . . . . . . . 4
A. Continued Soviet Interest in Chile . . . . . . . . 4
B. Projected Cuban Earnings from Nickel in 1962 . . 4
C. Soviet Purchase of Meat from Uruguay . . . . . . 5
III. Africa . . . . . . . . . . . . . . . . . . . . . . 6
Soviet Arms for Morocco . . . . . . . . . . . . . 6
IV. Asia . . . . . . . . . . . . . . . . . . . . . . . 6
A. Prospects for Soviet Economic Assistance
to Burma . . . . . . . . . . . . . . . . . . 6
B. Additional Soviet Helicopters for India . . . . . . 7
C. Indonesia . . . . . . . . . . . . . . . . . . . 7
1. Base for Soviet Surface-to-Air Missiles 7
2. Soviet Technical Training for Indonesian
Petroleum Technicians . . . . . . . . . . 8
D. Soviet Helicopters for Nepal . . . . . .
Table
Representative Monthly Salaries of Bloc Technicians
in Underdeveloped Countries . . . . . . . . . .
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