SINO-SOVIET BLOC ECONOMIC ACTIVITIES IN UNDERDEVELOPED AREAS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP92B01090R000700020041-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: August 3, 2005
• Sequence Number: 41
• Publication Date: July 30, 1962
• Content Type: REPORT

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Copy N? 391
SECRET
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BIWEEKLY REPORT
SING- SOVIET BLOC
ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
EIC WGR 1/169
30 July 1962
PREPARED BY THE WORKING GROUP
ON SINO-SOVIET BLOC ECONOMIC ACTIVITIES
IN UNDERDEVELOPED AREAS
SECRET
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Summary of Events
13-26 July 1962
The results of the 10-day conference in Cairo of economic ministers
and specialists from about 30 underdeveloped countries were set forth in
a declaration issued on 18 July. The declaration, which contains the reso-
lutions and recommendations of the conference, reflects the constructive
approach toward a wide range of problems that was maintained, for the
most part, throughout the meetings. Although apprehension was expressed
regarding the consequences of the establishment of the Common Market,
there was no condemnation of the European Economic Community and no
move for the establishment of a new economic bloc composed of the under-
developed countries.
On 17 July, Raul Castro returned to Havana after a 2-week stay in
Moscow, where he headed a mission believed to be seeking additional
Soviet military aid. The absence of publicity surrounding both his leav-
ing Moscow and his arrival in Havana suggests that the mission may have
been unsuccessful, although some members of the mission may have re-
mained in Moscow to continue lower level negotiations. Previous Bloc
deliveries of military hardware have given the Cuban army a greater
armor and artillery capability than any other Latin American country
and have considerably enhanced Cuba's naval and air power.
A Soviet-Cuban agreement signed on 19 July marks the first Soviet
civil air penetration into Latin America. Under this agreement, Soviet
Tu-114 turboprop airliners will provide direct air service between
Moscow and Havana, reportedly to begin this September. The indicated
route, which is an extension of recently established Soviet routes to
Africa, is longer by one-third than the route Cubana Airlines will fly
by extending its present Prague flights to Moscow.
The USSR resumed arms shipments to Syria in June, probably the
first deliveries under the arms agreement negotiated in February. The
type of materiel received does not represent a significant addition to
Syria's arms inventory but suggests that it is intended for replacement:
or maintenance of equipment that may have become unserviceable.
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Tentative agreement has been reached on arrangements for Polish
participation in the establishment of a boron-processing plant in Turkey.
If the contract is concluded, Turkey will repay the credit advanced by
Poland in the form of shipments of boracite and boric acid.
The 23 July Revolution Day parade in Cairo included several items
of Soviet equipment not previously observed in the United Arab Republic
(UAR) -- T-54 medium tanks, 57-mm antiaircraft guns, and 160-mm
heavy mortars. The parade fly-by included four Tu-16 medium bombers
and MIG-17 or MIG-19 jet fighters. Two types of Egyptian-made surface-
to-surface missiles also were displayed.
Soviet Deputy Premier Mikoyan, accompanied by the Deputy Foreign
Minister, the Deputy Chairman of the State Committee for Economic
Relations, and the head of the Southeast Asia Directorate of the Foreign
Ministry, visited Indonesia from 20 July to 24 July, ostensibly for the
opening of the Asian Games Stadium in Djakarta, built with Soviet aid.
The communique issued at the end of the visit indicated that the status
of the West New Guinea situation, implementation of Soviet aid projects,
and Soviet-Indonesian trade relations were subjects covered during meet-
ings. Although not specifically mentioned in the announcements of the
visit, it is likely that Indonesia's heavy repayment burden to the USSR
for military aid also was a topic of discussion.
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CONTENTS
I. General . . . . . . . . . . . . . . . . . . . . .
II. Latin America (Cuba) .
A. Soviet Air Service to Cuba
B. Cuban Mission to Moscow
A. Resumption of Soviet Arms Shipments to Syria
B. Polish Offer to Equip Turkey's First Boron-
Processing Plant . . . . . . . . . . . . . .
C. Display of Additional Soviet Arms in Cairo . . . .
IV. Asia . . . . . . . . . . . . . . . . . . . . . . .
Mikoyan's Visit to Indonesia . . . . . . . . . . . .
V. Brief Notes . . . . . . . . . . . . . . . . . . . .
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