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fifefcNK PAGES
Brcad-und-bullet considerations continued to loom large in bolh Soviet und East European economic aid programshe most dramatic example was ihe Sovici credits for ihe development of phasphaic mining in Morocco in return for which the USSR is to receive aboutillion tons ofear forears. Another long-term Soviet commitment of SIillion to Turkey *ill provide assistance for expansion of steel and aluminum plants and for erection of power plantsew refinery. Roth of these si/able credits were extended under "Iramework" accords, which have characterized much of the Soviet aid to LDCs or the past Tew years.
( (intents
The Mililary Aid Program; Sales Off. Deliveries-
Costing Communist
Patterns in
Commercial Returns From
Military Technical Services at New
The Economic Aid Program* In High
USSR: Record Year for
Eastern Europe; Search for Commercial
Yield to the
Technical Scmces:ash-Flo* Program
Technicalrowing Effort
Academicow-Cost
Economic Crcdiis and GramsDCs: Extensions and Drawings
Economic Technicians in3
s
Students From LDCs Being Trained in Communist Counirics as of8
Countries: Economic and Military AgreemenuCs
Military Agreements With and Deliveries to LDCs
Economic Agreement With and Deliveries to LDCs
Aid to LDC Metals and Minerals Industrieshare of Total Aid
Preface
The lerm Communist couninrs refer* to the USSR, ihe Peoples Republic of China, and the follow iitg countries of Eastern Europe Buleana. Crechwkovj kia, Eail Germany. Hungary. Poland, and Romania Included in ihis edition also are daia on Cuban. North Korean, and Yugoslav aid lo and personnel present il LDCs.
The icrm less developed countries at iheworld includes ihe following: (I) all counines o( Africa except the Republic of Southll counlries of East Asia excepi Hong Kongalta. Portugal, and Spain inll counines in Laiin America excepi Cuba;ll couniries in the Middle East and South Asia, excepi Israel Kampuchea. Laos, and Vietnam, which became Communist countriesrc reported on for prior years for historical reasons.
The term extension refersommitment to provide goods and services either on deferred payment term or as granu Assistance ts considered to have been extended when accords arc initialed andormal declaration of intent. The term drawings refers to the delivery of goods or the use of service*.
The icrm negi refersalue of lessindicates an agreement was signed, but Ihe value wan not known. Three dois> indicate that cither no agreement is known to have been signed or no personnel are believed to be present.
Communist Aid Activities in Non-Communist Less Developed8
Military Aid Program: Sales Off. Delimits Up
Soviet military agreements fell to SIillion2 billion7 and an average of about S3earsect the same time, deliveries rose8 billion5 billion7 and scored again as Moscow's most important export to Ihe Third World.
Because of the slide in new Soviet agreements and near-record0 million) and Eastillion) sales, the USSR failed to maintain itspercent share of Communist arms aid to LDCs. Sales by East European countries, however, continued to complement Moscow's programs.
Costing Communist Arms
The values used throughout this paper for Communist arms sales and deliveries arc expressed in Soviet exportprices (translated into dollars at the prevailing exchange rate) that wc estimate Communist countries charge LDCs. These prices are used because they are appropriate for (a) comparing Communist military sales to LDCs from year to year, (b) looking at arms exportshare of total Communist exports, and (c) estimating the size of LDC debt to Communist countries and its effect on LDC balance of payments. Values used in computing these export prices arc derived from price lists for Sovietariety ofhich arcupdated and adjusted for^hanges in the dollar value of the ruble used in foreign trade transactions.
While Communisi export prices are appropriate for purposes of estimating sales and deliveries to LDCs in this paper, they areood measure for comparing Communist-LDC arms transactions with those of the United States or of other Wesiern exporters because they often differ greatly from Western prices for similar equipment. For such comparisons, wc use ihe estimated cost to LDCs if they purchased comparable equipment in the Uniied Slates. This system of costing raises the dollar values of Communist sales and deliveries (based on export prices) by about one-fourth as shown bclo* for the USSR.
lank- I
US I
ommimisl Mililary Agreements Wllh LIK's; Agreement* Concluded and Equipment Delivered '
Patterns lit
We do nol usually attribute much significance to annual fluctuations in Soviet arms sales. Declines often occur after heavy sales years because LDCs are drawing down earlier contracts and need lime lo absorb modern weapons into their inventories before placing new orders. However, the recent sales declines also mayovement of some major customers into alternative arms markets which could affect Tuiure Soviet sales levels.
In contrast, deliveries8 continued at peak rates, as shown in table 2.
From Program Although recent Soviet initiatives clearly reaffirm Moscow's decision to employ military saleseans ofresence in the Middle East and Indian Ocean area, Moscow clearly recognizes the economic benefits involved in arms transactions; for example, it continues to cultivate affluent Arab states and demand hard currency for arms. These exports now cover large annual deficits in Soviet nonmilitary trade with LDCs and significantly supplement Moscow's hard currency earnings. Almost all the arms-for-commodities trade of earlier years has given way to payments in hard currency.
Military Technical Services at JVaW Height The number of Communist mililary personnel in LDCs8 rose by more thanercent for the second consecutive year. Almost three quarters of0 instructors, advisers, technicians, and troops were Cubans working in Sub-Saharan Africa, many engaged in aciual combat (seehe influx of
0 Cubans into Ethiopia early8 to counter Somali forces in the Ogaden accounted for most of the increase in the Communist military presence during the year.
The heavy flow of advanced Soviet weapons into LDC inventories has increased the burden on the USSR for training local personnel in the maintenance and use of the equipment.DC nationals were in the USSR at8 for specialized training (seet the same time,0 Soviets andastercent above the numberere in LDCs. In contrast with recent years, when the largest contingents of Soviet-East European personnel were in Black Africa, most of the increase8 was in North Africa and the Middle East.
Tableof
Communist Mililary Technicians in8 '
raMa 4
ofi
feim-nnel from LDCs
Trained in Communist'
Economic Aid Program: In High Gear
Communist countries pledged4 billion in economic aid to the Third Worldringing the total Communist commitment4illion. Commitments wereeak lor both the Soviet and East European programs while Chinas pledges5 million toDCs showed no change7 level (see
Moscow's7 billion commitment8 brought its annual program close to US annual aidillion) for the first time. Unlike US aid, which provides large amounts of food assistance and funding of infrastructure development, Soviet aid continued lo be almost entirely lied lo large industrial projects in the public sector. Moscow continued to ignore calls toewer, more complex approach to development. Thispushed by certain members of ihe international aidfavors assistance to rural development for theof basic human needs. The USSR continued lo sidestep LDC demands for more concessionaland there were few signs of any overall softening in Communist aid terms.
Figureommunist Economic Agreements With and Deliveries to LDCs
! I
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JtavaW Year for Aid7 billion in Soviet economic aid pledged8 exceeded5 record byercent and broughtyear Soviet aid total up toillion (see
Large credits to two Western orientedMorocco and Turkey (which accounted lorerceni of Soviet economic aid extended inthe sharp recovery in Soviei assistance from7 tow. Both the Moroccan and the Turkish credits were under "framework" accords: the accord with Morocco was signedhile the pledge to Turkeyassive expansion of the aid available under the terms of5 accord. More and more in the past several yean, the USSR has signed these open-ended agreements which tend to spread aid allocations out over long periods.
Theillion commitment to Turkey for expanding Sonet-built steel and aluminum plants and forpower plantsew refinery more than doubled thef Moscow's earlier commitment. The S2 billion crcdii tolargest ever extended by ihe Soviet Union toh> tance for exploiting phosphates and building auxiliary facilities for iis shipment abroad In additionhe credits to Turkey and Morocco, the USSR extended SSOO million of assistancether LDCsncluding:5 millionakistan for continuing work on (he Karachi steel mill: andillionillion to North and South Yemen, respectively, for cement plants The Soviets continued to neglect African economic development, giving oniy minor amounts ofaid to seven countries: and East Asm received nothing.
Fatirrn Fnrope: Search for Commercial Cains
A* in ihc past, ihe search for new markets and stable raw materials supplies were important objectives in the East European economic aid program, The most important beneficiaries included;
Syria, which receivedillion from But Germany, mostly for cement, textile, and power plants.
Brazil, which0 million of creditse* trade agreement in the hope of correcting ice growing imbalance in the Eau German-Branitan irade account.
Burma,0 million in new Crech credit.
Angola, whichillion from Romania.
Turkey and the Philippines, with lines of creditillion and SJO million from East Germany.
Aid Program: Yield to ike Sowielt Moscow's continuing interest in relating its aidto the requirements of the Soviet ccooorny was illustratedR by (a) tbe use of oonbiodine open-ended agreements, which allow Soviet planners more latitude in scheduling the aid drain on their resources; (b) the tasking ofC joini economic commii-tees to synchronise LDC production plans with Moscow's; and (c) the granting of assistance in areas that fills gaps in the USSR's domestic output.
The widely publicized phosphates deal with Morocco is the latesteries of Soviet initiatives to assure long-term supplies of certain critical materials for the domestic economy and for its East European allies.
The Council for Mutual Economic Assistancehich has attempted since theo assure itsteady flow of important raw materials, has advocated (a) long-term tradewith Third World producers and lb) cooperation with LDCs in establishing mining and processing facilities as the most practical way to satisfy those long-term requirements. Recent CEMA studiesloomy picture of deficits for certain basic raw materials in theears, citing shortages ofillion tons of crude oil2 millionillion tons of iron ore
in India, whichassure Moscow tmpori> ol' upOO ton* ofcjr in* Theo have offered to buikl alumina plant, in Greece. Guyana, and tndonnu
Moscow's fisheries program in LUC* has beenin expanding Ihe scope of the Soviets' own fishing operations. In return0 million of iissisianceodd Third World fishing industries, the USSR has gained the use of onshore facilities and Tithinghich will help maintain the position of its fleet as tbe largest and most modern on the high sea*or example, the USSR's catch from Wat Africa waters3 million tons) alone was more lhan the combined caich of all West African countries. In that year the USSR expoilcdons of fish mined0 million.
In general. Soviet offers to invest in increasingly costi* LDC public sector tkveloprnent plans have metarm reception from Third World countries, eager to get on with ihe development process. In return. LDCs have been willing lo commit resources to the Soviets over long periods in order to get development schemes moving.
Technical Senices:ash-Flo* Program
The Communist technical servicesucra-tive outgrowth of the asd program- continued its sleep upward climbsCommucist countries supplied the services ofechnicians to LDCs,0 more lhan7 (seehese services were provided boih as aid and under commercial contract toounlr.es. The largest increase was in East Europeanhich in the past four years have set the pace for Communist technical assistance: the Cuban presence doubled in sire to morend the USSRdditional technicians China, which wound up major road construction projects in Rwanda and Sudan, saw its personnel in Sub-Saharan Africa dip0 for the firsi lime in seven years. This caused most ofperccnt decrease in the overall Chinese program.
The concentration of Soviet and East European personnel in oil rich >taies became even morethan before,0 East Europeans and more0 Soviets being po*icd to Alieria.
Ltbvj. Iran. Iraq, and Kuwait Nearly half ihe East Europeans) were in Libya, with Altera and Syria the neal ranking recipients of these senices. In some cases the services are financed under aid jgreemenis; inspecially for nonproicci senare paid for in hard currency. High jnd rising salaries have helped make technical Services increasingly profilablc in the past three years.
Middle Eastern countries continued lo employr sol number of Sovietor almostercent of those assigned to LDCs The Soviet contingent in Africa was only slightly smaller;ercent of those assigned to Africa performed professional services rjthcr lhan project tasks, compared with onlyerccni in ihe Middle East. On the other hand. Soviet clients in the Middle East and South Asia accepted three-fourths of0 Soviet personnel posted to development protects, as welleachers,eologists AH ofoviet personnel in Latin America were assigned to development sites
Cuba continued to support Soviet initiatives in the Third World and expanded its technical efforts into hard currency markets, while maintaining anpresence in southern Africaor example. Algeria. Iraq, and Libya accepted their first Cuban doctors during tbe year,f them The services provided to new areas, togetherear doubling of personnel stationed in Sub-Saharan Africa, brought the Cuban economic presence to
Large new Cuban contingents went to Angola and Mozambique, as Angola gradually shifted fromto civilian forces and as civilian construction work expanded in Mozambique under agreements signed during the year. These contingent* are continuing to grow9 and together should total more0 persons by yearend. This growth coniinucs despite complaints by both countries about the quality and sometimes ihe integrity of the Cuban cadre.
Technicalrowing Effort A* part of ihe technical services program, ihecountries have mounted major efforts lo train local personnel to takeover the management of development projects. Moscow has gradually cut tuck on Ihe
Table 7
or Pchtm
number of personnel sent lo study in Sonetas in-country (raining programs have become more efficient and less cosily. Onlyechnicalall from major Communist partners in Arab countries and Southto Communist countriesringing the toial trained since the beginning of the program toeanwhile, ihc USSR has provided on-the-job training0 in Afghanistan alone.
Cuba also continued its large training program by acceptingthiopianozambican school-age childrenew facility on the Isle of Pines that eventually willapacity0 students.
Academicow-Cost Investment Moscow probably has spent closeillion dollars on Third World student training in the USSR over the past two decadesOOto support and train each LDC student.
8 the number of LDC nationals in Soviet and East European academic schools rose to more0 (see0 Third World students took up nearly half the places allocated to foreign students, and will increase by one-third under Soviet plans to increase LDC enrollmentsfrican students, which always have comprised the majority in both Soviet and East European recruitments, rosebout half the LDC student body in Communist institutions.
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Academic Studenis From
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Appendix Oounlry Sections
Africa Gemeral
Communist arms transfers and new economic aid atrecrnenu with North Afnca hit record highs in
iving the region top rank for the first time among Communist military and economic aid clicni*
The record included (a) Moscow's largest single deal with an LDC (Morocco) andew highs for technicaleconomic and itiiiitar>
Despite Ihe sharp fall in (he value of new agreementsrms deliveries to North Africa soared, and the number of Communist technical advisers nearlyThe largest increases were in Libya, which is the fourth largest current Communist arms client and which shares second place with Ethiopia in the Sonet technical presence. Moscow's interest in expanding commercial relations with North Africa wasby the S2 billion phosphate credit to Morocco
AlSerta
The new Algerian leadership, which took over from the late President Boumcdicne. confirmed previous radical positions on North African and Middle Eastern affairs. Record arms deliveries demonstrate Moscow's tacit agreement with Algeria in its dispute with Morocco and Mauritania over Western Sahara.
Algeria's growing raped for Western technology and education and its acceptance of Western development loans has eroded some of Moscow's influence in economic affairs. The USSR nonetheless still pursues an active program It began studies on the aluminum complex which it will build0 million of credits provided7 and began negotiations forining and metallurgical complex andecond steelthough Moscow is not interested in building additional steel plants at Ihc moment. The USSR also agreed to0 houses in Algiers. Oran. and Skiltda and torefabricated housing plante have noted no action on planseavy electrical machinery
am and irrigation works, and oil refineries diw-ussed6 framework agreement.
Meanwhile, work corinnued onecond blast furnace at the Annaba steel plant, where nearlyercent of5 million aid program in Algeria has gone. Eastern5 million in development assistance has been almost as important as the USSR's and in many cases Algeria is said to prefer Fast European technology over SovietEast European countries also are getting into housing construction, where Algeria hasrash program. Hungary, for example, agreed to design dwellingsublic construction firm that willouses in Annaba. while Poland and Algeria setonsortium to build thousands of houses under the Algerian Government program toouses annually. Warsaw will supply construction materials, equipment, andservices. Other major Polish projects under considerationulfuric acid planton cement plant Polish firms reportedly have the inside trackontract for0 million Mcrs el- Kebir shipyard. Tor which Poland already hasilot shipyard which entered production two years ago. Czechoslovakia and East Germany continued work on steel fabricating plants at Medea, while Bulgaria concentrated on dam and irrigation projects.
The number of Communist economic personnel in Algeria climbeded byan Sovietlargesthird World countryast Europeans worked in Algeria, mostly in administrative jobs includingand doctors. Cubans joined other Communist technicians for the first lime.edical personnel arrivedidyear agreement.hinese worked in agriculture With the training of0 Algerians in Communist-built
ommunis! countries also haveecisive role in .ruining Algeria's unskilled labor force and Tilling gaps in technical services left by the departure of the French in.
Ukjm
Earlier swam* between Libya and the USSR have largely faded in the light of political-economic realities that suggest further areas for cooperation Until now the relationship has hinted on arms agreements with Communist countries, which have provided Tripoli one of the most extensive arsenals outside the Warsaw Pact, and East European icchntcal services forcommercial contracts. New equipmentin the September National Dayetir defense missile systems.ockets, and9 ;ei trainer aircraft.
ast European govern menu concluded the following agreement with Libya:
illion Bulgarian contract to install facilities at six hospitals, as well as seven-year agreements for more technical assistance to agricultural,and industrial projects,oubling of the technicalstood08
year East German pact on political, economic, and scsentiTic cooperation whose terms were not announced.
A technical protocol with Poland forarms in Libya, in addition tohe Poles have already built, and (or increased Polish participation in planning, designing, and execuiing municipal projects.
The billion dollars worth of contracts discussed last year6 Soviet-Libyan economic agrccmeni are lo includeW nuclear powerpUnt.evelopment plan for the gas industry through ihec) oil and uranium exploration,0 million research reactor at Tajera. (c) constructionilometer gas pipeline, andillion-lon iron and steel plant.
hina agreed to establish diplomatic relations with Libya. This was followed by their first economic and technical cooperation agreement.
Mauritania
As Mauritania's most important Communist aid donor, the PRC managed to improve its influence with the new Mauriianian Government thai look poweroup d'etat he Soviet position has apparently declined because of hard feelings over the Western Sahara. Romania, the only other East European country with interests in Mauritania, generally sides with Mauritania onissues.
Notwithstanding0 million in Arab aid and substantial French assistance, which dwarfillion of Chinese commitments, the PRC is the most popular aid donor in Mauritania. The Chinese-built Nouakchott power plant, which opened with much fanfare in November, cover* aboutercent of Ihe city's needs and eliminates the former daily power ouuges. Work began on theillion Nouakchott deepwatcr port-one of China's largest current projects in the Thirdcontinued on several medical and agricultural undertakings.
Morocco
year,illion accord for Soviet development of the Meskala phosphate deposits in southernbilled by Morocco's King Hassan II as the "contract of thes Moscow'single project in the Third World and marks ihe first Soviet agrccmeni lo import phosphates.
Most ofmillion-lon annual output from Meskala will be exported to the USSR lo repay theillion construction loan, and as barter for Soviet products. The deal is expected to boost Soviei-Moroccan trade to first place among the USSR's African trade accounls. The present, nearly balanced Soviet-Moroccan trade is supported largely by an annual citrus-for-oil barter agreement, which had made the USSR Rabat's principal source of oil. The USSR and Morocco alsooint fishing venture in Aprilpcrcent Soviet share for which Moscow will provide thehow and most of ihe equipment. Morocco's only mtjor military deal was with ihe USSR.
illion in credits from Czechoslovakia. Poland, and Romania were intended to expandsales of these East European nations lo overcome the deficits in their trade accounts resulting from their continuing large phosphate purchases Onlyillion loan is allocatedpecificexpansionhosphate plant at Safions. The expanded facility, the fourth such plant built by Polish enterprises in Morocco, will raise the sulfuric acid output from Polish-built plantsillion tons annually. The plant is to be completed earlynd will be paid for in phosphates.ungary completed installation of port cranes at Agadir. This was followed upimilar order for Kenitra port Morocco continued to express satisfaction with East European technical services, and the number of East Europeans employed in Morocco remained steady.
Tunisia
Tunisia's economic agreements with Communistdo not alter Tunisia's reliance On Western countries, particularly the United States. China and the USSR continued their assistance to waterprojects being financed wiib recent credits. At midyear. Soviet experts completed engineering plansam on the Joumin River, to be fundedillion6 credits, and China sent technicians to begin construction of the Medjerda-Cap Bon Canalillion of Chinese agreements.
Sub-Saharao Africa General
The Soviet arms program in Africa continued to draw worldwide attentionith Moscow reinforcing its position as the Sub-Sahara's largest arms supplier5 million worth of weapons.esult of emergency support given new Marxist governments inin Angola5 and later extended lo Mozambique andaccounted for almost half of total Soviet arms sales to the Third World8 and about one-fourth of the record saleshis compares with lessercent
Moscow's economic program in Sub-Saharan Africa8 remained negligible despite continuing demands for increased aid. New extensions amounted toillion (to seven couniries).
China, which had become the African couniries' favorite donor in the, extendedillion of new economic aids Beijing focused on its own development problems. Beijing conlinued to expedite programs under way and concentratedercent of0 technicians in LDCs in Sub-Saharan Africa, where they worked on agricultural development projects, highways, and railroad projects.
In the following discussion, the African couniries with the most important Communist aid programs arc treated first, in alphabetic order, then the countries with lesser programs, also in alphabetical order.
Angola
Despite the substantial Communist commitment of men and materiel to the defense effort of the Popular Movement for the Liberation of Angolantigovernment guerrillas still inflicted heavyon government troopsnd Angolans became increasingly frustrated with Communistlo help control the insurgency and resiore economic order. East European nations pushed for closerrelations even though Luanda was exploring opportunities to reestablish economic and technical relations with the West.
The number of Soviet military advisers in Angola rose above wartime levels, doubling toarlyoviet officers continue to occupy key positions in Angola's military command and control structure. The Cuban military presence remained at
The European Communist countries and Cubaincreased their economic presence in Angola8 through technical services programs, even though the increased aciivity did not lead to promises of sizable aid resources during ihe year. Romania accounted for the only specific5 million for development projects) as most agreements remained in the talking stage.echnicians worked in Angola, in responseigorous Angolan recruitment effort lo fill some ofr so jobs vacated by the Portuguese at independence.
Other development* includedBulgarian protocol* lo assist agriculture and urbae nsodcrairalion.uban rxomrve tongolan tevhmcian* in Cuba, (cIdelivery ol six Sonet fUhiag ves*rt*ift, andoviet fJedje toO0-hecUre wheal farmift
Moscow's imall economic program in Angola has paralleled indifferent Soviet clfort* in other African cotinlncs. with little intcrcsl indicated indevcloping viable public sector industries. Only aid to Angola's fishing industry, wMcfa allows Sovietongolan waters, and equipment for training schools has been provided.
Ethiopia
A little moreear after the USSR switched its support from Somalia to Ethiopia, therelationship sltll -as held together largely by Moscow'* mililary assistance program and Ethiopia's growing dependence on Communist counines for technical support. Moscow's economic program still is drawing onillion tn credits provided
Nearly all of Moscow's massive military assistance was committed prior to and during Ethiopia'srouting of Somali invaders from the Ogadcn early in the year. Ihe commitments rescued the Mengistu regime from almost certain collapse, but did not include sufficient tnpuu of logistical and technical support lo susitin an effective, modern Soviet-equipped fighting force over the long term.
Rumors that Ihe8 economic and technical assislance agreement earned new credits have been discounted. The accordeneralagrccmeni typical of others signed by Moscow in the past several years. The September economic agreement called only for formationointto oversee existing Soviet economic activities andtudy expansion into new areas. Aid for projects that are studied will be provided on an individual basis.illion outstanding0 million lire of credit arranged9 probably "ill be drawn before the Soviets proceed with large new binding comrni:-ments In ihe meantime. Moscow has not initialed any major new aid projects Soviet aid now falb7 protocol that allowed Ethiopia todraw the
illion for commodities andsums to evpard thessab refinery byercent and toipeline and oil storage depots in outlying areas New com mil menu for agriculture and irrigation projeciv now bang surveyed in the Awash valley, would require at least SJOO million of credits.
Growing Communis! interest in Ethiopia8 ledoubling of European Communis!echniciansoviet icach-ers and adminisirativcast Germans,ubans mostly in medical services.
Ethiopia also sent moreirsi-ycar students lo the USSR8 for academic training, bringing the Ethiopian contingent in Soviet universities to. Cuba complemented the Soviet programew scholarships to Ethiopian elementary and secondary school pupil* for study on the Isle of Pines.
The heyday of Soviet Guiaean economic relation* may have passed as President Tottrc tries toonaligncd image and attract more Western aid
Economic programs languished as Conakry expressed resentment overean of ineffectual Soviet as-sisuncc and Moscow failed to offer new assistancerogram that was running out
East European relations, never robust, becametenuous after Guinea switched lo hard currency payments. Only Romania offeredhina,ong history of aid to Guinea, did nol announce new assistance, despite the small balance (about S3 million) remaining fromillion of Chinese aid.
Mali
Military assistance remained ihe dominant thread in Soviet-Malian relations, even though Bamako has shown *ign* of wanting to reduce its dependence on Soviet military supplies.
Mali continuesake airpon fuciliiics (most of them built by the Soviets) available to the USSR for its ventures in southern Africa, largely in exchange for mililary supplies. In the traditional Independence Day parade in September. Mali displayedew Soviet SAMs. MIG aircraft, tanks, and armored vehicles, much of it delivered7 agreements.
Maltans continue to grumble about inadequate So* iet economic assistance. Moscow's effort is largelyto development of ihc Kalana gold mine and provision of doctors and teachers, who arc compared unfavorably with Chinese and French personnel.
China, which has disbursed most of0 million commitment to Mali for agriculture and lightprojects, isew blueprint for charting its program in the next decade.
Mozambique
Mozambique's lies with Communis! stales, which date from military supporl provided prior to independence from Portugal, have grown along with its dependence on Communist suppliers to maintain its military establishment. Economic aid from Communistcentered on technical services, has beenwhile Mozambique's Communist mililary inventory, deliveredas not permitted Mozambique toecure frontier.Rhodesian forces still mount cross-borderagainst guerrilla camps in Mozambique at will.
Communist countries have committed more0 million in economic creditsut thestill is heavily recused on technical assistance rather than deliveries ofequipmenl and materials.ommunist economic technicians were stationed in Mozambiquehina, wiihillion in credits, has been one of Mozambique's largest donors, but no projects have been initiated under5 credit agreement.
Some Communist activity is to help stem the decline of the formerly thriving agricultural sector. Together, ihispast year, Bulgaria and the Soviet Union began work on the Limpopo Basin development projeci. Bulgaria plans lo complete the Massingcr and Mapai Dams andMW power plant at the Massingcr Dam in Limpopo Basin. Bulgaria also
ontract to construct the Maputo-Cabo Dclgado highway7 agreement. Moscow also pursued geological surveys and the equipping of technical schools East Germany conducted studies on new projects lo be implementedncluding agricultural development, mineral exploraiion. fishing, high-icnsion powerextile plant,ruck assembly plant. Hungary delivereduses to Maputo probably5 agreement.
Nigeria
Nigeria's relations with East European government warmed in the wake of new cooperation agreementhile relaiions wjih the USSR and Cuba deteriorated after Shaba II. Soviet military relations with Nigeria, which grew out of Moscow's support during the Biafran insurgencyave cooled in the past several years because of concern in Lagos over Soviet policy in Africa.
While Moscow's mililary presence dropped off. its civilian presence increased. represented mostly by technicians working7 million petroleum pipeline, now scheduled for completion by-yea
In contrast. East European countries polished their image in Nigeriacries of new agreements:
Bulgaria signed an economic cooperation agreement which setoint commission to study projects in agriculture, food processing, and public housing.
Czechoslovakia agreed to provide teachers and other expertseptember agreement.
Hungary extended the life4 credit for hospital equipment, nearlyercent of which has already been contracted for.
Poland is toxperts to Nigeria andigerian students annually to Polish universities and technical schoolswo-year technical agreement signed in March.
Poland and Romania signed agreements to barter goods and services for Nigerian oil, an agreement which Nigeria is no longer anxious to implement.
Warsaw discussed cooperation in shipbuilding, port development, mining, and agriculture, with NigeriaPoland's largest Sub-Saharan Africanant economic commission was created to explore pro>ect possibilities Romania focused on plansew joint shipping line and fishing venture and also put forward proposals for participatingumber ofothcr projects. Until now Romania's largest undertakingillion wordprocessing complex, while Poland's major contribution has beenoal mining
Somalia
A year after the abrogation of the Soviet-Somalian Friendship Treaty, President Siad's search forsources of arms had yielded fewumber of Western suppliers indicated that they would sell equipment to Somalia once the situation in the Ogadcnnormalized. Somalia's Air Force remains largeli grounded because of spare parts problems
Inresident Siad traveled lo Beijing to deliver inequest for emergency military and economic assistance. The Chinese offered training and technical assistance bui only nominal amounts of military hardware, which were delivered lo Mogadishu shortly after Siad's visit
While not completely Tilling the gap left by the departure ofoviet and Easi European technicians. China maintainedan presence of the year before and agreed toillion of aid to finish abandoned Soviet projects. Romania, the only East European country still active in Somalu.rotocol to provide assistance in agriculture, forestry, and fishing.
Tanzania
Arms contracts with ihe USSR are the most important link in the Soviet-Tanzanian relationship. Despite Dar es Salaam's suspicions of Soviet motives. Moscow has been the only supplier-willing and able to provide tbe modern weapons Tanzania has felt it needed to counter Uganda and potentially to support Mozambique against Rhodesian incursions.
The Soviet Union, never really aeiivc in Tanunian development, signed small contracts7 credit for constructing state farms in Ruvumu and Morogoro and made slow progressam and power plant under earlier credits Whileyear-old Soviet economic program languished. China continued to draw on the reservoir of good will remaining from its efforts on the Tan-Zam railroad.hill in relations caused by China's military suppori to ihe unpopular Mobutu regime during the Shaba invasion inhousand Chinese technicians worked in Tanzania on agriculture and mining projects.
Zaire
The escalation of the Shaba conflict (which Zaire suspects was fueled by theail Germans, and Cubans) dominated Kinshasa's relations withpowers
China, trying to capitalize on Zaire's mistrust of Moscow and Eastern Europe, was the only Communis! country to support President Mobutu's government against the Katangan secessionists. Emergency small arms and relief assistance were rushed to Zaire during the invasion On the economic side, China accelerated workugar plantation and refinery0 million in credits and held discussionsports complex.
Zambia
President Kaunda remains suspicious of Soviet arms in southern Africa. In the absence of support from the West, however, he has been forced to reconsider Communist offers to upgrade Zambia's defenses against more frequeni Rhodesian raids.
Ai the request of the Tan-Zam railroad authorities. Chinese personnel were brought back to Zambia8 to operate the line because local personnel failed ar the job. The railroad (China's largest construction project in ihe Thirdhough officially handed over to Tanzanian-Zambian controlas to be staffedhinese technicians for two years. As local personnel completed their training. Chinese technicians had8 China also continued its assistance lo agriculture and miningillion credit.
Mcncow tu> completed mow deliveries under lis So million credit, and Fast European countries arc moreambian development. Romania announced Plana toold llontt ssemblyexiileeramicshoe factory under an unused SSO million credii ngrcemem. signedzechoslovakian.ll.on loan to /ambu for induslnal developmeni.
hina remained Benin's only active Commumsi economic aid donor,hinese -ere workingtadjiim and agricultural projects. While nc.cooperation agreements were signed with Fast Oermanyune. Jod WJln Bulgana. Czechoslovakia Hungary. and Poland in September, these did not carry projecthe USSR agreed to provide equipment for an experimental farm4 agreement and Romania discussed aid loaencul. ture. light industry, mining, and petroleum.
wo-year aid relationship with Chma-whtch8 was basedmall gram of military equipment for Botswana's new defense
STaTT^ IlhW 'hc arm aS 8cij'nBlwn of deveioeencnt credits6
agreement At ycarend, Botswana showed interest in a
Chinese offer of doctors but was not expected to act on
ffer to send teachers to Botswana
Burundi. Romaniarotocol in November for addiuonal projects in agriculture, mdustry. mineral development, and for power to complement existing joint ventures,ining venture which began operator* in September andan agricultural
ilhon of Chmesc credits for building power transmission lines from the Lagdo dam as pari ofa rural electnficaiion projeci.
<ongo. China cominued work on ,ts major pro>ecingo. the Boucnza Dam and associated rural eleciri-fication while the Soviets continued geological cxpZ ration Late8 Cuba completed Congo's firsT experimental cattle farm and made plans l0 openore Activii,focused on improvement of local breeds wah Cuba already donating several varieties or beef and da.ry cattle to the project.cem economic commission session earlyomania signedeneral agreement to continue economy cooperation. Congo has been dissatisfied -iih Roma-nianagrsculturalasnsiance becauseoflo-crops .elds
Djibouti. The USSR and Djibouti established cmbassy-levcl diplomatic relation,
(ihana. The bloodless coup whichestern-evented governmentower in Ghana in July did not ariect Communist economic programs, although mil.-Ury deal, appirenily were shelved.| provide credits ror agriculture, fisheries, and light industry and Hungary signed coolract. u, supply port cranes. China, .till the most active Communis, partner in Uhana. continued work on theillion Afife irrigate project, and Chinese technicians armed lolassugar plantation, and aunder an4 credit. Betjing also offered assistance loee milleramics factory andpmnm, mill it had builtrivatefirm.
2s fim Cub"delegttion since Nkmmah was overthrown6 Trade in sugar and umber was dtscussed. and Cuba -ill consider sending experts to bring Polish- and Czech-built sugar plants up lo capacity operation
Gabon. While maintaining cordial relations -ith other Communist countries, the pro-Western icadcrshipor oaoon continued lo reject lies wiih the USSR and Cuba because of their threat lo African stability Bciiing rn.jm.incd the only Communist aidabon,illion agreement.
Guinea-Bissau. The growth in Western economic assistance hasrode Communist, particularly Soviet, influence in Guinea-Bissau, while military lie* remain stronz
Lesotho Lesotho was preparing touba at the end8esultuban delegation's visit at midyear
Liberia. Chiru has been the major beneficiary of Liberia's initiative to improve relations withcountries and to improve Liberia's nonaligncd credentialshinese arc in Liberia working on former nationalist Chinese sugar projects. During Presidentisit to the People's Republic in June. China agreed to provide atillion of credits7 agreement Tor three radio transmitters, agricultural products,tadium. China also agreed to establish an alcohol plant at the sugar mill Beijing took over from Taiwan
Madagascar, Moscow provided nearly So million of new economichalf of it grant aidircraftractors, all delivered laie in the year. Soviet technicians were active in surveysementlour mill,roadcasting station, to be financed4 credit.
China, still Madagascar's largest Communist donor, moved slowly on major projects to show its disapproval Of Antananarivo's closer Soviet tics- Nonetheless. Beijing began equipment deliveries for resurfacing tbe Tamatavc-Moramanga road. Beijing's largest project5hinese medical team also arrived at midyear to serve at (he Chinese-built medical center at Vatomandry.
Mauritius. The USSR did not improve its position in Mauritiusespite early signsore upbeat relationship. Mauritius had let its fisheries agreement with the USSR lapse the previous year because ihe Soviets did not supply enough fish to the local market and failed to fulfill training obligations Mauritius also accused the USSR of pillaging the Sayha de Malha banks, claimed by Mauritius as part of its territorial waters. Mauritian ship chandlers nonethelesstheir brisk business with Soviet merchant vessels.
China still has not begun work on an airport promised? jgrccmcnt bccuuseofihc near tripling of original cost estimates Since Beijing's SJO million offer was made, inflation has pushed estimated costs inioillion range, which now raises doubts about the airport's viability.
Rwanda. Rwanda and Chinaew economic and technical jgrccmeni in8 calling for studioospital, spans stadium, flour mill, and ceramics plant. These projects woulds Tunes fromillion agreement2 arc nearly exhausted. China also opened an economic and tiadc exhibit in Kigali in July. Ihe first foreign exhibit ever staged In Rwanda
Sao Tome and Principe. Communist aid to Sao Tome and Principe (mostly from China) far outshadowi assistance from other sources, and Communistis pervasive.hinaillion in development credits to carryS agreement for rice cultivation, hydropower devel-oprnent. and medical assistance.interests arc representeduban technical assistance program lhat hasoctors, teachers, and construction workers to Sao Tome. Cuba completed iwo apartment buildings8 under this progiam.
Seychelles. The Seychelles received its firsteconomic aidillion grant from Chinachool on Maheommitment to assisi in rice cultivation. In contrast, Seychelles President Rene turnedoviet offerecond time for broad-based fisheries cooperation.
Senegal. Chinese and East European relationsnh Senegal remained warm8 despite President Senghor's hostility toward Soviet initiatives in Africa. Senegal campaigned against the Soviet/Cubanpresence in Africa butonaiion0 worth of wheat for drought relief from China, its largest Communist donor It alsorotocolillion Polish agreement6 for assistance to chemical production (particularly phosphorousood processing, energy, and
light industry. Warsaw alsoartnershipa local firm io increase trade with Senegal infor the chemical industry and rawulgaria agreed in Octoberrovide aid foemining, and geological prospecting, while Roma-marotocol calling for cooperation in developing agriculture, dearie power, industry, and mining
Sierra IChina remains the most important foreign aid donor to Sierra Leone0 million credit agreement which hastadium, two bridges, andgricultural station* The National Trading Company, the sole importer of Chinese goods, has recently expanded and -ill buy more of the popular lower cost Chinese goods. The only Soviet venture in Sierra Leoneoint fishing company, and Moscow again is pressingyesr fisheries agreement, to include constructionarbor and shore facilities
Sudan. Soviet-Sudanese relations, broken ofr? wiih ihe expulsion of Soviet military advisers, did not improve much8 even though diplomaticwere resumed.
New Communist pledges of economic aid8 came mostly from Czechoslovakiaillion credit for housing and other equipment. China and East Germany provided small amounts of relief
i te Eastern Europe'sillion in new credits. China is still Sudan's most effective Comma-mil donor. Chinese technicians completed the second stage of the Hasaharsa textile mill in June and began preparationslothing factory associated with the plant Chinese fisheries development projects at An-Nubah lake, being financedillion agreement, also neared completion. Assistance has includedishing boats and two cold storage plants.
Togo. Despite fears of Soviet subversion in Africa. Togo continues to send studenis to the USSR and in June signed an economic agieemcnt which may lead to Soviet development projects in Togo East European countries also became more active thanillion contract for phosphate miningd Poland -as considering par
Malaysia
Malaysia improved iis relations with China despite several unresolved issues. Malaysian-Chinese trade was brought into closer balance by China's purchases of agricultural products, while huge trade deficits remain the dominant theme in European Communist relations with Malaysia because or heavy dependence on Malaysian raw materials.
During the year Kuala Lumpur made public its two-year-old decision against Soviet financing or Ihe Tcmbeling Dam. While the press speculated that environmental factors prompted the decision, in fact the government was concernedargeof Soviets operatingemote area.
The Philippines
Philippine interest in increasing and diversifying its Communist trade was set backrop in sugar prices which cut Manila's trade surplus with the USSR0 million. The brightest spot in the irade picture was the Philippine-Chinese five-year agreementa Chinese oil sales contract. In return for Shengli crude, the PRC will receive sugar, copper concentrates, and agricultural and chemical products.
The East Germansrotocol9 in which they agreed to buy Philippine goodsillion and sell chemicals, fertilizers, and consumer goodsillion to the Philippines. East Germany alsoillion credit to finance Philippine imports. Manila agreed tooint fishingwith Poland, which would lease Polish vessels under long-term contract. Further possibilities for cooperation in processing and support facilities were discussed. These follow on more than four years of Philippine-Soviet negotiationsimilar jointoperation.
Thailand
New trade and economic cooperation agreements beiween China and Thailand8act to exchange military attaches may help reverse the decline in relations that set in after the initial flurry of trade deals following diplomatic recognitions the resulteal completed in December. Thailand will export grain and other agricultural
products in returnons ordicsel oilons or crude. Bangkok also signed trade agreements with Czechoslovakia. Hungary, and Romania.
Latin America General
European Communist imports of Latin American agricultural goods and minerals have kepi Communist trade with the region in deficit forecade. The problem worsened aficr the price inflationhen annual deficits began toillion dollars. Communist countries responded wjth intensiveto sell machinery and equipment, accompanied by threats to shift their purchases to other markets unless major Latin American partners tooksteps to balance trade. They urged that purchases be made under outstanding credits and accepted credits for food and raw materials purchases from the more affluent nations, such as Argentina and Brazil.
8 East Germany provided the largest amount of export financing to Latin0 million equipment credit was extended to Brazil, in hopes that the aid would not join theillion of unused earlier Communist funding to Latin America countries. Latin American countries prefer to buy equipment from Western producers and have largely ignoredequipment credits.
Even though negotiations usually stretch out over several years. Moscow's sales prospects look best in the power equipment field.8 the USSR was negotiating contracts for several billion dollars' worth of power projects in Argentina and Brazil. Moscow-tried to balance its trade with Brazil with oil shipments and began to supply oil to Venezuelan customers in Western Europe for VenezuelancrudctoCubaundera quadrilateral deal. China, in its first oil shipment to the Western Hemisphere, used oil to balance its trade with Brazil.
Argentina
The USSR renewed its sales drive in Argentinan order to reduce the widening gap in its trade balance with Argentina, which amounted to almostillion dollars by yearend. Moscow intensified efforts to win contracts for the Vacyrcta hydroproject and for turbines at Parana Medio. Moscow already has contracted to design the Paranaillion multipurpose power and irrigationin Octoberontract foreneratorsuenos Aires thermal plant.
East European countries had no betier luck than the Soviets in reducing their trade deficit with Argentina, and efforts to induce the Argentines to lap the0 million of outstanding credits were not successful.
Brazil
Brazil accepted its largest single Communist aid commitmentillion credit from EastBrasilia continued to fend off Soviet overtures lo expand their relationship. The newprovided in conjunctionhree-year East German-Brazilian trade agreement, is intended to help correct the serious imbalance in East German-Brazilianroblem common to all of Brazil's Communis! trading partners.
Hungary offered to cooperate in buildingand alumina plants and to provide Brazil with medical equipment to ofTset dcficiis which had reachedillionudapest hopesillion, three-year trade agreementalling for Brazilian manufactures and raw materials imports for Hungarian equipment, will bring trade into better balance. Poland also tried to correct0 million trade deficithree-year trade agreement which provides0 million in annual trade andoal for iron ore barter deal.
China, which hasoul deficit of0 million. when the Peoples Republic began to buy from private Brazilian companies, signed its first formal intergovernmental agreement since the establishment of relations with Brazil. The agreemcni, which specifies hard currency settlements, wasby contracts toillion tons of Brazilian iron oreillion tons of Chinese crude
Oilwo-year period, beginningith additional amounts expected over the subsequent three years. This is Chinas first peirolcum sale in the Western Hemisphere.
Peru
While frictions over the Soviet military supplymarred SovieI-Peruvian relationsoscow's agrccmeni to reschedule Lima's military dcbiosilive force for continued cooperation.
For the first year since Peru's weapons purchases from the Soviets began several years ago. no new arms deals with the USSR were concludedhis was mainly because of pressure from the IMFand others that Lima restrici arms purchases."
Peru's economic relations with Communist countries have not recovered from the economic doldrumshile Communist countries bouehl aboutercent of Peru's exports, ihcydid not pledge frirlher assistance above5 million already committed,umber of development projects proposed in theere still not activated. Even though the USSR completed feasibility studies for the Olmos hydropower and irrigation project1 billion project which would takeoears tooscow made no commitment to go ahead with the facility.
Other Communist counlries alsouiet year on ihe economic aid front. Czechoslovakia agreed toillion in credits under an existing agreementower plant at Iquitos, which had been under discussion for years, and Hungary continued to supply educational equipmentillion contract. Romania, which buysons of ironear from Peru, proposed the expansion of this trade to include copper, silver, lead, zinc, and other minerals.ucharesteal Torillion worth of railroad equipment and offered toon soda ash plant as well as equipment for Peru's steel industry. Romanian studies for0 million Aniamina copper mining project, com-plciedad not resultedoniraci at yearend.
Other Latin American Countries Bolivia. The world's largest tin volali/ation plant being compleied by Ihc Soviets at Poiosi is the centerpiece of Bolivia's economic relations with CommunistPlans for Soviet aidecond plant at Marchamarca are at an advanced stage. In addition. Moscow offered to increase iis iin purchases, which now run atear. making ihc USSR Bolivia's third most important tin customer after the United States and the United Kingdom. Agreement is expected as welloviet-West German venture0 million lead and silver smelter in Bolivia with SovietIO million equipment contract6 framework agreement for
car credits brought total transactions under that
agreement toillion.
Poland completed installationillion glass plant built under credit, while Czechoslovakiaotorcycle assembly plantmillion-ton steel and scrap metal processing planl.
Caribbean. Dominican Republic. Cuba offered the Dominican Republic assistance in convertingbyproducts loajor item in the Dominican Republic's program to diversify the sugar industry.
Jamaica. Site preparation was under way at Jamaica's only ongoing CommunistChinese cotton-polyestcr textile plant at Old Harbour. Jamaica agreed toillion in Hungarian credits added7 trade credit, of which about half was allocated for development projects; the remainder is for consumer goods, medical equipment, pharmaceuticals, andA Hungarian team arrived at midyear to study joint ventures,icycle factory, anprocessing plant, fish farming, and vegetable growing. Cuba will provide assistance to build six schools.ubans will work on the project in addition tooctors and other lechnical personnel Havana promised for the water supply projects and prefabricated panels plants that Jamaica is building.
Central America. Costa Rica. This country canceled the unused portionoviet trolley bus credit and shelved Romanian plans to extract bauxite7 agreement. Rumania and Cosia Ricarotocol, however, for coopcration in the exploration of
minerals and for commercial exchanges;offered power planl equipment, machine tools, textile plants, and building materials; although Cuba failed tolanned trade agreement earlytemorandum on trade.
RC purchaseales of cotton inone-third ofCuatcmala's cottonChina the nation's number one cotton buyer. China hasimilar amountnd Guatemalan officials arc expected tohinese request tomalloffice in Guatemala.
Honduras. In its first trade contract wiih Cuba inears. Hondurasons of cement from Cuba because the offer included the best prices and delivery terms.
anamanian economic commission to Czechoslovakia. Easi Germany, Poland, and the USSR drafted commercial agreements and received offers of development assistance from all the countries visited. The Communist countries offered toillion worth orear; Czechoslovakiaechnical cooperation agreement; and the USSR promised to cooperate in constructing0W hydropower plant in Bocas del Toro. first studied by Soviet technicians
Chile. The renegotiation by Chile of its Allende-era debts with most Communist countries7 ledesurgence in trade with nearly allhile and the CEMA International Bank for Economic Cooperation agreed on repaymentillion of Chile's six-year-old bank loans for commodities, leaving onlyillion of debt to the USSR andillion to Bulgaria still to be negotiated. Previously Chile's relations had been limited to the PRC and Romania.
Colombia. Involvement of Colombia with Communist couniries showed little changeespite public statements by the new government thai Communist relations would expand. Designs were completed for the largest Soviet-built power project in LatinUrra hydroelectric project on the Alto Sinube consiructcd under0 million credit
Colombia announced plan* lo sign joint venture agreement* with Bwlgjrij 'or vegetable processing plants and with Polandarm machinery pbat. and to push sales of ootTec in Eastern Europe in return for roadbuiMing machinery and power equipment.0 million annual trade withcountries (usually in favor rfCotombia) tt governed by clearing accounis and settlement in hard currency
Cuba and China also arc upgrading their rclaiions with the newillionontract calls for repair of Cuban ships ai Cartagena, and new trade, cultural, and textile cooperation agreements arc being studied. China and Colombia arc expected to establish diplomatic relations bv
Ecuador. The military govcrnmeni of Ecuadorto discourage ties with ihe USSR, at the same time that relations wiih Cuba and Eastern Europe are developing. The Soviet presence is limited to two Soviet technicians who arrived8 to train Ecuadoreans in fisheries techniques Cuba andsigned an agreement to permit directbe settled quarterly in Canadianwill include the exchange0 ions of Cuban cement for coffee..
Guyana. Even though Guyana has received onlyillion of Communist economic aid. its political affinity with ihe Communist world shows no sign ofrotocol to the7 Soviet agreement provided for Guyanese purchases ofand equipmentycar credit termspercent intcresi. In addilion. Guyana will join the USSRoint fishing venture for shellfish, and Moscow willyear plan for Guyana's fishing industry While Soviet aid was not made available for Guyana's long-sought billion-dollarpower project on the Upper Mazarunioviet team began studieson alumina plant and associated power plant. Moscow apparently has consented toubstantia! portion or the plant's output if it goes ahead with the project. Chinese projects have been plagued with prookms with local contractors which faasc slowedillion aid program Hungary discussed sales under7 trade agreement whrch offers SlO milkm ofcrcdiu for ccmamcr goods and five- to seven-year credits for capilalGuyana tried to promote sales of nee. sugar, rum. and bauxite Among the smaller Communm donors. Cuba promised to setmedical facility at the University of Guyana and to provide technical assistance for the sugar industry and radiobroadcasting, while North Korea signed six proiocols for assistance to agriculture and ceramic and Ply-ood production, as welloint fishing venture and assmancc for reestablishing Guyana's wooden shipbuilding industry.
Mexico. Mexico viewed President Upe* Portillo's visit to Moscow in8 during which the Soviets signed Protocol II to the Treaty ofTlatelolco(fora nuclear free zone in Latin America)ajor foreign policy coup Mexican commercial orientationremains with the Wcsi and even though the Soviets pressed Mexico last year for orders of machinery and equipment (to be financed under (he6o coniracts were signed
Europe
Malm
Malta expanded its ties with China and Eastern Europeut relations with the USSR deteriorated because several Soviet naval vesselsin Maltese waters entered Grand Harbor without Maltese permission. Malta also is disappointed with Moscow's unwillingness lo expand aid and commercial tics. Following Chinese Vice-Minister Keng Piao's visil, China began work on the Marsaxloik harbor breakwater and shore facilities-one of China's largest projects under way in the Thirdfinancedillion credit. Poland also is participating in the Marsaxlokk project0 consultancy awarded by the United Nations. Jointh Czechoslovakia got under way with the completion of plants to manufacture precision instruments and hydraulic equipment. The Czechs and Maltese alsoteel foundry and shoe factory
Port.gal
Portugal agreed to permil Cuba to use ship repair facilities, to be paid for with sugar
Middle bast General
Despite Moscow's longstanding objective ofa strong presence in the Middle East, the Soviets made few positive gestures8 to enhance their relations with key nations in the area. Military aidSoviets' most potent instrument for influence in the ThirdMiddle Eastern countries fellcar low of less0 million and only Turkey received large new pledges of economic aid.
Arms deliveries to Ihe areahich maintained ihe billion-dollar annual level. greatly reduced the delivery backlog in the absence of large new commitments. Shipments to both Iraq and Syria. Moscow's largest arms buyers, remained high as these countries drew on ihcirrders.
The standoff in new arms transactions did noi apply to economic programs. Iraq received large-scaleof equipment under its billion-dollar power and oil development contracts with ihe USSR. The Iraqis also signed new contracts8 for Communist participation in their development program, especially for civil construction and water resource development. In Syriayear Soviet construction ofuphrates power plant and dam was completednd while no new projects were undertaken, the East Germans extended0 million credit for industrial plants.
The Shah's loss of power in Decemberear of uncertainty for the Soviet-Iranian relationship. Moscow's economic technicians remained at Soviet-aided projects throughout the year, despitelowdown in activity as shipments piled up at ihe border and (b) ihe yearend closing of the pipeline ihat carries Iranian gas to the Soviet border. Plants planned under curlier agreements remained on the drawing boards and the initiation of5 trilateral gasline deal was held in abeyance. Communist buyers were caught up in the turmoil in world oil markets caused by the cutoff in Iranian exports, with Romania ihe hardest hit. Bucharest sought alternative suppliers for its Iranian imports, which comprised one-third of its oil imports.
Egypt
As Egypt's relations with the USSR and Eastern Europe sank to an alltimc lowairo strengthened relations with China by acceptingaid. Meanwhile, an upsurge in foreign exchange rcccipis from oil, worker's remittances, and Arab aid. as well as closer political cooperation with the United States, accelerated the Westward reOricntaiion of Egypt's economic relationships.
A reduced irade and aid program is all that remainsnce flourishing Soviet-Egyptian relationship that brought inillion in economic aid for public sector industry as well as S4 billion of mililary equipment. The S6 billion of Arab funding (largely in cash) transferred to Egypt since7 Middle East war has given Egypt flexibility in deciding us owndestiny and has allowed it to turn increasingly toward the West.
Among the East European countries Romania has maintained ihe best relations with Egypt by supporting Cairo's peace initiatives. Romanian techniciansthe installationhermal power plant at the Hamrawcin phosphate complex, and early in the year Bucharest allocated one-third ofillion in credits outstanding from1 agreement for electrification projects in Egypt. East Germany, which hadillion in creditsaw its trade with Egypt dropercent8illion, while Egypt broke relations with Bulgaria at the end of the yearinor matter.
Al yearend the Egyptian press announced tbat the ban on raw cotton exports to the USSR andwould continuether Soviet purchases were maintained at earlier levels.oviet-Egyptian trade5 millionropelledIillion drop in Soviet imports. Meanwhile. Egypt continued lo0 million in hard currency through its barter trade with the Soviets.
China, trying to benefit from Sadat's anli-Sovict policy, discussed aid to Egypt's textile and mining industries and agreedonference center in Cairo.
fiwa
Respite reductions in ltd and commercial deliveries lo Inn laicoscowconunucd work on Iranian development contracts and tried tolink.il presence. The Sonets apparcnily hope thatar Sovici-Ira man relationship will becomemore vital as Tehran reassesses its development priorities and its relationships wiih foreign contractors.
Even (hough work schedules were disrupted by supply backup* at the Iranian border,oviet technicians remained at major Soviet projectswere under construction. These technicians were allowed to maintain operations at tbe showc.itc Isfahan plant.
Following several months of intermittent operation, iheipeline, which carries natural gas to the Soviet border, was shut down at yearend. Soviet exports rose slightly5 million, while import! fell because of the gasline closing
Upheavals have left the Soviet presence in Iran uncertain. At the endore thanillion of commercial contracts awaited implementation and plans for additional projects were on the drawing board. These included (a) industrial plantsray.in and Kcrman valued atillion dollars, which were agreed to0 million power plant at Isfahan;0 million section of theeljne.ail linkhe USSR, agreed0 million aluminum plant, still under study: andripling of capacity at the Isfahan it eel mill.
Preliminary information indicates that Iran has shelved plansipeline that was to be constructedyear trilateral accord with the USSR for gas sales lo Western Europe. Under the agreement. Moscow was toection ofometcr (IGAT-II) pipeline, designed to pickillion cubic reel of gas annually from fields in southern Iran for transport to Astara ai the Soviet border The USSR, in turn, was toillion cubic feet of its own gas to Austria. West Germany, and fancf. for which Iran would receive hard currency Mowow would retainillion cubic feet of gasasiteeillion cubic feet of Ira nan, donned for Czechoslovakia each year. While
work apparently has begun on sections of the pipeline being undertaken by third countries, we have no infoimation on its present status or the degree of Sovici pariicipation.
The Sovici-Iranian relationship that has evolvedof Ihe common border has been reinforced over time by mutual economic6 Soviet agreement toatural gas pipeline from Iran's southwestern fields to Astara on the Soviet frontier propelled Soviet-Iranian exchangesillionear relationship8 and allowed Tehran toormerly wasted product (flared gas) into more0 million of annual earningsnllion-cubic-foot annual flow of Iranian gas to the USSR0 has been more than enough to service4 billion economic and rnititary aid debt to ihe USSR.
Cheap Iranian gas for the Transcaucasus has allowed the USSR to avoid building the long-distance pipelines lhat would have been required to service the area from Sovici fields. Iranian supplies also have freedamounts of Soviet gas for cxpoMast European allies and to hard currency customers.
The USSR and Iran have profited from their trade, which developed largelyesult of the Soviet aid program. Moscow's sales of equipment had soared3 as the USSR shared in the Iranian buying tpree;7 Iran had become the largest Third World market for Soviet goods In addition to Soviet tales5 million in that year. Moscow earnedillion for technical sen-ices on Iranian projects. While the Soviet share of total Iranian trade was lessercent (including Iranian oil exports) heavy machinery imports from the USSR made an important contribution to Iranian development
As for the East European countries, the mosi serious impact of the turmoil in Iran was on Romania because of Bucharest's extensive commercial and icchnical relalions with Iran and its reliance on Tehran for aboul one-third or its oil imports. By yearend. Romania was looking for other suppliers to furnish the crude formerly bought from Iran. Earlierungary and Poland had agreed to participate with (he Soviets
in building0 million thermal rwwer plant at Isfahan, and Iran had agreed to expand oil trade with Eastern Europe. Tehran had signed (a) an agreement with Romania to raise trade to SI billion annually0 and5 million protocol with Hungary under which oil was to have made upercent of Hungary's imports from Iran.
Baghdad's harassment ol Iraqi Communists, the rapid rapprochement between Iraq and Syria. Baghdad's suspicion of Soviet and Cuban intentions on the Arab peninsula, and Iraq's strong support of Eritrean rebels in Ethiopia, all contributed to giowing sirains between the USSR and Iraqonetheless, the USSR continued as Iraq's main source of weapons, support equipment, and technical assistance
referred customer because of its hard currency payments, continued to receive late-model equipment before other Soviet clients. Its aircraft receipts accounted for abouterceni8 Soviet deliveries and included some of the USSR's latest models.
Soviet military advisers in Iraq increased slightly, to. to help introduce sophisticated aircraft and air defense equipment. In addition,ubanast European miliary personnel were employed as advisers and technicians.raqi mililary personnel went to the USSR for trainingeni to Easternthe same number as
Whileillion of annual oil revenues allow Baghdad choices in exploiting foreign expertise, the Iraqis continueely onountries for certain kinds of developmentciviland for power and water resource development. In addition to geopolitical considerations the Communists eagerly pursue the relationship for oil and hard currency earnings. Almost all of Iraq's oil shipments to the USSR, either as barter or repayment for past debts, are resold for hard currency.
oscow0 million contractater injection program at the North Rumaylah oilfield ihat is designed to overcome pressurization problems thai have kept the field from reaching
capacity production and agreed to build an oil desalting and dehydration planl under credits providedoscow's contribution to Iraq's national petroleum industry, ihe second most important object or Soviet aid to Iraq, was enhanced by the onset of production at the Soviet-developed Luhais field in souihcm Iraq (al ihe ratell of the field's output, developedillion Soviet contract, is slated for export. The Communist interest in long-icrm petroleum supplies became even more importani lowardhen Iran stopped oil exports.
ovietsl Europeans worked on Iraqi devclopmenl projectsnd for the first lime Iraqarge numbef ofdoctors sentrotocol signed at midyear. More Cubans are likely to pour into Iraq under road and housing devclopmenl conlracts awarded Havanand Baghdad hasore medical personnel from Cuba.
North Yemen
Relations between North Yemen and the USSR deteriorated8 because or Soviet support to South Yemen, which was promoting terrorism and subversion in North Yemen. At the same time extensive military modernization programs, financed by Saudi Arabia and supplied by the United States and France, helped orient North Yemeni procurement toward ihe West.
On Ihe economic side, the USSR agreed toillion of new credits to tripleon capacity of the Soviet-built cement plant at Bajil. The new accord brought Soviet aid allocations to more0 million. Latehina signed an agreement toillion conference hall in Sana, probably under new credits.
South Yemen
Souih Yemen's increasingly radical policies and its willingness to allow Soviet use oTair and naval facilities in South Yemen have made it an appealing target roe Soviet arms diplomacy. The Soviet Union remained Aden's principal source of military supplieshe USSR had reportedly agreed to build naval and air bases in Yemen, probably to support its own operations.
Reports of Communist* saving the South Yemen economy from collapse following Arab sanctions may be exaggerated. Despite Aden's repeated call lo Communist governments for aideplace lost Arab assistance, only Hungary aad East Germany among theEuropean countries extended aidHungary gaveillion of credits for agriculture and last Germany gave loans for consumer goods and fisheries development Onlyillion commitment tor Aden's second five-year plan andillion of food and other commoditiesforthcoming from the Soviet Union8 even though Moscow had announced6 that it would quadruple us aid to South.
Syria
Syria is not willing to break off its dose arms supply relationship with the USSR despite the deterioration of Soviet-Syrian political lies
The most important event in the Soviet-Syrianaid relationship8 was the completion ofyear construction job onWpower plant andoccasion so significant tbat Ihe Chairman of the Soviet State Committee for Foreign Economic Relations traveled to Syria lo attend the celebrations. The half-billion dollar project, for which the USSR5 million in credits, doubled Syria's electrical output,xpected eventually to increase the stock of arable Syrian landectares
While the USSR provided no new assistance to SyriatroiocoJ for cooperation in the oil industry andilorneter section of the Damascus-Horns railroad, scheduled for fell operationhe large projects Syria requested0greementuclear powerteel mill, and large-scale irrigation) have not gone forward.
Easi Germany made the largest economic aidto Syria0 nullicei credit for equipment The new aid may be used for financing two cementillion powerextile plant, and an electric light bulb plant.
Romania'sillion program, extended over the pail decade, siill makes it Syria's must active donor Trial operation began at yearend on Romaaia's largest project in the Third World,00 million Ranias oil refinery, which Is expected lourplus for export after fully covering Syria's domestic needs for gas, fuel oil, and other products Almost half of Romanian aid has gone to thit project; another quarter went toriple superphotphaic project at Horns which is scheduled for comnktion
Communist countries continue lo benefil from Syria's efforts to expand its public sector industrial base, which representserceni of lotal investment in the country East Europeans,retrong showing by putting together competitive bids, often combined wilh generous repayment conditions. Through ihcsc development contracis Communist countries havearge share of Ihe Syrian market for machinery and equipment.7 they suppliedercent of Syria's total imports aad are believed to have maintained the same ratio
Turkey
Prime Minister Eccvjt's midyear visit to Moscow set the stageew phase in Turkey's relationship wilh Communist countries These countries rallied with large offers of economic assistance to Turkey as Ankara's financial crisis deepened, and the USSR2 billion of new development aid under5 framework agreement. The USSR will provide assistance for expanding the Iskenderun steel mill and the aluminum plant at Scydeschir. as well as for several sorely needed power plants. Altogether, projects that would requireillion in Soviet credits were under discussion by yearend
Despite Turkish pressure on the USSR to finalize an oil-for-wheat barter to relieve energy shortages byo deal had been consummated The deal would have meant Soviet annual sales to Turkey of upf crude beginning9 (aboutercent of Turkey's requirements) in return for
wheal and tungsten. Imbalances were to have been settled in hard currency. The oil agreement would have doubled0 million annual trade level sethree-year agreement signed in September.urther measure for alleviating Turkey's energy crisis. Bulgaria and the USSR are sellingh of electric power annually, the Soviet power flowingecently completed power line to the Turkish border.
East European countries provided Turkey with unprec-edented commodity support
illion of industrial raw materials and offered to construct an irrigation dam on the Tunca River.
Germanyillion of long-term assistance for imports of German products.
Romania agreed to0 million worth of goods to Turkey over the next three years, payable in one to seven yearsercent interest.
Bucharest also agreed to (a) speed up construction of an oil refinery in Anatolia, (b) begin work on anilometer pipeline, (c) build aplant, and (d) provide assistance for theand production of minerals and oil. The refinery and petroleum exploration equipment arc beingbymillion in credits pledgedut financing for the other projects was not spelled out.
Other Middle Eastern Countries Cyprus. Cyprusrotocol to import machinery and equipment from Czechoslovakia, its56 credit agreement.
Greece. Both China and the USSR have moved to expand relations with Greece. Moscow agreed to study the possibility of (a) financing an alumina plant in Greece whose output would go to the USSR; (b) using Greek shipyards for repair and construction of Soviet vessels, (c) providing technical assistanceuclear power plant, and (d) selling electricity and natural gas to Greece. The USSR wasontractW oil-fired power plant, despite Athens"dissatisfactionW Soviet unit
installedhipment of Greek tobaccothe China trade under agreements signed early8 in Beijing under which Ihe PRC offered to barter oil Tor Greek products.
Jordan. Jordan increased its economic tics withcountries in the pastzech-Jordanian long-term trade and economic cooperation agreement signed in June may lead lo Prague's participation in building powerement works, and ceramics and leather factories in Jordan. Polandedical cooperation agreement with Jordan late in September calling for technical assistance to Jordan and medical training for Jordanian personnel.retained the largest interest in Jordan0 million contract to expand ihe ZaTqa refinery, which has been delayed by problems with contractors. China signed its first trade agrccmeni with Jordan.
Oman. Oman and China announced diplomaticat the ambassadorial level in
Saudi Arabia.hina, Romania, and the USSR expressed interest in establishing diplomatic ties wiih Saudi Arabia-South Asia General
The Marxist coup in Afghanistan in April providednique opportunity to secure its influence in this major border country, the USSR's oldest aid client. By yearend, Afghanistan hadong-term friendship agreement wilh Moscow, andoviet economic and military technicianspositions in every major military and economic unil where they directed the inexperienced personnel installed by the revolutionary government. Despite rumors of new Soviet aid which would reach billions of dollars. Communist countries did not pledge new economic aid to Afghanistan to replace lost Arab funding.
Olher South Asian countries signed agreements with Ihe USSRg even though there was widespread concern over ihe dcstabdiaag effect of ihe Afghani revolution andole in ihe coup. Fearing thai India* growing reconciliation wilh China would damage it* long-range interests on the Asian continent, the USSRparticularly lenient in negotiations with India anduble/rupee agrccmeni.
Moscow's heightened activity comesime when China's program isolding pattern. China faces the erosion of its influence inlargest economic and military aid clientofturn lo the West for sophisticated arms, to match those rccenily acquired by India. Most South Asian countries still view Chinaaluable ally against Indian and Soviet expansionism in the area.
Afghoniitoa
The number of Soviet mililary and economic advisers in Afghanistan has doubled since theS coup which brought ihe leftist government of PrimeNur Mohammad Taraki to poweroviet advisers are now engaged in economic and mililary duties in the country.
Moscow has disappointed Afghani expectations of large amounts of new financial support to ihe economy. The major Soviet economic contribution has been technical services and training With ihe arrival of additional Soviet planners8 to lake over managerial jobs in Afghanistan's economic ministries and to survey and plan new undertakings, the number of Soviet economic personnel nearly doubled.
Since the coup, the USSR has not added new commitments to theillion program extended over the pasiears. Of thisO million of project aid remains to be delivered. These are hampered byimited alasorptive capacity and by rebel activity in areas where projects are under way. While no new commiimems were forthcoming last year, ihe Taraki governmentodd contracts that had been negotiated by the previous regime The contracts are valued0 million, at least thicc-founbs will be financed existing Soviet credits, and the remainder arc probably
commercial. Among (lieigned werefor:
A SSO million rail and vehicle bridge over the Amu Darya River al Hairatan, the first direct connection between Afghanistan and the USSR.
illion worth of petroleum equipment to be provided90
Studies and designs for0 million Amak copper smelter andon fertititer plant near ihe existing Smki-buili plant athanf.
illion seven-year projectjor mapping northern Afghanistan.
million renovation of the Sher Khan nver port,ncrease its handling capacityons of cargo annually.
In November. Afghanistan announced new Soviet oil discoveries in northern Afghanistan, paving tbe way for Soviet constructionon oil refinery, which had been planned for several years. The Soviet-developed petroleum industry eventually will provide moat of Afghanistan's owe needs for oil andmall surplus for export. The USSR nowillion cubic meters of Afghani gas annuallyoviet-built pipeline) which services mosi of Afghanistan's economic and military aid debts to the USSR. Moscow agreed tohird more for Afghani gas8 and to make retroactive payments for two or three years at lhat rate.
Moscow's position as the largest aid donor tohas made it the principal trading partner asmports from the USSR (mostly machinery and equipment, oil, and food) rose by nearlyercent,5 million, while exports lo ihe USSR (largely natural gas and agricultural products)stable at SIillion Because of inflation the import increase was probably nearerercent in real terms while the volume of exports declined.
Despite rumors of hundred* of millions of dollars of impending credits. East European counirics provided no new .issuancefghanistanhey signedew small comracisillion of old agreements. Chinese aid has proceeded routinely. Beijing is considering additional equipment and pharmaceuticals for the hospital it is building in Kandahar and has decided toigarette factory to Ihe Ibl of projects it will construct underillion
The Chinese already are constructingcomplex and irrigation protects under
Bmmeladnh
Bangladesh moved closer to China for8 locounieraci Soviet power in the region. The shift to Chinailitary supplier was precipitated by Moscow's refuiul6 to supply spares for Ihe military equipment the USSR had provided ihe Bangladesh military by thai time.
The USSR was still active in the economic field8 and providedillion of tools and dies for tbe newly completed electrical equipment plant, financed2 credit Nonetheless. Dacca mil complained about the cost of Soviet2 million hard currency purchase of US wheal8 to repay a
wheal loan further irritated
and ha* manufactured British tanks under license, ihe rcccnl purchase* and ncgoiiaiions in the West have movedajor procurement category for the firsi limeindication of India's auempi toupplier base.
Revision of ihe ruble/rupee exchange rateispute that had plagued Soviet-Indian relations for severaloscow'syear deferment of the increased payment, however, virtually cltminjies the effect of the increase on annual repayments
The economic aid relationship of more lhanear* was revitalised in March, with the upgraded Soviei-Indian joint economic commission which set targets for economic and technical cooperation over Ihe nextoears. The immediate focus was on development in the sleel- and machine-building industries, petroleum production and processing, transport, andcommunica-rions This wilt include.
Oon alumina plant, underillion credit, to be paid off in alumina. (The USSR already has agreed to take atear.) '
illion-ion blasi furnace complex at Vishnakapainam
6 retooled production facilities at the Tongi ordnance plant, with new machines, electrical components, and spare parts, and helped lo keep operations going by supplying industrial raw materials and the servicesechnicians.illion Chinese aid program, now going ahead7 agree ment. shows typical Chinese prudence inprojects. China willitrogen fertilizer pianilood control project, for which site selection already has been made. China ha* further agreed lo study requestsugarice bran oil mill, and coal development.
Ml*
India'* historical dependence on the USSR for air and ground forces weapons wis8ecord Western deal for fighter aircraft While New Delhi has supplemented its Soviet equipment purchases with small amounts of Western equipment since
increase toillion tons in the combined steel capacity at the Soviet-built Bhilai and Bokaro steel mills.
Oils prospecting and development in West Bengal.
of low-grade iron ore and rnjr(.rfi:
deposit*.
Soviet projects were given new lifeficrecode of foot dragging. Slronger Soviet pressure for cooperation and agreements to develop further the heavy industrial sector were accompanied by completion of the aluminum smelter at Korba and ihe first stage at the Bokaro sled plant. The Korba smelter had0 tons of aluminum by yearend The Scsets irso continued deliveries to0 million Malhura refinery, sshich is under con-
Pakistan has gradually shifted its reliance on Chinaajor arms supplier. The PRC, whichince the Indo-Pak war was Islamabad's principal source of arms, has been displaced by Western suppliers who arc able to provide the modern arms Pakistan needs lo offset Indian acquisitions.
Contrary to advice from the international financial communny. Pakistan5 million inSovici credits lo complelc the Karachi sieelwhich the USSR had already provided S4 i0eallocation of an earlierhon credit. The USSR willons of iron and slcel annually as repayment for the new credits. Recognizing the payments strains,llowed Pakistan to defer payments for individual laciliues at the mill until one year after ihcy go into production, insteadear after deliveries were made. Western aid donors have criticized lnc diversion of scarce resources to the steel plant, while Islamabad requests budgetary support and debt rescheduling.
struciion.and ihc USSR began negotiations wiih New Delhielp expand ihc annual Indian fish caichillion tons, from the5 million tons.
India's relations with Eastern Europe were marked by new agreements that will involve ambitious plans tor economic development:
rotocol lo help with major agricultural complexes at Bihar and Karnataka for growmg and processing fruiu. vegetables, grains, and meat. Bulgaria also agreed tooint fishing company wiih India and discussed olher possibilities for cooperation such as in leather goods, electronics, chemistry, and pharmaceutical plant.
Among Easi European countries, Poland offered iohips beginningomania openedillion Karachi oil refinery builtillion of Romanian credits Bucharesl agreed to proceedement plant, for which financing was announced lasi year, and to study constructioneavy electrical equipment complex.
Other South Asian Countries
Nepal. Nepal attaches great importance to its liesillion grant aid donor.hina agreed to study constructionugar mill and pulp paper plant that could cost upillion China also completed ihe Hitaura textile mill2 agreement and speeded construction ofkm Gurka-Narayanghat road. Nepal also will receive its long-awaited rosin and turpentine plant from the USSR3 million contract signed inven though the Nepalese werewith the terms, ihey arc easy byear repayment after three years' graceercent interest.
studied joint ventures in other LDCs for which the Indian company Hindustan Machine Toolsill provide some of the equipment. Other ambitious projecis under discussion include anplant aiitanium plant in Kerala, and tungsten mining facilities in Rajasthan. Hungary agreed to set up additional leather and shoe factories, pharmaceutical plants, and fruit processing plants in the south of India and is considering an Indian proposal tooke oven in Hungary, similar to one it provided Bulgaria.
Romania hasower plantons-per-day cement plant as pan of aeconomic program. The program also would include assistance to India for oil and gas development, vehicle assembly, chemical and leather goodsand development of the electronics industry.
Despite protracted efforts to identify and exploit new trade opportunities. Eastern Europe's trade with India droppedillion8 to0 million.
Pakistan
Despite Pakistan's anxieties over Moscow's increased role in Afghanistan and fears about shifts in regional power balances. Pakistan5 million in new Sovici credits to cover costs in building the Karachi siecl mill. China remained Pakistan's favorite donor, in spiteeclining aid program.
Sri lanka. Sri Lanka0 million in new aid from China and Ihc USSR for waterillion grunl from East Germany forice millsailway cars. The Chinese and Soviet offers for assisiance loillion dollar Mahaweli River development scheme in easierncenter piece of Colombo's agriculturalscheme in which several Western govern mens also are expectedillion offer for roads, housing, schools, and public buildings The Sovietinillionfor two irrigation projects.apparently are in addition to the Samanala*ewa project being implemented5 credit. In addition the USSR will provide five ships to the Ceylon Shipping Corporationillion contract.
Original document.
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