AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES IN LESS DEVELOPED AREAS OF THE FREE WORLD 1 JULY - 31 DECEMBER 1964

• Document Type: CREST
• Collection: General CIA Records
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• Document Page Count: 59
• Document Creation Date: December 19, 2016
• Document Release Date: January 25, 2006
• Sequence Number: 19
• Publication Date: February 1, 1965
• Content Type: REPORT

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SECRET
AID AND TRADI ACTIVITIES OF CO M
COUNTRIES IN LESS DEVELOPED A
OF THE FREE WORLD
1 JULY 31 DECEMBER 1964
EC R14-S18
ebrutiiry 1965
ECONOMIC INTELLIGENCE COMMI
the
UNITED SFATiiS INTELLIGENCE BOARD
F.
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AID AND TRADE ACTIVITIES OF COMMUNIST
COUNTRIES IN LESS DEVELOPED AREAS
OF THE FREE WORLD
1 JULY - 31 DECEMBER 1964
EIC R14-S18
February 1965
ECONOMIC INTELLIGENCE COMMITTEE
SECRET
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LoOREWORD
The EIC-R14 series provides periodic summaries and analytical irter-
pretations of significant developments in the economic and military
relations of Communist countries with less developed countries of tie
Free World. These developments are reported on a current, factual lasis
in the Biweekly Reports in the EIC-WGR-1 series.
This report, covering the 6 months from 1 July through 31 Decemler
1964, constitutes the eighteenth periodic supplement to EIC-R14, the
initial report on Sino-Soviet Bloc Postwar Economic Activities in Urder-
developed Areas, 8 August 1956, SECRET. The present supplement updetes
the previous semiannual report and includes the more significant delelo!-
ments during the reporting period. It also relates noteworthy noneconogi
activities, including military aid, to economic operations of the Ccm-
munist countries in less developed areas. Data have been revised tc in-
clude new information, and figures in the current supplement supersede
those in previous issues. This report was prepared by the Departmert
of State and the Central Intelligence Agency. The draft was reviewed
and coordinated by a Working Group of the Economic Intelligence Comrittee
including representatives of the Department of State; the Defense Irtel.,
ligence Agency; the Departments of Commerce and Agriculture; the Agency
for International Development; the National Security Agency; and the
Central Intelligence Agency. The final report was approved by the ico-
nomic Intelligence Committee on 10 February 1965.
In this report the teim Communist countries refers primarily to the
following countries that extend aid to less developed areas: tne UESR,
Communist China, and the following countries of Eastern Europe -- Bul-
garia, Czechoslovakia, East Germany, Hungary, Poland, and Rumania. Wor
certain limited purposes the term also may include Albania, Cuba, Mcn-
golia, North Korea, and North Vietnam, none of which is normally a onor
of aid. Yugoslavia is not included.
The term less developed countries of the Free World includes the
following: (1) all countries of Africa except the Republic of 3outi
Africa; (2) all countries in South and Southeast Asia; (3) Iceland,
Portugal, and Spain; (4) all countries in Latin America except jubs.
and (5) all countries in the Middle East, including Cyprus, Greece, the
Syrian Arab Republic, Turkey, and the United Arab Republic.
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Summary
CONTENTS
I. Economic Assistance
A. Credits and Grants
B. Technical Assistance
1. Economic Technicians
5
5
7
7
g
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2. Academic Students and Technical Trainees
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AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPKO AREAS OF THE FREE WORLD
1 JULY - 31 DECEMBEE 1964
Summary
Communist aid undertakings in less developed countries continues at ;
high levels in the last half of 1964, and record activity was registered-
for the year 1964 in all Sectors of the economic aid program.* Communi34
countries extended more than $600 million in new economic assistance to .
less developed countries in the last half of 1964, bringing total cern?
mitments for 1964 to an annual high of about $1.5 billion and the cifumuls4
tive total of all economic aid extended since the start of the Communist
aid program in 1954 to $6.5 billion. Military assistance of almost $375'
million during 1964 was roughly equal to annual commitments in 1962 and
1963 but was 60 percent below the 1961 peak.
The United Arab Republic (UAR), which received a total of almost
220 million in Communist credits dUring the period, was by far the
largest recipient of aid during the last half of 1964. Indonesia and
Pakistan were the other main recipients. Four African countries -- the
Central African Republic, Congo (Brazzaville), Senegal, and Uganda
were added to the list of 30 countries that had been recipients of Com-
munist economic aid in the past.
For the first time in any 6-month period, Communist China becamf
the major Communist aid donor, with record extensions of $246 milli (n.
Almost 80 percent of this total went to three countries -- the UAR,
Pakistan, and Indonesia. Eastern European countries extended total
credits of $210 million to five less developed countries, of which cne.
third was accounted for by a single credit of 370 million extended Ly
Rumania to the UAR. The USSR extended 3147 million of credits in tle
second half of 1964. Although this level is far below Soviet commi9men14
of S686 million in the first half, aggregate Soviet aid of 3833 mil ion
extended in 1964 is almost equal to the 1959 Soviet annual record livel
of S857 million. The reduced level of aid extended in the last hala of
the year may be attributed largely to the fact that major requests or
assisting the 5-year plans of less developed countries had been satis-
fied earlier in the year and partly to Soviet inactivity resulting :*.rom
the change in Soviet leadership. Except for $41 million of credits to
Afghanistan, all Soviet economic aid in the last half of 1964 was
tended to five African countries, and the Soviet commitment of $44
lion to Kenya constituted the largest Soviet credit during the peri cd.
Total drawings on Communist credits extended previously amountec to
about S500 million in 1961.[, or about 10 percent more than the $464 rillid_
in 1963 and 40 percent more than in 1962.
* See Figure 1, following p. 2.
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The number of economic technicians in less developed countries rose
to 14,525 in the last 6 months of 1964, an increase of about 9 percent
above the first half of the year. Although there was a slight decline
in Soviet personnel, following the completion of some aid projects, the
number of Chinese Communist technicians in the less developed countries
increased by more than 75 percent to 2,160. Afghanistan, Algeria, Guinea,
and the UAR continued to employ about half of all Communist technicians
assigned to less developed countries.
About 1,000 technical trainees undertook training in Comunist coun-
tries during the second half of 1964, bringing the total number who
have departed for this training since 1956 to more than 9,500. At the
end of 1964, 3,900 of these trainees still were studying in Communist
institutions.
In spite of reports of continuing student dissatisfaction and clashes
with Communist authorities, about 1,440 nationals from less developed
countries departed for academic training in Communist institutions,
bringing the total number of students who have gone to Communist coun-
tries for this training since 1956 up to about 17,000. Two-thirds of
the 14,5140 students undergoing training at the end of December were in
the USSR; except for 300 enrolled in Chinese Communist universities,
the remainder were studying in East European countries. More than half
of the total number enrolled were from Africa, but Iraq continued to
have the largest representation of any single country.
About $300 million of new military aid was extended to less de-
veloped countries in the last 6 months of 1964, bringing the cumulative
total of such aid extended between 1955 and 1964 up to 33.7 billion.
The USSR entered into new agreements to furnish military assistance to
Afghanistan, India, Indonesia, Syria, and the UAR, and the Chinese Com-
munists gave military aid to Cambodia in the last 6 months of 1964.
Deliveries of military equipment under earlier agreements continued at
high levels, especially to Algeria, Indonesia, and the UAR. During the
last half of 1964, approximately 3,545 Communist military technicians
were employed in less developed countries, and about 1,355 trainees from
11 less developed nations enrolled in military programs in Communist
countries during the period.
Foreign trade turnover between Communist countries and non-Communist
less developed countries amounted to almost 31.5 billion during the
first half of 1964, an increase of 11 percent above the comparable
period in 1963. IMports rose 12 percent, and exports rose 9 percent.
The largest percentage increase in trade between the Communist area
and the less developed countries -- about 50 percent -- was recorded
by Communist China, principally because of heavy imports of wheat from
Argentina. Within the Communist area the countries of Eastern Europe
continued to be the most important trading partners with the less de-
veloped countries. Their trade turnover totaled $646 million compared
with 34.82 million for the USSR and $272 million for Communist China.
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SECRET
ECONOMIC ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPED COUNTRIES OF THE FREE WORLD*
Selected Years, 1954-64
COMMUNIST ECONOMIC ASSISTANCE TO LESS
DEVELOPED COUNTRIES, 1954-64
1500
1000
500
O Communist China
El Eastern Europe
11111 USSR
Million US Dollars
1000
COMMUNIST MILITARY ASSISTANCE TO LESs
DEVELOPED COUNTRIES, 1955-64
Million US Dollars
E:3 Communist China
III Eastern Europe
MB USSR
500
1954 1955 1956 1957 1958 1959 1960 1911 1962 1963 1964 1955 1956 1957 1958 1959 1960 19l1 1962 1963 34,,
COMMUNIST ECONOMIC AND MILITARY
TECHNICIANS IN LESS DEVELOPED COUNTRIES
1956-64
Thousand Technicians
20
10
O Military
I= Economic
7177
7=1 1=1
1956 1957 1958 1959 1960 1961 1962 1963 1964
51127 2-65
STUDENTS FROM LESS DEVELOPED COU tITRIE;
TRAINED IN COMMUNIST COUNTRIES,
CUMULATIVE TOTALS 1956-64
40
30
20
10
Thousand Students
1956 1957 1958 1959 1960 1961 1962 1963
? Data are revised periodically to include new r-o at,orC.14 theaai a
may not be comparable with data prevawsly e--,rted
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Asia continued to account for the largest share -- about 36 percent --
of Communist countries' trade with less developed areas and, a3 in tie
past, was followed in importance by the Middle East, which accounted
for one-third of the total. There was little variation from former
patterns in the commodity composition of this trade in 1963. Import3
by the Communist area continued to be dominated by food products and
crude materials, whereas manufactured goods and machinery again ac-
counted for roughly half of Communist exports. The remainder of exp)rts
consisted of foodstuffs.
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I. Economic Assistance
A. Credits and Grants
Communist countries extended $603 million of new economic assisi;
ance to less developed countries in the second half of 1964 (see
Table 1*). These new credits bring the total amount of economic aid
extended in 1964 up to a record 31,512 million, or about two-fifths
above the previous peak of $1,092 million recorded in 1961.** Aggrc-
gate Communist economic aid extended to less developed countries from
the beginning of the aid program in 1954 through the end of 1964 rose
to about 36.5 billion and the number of aid recipients to 34, as four
African nations -- the Central African Republic, Congo (Brazzaville),
Senegal, and Uganda -- were added to the list.*** By far the largest
aid recipient during the last half of 196)4 was the UAR, which recei7ed
3219 million in credits, bringing the total of economic aid extendeL to
that country in 1964 up to almost 3500 million.
During the last half of 1964, Communist China extended a reord -
level of 5246 million in credits to eight countries, or about /10 pe-
cent of of total new Communist economic aid commitments during the perod,
and for the first time China became the major Communist aid donor.
These new Chinese extensions together with the 392 million extended in
the first 6 months of the year raised the level of Chinese aid for 1964
to 3338 million, or more than double the 1961 peak level of Sl6', milliot;
During the period under review, about 390 million, or almost 4o percent
of total Chinese aid extended, was provided to three countries that had '
not received Chinese economic aid previously: the Central Afri-_:an
Republic, Congo (Brazzaville), and Pakistan.
An $80 million credit to the UAR was the largest Chinese credit _
extended during the last 6 months of the year and was the first aid to
the UAR from China since its $4.7 million grant during the Suez crisis
in 1956. The credit was the second largest ever extended by Communist
China and is exceeded in magnitude only by the $84 million credit pro-
vided to Burma in 1961. Communist China also extended credits of $6D miE
lion to Pakistan and $50 million to Indonesia. A credit of 322 million
to Ghana was added to the $20 million extended it by Communist (thine in
1961, in spite of the fact that no deliveries are known to have been
made under the earlier credit. Credits to Congo (Brazzaville) and tie
Central African Republic of $25 million and $4 million, respectively,
included provisions for a total of $4 million in hard currency which,
when added to the $10 million included in the credit to Indonesia,
raises total hard currency commitments to nearly 319 million in 1964
P. 6, below.
XX See Figure 2, following p. 6.
*** For a summary of specific credits and grants by Communist countries
to less developed countries, see Tables 7 through 11, pp. 42 through
108, below.
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and the total obligated by the Chinese for that purpose between 1956
and 1964 to *))42 million.
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ECONOMIC CREDITS AND GRANTS
EXTENDED BY COMMUNIST COUNTRIES
TO LESS DEVELOPED COUNTRIES OF THE FREE
WORLD-
EXTENSIONS AND DRAWINGS, BY YEAR
1954-64
MILLION
us
DOLLARS
1,600
1,400
1,200
1,000
800
600
400
200
1,091.9
1963
1962
1961
1960
1959
i 958
'OTA Alt, FX11+4 4
56,45 , 1 Mahar
1957
1956
51128 2-65
1954
1955
1.0
2.7
SECRET
137.0
DRAWINGS
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The USSR extended $147 million of new economic aid to s x cam-
tries during the second half of 1964, bringing total Soviet aid extea-
sions in 1964 up to 3833 million,. almost equal to its record of $857
million in 1959. With the exception of $41 million in credits to
Afghanistan, all Soviet economic aid extended during the last 6 montns
of the year was to five African nations. Soviet credits were e=tended
to Senegal and Uganda, neither of which had previously received economic
assistance from a Communist country. Following the Chinese lead, the
USSR also signed economic aid agreements with the United Republic of
Tanzania, Congo (Brazzaville), and Kenya -- the latter receiving a $t4
million credit, the largest Soviet aid commitment during the period.
Negotiations continued with India on the Bokaro steel plant, to whiai
the USSR had committed $211 million in the first half of 1964. It
appeared likely that the USSR would involve itself more heavily in tnat
project as it agreed to assist in the second as well as the first stage
of plant construction. Drawings on previously extended Soviet c:redis
were slightly below the level of the first half of 1964, but total de-
liveries for the year were roughly equal to the 1963 level.
Eastern European countries made commitments of $210 million .of -
new aid during the period, East Germany was the largest donor, extend-
ing credits of 375 million (to Indonesia, the UAR, and Syria) -- which
exceeded the total amount of economic aid extended by East Germany f-om
the beginning of the aid program in 1955 up to the last half of 1964
(365 million). Rumania was the second largest donor, with a single
credit of 370 million to the UAR. Czechoslovakia and Poland cacti ex-
tended credits to the United Republic of Tanzania and to Pakistan of
6 million and 314 million, respectively, and Poland extended a $25
million credit to the UAR.
Aid deliveries in 1964 amounted to $503 million, or 9 percern;
more than the level for 1963. This is considerably below the annual
rate of increase for recent years. Total drawings on credits ecualed
232 million in the last half of 1964 compared with 3271 millior in The
first half. The decline is partly attributable to a deceleraticn in
UAR drawings on the Aswan high Dam aredits, after the completion of the
first stage of the project, and to a decline in drawings on Eastern
European credits.
B. Technical Assistance
1. Economic Technicians
Communist technical assistance activities continued apac(
during the last half of 1964 as the number of technicians sent to lef.s
developed countries rose to 14,525 --- about 9 percent above the previous
6-month total (see Table 12*). There was a slight decline in Soviet
personnel following the completion of some projects, but the number c,f
* P. 109, below.
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Chinese Communist economic technicians who were dispatched. to aid-
receiving countries during the period increased by more than 75 per-
cent, from 1,220 in the first 6 months of the year to 2,160 in the
second half. The number of Communist personnel engaged in nonproject
activity continued to increase during the review period, accounting
for more than one-fourth of all technicians employed. The USSR, which
in earlier years had supplied about three-fourths of all Communist
technicians to less developed countries, now accounts for approximately
6o percent of the total, whereas Chinese technicians represent about 15
percent compared with less than 10 percent in the past.
Although Afghanistan, Algeria, Guinea, and the UR continued
to employ about half of the total number of Communist technicians, there
were changes among the areas receiving technical personnel during the
review period. The total number of technicians in Asia and the Middle
East declined in the last half of 1964, whereas the number in Africa
rose by about one-third.
Approximately 40 percent of all Communist economic techni-
cians were employed in African countries compared with 30 percent in
the previous 6-month period. Reflecting its increased interest in
Africa, Communist China assigned to Africa almost 50 percent of the total
number of technicians that it sent to less developed countries. In Guinea,
315 additional Chinese technicians arrived during the period to expedite
the Chinese aid program in that country, and 365 were dispatched to
Mali -- reportedly the forerunners of some 3,000 technicians whom China
plans eventually to send to Mali to help implement its economic aid pro-
gram in that country. The number of Soviet technicians in Algeria and
Ghana rose by 150 and 50 percent, respectively, during the period,
registering the largest Soviet personnel gains in Africa. Of the 1,610
Soviet and Eastern European technicians in Algeria, about 230 Soviet and
100 Eastern European personnel were skilled "volunteers" engaged in
undertakings of a Peace Corps type designed to rebuild certain communi-
ties destroyed during the Algerian struggle for independence.
In spite of the large increase in the number of Communist
technicians in Yemen, the number for the Middle East as a whole
registered a net decline as certain phases of project activity in
Iraq and the UAR were completed. More than 800 Soviet technicians de-
parted from the site of the Aswan High Dam after completion of the
first stage of construction in May 1964, although a large influx of
technicians is expected again in 1965 as work progresses on the main
dam and the electric grid network. The number in Iraq fell by 30 per-
cent. In Yemen, however, the number of technicians rose by almost two-
thirds as 160 additional Chinese and 100 new Soviet technicians arrived
to begin implementation of projects under their respective aid programs.
As many as 3,000 Soviet technicians reportedly will be employed in
Yemen when all Soviet projects are underway.
The slight decline in the number of economic technicians
assigned to Asia in the last half of 1964 followed a drop of 45 percent
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in personnel in Indonesia and minor reductions in Ceylon and India. All
other aid recipients in the area registered minor gains in the number
of Communist personnel present, with Burma showing an increase :)?'
percent as the result of additional project activity initiated by tbe
Chinese.
The decline in the number of Soviet technicians in come
of the countries is expected to be temporary. As Soviet-aided projects,:
under the near-record level of credits extended in 1964, are imblemented
the number of Soviet technical personnel should rise again. The in-
crease in Chinese technicians in less developed countries is euected tc,
continue, following a year of peak credit extensions in 1964.
2. Academic Students and Technical Trainees
During the second half of 1964, about 1,000 nationals from
less developed countries undertook technical training programs in Com-
munist countries bringing the total number who have undertaken this
training since 1956 to more than 9,500. As of December 1964, 3,900 of
these still were being trained (see Table 13*). More than 40 percent
of them were from the UAR, while three countries -- India, Algeria, and
Ghana -- accounted for another 30 percent. As in the case of academic
students, approximately two-thirds of the total number receiving train
ing were in the USSR, with only a few in Communist China and the re-
mainder in Eastern European countries.
During the last 6 months of 1964, about 1,440 nationals from,
less developed countries departed for academic training in Communist in?
stitutions, bringing the total -number of students who have gone to Com? 1
munist countries for this training Since 1956 up to more than U,000.
In spite of reports of continuing student dissatisfaction
and clashes with Communist authorities, some 14,580 academic students
were undergoing training at the end of December (see Table 14**), ar
increase of about 13 percent above the comparable period in 196e.
Almost two-thirds of those being trained were in the USSR and, excePt,
for 300 enrolled in Chinese Communist universities, the remainder were
studying in Eastern European countries. More than half of the total
number of students being trained in Communist countries at the end cT
December were from Africa, with Ghana, Kenya, the Somali Republic, end
Mali being most heavily represented; Iraq, with 1,965 students training:
in Communist institutions at the end of December, continued to have the
largest number of any single country. It was followed by Indonesia,
whose 1,025 students were studying primarily in the USSR and Czech?,
slovakia.
During the past 6 months, there was further evidence of
continuing difficulties on the part of students from less deveLoped
* P. 111, below.
** P. 113, below.
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countries, primarily Africans, in adjusting to local conditions and in
their relations with authorities and other students. Relations between
African students and Rumanian authorities and students, exacerbated by
Bucharest's suppression of unauthorized demonstrations, deteriorated to
the point of open clashes by year's end, and African students threatened
to boycott classes until their demands for better treatment were met.
In the USSR, similar conflicts occurred when a Kenyan Embassy official in
Moscow had to go to Baku to help quell a "strike" by some 80 Kenyans who
were refusing to attend classes in protest against poor instruction and
the hostility of the Azerbaydzhanis.
Nearly 300 African students are reported to have left Com-
munist countries between January and late October 1964 without complet-
ing their studies. The number of such defectors is small, however, when
compared with the almost 8,700 Africans currently undergoing academic
and technical training in Communist countries.
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II. Military Assistance
A. Credits and Grants
Communist countries extended about $301 million of military aid
to less developed countries during the last half of 1964, bringing the
cumulative total of Communist military aid extended between 1955 an thEi
end of 1964 to 83.7 billion (see Table 2).* Although these new commit-
ments represent a considerable increase above the $72 million in militar,
aid extended in the first half of 1964, the total of 3373 million fer
the year is considerably below the 1961 peak of almost 3850 million but
roughly equal to annual commitments in 1962 and 1963. Soviet agreements'
with Afghanistan, India, Indonesia, Syria, and the UAR and a Chinese
Communist accord with Cambodia were completed during the review period.
The USSR and Communist China also made modest grants of equipment te, the
United Republic of Tanzania. In addition, intensive negotiations were
initiated between the UAR and the USSR late in 1964 during which time a
substantial new military aid agreement apparently was concluded.
Table2
Military Aid Extended by Communist Countries
to Less Developed Countries of the Free World a/
September 1955 - December 1964
Million Current US
Estimated minimum value
3,810
Less downpayments
121
Amount of aid
3,689
Credits
2,230
Discounts and grants
1,459
a. For an enumeration of military aid agreements, see
Table 15, p. 116, below.
An agreement in July between the USSR and Afghanistan resul-;ed
in the rapid delivery of surface-to-air missiles (SAM's) and antitank
missiles in time for Afghanistan's Independence Day military parade on
23 August. MIG-21 jet interceptors may have been included in this
agreement, but complete deliveries of this advanced weaponry will not
be made until the return of pilot trainees from the USSR, probably :Late
* The bulk of this aid has been provided by the USSR. Although Czecho,
slovakia and Poland were active in supplying arms in the early year?; of
this activity, their roles have diminished considerably since 1960.
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in 1965. The USSR also extended an estimated S1147 million to India to
establish an assembly eomplex for Mlu-21 aircraft and for the de-
livery of MIG-21's, 90 light tanks, and 20 helicopters.
In early October, Moscow agreed to provide Indonesia with at
least $l00 million in credits for the purchase of military equipment,
including jet fighters, bombers, transports, helicopters, and naval
craft. This assistance was promised in spite of the fact that the USSR
has counseled Indonesia against escalating its confrontation with
Malaysia. The new aid will accentuate the difficulties that Indonesia
already has been experiencing in meeting its repayment obligations for
the military indebtedness it has incurred with Communist countries.
The USSR signed another military aid accord with Syria in October in
which it agreed to supply an estimated 335 million worth of equipment.
Included in the agreement are tanks, additional MIG-21 jet fighters,
11-28 jet light bombers, and SAM's. Communist China concluded a mili-
tary assistance pact with Cambodia during the second half of 1964 under
which it agreed to furnish 34 million worth of small arms, artillery,
and -- later -- MIG aircraft.
Deliveries of military equipment under earlier agreements con-
tinued at high levels during the last half of 1964, especially to
Algeria, Indonesia, and the UAR (see Table 16*). Algeria received 12
jet light bombers, 24 jet fighters, 100 medium tanks, 6 motor torpedo
boats, and assorted arLillery pieces and military vehicles. Indonesia
received 4 Komar-class missile boats, 6 An-12 transport aircraft, 3 Mi-6
helicopters, and 12 11-28 jet light bombers, thereby boosting its air
and naval capability. In October the Somali Republic received the first
shipment of arms under the 335 million agreement concluded a year earlier
with the USSR. Other equipment deliveries -- largely vehicles, spares,
and ammunition -- continued during the period to Iraq, Syria, and Cam-
bodia.
The USSR continued to expand the number of countries to which it
is willing to provide more complex weapons systems as well as the variety
of such systems. In 1964, SAM's were introduced into Afghanistan and
earmarked for Syria. The world's largest helicopter, the Mi-6, was de-
livered to Indonesia and to the UAR. The improved version of the MIG-21
jet interceptor will be provided, beginning in 1965, to India, Indonesia,
and Iraq, The Osa-class missile boat -- a larger version of the Komar-
class gunboat -- may be supplied to Indonesia and possibly to the UAR.
The escalation and proliferation of this advanced weaponry to less de-
veloped countries are expected to continue, and such items as the Su-7
ground attack aircraft and short-range surface-to-surface missiles
(SSM's) may be included in future aid packages.
* P.
20, below.
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B. Technical Assistance
1. Military Technicians
Approximately 3,545 military technicians from Commu
nations were in less developed countries during the last half o
(see Table 17*), about 9 percent more than were there in the fi
half of the year. Although the number of military technicians
in almost all recipient countries, these increases were nominal
in India and Algeria, where the numbers present during the last
of 1964 were roughly double those in the previous half-year per
With the introduction of advanced weapons systems into the less
countries, the number of Communist military technicians present
countries should continue to rise.
nist
19O
cst
increased
except
6 months
iod.
deveLopei
in those
2. Military Trainees from Less Developed Countries
During the last 6 months of 1964, about 1,355 nationals:
from 11 less developed countries enrolled in military programs in the
USSR, Eastern Europe, and Communist China (see Table 18**). While the
USSR continued to play host to most of the trainees, 145 of those de-
parting for training in Communist countries during the period went to
Eastern European countries and 30 to Communist China, The United
Republic of Tanzania sent military trainees to a Communist country for
the first time -- 4o students reportedly departed for the USSR luritg
the period.
By the end of 1964 a total of about 18,110 military per oniadi
from less developed countries had been sent to Communist countries or
training. Nearly half of these trainees were from Indonesia and anttheil
one-third from Iraq, Syria, and the UPR. The USSR has been responsible
for training more than 80 percent of the total trained since the stprt
of the program in 1955. At the end of 1964, approximately 3,245 miDi.-
tary trainees from less developed countries were being trained in CCm-
munist military institutions, about 10 percent of whom were traininu.
in Eastern European countries, while all but 45 of the remainder were
being trained in the USSR. Of the total being trained, the largest
contingents were from Afghanistan, Algeria, Indonesia, and the OAR-
* P. 122, below.
** P. 123, below.
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III. Trade
A. Value
During the first half of 1964, foreign trade turnover betwen
the Communist countries, excluding Cuba,* and the non-Communist less
developed countries amounted to almost $1.5 billion,xx an increase of
about 11 percent above the comparable period in 1963. Imports fron
developed countries rose by about 12 percent, while a gain of 9 pe.:.cen!-;
was recorded in exports. Within the Communist area the countries ,of
Eastern Europe continued to be the most important trading partners withu
less developed countries. Their trade turnover totaled $646 minim
during the 6-month period under review compared with S482 million :or
the USSR and ,D272 million for Communist China. The largest percen-;age'
increase in trade between the Communist area and less develoPed coun-
tries was recorded by Cormunist China, whose commercial exchunges
less developed areas were more than 50 percent above the comparable
period of 1963. This increase was due mainly to increased imports of
grain from Argentina and cotton from Syria. Detailed data on Communist
exports to and imports from individual less developed countries are
presented in Tables 19 and 20.***
B. Direction
Although Asia continued to account for the largest share --
about 36 percent -- of the Communist countries' trade with less de-
veloped areas during the first half of 1964, the percentage increase
* Cuba's trade turnover with less developed countries during th7..!
first 6 months of 1964 amounted to $70 million, or almost double the
level achieved in the comparable period of 1963. Morocco, Spain, kInd
the UAR continued to be Cuba's major trading partners among the
developed countries. For data on Cuba's exports to and imports fr(m
individual less developed countries, see Tables 21 and 22, pp. 13a
and 134, respectively, below.
** The value figures presented in this section are based primarily
on trade statistics as reported by less developed countries themselves
and are the only figures available for 1964. It should be noted,
how-
ever, that because of timelags, differences in reporting methods, end
coverage of less developed countries, these figures differ considerabb
from those on the same trade as reported in official Communist sources.
One major difference stems from the fact that some less developed roun.
tries do not include in their trade returns those imports received under
long-term economic credits whereas the Communist countries report ES el.+
ports all goods furnished on credit, with the result that the valure of
this trade according to Communist sources exceeds the value reported by
less developed countries.
Pp. 124 and 128, respectively, below.
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in this trade was the smallest recorded for any area -- about 3 per-
cent. Total trade between the two areas amounted to 3522 million, of
which more than three-fifths was accounted for by India and Malaya and
Singapore. Indian exports to the Communist area during the first 6
months of 1964 were more than 43 percent above the comparable period
in 1963, while -imports registered a gain of 17 percent. Trade with
Malaya and Singapore, however, declined by 42 percent, primarily be-
cause of a sharp drop in Communist purchases of rubber, which amounted
to only 74,000 tons,* or about half the volume imported during the first
half of 1963.
In the first 6 months of 1964 the Middle East continued to
follow closely behind Asia as the Communist countries' second most
Important trading area within the group of less developed countries,
with total trade between the two areas amounting to about S478 mil-
lion, or 7 percent above the level achieved during the comparable
period of 1963. Communist exports to the area rose by 10 percent,
while Imports registered an increase of only 4 percent. Although Com-
munist trade with the UAR declined by about 19 percent, primarily be-
cause or smaller deliveries from Eastern Europe, the UAR continued to
he the principal Middle Eastern trading partner of the Communist coun-
tries, accounting for one-third of total trade with this area. Imports
from the UAE amounted to S120 million, a decline of 6 percent below the
level recorded in the first half of 1963. The UPR sold 51 percent of
its cotton to the Communist area during .the season August 1963/July
1964 compared with 62 percent in the 1962/63 season, reflecting the
UAR's successful efforts to sell more of its cotton to the West for
hard currency.
The largest increase in both percentage and value of trade be-
tween the Communist countries and less developed countries was achieved
in Latin America, where trade during the first half of 1964 totaled about
4223 million, an increase of 58 percent above the level of the correspond-
ing period. of 1963. Most of the increase was accounted for by large
Chinese Communist purchases of grain from Argentina. Communist exports
to the region fell by 10 percent.
Africa continued to account for about 13 percent of the trade
between the Communist countries and less developed countries. Imports
from Africa rose about 10 percent to 394 million, whereas exports in-
creased 37 percent to 396 million, resulting in a trade turnover of $189
million, an increase of 22 percent above the first 6 months of 1963.
The increase in Communist exports to this area was due mainly to larger
shipments to Morocco and Mali.
Communist trade with less developed countries of Europe remained
small, amounting to only S42 million, a decline of 30 percent from the
first half of 1963, and accounting for only 3 percent of total Communist
trade with all less developed countries.
Tonnages are given in metric tons throughout this report.
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C. Commodity Composition
The commodity composition of the trade of Communist countrief
with less developed countries in 1963 showed little change from earljer
years.* Imports by the Communist area continued to be dominated by food
products and crude materials, which together accounted for almost 90
percent of total imports -- roughly the same share that has prevailec
for the past several years. Cotton and rubber remained high on the
Communist import list of crude materials, accounting for almost threo-
fourths of imports of this category of goods and for more than two-
fifths of total Imports from less developed areas.
The UAR continued to be by far the most important source of
cotton, accounting for roughly half of the cotton imports by Communist
countries from less developed countries in 1963. Syria, Sudan, and
Brazil, in that order, were the next most important suppliers of cotton,
providing 35 percent of the total. Imports of natural rubber by the
Communist countries amounted to 537,000 tons in 1963, about 2 percen
less than the volume imported in 1962. The major portion of th(:se
ports continued to cone from Malaya and Singapore. The USSR again was
the largest Communist purchaser, having Imported about 297,000 tons, or
more than half of total Communist purchases of rubber from les.s de-
veloped areas. Hides and skins, iron ore, and wool, in that order,
accounted for most of the remainder of Communist Imports of crude
materials from less developed countries in 1963.
Although Communist imports of food products from the less de-
veloped countries rose by. 23 percent, food products continued to ac-
count for only 28 percent of total Communist imports from the less
developed countries. Increased imports were due mainly to larger pu,:-
chases by the Eastern European countries, whose imports of food products
were more than 4o percent above the 1962 level. Soviet imports of food
products also increased, although to a lesser extent. Coffee, tea, Ind
cocoa accounted for most of this increase and continued to hold first
place among Soviet imports of food products from the less developed
countries.
The Communist area did not offer much more of a market for
the manufactures of less developed countries than in earlier years is
spite of repeated Communist claims to the contrary. Although Corm:wrist
imports of manufactures from the less developed countries increased by
almost 6o percent, they amounted to only about $95 million, or little
more than 8 percent of the total value of imports. The increasc was
due mainly to larger purchases of cotton yarn from the UAR, of footw ar
and jute manufactures from India, and of aluminum and iron and steel
from Spain.
Among exports from the Communist area to less developed coun-
tries, the share held by manufactured goods and machinery and transport ,
* See Figure 3, following p. 18.
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equipment declined somewhat, but these two categories of goods continued
to account for nearly half of total exports. Soviet exports of machinery
again consisted primarily of equipment for complete plants and various
kinds of transportation equipment, and the Eastern European countries
continued to deliver mainly transportation equipment, electrical ma-
chinery, and metalworking machinery. Communist exports of manufactured
goods again were dominated largely by textile fabrics, yarns and
threads, and iron and steel. Exports of food products increased by
27 percent, largely because of increased shipments of sugar, and ac-
counted for almost one-fifth of total Communist exports to less de-
veloped countries. Of the remainder, petroleum and petroleum products
accounted for about 10 percent.
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SECRET
TRADE OF COMMUNIST COUNTRIES WITH LESS DEVELOPED COUNTRIES OF THE FREE WORLD
BY COMMODITY GROUP: 1959-63
Figure 3
OTHER
CRUDE MATERIALS
FUELS ro
FOOD PRODUCTS
MACHINERY
AND TRANSPORT
EQUIPMENT

MANUFACTURED GOODS /
/ /
/..? /.10?
fffdfIF r ,
1959 1960 1961 1962 1963
4.
"i:' j'
tIPX 0".
1.
EXPORTS BY COMMUNIST COUNTRIES
4,11160*-Naliiii4nW, 41416.04110140.
100% 100%
4,4,41 ,
rn
tr '14
1,0141e4,01,+010.ft4014,44,4,4
II 4
t ,
'11+'
4
14: '
1.954 1914 196I 19b3
OTHER
MANUFACTURED GOODS
FOOD PRODUCTS
CRUDE MATERIALS
IMPORTS BY COMMUNIST COUNTRIES
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SECRET
AID AND TRADE ACTIVITIES OF COM
COUNTRIES IN LESS DEVELOPED A
OF THE FREE WORLD
1 JULY 31 DECEMBER 1964
SUMMARY
(The complete texT oi this eport has been published seari
EC R14---S18
tebrwry 1965
ECONOMIC INTELLIGENCE COMM
of the
UNITED STATES INTELLIGENCE BOARD
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FOREWORD
The EIC-R14 series provides periodic summaries and analytical i/-ter?
pretations of significant developments in the economic and military
relations of Communist countries with less developed countries of tle
Free World. These developments are reported on a current, factual hasiE
in the Biweekly Reports in the EIC-WGR-1 series.
This report, covering the 6 months from 1 July through 31 eecemter
1964, constitutes the eighteenth periodic supplement to EIC-Rl4, tht
initial report on Sino-Soviet Bloc Postwar Economic Activities in Under-..
developed Areas, 8 August 1956, SECRET. The present supplement updates H
the previous semiannual report and includes the more significant deVelop
ments during the reporting period. It also relates noteworthy noneeenaMj
activities, including military aid, to economic operations of the Com.-
munist countries in less developed areas. Data have been revised to in-
elude new information, and figures in the current supplement supersede
those in previous issues. This report was prepared by the Departmene
of State and the Central Intelligence Agency. The draft was reviewel
and coordinated by a Working Group of the Economic Intelligence ComMettee
including representatives of the Department of State; the Defense Int;ele
ligence Agency; the Departments of Commerce and Agriculture; the Agey
for International Development; the National Security Agency; and the
Central Intelligence Agency. The final report was approved by the Eco-
nomic Intelligence Committee on 10 February 1965.
In this report the term Communist countries refers primarily to The
following countries that extend aid to less developed areas: the USFR,
Communist China, and the following countries of Eastern Europe -- Bu'e-
garia, Czechoslovakia, East GerMany, Hungary, Poland, and Rumania. For
certain limited purposes the term also may include Albania, Cuba, Mon-
golia, North Korea, and North Vietnam, none of Which is normally a donor '
of aid. Yugoslavia is not included.
The term less developed countries of the Free World includes the
following: (1) all countries of Africa except the Republic of H-7uth
Africa; (2) all countries in South and Southeast Asia; (3) Iceland,
Portugal, and Spain; (4) all countries in Latin America except Cuba;
and (5) all countries in the Middle East, including Cyprus, Gree,e, tie
Syrian Arab Republic, Turkey, and the United Arab Republic.
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AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS OF THE FREE WORLD
1 jUEY- - 31 DECEMBER 1964
Summary
Communist aid undertakings in less developed countries continued at
high levels in the last half of 1964, and record activity was registfred
for the year 1964 in all sectors of the economic aid program.* Communist
countries extended more than 3600 million in new economic assistance to
less developed countries in the last halfof 1964, bringing total cor-
mitments for 1964 to an annual high of about $1.5 billion and the cutrula
tive total of all economic aid extended since the start of the Commurist
aid program in 1954 to 36.5 billion. Military assistance of almost :).315,
million during 1964 was roughly equal to annual commitments in 1962 rnd
1963 but was 60 percent below the 1961 peak.
The United Arab Republic (UAR), which received a total of almost_
220 million in Communist credits during the period, was by far the
largest recipient of aid during the last half of 1964. Indonesia ao
Pakistan were the other main recipients. Four African countries - The
-
Central African Republic, Congo (Brazzaville), Senegal, and Uganda
were added to the list of 30 countries that had been recipients of Com-
munist economic aid in the past.
For the first time in any 6-month period, Communist China became
the major Communist aid donor, with record extensions of s246
Almost 80 percent of this total went to three countries -- the UAR,
Pakistan, and Indonesia. Eastern European countries extended total
credits of 3210 million to five less developed countries, oC which one-
third was accounted for by a single credit of $70 million extended
Rumania to the UAR. The USSR extended $147 million of credits in thi=
second half of 1964. Although this level is far below Soviet commitventt,
of $686 million in the first half, aggregate Soviet aid of $833
extended in 1964 is almost equal to the 1959 Soviet annual record le?el
of $857 million. The reduced level of aid extended in the last half of
the year may be attributed largely to the fact that major requests for
assisting the 5-year plans of less developed countries had been satL-
fied earlier in the year and partly to Soviet inactivity resulting f-om
the change in Soviet leadership. Except for $41 million of credits
Afghanistan, all Soviet economic aid in the last half of 1964 was ex
tended to five African countries, and the Soviet commitment of 044 mil-
lion to Kenya constituted the largest Soviet credit during the perio,L.
Total drawings on Communist credits extended previously amounted to
about S500 million in 1964, or about 10 percent more than the V164 nrillicr
in 1963 and 40 percent more than in 1962.
* See Figure 1, following p. 2.
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The number of economic technicians in less developed countries rose
to 14,525 in the last 6 months of 1964, an increase of about 9 percent
above the first half of the year. Although there was a slight decline
in Soviet personnel, following the completion of some aid projects, the
number of Chinese Communist technicians in the less developed countries
increased by more than 75 percent to 2,160. Afghanistan, Algeria, Guinea,
and the UAR continued to employ about half of all Communist technicians
assigned to less developed countries.
About 1,000 technical trainees undertook training in Communist coun-
tries during the second half of 1964, bringing the total number who
have departed for this training since 1956 to more than 9,500. At the
end of 1964, 3,900 of these trainees still were studying in Communist
institutions.
In spite of reports of continuing student dissatisfaction and clashes
with Communist authorities, about 1,440 nationals from less developed
countries departed for academic training in Communist institutions,
bringing the total number of students who have gone to Communist coun-
tries for this training since 1956 up to about 17,000. Two-thirds of
the 14,580 students undergoing training at the end of December were in
the USSR; except for 300 enrolled in Chinese Communist universities,
the remainder were studying in East European countries. More than half
of the total number enrolled were from Africa, but Iraq continued to
have the largest representation of any single country.
About $300 million of new military aid was extended to less de-
veloped countries in the last 6 months of 1964, bringing the cumulative
total of such aid extended between 1955 and 1964 up to $3.7 billion.
The USSR entered into new agreements to furnish military assistance to
Afghanistan, India, Indonesia, Syria, and the UAR, and the Chinese Com-
munists gave military aid to Cambodia in the last 6 months of 1964.
Deliveries of military equipment under earlier agreements continued at
high levels, especially to Algeria, Indonesia, and the UAR. During the
last half of 1964, approximately 3,545 Communist military technicians
were employed in less developed countries, and about 1,355 trainees from
11 less developed nations enrolled in military programs in Communist
countries during the period.
Foreign trade turnover between Communist countries and non-Communist
less developed countries amounted to almost 81.5 billion during the
first half of 1964, an increase of 11 percent above the comparable
period in 1963. Imports rose 12 percent, and exports rose 9 percent.
The largest percentage increase in trade between the Communist area
and the less developed countries -- about 50 percent -- was recorded
by Communist China, principally because of heavy imports of wheat from
Argentina. Within the Communist area the countries of Eastern Europe
continued to be the most important trading partners with the less de-
veloped countries. Their trade turnover totaled S646 million compared
with 01482 million for the USSR and $272 million for Communist China.
-
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SECRET
ECONOMIC ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPED COUNTRIES OF THE FREE WORLD*
Selected Years, 1954- 64
COMMUNIST ECONOMIC ASSISTANCE TO LESS
DEVELOPED COUNTRIES, 1954-64
1500
1000
500
ED Communist China
Eastern Europe
MI USSR
Million US Dollars
COMMUNIST MILITARY ASSISTANCE TO LESS
DEVELOPED COUNTRIES, 1955-64
1000 Million US Dollars
O Communist China
III Eastern Europe
ME USSR
1954 1955 1956 957 1958 1959 1960 1961 1962 19
3 1964
COMMUNIST ECONOMIC AND MILITARY
TECHNICIANS IN LESS DEVELOPED COUNTRIES
1956-64
Thousand Technicians
20
10
O Military
Economic
1955 1956 1957 158 1959 1960 1961 1962 1"63
STUDENTS FROM LESS DEVELOPED COUNTRIES
TRAINED IN COMMUNIST COUNTRIES,
CUMULATIVE TOTALS 1956-64
40 thous. d Studeints
1956 1957 1958 1959 1960 1961 1962 1963 1964
51127 2-65
1956 1957 1958 1959 1960 1961 1962 963 V61
"Dora are revised periodically to include new_mice 72,:tIon and
may not be comparoble with data previoe,ly
SECRET
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Asia continued to account for the largest share -- about 36 percent --
of Communist countries' trade with less developed areas and, az in tlie
past, was followed in importance by the Middle East, which accounted
for one-third of the total. There was little variation from former
patterns in the commodity composition of this trade in 1963. Importz
by the Communist area continued to be dominated by food products and
crude materials, whereas manufactured goods and machinery again ac-
counted for roughly half of Communist exports. The remainder of exk)rts
consisted of foodstuffs.
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AID AND TRADE ACTIVITIES
OF COMMUNIST COUNTRIES
IN I.H-S DEVELOPED AREAS
OF THEE FREE WORLD
1 JUL 31 DECEMBER 1964
Apt il 1965
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AID AND TRADE ACTIVITIES
OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS
OF THE FREE WORLD
1 JULY-31 DECEMBER 1964
April 1965
SECRET
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FOREWORD
The EIC-R14 series provides periodic summaries and analytical nter-
pretations of significant developments in the economic and military re-
lations of Communist countries with less developed countries of ths Free
World. These developments are reported on a current, factual basis in
the biweekly reports under the same title.
This report, covering the 6 months from 1 July through 31 Deceiber
1964, constitutes the eighteenth periodic supplement to a report or
Sino-Soviet Bloc Postwar Economic Activities in Underdeveloped Areas,
8 August 1956, SECRET. The present supplement updates the previous
semiannual report and includes the more significant developments durina
the reporting period. It also relates noteworthy noneconomic activitiea.
including military aid, to economic operations of the Communist countrie:
in less developed areas. Data have been revised to include new informa-
tion, and figures in the current supplement supersede those in previous
issues.
In this report the term Communist countries refers primarily tt the
following countries that extend aid to less developed areas: the tSSR,
Communist China, and the following countries of Eastern Europe --
Bulgaria, Czechoslovakia, East Germany, Hungary, Poland, and Rumania.
For certain limited purposes the term also may include Albania, Cuba,
Mongolia, North Korea, and North Vietnam, none of which is normally a
donor of aid. Yugoslavia is not included.
The term less developed countries of the Free World includes the
following: (1) all countries of Africa except the Republic of South
Africa; (2) all countries in South and Southeast Asia; (3) Iceland,
Portugal, and Spain; (4) all countries in Latin America except Cuba;
and (5) all countries in the Middle East, including Cyprus, Greece, the
Syrian Arab Republic, Turkey, and the United Arab Republic.
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Summary
CONTENTS
I. Economic Assistance
A. Credits and Grants
B. Technical Assistance
1. Economic Technicians
2. Academic Students and Technical Trainees . . .
II. Military Assistance
A. Credits and Grants
B. Technical Assistance
1. Military Technicians
2. Military Trainees from Less Developed Countries
III. Trade
A. Value
B. Direction
C. Commodity Composition
FE;-
1L
1 -;
25X1
Tables
1. Economic Aid Extended by Communist Countries to Less
Developed Countries of the Free World, July-
December 1964
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AID AND TRADE ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPED AREAS OF THE FREE WORLD
1 JULY - 31 DECEMBER 1964
Summary
Communist aid undertakings in less developed countries continued at
high levels in the last half of 1964, and record activity was registered
for the year 1964 in all sectors of the economic aid program.* Cormunisf
countries extended more than $600 million in new economic assistance tc
less developed countries in the last half of 1964, bringing total com-
mitments for 1964 to an annual high of about 31.5 billion and the cumula.
tive total of all economic aid extended since the start of the Communist
aid program in 1954 to $6.5 billion. Military assistance of almost $375
million during 1964 was roughly equal to annual commitments in 1962 and
1963 but was 60 percent below the 1961 peak.
The United Arab Republic (UAR), which received a total of almost
$220 million in Communist credits during the period, was by far the
largest recipient of aid during the last half of 1964. Indonesia and
Pakistan were the other main recipients. Four African countries -- the
Central African Republic, Congo (Brazzaville), Senegal, and Uganda --
were added to the list of 30 countries that had been recipients of Com-
munist economic aid in the past.
For the first time in any 6-month period, Communist China became
the major Communist aid donor, with record extensions of 3246 million.
Almost 8o percent of this total went to three countries -- the UAR,
Pakistan, and Indonesia. Eastern European countries extended total
credits of 3210 million to five less developed countries, of which one-
third was accounted for by a single credit of $70 million extended by
Rumania to the UAR. The USSR extended $147 million of credits in the
second half of 1964. Although this level is far below Soviet ommibmenL.
of $686 million in the first half, aggregate Soviet aid of 3833 million
extended in 1964 is almost equal to the 1959 Soviet annual record level
of 3857 million. The reduced level of aid extended in the last hale of
the year may be attributed largely to the fact that major requests for
assisting the 5-year plans of less developed countries had been satis-
fied earlier in the year and partly to Soviet inactivity resulting -7rom
the change in Soviet leadership. Except for $41 million of credits to
Afghanistan, all Soviet economic aid in the last half of 1964 was ex-
tended to five African countries, and the Soviet commitment of 344 mil-
lion to Kenya constituted the largest Soviet credit during the periA-
Total drawings on Communist credits extended previously amounted to
about 3500 million in 1964., or about 10 percent more than the $464 raill01
in 1963 and 40 percent more than in 1962.
* See Figure 1, following p. 2.
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The number of economic technicians in less developed countries rose
to 14,525 in the last 6 months of 1964, an increase of about 9 percent
above the first half of the year. Although there was a slight decline
in Soviet personnel, following the completion of some aid projects, the
number of Chinese Communist technicians in the less developed countries
increased by more than 75 percent to 2,160. Afghanistan, Algeria, Guinea,
and the UAR continued to employ about half of all Communist technicians
assigned to less developed countries.
About 1,000 technical trainees undertook training in Communist coun-
tries during the second half of 1964, bringing the total number who
have departed for this training since 1956 to more than 9,500. At the
end of 1964, 3,900 of these trainees still were studying in Communist
institutions.
In spite of reports of continuing student dissatisfaction and clashes
with Communist authorities, about 1,440 nationals from less developed
countries departed for academic training in Communist institutions,
bringing the total number of students who have gone to Communist coun-
tries for this training since 1956 up to about 17,000. Two-thirds of
the 14,580 students undergoing training at the end of December were in
the USSR; except for 300 enrolled in Chinese Communist universities,
the remainder were studying in East European countries. More than half
of the total number enrolled were from Africa, but Iraq continued to
have the largest representation of any single country.
About $300 million of new military aid was extended to less de-
veloped countries in the last 6 months of 1964, bringing the cumulative
total of such aid extended between 1955 and 1964 up to $3.7 billion.
The USSR entered into new agreements to furnish military assistance to
Afghanistan, India, Indonesia, Syria, and the UAR, and the Chinese Com-
munists gave military aid to Cambodia in the last 6 months of 1964.
Deliveries of military equipment under earlier agreements continued at
high levels, especially to Algeria, Indonesia, and the UAR. During the
last half of 1964, approximately 3,545 Communist military technicians
were employed in less developed countries, and about 1,355 trainees from
11 less developed nations enrolled in military programs in Communist
countries during the period.
Foreign trade turnover between Communist countries and non-Communist
less developed countries amounted to almost $1.5 billion during the
first half of 1964, an increase of 11 percent above the comparable
period in 1963. Imports rose 12 percent, and exports rose 9 percent.
The largest percentage increase in trade between the Communist area
and the less developed countries -- about 50 percent -- was recorded
by Communist China, principally because of heavy imports of wheat from
Argentina. Within the Communist area the countries of Eastern Europe
continued to be the most important trading partners with the less de-
veloped countries. Their trade turnover totaled S646 million compared
with .482 million for the USSR and 3212 million for Communist China.
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SECRET
ECONOMIC ACTIVITIES OF COMMUNIST COUNTRIES
IN LESS DEVELOPED COUNTRIES OF THE FREE WORLD*
Selected Years, 1954-64
COMMUNIST ECONOMIC ASSISTANCE TO LESS
DEVELOPED COUNTRIES, 1954-64
1500
1000
500
Communist China
MI Eastern Europe
Ell USSR
Million US Dollars
1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 964
COMMUNIST ECONOMIC AND MILITARY
TECHNICIANS IN LESS DEVELOPED COUNTRIES
1956-64
20 Thousand Technicians
F71 Military
Economic
1956 1957 1958 1959 1960 1961 1962 1963 1964
51127 2-65
1000
500
COMMUNIST MILITARY ASSISTANCE ID LESi
DEVELOPED COUNTRIES, 7955-64
Million US Dollars
ap Communist China
OM Eastern Europe
EIS USSR
1955 1956 1957 1958 1959 1960 1961 1962 1963
STUDENTS FROM LESS DEVELOPED COL NTRI1 S
TRAINED IN COMMUNIST COUNTR ES,
CUMULATIVE TOTALS 1956-64
40 Th Studept,s
?Doto are revised periodically to inciude new ICmQtiOO J t)Crt
may not be comparable with data previously presented
SECRET
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Asia continued to account for the largest share -- about 6 percent -
of Communist countries' trade with less developed areas and, as in th,
past, was followed in importance by the Middle East, which accoLnted
for one-third of the total. There was little variation from former
patterns in the commodity composition of this trade in 1963. Irports
by the Communist area continued to be dominated by food products and
crude materials, whereas manufactured goods and machinery again ac-
counted for roughly half of Communist exports. The remainder ot extd
consisted of foodstuffs.
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I. Economic Assistance
A. Credits and Grants
Communist countries extended $603 million of new economic a3sis-
ance to less developed countries in the second half of 1964 (see
Table 1*). These new credits bring the total amount of economic all
extended in 1964 up to a, record $1,512 million, or about two-fifths
above the previous peak of $1,092 million recorded in 1961.** Aggre-
gate Communist economic aid extended to less developed countries from
the beginning of the aid. program in 1954 through the end of 1964 rose
to about $6.5 billion and the number of aid recipients to 34, as four
African nations -- the Central African Republic, Congo (Brazzaville),
Senegal, and Uganda -- were added to the list. By far the largest lid
recipient during the last half of 196)4 was the UAR, which received p19
million in credits, bringing the total of economic aid extended to that
country in 1964 up to almost $500 million.
During the last half of 1964, 'Communist China extended a record
level of 5246 million in credits to eight countries, or about 40 per-
cent of total new Communist economic aid commitments during the period,
and for the first time China became the major Communist aid donor.
These new Chinese extensions together with the $92 million extended in
the first 6 months of the year raised the level of Chinese aid for i964
to $338 million, or more than double the 1961 peak level of $163 minion,
During the period under review, about $90 million, or almost 40 per ent
of total Chinese aid extended, was provided to three countries that had
not received Chinese economic aid previously: the Central African
Republic, Congo (Brazzaville), and Pakistan.
An $80 million credit to the UAR was the largest Chinese credit
extended during the last b months of the year and was the first aid to
the UAR from China since its $4.7 million grant during the Suez crisis
in 1956. The credit was the second largest ever extended by Communist
China and is exceeded in magnitude only by the S84 million credit pro-
vided to Burma in 1961. Communist China also extended credits of $00 mt
lion to Pakistan and $50 million to Indonesia. A credit of $22 milLion
to Ghana was added to the $20 million extended it by Communist China in
1961, in spite of the fact that no deliveries are known to have beeu
made under the earlier credit. Credits to Congo (Brazzaville) and the
Central African Republic of $25 million and $4 million, respectively,
included provisions for a total of $4 million in hard currency which,
when added to the 810 million included in the credit to Indonesia,
raises total hard currency commitments to nearly 819 million in l96-
* P. 6, below.
** See Figure 2, following p. 6.
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and the total obligated by the Chinese for that purpose between 1956
and 1964 to S2 million.
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SECRET
ECONOMIC CREDITS AND GRANTS
EXTENDED BY COMMUNIST COUNTRIES
TO LESS DEVELOPED COUNTRIES OF THE FREE WORLD
EXTENSIONS AND DRAWINGS, BY YEAR
1954-64
MILLION
US
DOLLARS
1,600
1,400
1,200
1,000
800
600
400
200
1,091.9
1511.6
1961
1960
,TAL AF EX fat44
$6.45. 1 M.111,1
1957
1956
5112E; 2-65
1954
1955
SECRET
137.0
DRAWINGS
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The USSR extended 31147 million of new economic aid to six coun-
tries during the second half of 1964, bringing total Soviet aid exten-
sions in 1964 up to $83=; million, almost equal to its record of $851
million in 1959. With the exception of $41 million in credits to
Afghanistan, all Soviet economic aid extended during the last 6 months
of the year was to five African nations. Soviet credits were extended
to Senegal and Uganda, neither of which had previously received econami2
assistance from a Communist country. Following the Chinese lead, the
USSR also signed economic aid agreements with the United Republic of
Tanzania, Congo (Brazzaville), and Kenya -- the latter receiving a $44
million credit, the largest Soviet aid commitment during the period.
Negotiations continued with India on the Bokaxo steel plant, to which
the USSR had committed $211 million in the first half of 1964. It
appeared likely that the USSR would involve itself more heavily in that
project as it agreed to assist in the second as well as the first stage
of plant construction. Drawings on previously extended Soviet credits
were slightly below the level of the first half of 1964, but total ie-
liveries for the year were roughly equal to the 1963 level.
Eastern European countries made commitments of $210 million of
new aid during the period. East Germany was the largest donor, extend-
ing credits of $75 million (to Indonesia, the UAR, and Syria) -- which
exceeded the total amount of economic aid extended by East Germany Cram
the beginning of the aid program in 1955 up to the last half of 1964
($65 million). Rumania was the second largest donor, with a single
credit of $70 million to the UAR. Czechoslovakia and Poland each eK-
tended credits to the United Republic of Tanzania and to Pakistan of
$6 million and 314 million, respectively, and Poland extended a $25
million credit to the UAR.
Aid deliveries in 1964 amounted to $503 million, or 9 perceat
more than the level for 1963. This is considerably below the annual
rate of increase for recent years. Total drawings on credits equaled
$232 million in the last half of 1964 compared with $271 million in the
first half. The decline is partly attributable to a deceleration ii
UAR drawings on the Aswan High Dam credits, after the completion of the
first stage of the project, and to a decline in drawings on Eastern
European credits.
B. Technical Assistance
1. Economic Technicians
Communist technical assistance activities continued apaee
during the last half of 1964 as the number of technicians sent to less
developed countries rose to 14,525 -- about 9 percent above the pre-/lour,
6-month total (see Table 7*). There was a slight decline in Soviet
personnel following the completion of some projects, but the number of
* P. 40, below.
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Chinese Communist economic technicians who were dispatched to aid-
receiving countries during the period increased by more than 75 per-
cent, from 1,220 in the first 6 months of the year to 2,160 in the
second half. The number of Communist personnel engaged in nonproject
activity continued to increase during the review period, accounting
for more than one-fourth of all technicians employed. The USSR, which
in earlier years had supplied about three-fourths of all Communist
technicians to less developed countries, now accounts for approximately
60 percent of the total, whereas Chinese technicians represent about 15
percent compared with less than 10 percent in the past.
Although Afghanistan, Algeria, Guinea, and the UPR continued
to employ about half of the total number of Communist technicians, there
were changes among the areas receiving technical personnel during the
review period. The total number of technicians in Asia and the Middle
East declined in the last half of 1964, whereas the number in Africa
rose by about one-third.
Approximately 40 percent of all Communist economic techni-
cians were employed in African countries compared with 30 percent in
the previous 6-month period. Reflecting its increased interest in
Africa, Communist China assigned to Africa almost 50 percent of the total
number of technicians that it sent to less developed countries. In Guinea,
315 additional Chinese technicians arrived during the period to expedite
the Chinese aid program in that country, and 365 were dispatched to
Mali -- reportedly the forerunners of some 3,000 technicians whom China
plans eventually to send to Mali to help implement its economic aid pro-
gram in that country. The number of Soviet technicians in Algeria and
Ghana rose by 150 and 50 percent, respectively, during the period,
registering the largest Soviet personnel gains in Africa. Of the 1,610
Soviet and Eastern European technicians in Algeria, about 230 Soviet and
100 Eastern European personnel were skilled "volunteers" engaged in
undertakings of a Peace Corps type designed to rebuild certain communi-
ties destroyed during the Algerian struggle for independence.
In spite of the large increase in the number of Communist
technicians in Yemen, the number for the Middle East as a whole
registered a net decline as certain phases of project activity in
Iraq and the TSAR were completed. More than 800 Soviet technicians de-
parted from the site of the Aswan High Dam after completion of the
first stage of construction in May 1964, although a large influx of
technicians is expected again in 1965 as work progresses on the main
dam and the electric grid network. The number in Iraq fell by 30 per-
cent. In Yemen, however, the number of technicians rose by almost two-
thirds as additional Chinese and Soviet technicians arrived to begin
implementation of projects under their respective aid programs.
The slight decline in the number of economic technicians
assigned to Asia in the last half of 1964 followed a drop of 45 percent
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in personnel in Indonesia and minor reductions in Ceylon and India. All.
other aid recipients in the area registered minor gains in the number
of Communist personnel present, with Burma showing an increase of 2J
percent as the result of additional project activity initiated by tae
Chinese.
The decline in the number of Soviet technicians in some
of the countries is expected to be temporary. AS Soviet-aided projects,
under the near-record level of credits extended in 1964, are implementei,
the number of Soviet technical personnel should rise again. The in-
crease in Chinese technicians in less developed countries is expected to
continue, following a year of peak credit extensions in 1964.
2. Academic Students and Technical Trainees
During the second half of 1964, about 1,000 nationals from
less developed countries undertook technical training programs in Com-
munist countries bringing the total number who have undertaken this
training since 1956 to more than 9,500. As of December 1964, 3,900 of
these still were being trained (see Table 8*). More than 40 percent
of them were from the UAR, while three countries -- India, Algeria, and
Ghana -- accounted for another 30 percent. As in the case of academic
students, approximately two-thirds of the total number receiving train-
ing were in the USSR, with only a few in Communist China and the re-
mainder in Eastern European countries.
During the last 6 months of 1964, about 1,440 nationals froa
less developed countries departed for academic training in Communist in-
stitutions, bringing the total number of students who have gone to "Com-
munist countries for this training since 1956 up to more than 17,000.
In spite of reports of continuing student dissatisfaction
and clashes with Communist authorities, some 14,580 academic students
were undergoing training at the end of December (see Table 9**), an
increase of about 13 percent above the comparable period in 19b3.
Almost two-thirds of those being trained were in the USSR and, except
for 300 enrolled in Chinese Communist universities, the remainder were
studying in Eastern European countries. More than half of the total
number of students being trained in Communist countries at the end of
December were from Africa, with Ghana, Kenya, tne Somali Republic, and
Mali being most heavily represented. Iraq, with 1,965 students traininA
in Communist institutions at the end of December, continued to have the
largest number of any single country. It was followed by Indonesia,
whose 1,025 students were studying primarily in the USSR and Czecho-
slovakia.
During the past 6 months, there was further evidence of
continuing difficulties on the part of students from less developed
* P. 42, below.
P. 44, below.
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countries, primarily Africans, in adjusting to local conditions and in
their relations with authorities and other students. Relations between
African students and Rumanian authorities and students, exacerbated by
Bucharest's suppression of unauthorized demonstrations, deteriorated to
the point of open clashes by year's end, and African students threatened
to boycott classes until their demands for better treatment were met.
In the USSR, similar conflicts occurred when a Kenyan EMbassy official in
Moscow had to go to Baku to help quell a "strike" by some 80 Kenyans who
were refusing to attend classes in protest against poor instruction and
the hostility of the Azerbaydzhanis.
Nearly 300 African students are reported to have left Com-
munist countries between January and late October 1964 without complet-
ing their studies. The number of such defectors is small, however, when
compared with the almost 8,700 Africans currently undergoing academic
and technical training in Communist countries.
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II. Military Assistance
A. Credits and Grants
Communist countries extended about $301 million of military ai4
to less developed countries during the last half of 1964, bringing the
cumulative total of Communist military aid extended between 1955 aad thr!
end of 1964 to $3.7 billion (see Table 2).* Although these new commit-
ments represent a considerable increase above the $72 million in miaiti,i;r'v
aid extended in the first half of 1964, the total of $373 million Car
the year is considerably below the 1961 peak of almost $850 million but
roughly equal to annual commitments in 1962 and 1963. Soviet agreement.;
with Afghanistan, India, Indonesia, and Syria and a Chinese Communist
accord with Cambodia were completed during the review period. In addi-
tion, intensive negotiations were initiated between the UAR and the US1M.
late in 1964 during which time a substantial new military aid agreement
apparently was concluded.
Table 2
Military Aid Extended by Communist Countries
to Less Developed Countries of the Free World
September 1955 - December 1964
Million Current US $
Estimated minimum value
3,810
Less downpayments
1P1
Amount of aid
3,689
Credits
2,230
Discounts and grants
1,459
An agreement in July between the USSR and Afghanistan resin_ted
in the rapid delivery of surface-to-air missiles (SAM's) and antitank
missiles in time for Afghanistan's Independence Day military parade on
23 August. MIG-21 jet interceptors may have been included in this
agreement, but complete deliveries of this advanced weaponry will not
be made until the return of pilot trainees from the USSR, probably latc
in 1965. The USSR also extended an estimated $147 million to India for
the establishment of an assembly complex for MIG-21 aircraft and for the
delivery of MIG-21's, light tanks, and helicopters.
* The bulk of this aid has been provided by the USSR. Although Cechc-
slovakia and Poland were active in supplying arms in the early years of
this activity, their roles have diminished considerably since 1960
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In early October, Moscow agreed to provide Indonesia with addi-
tional military equipment, including jet fighters, bombers, transports,
helicopters, and naval craft. This assistance was promised in spite of
the fact that the USSR has counseled Indonesia against escalating its
confrontation with Malaysia. The new aid will accentuate the difficul-
ties that Indonesia already has been experiencing in meeting its repay-
ment obligations for the military indebtedness it has incurred with
Communist countries. The USSR signed another military aid accord with
Syria in October. Communist China concluded a military assistance pact
with Cambodia during the second half of 1964 under which it agreed to
furnish $4 million worth of small arms, artillery, and -- later -- MIG
aircraft.
Deliveries of military equipment under earlier agreements con-
tinued at high levels during the last half of 1964, especially to
Algeria, Indonesia, and the UAR. Algeria received jet light bombers,
jet fighters, medium tanks, motor torpedo boats, and assorted artillery
pieces and military vehicles. Indonesia received Komar-class missile
boats, An-12 transport aircraft, mi-6 helicopters, and 11-28 jet light
bombers, thereby boosting its air and naval capability. Other equipment
deliveries -- largely vehicles, spares, and ammunition -- continued during
the period to Iraq, Syria, and Cambodia.
The USSR continued to expand the number of countries to which
it is willing to provide more complex weapons systems as well as the
variety of such systems. In 1964, SAM's were introduced into Afghanistan
and possibly earmarked for Syria. The world's largest helicopter, the
Mi-6, was delivered to Indonesia and to the UAR. The improved version
of the MIG-21 jet interceptor will be provided, beginning in 1965, to
India, Indonesia, and Iraq. The Osa-class missile boat -- a larger ver-
sion of the Komar-class gunboat -- may be supplied to Indonesia and
possibly to the UAR. The escalation and proliferation of this advanced
weaponry to less developed countries are expected to continue, and such
items as the Su-7 ground attack aircraft and short-range surface-to-
surface missiles (SSM's) may be included in future aid packages.
Technical Assistance
1. Military Technicians
Approximately 3,545 military technicians from Communist
nations were in less developed countries during the last half of 1964,
about 9 percent more than were there in the first half of the year.
Although the number of military technicians increased in almost all
recipient countries, these increases were nominal except in India and
Algeria, where the numbers present during the last 6 months of 1964
were roughly double those in the previous half-year period. With the
introduction of advanced weapons systems into the less developed coun-
tries, the number of Communist military technicians present in those
countries should continue to rise.
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2. Military Trainees from Less Developed Countries
During the Last 6 months of 1964, about 1,355 nationale frm
11 less developed countries enrolled in military programs in the UESR,
Eastern Europe, and Communist China. While the USSR continued to play
host to most of the trainees, 145 of those departing for training dn
Communist countries during the period went to Eastern European courtries
and 30 to Communist China.
By the end of 1964 a total of about 18,110 military personre:
from less developed countries had been sent to Communist countries for
training. Nearly half of these trainees were from Indonesia and another
one-third from Iraq, Syria, and the UAB. The USSR has been responsible
for training more than 80 percent of the total trained since the start
of the program in 1955. At the end of 1964, approximately 3,245 mili-
tary trainees from less developed countries were being trained in Com-
munist military institutions, about 10 percent of whom were training
in Eastern European countries, while all but 45 of the remainder were
being trained in the USSR. Of the total being trained, the largest
contingents were from Afghanistan, Algeria, Indonesia, and the UAR.
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III. Trade
A. Value
During the first half of 1964, foreign trade turnover betwen
the Comnunist countries, excluding Cuba,* and the non-Communist less
developed countries amounted to almost $1.5 billion,xx an increase of
about 11 percent above the comparable period in 1963. Imports from le
developed countries rose by about 12 percent, while a gain of 9 percam;
was recorded in exports. Within the Communist area the countries of
Eastern Europe continued to be the most important trading partners with:
less developed countries. Their trade turnover totaled S646 million
during the 6-month period under review compared with $482 million for?
the USSR and $272 million for Communist China. The largest percerr:age
increase in trade between the Communist area and less developed coun-
tries was recorded by Communist China, whose commercial exchanges with,
less developed areas were more than 50 percent above the comparable
period of 1963. This increase was due mainly to increased Imports of
grain from Argentina and cotton from Syria. Detailed data on Communis
exports to and imports from individual less developed countries are
presented in Tables 10 and 11.***
B. Direction
Although Asia continued to account for the largest share --
about 36 percent -- of the Communist countries' trade with less de-
veloped areas during the first half of 1964, the percentage increwe
* Cuba's trade turnover with less developed countries during the
first 6 months of 1964 amounted to $70 million, or almost double the
level achieved in the comparable period of 1963. Morocco, Spain, and
the UAR continued to be Cuba's major trading partners among the less
developed countries. For data on Cuba's exports to and imports from
individual less developed countries, see Tables 12 and 13, pp. 55 and
57, respectively, below.
XX The value figures presented in this section are based primarily
on trade statistics as reported by less developed countries themselves -
and are the only figures available for 1964. It should be noted, how-.
ever, that because of timelags, differences in reporting methods, and
coverage of less developed countries, these figures differ considerably
from those on the same trade as reported in official Communist sources.
One major difference stems from the fact that some less developed coun.
tries do not include in their trade returns those imports received under
long-term economic credits whereas the Communist countries report ES el.
ports all goods furnished on credit, with the result that the value of
this trade according to Communist sources exceeds the value reported by
less developed countries.
xx* Pp. 47 and 51, respectively, below.
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in this trade was the smallest recorded for any area -- about 3 per-
cent. Total trade between the two areas amounted to 8522 million, of
which more than three-fifths was accounted for by India and Malaya and
Singapore. Indian exports to the Communist area during the first 6
months of 1964 were more than 43 percent above the comparable period
in 1963, while imports registered a gain of 17 percent. Trade with
Malaya and Singapore, however, declined by 42 percent, primarily be-
cause of a sharp drop in Communist purchases of rubber, which amounted
to only 74,000 tons,* or about half the volume imported during the first
half of 1963.
In the first 6 months of 1964 the Middle East continued to
follow closely behind Asia as the Communist countries' second most
important trading area within the group of less developed countries,
with total trade between the two areas amounting to about $478 mil-
lion, or 7 percent above the level achieved during the comparable
period of 1963. Communist exports to the area rose by 10 percent,
while imports registered an increase of only 4 percent. Although Com-
munist trade with the UAP declined by about 19 percent, primarily be-
cause of smaller deliveries from Eastern Europe, the UAR continued to
be the principal Middle Eastern trading partner of the Communist coun-
tries, accounting for one-third of total trade with this area. Imports
from the UAR amounted to $120 million, a decline of 6 percent below the
level recorded in the first half of 1963. The UAR sold 51 percent of
its cotton to the Communist area during the season August 1963/July
1964 compared with 62 percent in the 1962/63 season, reflecting the
UAR's successful efforts to sell more of its cotton to the West for
hard currency.
The largest increase in both percentage and value of trade be-
tween the Communist countries and less developed countries was achieved
in Latin America, where trade during the first half of 1964 totaled about
3223 million, an increase of 58 percent above the level of the correspond-
ing period of 1963. Most of the increase was accounted for by large
Chinese Communist purchases of grain from Argentina. Communist exports
to the region fell by 10 percent.
Africa continued to account for about 13 percent of the trade
between the Communist countries and less developed countries. Imports
from Africa rose about 10 percent to 394 million, whereas exports in-
creased 37 percent to $96 million, resulting in a trade turnover of $189
million, an increase of 22 percent above the first 6 months of 1963.
The increase in Communist exports to this area was due mainly to larger
shipments to Morocco and Mali.
Communist trade with less developed countries of Europe remained
small, amounting to only S42 million, a decline of 30 percent from the
first half of 1963, and accounting for only 3 percent of total Communist
trade with all less developed countries.
-x-
Tonnages are given in metric tons throughout this report.
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C. Commodity Composition
The commodity composition of the trade of Communist countr_es
with less developed countries in 1963 showed little change from earlier
years.* Imports by the Communist area continued to be dominated by foet
products and crude materials, which together accounted for almost 90
percent of total imports -- roughly the same share that has prevai2.ed
for the past several years. Cotton and rubber remained high on the
Communist import list of crude materials, accounting for almost three-
fourths of imports of this category of goods and for more than two-
fifths of total imports from less developed areas.
The UAR continued to be by far the most important source of
cotton, accounting for roughly half of the cotton imports by Commuzkist
countries from less developed countries in 1963. Syria, Sudan, ant.
Brazil, in that order, were the next most important suppliers of cottor,
providing 35 percent of the total. Imports of natural rubber by ti-e
Communist countries amounted to 537,000 tons in 1963, about 2 percent
less than the volume imported in 1962. The major portion of these im-
ports continued to come from Malaya and Singapore. The USSR again was
the largest Communist purchaser, having imported about 297,000 tons, oz
-
more than half of total Communist purchases of rubber from less de-
veloped areas. Hides and skins, iron ore, and wool, in that order.
accounted for most of the remainder of Communist imports of crude
materials from less developed countries in 1963.
Although Communist imports of food products from the less de-
veloped countries rose by 23 percent, food products continued to ac-
count for only 28 percent of total Communist imports from the less
developed countries. Increased imports were due mainly to larger pur-
chases by the Eastern European countries, whose imports of food products
were more than 40 percent above the 1962 level. Soviet imports of food
products also increased, although to a lesser extent. Coffee, tea, and
cocoa accounted for most of this increase and continued to hold first
place among Soviet imports of food products from the less developed
countries.
The Communist area did not offer much more of a market for
the manufactures of less developed countries than in earlier years in
spite of repeated Communist claims to the contrary. Although Communist
imports of manufactures from the less developed countries increased by
almost 60 percent, they amounted to only about 395 million, or littLe
more than 8 percent of the total value of imports. The increase was
due mainly to larger purchases of cotton yarn from the UAR, of footwear
and jute manufactures from India, and of aluminum and iron and steeL
from Spain.
Among exports from the Communist area to less developed eau:a-
tries, the share held by manufactured goods and machinery and trans)ort
* See Figure 3, following p. 18.
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equipment declined somewhat, but these two categories of goods continued
to account for nearly half of total exports. Soviet exports of machinery
again consisted primarily of equipment for complete plants and various
kinds of transportation equipment, and the Eastern European countries
continued to deliver mainly transportation equipment, electrical ma-
chinery, and metalworking machinery. Communist exports of manufactured
goods again were dominated largely by textile fabrics, yarns and
threads, and iron and steel. Exports of food products increased by
27 percent, largely because of increased shipments of sugar, and ac-
counted for almost one-fifth of total Communist exports to less de-
veloped countries. Of the remainder, petroleum and petroleum products
accounted for about 10 percent.
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SECRET
Figure 3
TRADE OF COMMUNIST COUNTRIES WITH LESS DEVELOPED COUNTRIES OF THE FREE WORLD
BY COMMODITY GROUP; 1959-63
OTHER
CRUDE MATERIALS
? .......
? ? ? 7?41.3.
: : ...
. :
.. no%; ? ?
.........
ta a ? a
FUELS :4>
.0.11"
a II
FOOD PRODUCTS
MACHINERY
AND TRANSPORT
EQUIPMENT
MANUFACTURED GOODS
I
III II'
I
? al
44:1,11r
it e
4. l
a 0 a los.
1"i'aUs
1949 1960 1961 1962 1963
EXPORTS BY COMMUNIST COUNTRIES
100% 100%
::3%
1959 1960 1961 1962 1963
OTHER
MANUFACTURED GOODS
FOOD PRODUCTS
CRUDE MATERIALS
IMPORTS BY COMMUNIST COUNTRIES
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