Communist Aid and Trade Activities in Less Developed! ij Countries, First8
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Communist Aid and trade ActivitiesCountries! il!
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o 'provide'uluon' ia new economic assistance to Ethiopia, while Eait Cermeny agreed to double the porty of Auab and toistodv eowttuctloaailroad from Aetata to Addli Ababa.
'i'The' USSRl.ni^rtedlyrovide; up0 million tajahi lo Ethiopiaeveioprntnl agreement turned In
Romaniaullon;ln SO-year credits, repayable In raeUus and crude oil. totcttoa of the tnra>Cabon railroad j
' BulaarUoint venture to begin development of agriculture In MoW*juei Limpopo basin, tbe prokxt could eventually coat several hundredrnllllon dollars. H
Somalia recalled its' academic and technic! Hudenti from Sovietnharging authorities had cut off thetr livingut tome tfudentt apparently; elected to finish Iheir'U!.!
Cxechoilcvakla agreed to0 mlllicn In credits to Burma, the brgeet Credit Rangoon ha* aver received from any murce. !|
ubaru are eapected an Jamaicato build,sU
Panama increased economic contacts with Cuba, Poland, and the USSR during' the .lint quarter.
^lteyiM' Uay:mbeugjo.galas to CsecrKiJovakle.
!he USSR wiQortaern portion3 billion natural gas pipeline running from tbe Kangan gailteWi in southern Iran to tbe Soviet
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^ITThe" USSR agreed to provide MS niUlion In new credit*ement pUnt in North Yemenllbon to South Yemen (or in lecoodt-year plan.
under an agreement <
iii^iutmndg eeoVred MIC-tt Itfltasjitm from the USSR, j
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artillery and antiaircraft
; The USSRto defer tome rjayarWdue on Pem'i military debt
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'he leas Oeveasgwel Ceuntrta*
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*. orth Africa wai the acene ofsubstantial expansion of the USSRmilitary'economic programs,new
ilitary agree men ti coruolidated the "irtoriopory over modern weapons salesand enhanced Mcecowa supplier role(seeTheeeew pacts with'Syriai give the USSRof Influence with theopposing accomodation' withafter Egyptian President Sadat VslThe North African arms marketcharges full list pricesIn bardfurther salesweapons are likely. Salesenhanced In December, when Ubyato finaiKe .ati
of Syrian arms psuttauea iroea IR*>
USSR, although no funds have actually been tranaferred to date. Elsewhere In theoroccoreliminary approval to aagreement representing Moscow's largest, 'single dealhird World country: and Tunisia agreed to permit limited use of shipyard by the Soviet Mediterranean
lore inanl
3Upp.,mmjiscommil-
mentto buy Soviet arms ana movingoward IU goal of military dominance In the area,
'Unlike Libya, Algeria
i sufficient trained
In new rnilltary Ills commit-
i. manpower to Integrate sophisticated Soviet equipment into existing units and to create new
Moscow's large-scale military supplyalso provides Algeria with Important polio*-
? eoL psychological, end strategic supportoroccan arms buildup fueled by escalatingover theWesternft- ill
Libya's cumulative arms purchases from the
USSR soaredotal ofa new
agreement ine supply of arms llcne cement Binding Soviet-Libyan relations. The Libyan arsenal of Soviet weapons,ives OadhafI something he can!
to an Arab confrontation with Israeli aad compensates to some degree for his Isolation from moat other Arab states- Libya's own armed
] forces remain constrainedhortage of skills, '! and vast quantities of their rapidly growing stock of arms remain In atorage, but Libyan Inventories could be used to resupply other Arab forces in the event of conflict with Israel In the meantime,
has transferred weapom to other Soviet clients In the area, such as Algeria, Ethiopia, and thel
1 Morocco and Tunisia, long known for their almost exclusive Western orientation, negotiated unprecedented agreements with the USSR during the year. In December. Rabat and Moscow reached preliminary agreementovietto provideillion In credits to develop the MealuuV phosphate deposits. Combined trade and credit transactions underyearcould eventuallyillion. Tunisia succumbedoviet offer of high fees, payable In hard currency, to use the Menzel Bourgulba shipyard facilities at Blserte for the Sovietfleet The arrangement makes good
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The eubttance of fAta publication hat'been coordinated withof Intelligent* and Research of rag Deportment of State, withIntelligent* Agency, and with the Agent* for InternationalCommenftland autrin regardine thti publication eremay be directedthe Office of Economic Research.
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"-economic sense for Tunisia and enhancesoperational! capability of the USSR's Medlterra-Knean squadron by replacing-imited degee.the major port facilities at Alexandria lost In
International criticism jdid notfrom further military adventures InSaharan Africa!he value of newagreements soared tohen thenique opportunity tomilitary role Inoviet'armsyear nearedalmost I
previous peak deliveries to trie'
i These record-setting transactionsajor shift in Soviet policy in the Horn of Africa,
: where Moscow abandoned Its former preferred client,n favor of Ethiopia aeon after Mogadiscio Invaded the Ogaden region of Ethlo
pta inoviet agreement to provide
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t modem equipment toLibyanaecompa-rued by an embargo on shipments of offensive weapons to Somalia. Mogadiscio reacted4 Somalia-Sovlet friendship treaty In November, withdrawing Soviet rights to naval and air facilities, and espelllngoviet
Conservative Arab backing not withstanding. Somalia was not able to obtain significant amounts of heavy anna from alternatenable to 'replenish:.Its fast-dwindling arsenal, and outgunned and outmanned more thano-orte bV!ihe|comblned Ethiopia-Cuban force, I. the Somali Invaders wee defeated quickly and driven.outofth.-^
' A- in Angola, the unprecedented arms buildup In Ethiopia was accompanied by the Introduction
f sizable numbers of Soviet-sponsoredilitary personneli us Cubanserved aa combat troops, maintenanceend Instructors on the new equipment The -buildup of the Cuban contingent in Ethiopia was
, partear-doubling of Cuban militaryIn the sob-Sahara,08 to
roops Inountries. Mori otherarrivals7 went to Angola to helpgovernment combatchallenges from National Union for Totalof Angola (UNITA) rebel forceserating In outlying areas. Cubans have alsomoving Into civilian Jobs In7uban nonmititaryctans, were present in black! Africa,as doctors, teachers,;'and jlargely Inr
Ihisplte of public outcry against Soviet-Cuban Interference, Moscow continued to channelnd advisers tosouthern Africa's guerrilla groups, especially to the Zimbabwe African Peoples)Union (ZAPU) operating against Rhodesia and* the Southwest African People's Union (SWAPOJ. operating against Namibia. The availability oil Soviet arms has resulted in an intensification of guerrilla activity against white strongholdsas helped to strengthen radical bluck nationalist -ability to resist negotiated settlements.or the first time. Moscow furnishednsurgents up-to-date heavy artillery piecesrmored vehicles, In addition to the traditional j; small arms, machlneguru, and mortars. AsSSR has renewed and deepened Itso black liberation movements and to thelshedacking: the movements,as become ihe major source of weapons forrincipal frontline states (Angola,ambia, andajororter of the guerrilla groups, signed its largestilitary pact with Moscowndo, other frontline states also
some-'
The value to Moscow of its status as black Africa's major military supplier was eroded whit, however, by setbacks Inlientn Somalia, the loss ofaval* and air facilities hampered Sovietapabilities In the Red Sea and Indian Ocean. '. Guinea, Increaxlngly concerned over Soviet and Cuban Incitement of local conflicts, banneduse of Conakry airfield for long-rangeaissance :alrcraft and turnedoviet, request to expand use of Guinean navaludan renounced Its' Soviet1 military ties and.
oined conservative Arab' Mates in1 calling fornd lo Soviet military Intervention In the Red Sea
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I Many African countries, favoring Africanto the continent's problems, areith Moscow's military presence and haveanded that the USSR focus on the'region's economic problem! Moscow nonethelesshown no inctlnatton to change its comparative indifference to sub-Saharan Africa's economic 'affairs.t extendedillion In ;new economic aid, almost all to Tanzania'(see table ZX Except for technical assistance, Soviet economic programs on tbe continent have always been aimed primarily at North Africa.o ha ran states have received less lhanillion in worldwide economic com mil menu. The number of Soviet technical people in black Africa grew by more thanercent7, employed mostly In administration, education, and public health. The largest contingents were stationed In .Guinea, Mali. Angola, and Equatorial Guinea, jl
hlnete economic aid extensions so sub-Saharan Africa felleven-year low of about ISO million, with Liberia: and the Cape Verdo Islands signing their first economicwith Peking Among black-ruled counlries In Africa, only Malawi has not atgned anaid agreement with China.2 billion in economic aid to Africa has made Peking the most effective International donor to the poorer Africanhe recent decline In new agreements with African states probably stems from economic constraint* within China rather than from an alteration In Peking's African
In addition to an Interest In eiplottlog Latin Americaource of food and rawoscow has cultivated. Peru jet' a) major jarms client In the past threeampaign toide array of military equipment to other Latin American countries (especially Argentina, Brazil, Colombia, Ecuador, Meiko, Uruguay, and Ven-
eioela) has borne nohe Soviet-Cuban
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military partnenhip In Africa having createdew concerns about Soviet Intentions. Only Co-lombla hasmall contract for teeps.
Communist countries, still trying to bringwith Latin American countrtn Intohave offered large!new creditsfaster drawdown* on outstandingbid on several billion dollars in powercontracts in Brazil and Argentina,3 milliont also0 million3 credits with Colombia forSinu hydro powerlargesthas yet undertaken in theamillion deal with Bolivia for miningnew Colombian agreement brine*equipment sales to Latinillionaillion in new credits tosmaller countries in the region and encour-the use of credits to finance LatinTbe USSR also has begun to use oil salesa more effective and rapid means ofdeficit.7 these sales reduced the Sovietwith Brazilittlehe MOO million level of earlier I ; |
O Communist countries continue to beared by Latin Americas preference forlonal Westernnd3 million4 hlUkm in Communist credits madeto Latin countries8 have been
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Soviet Interests7 continued to focusMiddle East, where Moscow's mostand military programs wereConsternation among Arab leaderspeace overtures multipliedfor Soviet diplomacy and brought the radicalstates Into closer alliance within weapons orders by SyriaIraq Inonfirmed the Importance theseattached to their arms relationship with tireMoscow also penetrated Ihe lucrativemarket with Its first sale In the area.|
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wilt One of Ibemiiiiait Arab ciient* -South Yemen, assumed mm* importance toward the end7 a* Moscow sougbl expanded Red Sea air and navai facilities at Aden to replace
arms tale to Syria
moved usmascu* Into first placeontrasting sharply with eventswhen Moscow had tried to manipulateposition by withholding srrns.-turned In Decembertorgent request for more armsand modemIxe Ita armed forcesar against Isrsel withoutProspect* for Syrian purchases fromwere bolstered by Libyan promisesof
financing for late model equipment Tripoli also implied that more money would be available if
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f Soviet commercial interests abo moved into the forefrontr Extensive Soviet economic dealt with Iraq and Iran, initiatedere' expandedoscow moved tococjunercial ties with these countries. At yes rend, the USSR was negotiating for several billion dollars worth of development contracts with Iran and Iraq, its two principal Third World custorners for civilian equipment. Moscow and Tehran were near agreement on3 billion gas pipeline being built from Kangan to the Soviet border as part5 triangular deal with several West Europeanries. Iran also has been disn taring Sovietfor two new hydro power0 million aluminum plant, and expansion ofrailroad, and port facilities.
In Iraq, tbe USSR rooved to implement II: billion in contracts signedegotiations for building the Mosul Dam were completed, and the Soviets began work on several power and irrigation proieets which together wouldillion hectares of; cultivable landegawatts (MW) to Iraq's power
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I Moscow's relations withnce' the centerpiece of Its Third World economic and military programs, sank to new lows
I Apparently wlllinc to lose what was left of the lone-landing Soviet-Egyptian relationship.Sadat embargoed cotton sales to both the USSR and Czechoslovakia7 andoratorium on military repayments to the USSR. Trade with Egypt--once Moscow'sive-year low largely because of Egypt's failure to sustain the Urge surpluses it had previously used to meet repay; mcnt
Despite the decline In eichanges with Egypt, Soviet nonmllltary trade with the Middle East surpassed all previous levelsushed by the new wealth of regional oil producers and by Soviet gas and oil Imports from these countries {more than half;of3 billion In imports from the Middle East. Soviet .exports8 billion were5 million In equipment and other goods going to Iran, which became the most important Soviet market in the Third World.
ast European countriesled their efforts to exploit the vestastern market for goods and services, while seeking to obtain long-term commitments foruppbea. Iran sold Us first oil to Poland and increased deliveries to Bulgaria andhile remaining cool to long-term barterIraq sold atf crude oil to Eastern Europe and became tbe foremostorld trading partner for East Germany and Hungary and the largest Third World buyer of Polish industrial equlptncs*J
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South Asian countries, with whom the USSR had forged its earliest economic ties in the Third World, continue among Moscow's leadingomic and military aid clients. For more thanean India and Afghanistan have been major Soviet aid recipients. Both countries have relied on Moscow for large inputs to their development efforts as well as support for their military
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o'TflTT, "tfce. USSR provided the new Indian Government with New Delhi's first major Soviet economic development credit Inecade,
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^together with'military package0 million of economic iJtliUnce carried Ihemost favorable lenni Ihe USSR has everndia and pushed total Communist economicommllments to India7 billion. India's)
purchases of military goods from the' USSR brought Soviet military commitments to
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China tried to preserve lb regional Influenceovertures to Bangladesh and India despiteroleilitary supplier toeffect ofand
'.'mililary program inlargest In the Thirdbe eroded withturn to France for military supplies under
.new
a. as welltrong
hi new sentiment among Pakistan's ruling elite, may preserve China's political influence In the country. In the meantime, Bangladesheived Its first Chinese economic assistancendependencr, as well asndircraftift. The military relationship wilh Dacca beganhen China provided spares for Soviet equipment that was Inoperable because of lagging Soviet spares deliveries.nd New Delhi signed their first trade agreement In more than two decades and China made low-level overtures toward; normalizing diplomatic
WW nUJuTfsstT" ' 4
) General Early in Fetansaiv^ blackscholarship students, In Bulgaria staged onetheir periodic demonstrations against harshThe refusal of Bulgarian authoritiesfacts surrounding the death ofulgarian hospital toucned offround of: pfoteeta,
Hungary announced that Imports from S* of, the world's.eastountries were!
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exempt from customs dutieshe move responds to demands ofeveloped countries (LDCs) st the fourth UNC-TAD (UN Conference on Trade andonference that theeastountries receive full tariff exemption from more '! prosperous trading partners. Eighteen of Hunga-ry's least developed trading partners are in Afri- i
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I Hungary s1 Foreign' Minister loured Angolathiopia, Mozambique, Nigeria, andto discuss an Increase In economic relations. No new agreements were reported.
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Aleenn President Boomedlene visitedn January to discuss Middle Eastern affairs, particularly the possibllilyeparate Israeli-Egyptian peace agreement following uponPresident Sadat's dialogue! with Israeli
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Libva Bulgariaillion in contracts to install facilities at six hospitals In Ubya. Libya probably will pay cash for the projects.
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xnarsasj uoyan rnme Minister Jallud'sry vtsM to Moscow, ;the USSR reaffirmed Itsillingness to provide assistance Inil and: gas, mining, andoviet geologists reportedly will explore for oil In Ubya and willevelopment plan for the gas industry through the0 The USSR also promised to assist the developmentill ion-metric-ton iron and steel plant and to j1 expedite plansuclear power plant.rojects'were first agreed to In
Monecc. In March, Moroccan officials signed agreements In Moscow forillion in Soviet credits to develop the Meakala phosphate deposits. over an eight-yearrotocol to the. agreement callsillion In credits to be made available immediately for feasibility and engineering studies. Theto by King Hassan as Tthe contract of thewillailroad, road networks, and port .
'; storage facllnic- In additionn open pitn return, Moscow will receiveillion torn of phosphate rock from Metkala annually forean a* repayments for the construction loan and aa barter for Soviet products. According to the Moroccan press, transactions related to the agree-{jcould rite to ai muchillion, movingMorocco Into first place among Moscow's African 'trading partners; For the USSR, phosphateorts from Morocco will 'support the buildup of domestic fertiliser capacity, especially' for com-jplex fertilisers. The agreement has been under .negotiation for four years, but signing wasbecause the USSR supported Algeria against Morocco in the Western Sahara dispute. Soviet public neutrality on the Sahara Issueoroccan condition for agreeing to the pact
Tuntita, During trade discussions In lateGermany offered to'1 provide ato Tunisia. The terms of the dealin!-1
ngola. Cuba and Angola signedgreements In February that call for additional Cuban advisory personnel for agriculture, energy, and the food Industry. Meanwhile, moreubans arrived lo train Angolan students at the primary school level under an agreement signedringing the number of Cuban economic personnel in Angola closeIn February, Angola signed Its first economic cooperation sgreemerit with Romania,edlti to develop the petroleum, chemical, energy, wood proteasing, and textile industries. The.two countries abo signed on technical assistance and trade.
unner tail European countries strove tobusiness lies through the use ofinancing East Germany signed agreements call-ing for seven-year creditsercent interest for complete plants andr repaymentsercent interest forulgaria and Czechoslovakia offered similar terms for vehicles. Hungary was Investigating the reactivation of existing steelmaklng facilities, as well as setting
I up small new steel plants and ferroalloy facilities^
; but no contracts were concluded. |'
Moscow's major economic Initiatives in A
1 during the first quarterishl Industry and maritime affairs, In March,
Minister of the Fish Industry reported! signed agreements In Luanda calling for
j assistance inumber of fish cesslng plants on the Angolan coast. His coincided with the delivery of six SovietT trawlers to Angolaift The USSR already heavily engaged In fishing Angolan waters und agreements signed8ccordinganuary announcement, the USSR will also provide shipserchant marine and train" Angolan port personnel. [
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n February, Benin announced plans to] sign Its first economic agreement with Bulgaria in the near future, i
Burundi. Burundi's Foreign MinisterPeking In January to discuss furtherassistance
Cape VsreV Cape Verde signed its first trade agreement with the USSR inhe1 provisions ot (announced.
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Ethtopifl. Chinarotocol.inoeat sports palace inbaba. Chinese teams have already prepared feasibility reports on the project, which was first! discussed Inn February, China also: completed the fourth of eight dlesel power plants being constructed1 credit agreementaterroject, both in Kiffa Prov-
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' As lighting mooerated in the Ogaden,Communist countries moved to expand eoo-nomJc ties with Ethiopia during firstEMA (Council for Mutual Economic Assistance) delegation! visited Addis Ababa in March, and East European countriesumber: |of bilateral agreements lo assist'j Ethiopian development 6 "
construction credit overears with Ironetroleum, manganese, and uranium. Thegreement if concluded will be the largesthas ever enteredevelopinghe offer illustrates the growing assressivenets of the Romanian program to secure long-termarrangements.
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Ghana. In January, China shipped theof equipment for riceillion Aflfe Irrigation project In'
Czechoslovakia agreed ton assistance for unspecified Ethiopian projects. ,'f Aboutillion, will be providedrant, probably for commodities; the remainder Is re-payable overearsercent with three yean'raam's prtmram In Ethiopia had been dormant following completionire plant,hoe factory under credit agreement* conduded.
1madonaicar. China has begun to deliver equlpl ment for resurfacing' the Tamatave- Mora mangaroad. Peking's largest projectillion credit agreement signedjTsss fourth session of tbeJoint economic commbaleneries of project proposals which If implemented would place 'Romania among the top aid donors jtd Madagascar. Project* include the diversification of output at the Tamatave oil refinery,of Iron ore in-. hectare agriculturalehicle assembly plant, an Iron smelting plant In Moramanga, road "Improvement, and construction of thermal poweromania signed an economic cooperation agreement thatinimumillion in credits for development pro-.
,he USSRons of ricealued at nearly II million to Mall In February.
grant
Strainingracts tothiopia. "
East Germany reportedly signed anonebruary to double the capacity of theAssab over the next three years and toconstructionilometer, railroad toAssab with Addis Ababa.allocatedillion foran development proieets; new credits almostwould be required for the port andprojects. East Germany also' announcedest German firmotton mill InoiiTOi^tbask!;)
, Ethiopians for; abo signed con-Stillion to
Atsgi-etl
Planned; soviet aeveiopment of the, Awaih Valleyxotocol signed In7rice tag0 million, acoordinaecent Soviet.feasibiUry.itudyli The project Inram, schools, roedsjcttres of Irrigated land,'and the ritahluhment of food-procening plan's. Final
fcwIblUiyist^^
(Soviet aid.
.totalingmillion0 million [wiU be 'provided for proieets t^
Gabon. In January,'. Ronvuuandelegation to' jUbrevJUe presented the details,roposal to0 million in: financing for tbethird: leg of the: trans-Gabon railroad, to serve the Belinga iron ore mines.,Romania abo e. pressed interest in the. development of the mines, which will.require an Unvestment0 million; million. Gabon would repay the railroad
Mcmrneiova. Bulgaria and the USSRoint venture protocol with Mozambique torease Irrigated agriculture In the Limpopoey0ectares. Thencludes the completion of the Massinger and Mapal dams, Bulgaria abo willMW power plant at the Massinger dam. Work on thexpected to begin dus year. Before Independence, Portugal had already begun developimpopo '. Basin, oohstdered by experts an importantgranary for Mozambique The overall Bulgar-ian-Soviet plan envisages aid for irrigation, water |
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iver ruwlgstion, fishing, livestock lafld forestry, mechanized agriculture, housing; and public services-The terms of Communist assistance have not been announced. Tho USSR also signed contracts to equip .five technical school! and an industrial Institute for teachers and toeological survey.!These actlvh; Ilea are being carried out under credit agree-;
J Nigeria Nigeria1 has 'approached Cubassistance In fisheries development, low-cost housing, and sugar production, according tocommissioner for economic; development.
' in reoruery, Hungary and Nigeria extendedmedical equipment agreement for antwo yean. The agreement calls forto financeerceni of the valuehospital equipment purchases overyearsercent Interest. Hungary alreadycontracts valued5 million un*thel'| ^Poland willolish expertstudents to Polish universitiesinstitutions annually under aagreement signed In March.ub-Saharanrading' ' * j
^ Ser.esjef.tlnFebruary,eliveredof gift wheat valued atvictims In Senegal
ir mi Leone, Stem Leone' has requestedon possible Hungarian; assistance for agriculture and pharmaceuticals.
university students from the USSR afteroviet authorities of cutting off their lilMngL; group of Somali* nearingtlon from Soviet institution* protested the Somali order to return home, and reportedly received Soviet assurances of continuing support if they derided to lemalnjln the USSR,were recalled at the end of IIOTra'
Togo, Poland Is considering participationumber of Western countries0 million0 million phosphoric acid fertiliser facility
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: Uganda. In January, the USSRgreement on minerals prospecting, reportedlyhe first agreoment of this kind between the twoi Ifcountries
Upper Volta. China turnedecondroduction proj-ct. at Banfora, establishedillion credit agreement signed
untna nanaeflheck0 to" Vollan authorities as drought relief.
The USSR announced that it will give Upper Volta six trucks td carry supplies to drought vlctlnuv The USSR previously has provided the services of several aircraft and pilots toelief supplies to Isolated areas In the north.
'- aWntg. Chinese technicians completed work to double output at the Metktlla textile planti byillion, Us credit*
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In January, uxecncaJovaJtia signed anto0 million of credits to Burma, repayable overearsercent. Theill be used toractor plant at Mahw and to set up plants making diesei pumps for agriculture andhe projects arolto_be completed
JHurapary lias offered foundry,ns, and casting machinery valued0 millionlanned Indonesian motorcomplex. Jakarta has specified that the transaction must takejplaceredit basis.;!
Homanla" has ollered"to establish Joint ventures in petroleumefinery) and motor vehicle assembly.illion in Romanian credits wereor petroleum develop-
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redit lup^e'rnoht,were never
power plan credits plant
TheUSSR first'ira.non; credit;greement to design0 millionpower plant in central lava, iThe'USSR offered
proUbly Will.
Foreign Minister Fir-visit to Kuala Lumpur to
yubln paid.
taofferW.pUnt In westerns| still pending..;
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planti to produce precision instruments andj equipment. All of the output will be exported to Czechoslovakia (whichpercent;-share) foreanuaranteed annual profit The Minister also discussedCzechoslovak participationteel foundryhoe factory, f
rgentina. Soviet electric power generators scheduled for Installation at San Antonio Oeite will be dipped tolanca. This contract has itotJpivrViously been noted; it could be partgreement under which Argentina has
and^'pSM their, annual trade: agreement.hinese oUgreement calls for baUmced.trade: in returnarrels of crude oil valued at about ISO'
.'stacelxsa.rsKs1 eeuntriW erUblishedInhe agreement specifiessettlements and for the establishmentm lied commercial commission to meetyears. China hopes that the agreementIt to uxrease exports toajor rawsupplier, to rectify large annualsurpluses.hen directSfS*
tra.es. and Agricultural andc^i. worth <rf Br^lUnWcu rural producU buthas Pushed en by the oU tra^ thatsold ordy aboutillion In goods, mostly
mlsskaa has rccorrurierjded Joint power industry ventures in Ihird countries as the roost feasible method for Increasing and balancing trade. The
larger Chinese <ommitment Tor oilw! details of the arrangemen'ts" were
^process;
- Soviet otlloum nave ret used to commtmleported offeruclear power plant to billion plant came under scrutinyegulatory;
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ter visited Malta.for the opening of Czechoslovak million annually; over the noxtjthree years: If the;overnments he proposal.
At use, request or East Europeanhas been working hard to find methodshuge East European imbalances. InGermany's Imports from0 million, with sales only about '
he Iraoe picture) tor; other East European counlries Is similar. Hungary has offered to coop-
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erate In pharmaceuticals, medical equipment.and the alumina Industries to offeetwhich0 millionoland, with sales to Brazil rising5 millionill i 0 million bilateral trade deficit
in Fvttrcn. Brazilian sourcea announcedoociusionetroleum contract with thealling for Importsf crude oil8riceer barrel.razilian oil Imports from the USSR. the reason for this year's reduction -Iwas not announced. Soviet:oil.aalea havenstrumental In bringing the Soviet trade deficit downittle0 millionfrom about revious year.
hiU. In January, Chilemall sale of molybdenum to the USSR, its first Soviet contract since3 coup that overthrew the Allende government Czechoslovakia, Poland, and Romania also contracted to buy smallof Chilean products during tbe first quarter. Santiago hopesradual resumption in Eastern trade relations will moderate Sovietgainst the Chilean egime.
H' Costeuba, was disappointed by Costa Rica's refusal to grant moat-favceed-nation status to Cuba,ormal trade agreement scheduled to be signed In Havana in late February did not materialise. The two sides Insteademorandum on trade whose provisions were not announced Following the delegation's return from Havana. Costa Rica's new governmenta "fnese" on relations with Cuba and; the USSR at their present leveL Thejiwlnning' party had promised no increase1 In ties with the Communist worldbei recent election
Domintcan Republic. Cuba hai offeredin promoting the use of sugar cane by prcd-ucts for ratiajor Item In theRepublic's program to, diversify the sugar
Utiil.
y Ecuadtk; During'lts' first session inEcuadorean-Romanlan economica five-year trade and paymentsprovisions were not announced. This Islong-term trade agreement between the.. t. j:
jiI"1 ' uyanese trade delegation visited
East Germany and Hungary In February. The-purpose of the GDR visit was to choose consumer goods6 million credit carrying three-year, repayment terms. The goods will be used to* generate local funds for an East Germanle oil plantehicle repair shop. Iny, the delegation discussed purchases7 trade agreement thatillion In one-year credits for consumer goods and five- to seven-year repayments for capital goods. Guyana also tried to promote sales of rice, sugar, rum, and bauxite, apparently; with little success, p
Jamaica. Cuba will provideillion to build six schoolsebruary announcement.willubans Into Jamaicathe construction phase. In March, Cubaoverussian-made tractorsift for useJamaica's agriculture and land reform
! In March, Hungary agreed to Increaseine of credit provided7 toOf theillion will be usedprojects andillion forer goods. In add it ion. Hungarian foreignhavemedical equipment, pharmaceuticals,repayable over eight years atointerest. Earlier this year Jamaica'sMinister Man ley announced that Hungarybegin engineering and design work for an alumi-plant first proposed for Hungariano mention was made of theof; Hungarian: credits originallyuSel:
'Mexico China has become concernedillion trade deficit stemming from agricultural
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purohoses: To promote sale. Pekingmajor industrial exhibition in Mexico Cityyear.fj!,|
Mexico's rTHiMM will visit Moscow1 late'in8 to dlKuuicooperatlonjin'agriculture. energy, and thendustry, |as. well as 'an j
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S Cvpnui Cyprusrotocol to Import unspecified machinery and equipment from Czechoslovakia8 as tbe first transaction56 credit agreement.
Chinaalesfrom Nicaragua, about onMhlnl ofcrop
Panama. Thereoticeable Increase InCocnmunlst economic activity in Panama duringirstnuban, thin met with the Panamanian Agricultureer to discuss expanded agricultural cooperation; no agreement was announced Poland signed afive-year cultural agreement that calls forxchanges,oviet delegation evened, aI week-long exhibition of electronic andraphic equlnment In March Panama'sure Minister abo traveled to Yugoslaviaurchase of machinery,und vehicles.;
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ftm Romaniaon soda ash1 plant and steel industry equipment to Peru during the Lima visitomanian Deputy Foreign Trade MlnUter In February. Part of the; project could be financedillion1 credit provided by Romaniahe two' tides also discussed the,constructionool plant already planned underjjie; agreement. :
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.Surinam. In.splteick of enthusiasm on! the part of Surinam, China plans lorade fair In Parlmaribo In, the fall
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protect, Soviet
deliveries for the power plant arehe project is beingwith Argentinaillion inextended
ihinese delegation was In Egypt ia February to study the feasibility of" colossal" conference center In Cairo, possibly as :fa gift The two countries also discussed Chinese Ii assistance to the mining and petroleum industry.
may HFt Ihe embargo on cotton salesthat was imposedefused toillion worthgypt has Indicated that Itcotton from8 crop on hardterms.i
agreed to extend ihe explralton1 loan agreement that providesIn credits for developmentillion has been drawn for aplant. President Sadat had discussedcooperation program during ato Bucharest in
According to Soviet data,7 million of outstanding debturplus on Its Soviet trade account, against0 million payment planned under the trade protocolotal trade0 million short of Ihe Ii billion protocol level. The Soviets reportedly plan to continue trade7 levels through8 evenew protocol hns not been signed, however, Moscow reportedly plans to cut off coking coal shipments, tentatively forecastons. If Egypt pursues the moratorium on Its military debt announced last September. Recent Information indicates that Egypt abo has demanded tolls on Soviet ships transiting the Suez Canal sincehe Soviets had been allowed free passage since the canal openedhis exemption was valuedillion, i
Iran, Iran suspended economic relations with "East Germany because of displeasure over the
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Its embassy In East'Berlin. East German police ror^edly; stood;isVKwttlebroke Into the embassy building, held the staff hostage, and destroyednd furnishings. The suspension was lifted after anHungary signed contracts to supply twoas welleal plant valuedlyommercial
uasn ana irarr reacnedn Soviet corjstructlon of the northern section of theas pipeline that runs from the Kangan fields to the Soviet border. The line willillion cubic feet; of gai per year to the; Soviet border in return for Soviet gas to Western Europe and CaechcsiovakUlu partriangular gas supply agreement signedoviet construe^ Hon work on the new pipeline.wiube retasJd.ttt under Its^7 economic and technical' agreement. China has offered free labor and construction materials}at coat!-'for1 the project. China aho Isuwaiti proposal toational sports stadium In Kuwait dryJI
Romania reportedly Is seeking funds from Libya for thejNavodari petrochemical project on thelack Sea, originally slated for Kuwaitiomania already has begun work on the complex, 'even thbugh.lt has not reached agreement withKuwait on Itspercent participation.
-'ine UURisM aVUWUl'axoHIn sirin March establishing regular Aeroflot flights
f!rmtf* YesmEconomy Minister signed an agreement with Soviet EmbassyIn Sana that; reportedlyillion in new credits to expand the capacity of the. Soviet-built cement!plant at BaJil bytons annually. The; plant, originally constructedillion In Soviet credits, wasnce to. Its present capacityons.
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i East Cenrany]borjcteoed contracts tothree flour millsillion astronomical observatoryeeting of the Joint Iraql-Eaat German eoorxirmo oornirsiasion ta. Peteuary.
Trade AssbcUtJonrotowl with Iraqto oooperate in the productequipment TungsramRomanian economic delegationMarch to oUsctMespandedeorisrructidn materials, and
ressing Kuwait to permit Peking to construct a. low- inoorne housing project
outh Yerrum. The South Yemeni Trade Mlnix-ilWjytsited Bulgaria, CaecbosJovfikia, ami East Germany during March; to discussrade. South Yemen wants to increase the prapor-jtioafoT Corn^ -pnrcluaes in total:
^ootPJsTjTenaW* icnute^Htim^terew'i economic and recfanleaiiiOoopoTatkmwith the USSR in February that reportedlyvidesillion In credits for Aden's second five-year plan. Projects mentioned include further oil developmentement factory. The Soviets also promised tooratorium on debt Interest and the lengthening of repayment terms on existingdue overercent Interest The Soviets announced plans6 to quadruple
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Svria. Syria has orderedransformer'stations from East Germany to assist In; distribution of powerfrom the Euphrates dam. jThe contract is partillion ruralagreement concludedomania's Prime Minister Manescu signed an economic and trade protocol calling for Increased cooperation In oil extraction and processing,nst, and agriculture during meetings In Syriaarch. Damascus,0 million In credits, Bucharest's largest aid recipient1 Romanian technicians are employed in Syria mostly aton-ton Banlyas oil reflnen and a superphosphate plant In (Homi
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:. SKseniiov ot the Soviet State Committee for Foreign Economic Relationsled to Syria to attend celebrations marking the completion ofVV. Euphrates power plant in March. The USSR0 million in "credits for the half-bilbdn dollar Euphrates dam project which has been under construction forean. The Sovlet-bulh power plant has doubled Syria's electrical output, and associated irrigation projects now under construction will; Increase the stock of arable landectare* During the month, Soviet and Syrian; railroad construction teams> kilometer section of the Damascus-Horns railroad scheduled to openjto traffic this year. Skachkovrotocol for) economic and technical cooperation, but Its provisions were not reveeJexLj
Turkey,arch Turkey anrwuncedeactivation of diplomatic relations with Cuba, suspended- 1
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A/grsanlsUti. In January, the USSR signed several contracts to go ahead with projects being financed under existing creditne-i
year contract extends the stayemployed In oil drilling and otherstudies in! northern Afghanistan.services to the oil Industry arecredit; according to Afghani sources,0 million for oil and gasduring tbe;current seven-year plan.also will provide additional personnelroadbuilding equipment and willon medical facilities at Kunduzillion protocol signed last 1I IN; 'Viteil'
Bangladesh. China signed protocols with Bang-ladesh'in March to provideillion7 agreementlood control projectecUres near Dacca. Chineseurvey teams already have selected siteswo; projects and are planning studiesextile mill, also promised under" "" :i! :'! ;Ji:.
ontract to provide dies and specialized tools to the Soviet-assisted electrical equipment plant at Chlttagong, scheduled to open this year.illion plant wasfinanced2 credit agreement.
India. The newly upgraded Soviet-Indian Joint economic commissionrotocol In March that sets targets for economic andcooperation over the nextoears. The two countries agreed to develop new projects In steel, machine building, petroleum production and processing, transport, and communications during the current year. Singled out for special mention were the east coast alumina project toons of alumina annuallylast furnace complex. The alumina plantrice tag0 million0 million, is the major: project envisaged under the0 million Soviet credit agreement signed last May. The USSR already has1 millionto evaluate four major bauxite deposits in Andhra Pradesh to supply the complex; projects to develop the deposits [are contingent on the: availability of financing for local costs and the' securing of long-term contracts to sell the ulumi-
A high-level Romanian delegation arrived In Pakistan In mid-January for the opening ofillion Romanian-built Karachi refinery. Bucharestillion in credits foron-ton plant. The fourth session of the iolnt Pakistani-Romanian economichat began onanuary signed an agreementroceedement plant, first announced for Romanian financing last year, and to discuss constructioneavy electrical equipment complex and agricultural assistance Pakistan hasillion la credits left3
rw. The USSR already hu agreed to take atons of alumina annually in repayment of foreign eschange costs. J
The Indian press also reported that the' two sides are nearlng agreement on the long-disputed ruble-rupee eschange rate Issue. The new rate Is expected toompromise between the old rateupees per ruble and the Soviet demand forupees per ruble. The 'main problem blocking agreement over the last two years has been the application of the new rate to old debts Proposals on thi* Issue were not announ
More routine marten Included the conciuiioviet contract toillion tons crude oil to India8our-year
crude on to maia in mio unaer a.rfAcwding to
lionraft processing plant
country's secondbesoon. The USSRillion In credits5 to finance the scheme, whichW power plant and irrigation0 hectares. I .
petroleum agreement signed8 andoviet-built SamWawewa hydropower pro-;'
contractoviet nickel-
Cersmsurslat hSJsmary Tratssatttaw In IPCs
; Mozambique. Mozambique continues toa heavy .flowew military equipment
'Nepal. During a1 February;visit to Peking, Nepal's Prime Minuter obtained tentativeagreement tougar refinery and paper mill In Nepal. China, one of Katmandu's maior donors, has provided all of Its, aid to Nepal|
18ith China calls for. baUnced,'trade
iUlon more7SSR for expanding andarmedq
rmored personnelAa many aa' helicopters,first from the Soviet Union, havein 'j!'
he USSR signed at least two new agreements with Mozambique for transporthelicopters, and ground equipment,ng additional tanksCs. Record deliveriesediumCs, and large artillery piece* Some of the artillery, smallnd ammunitionbly were for Rhodesian Insurgents, who have received Increasing quantities of modem arms from the Soviet Union.1
Effective integration of the new equipment Is expected to enhance Mozarnbfcen militaryalthough the transitionore mobile
only part!he; two-way trade: China usually New Items innventory include confines .Its Imports to levels ;prescrlbed by the 1 heavy amphibious ferries, medium amphibious
hile Pakistan buys substantialpraised on barter, count
under barter arrangements- During the quarter, China also began deliveriesheet glassory being financed0 credit agree-
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In January, Hungary0 million In creditsubway and trolley system inThe credits, the largest ever offered by Hungary to an LDC.year repaymentsercent Interest. No mention was made of the project during trade negotiations held in March that resultedwo-year; agreementillion worth.of gonda.'^ j! jl'i
land heavily janmed force will to its Inability to assimiUle -equipment. 'l deve
and Soviet assistance will be necessary for some time to train personnel and maintain the new equipment.
Tanzania. In March Tanzaniaow-to-medium altitude antiaircraft missile systems from thefirst sale of this weaponub-Saharan country.re scheduled to begin thli October. 'j f It is likely that discussions on Ihe SA-flsast December when Soviet and Tanzanlandiscussed arms purchases 7 agreement which originally had provided for tanks, field guns,issiles, and'other equipment. Payment forA'bs Is due In advance (In April) partly In hard currency. These terms are much harder than those usually allowed other Soviet sub-Saharan clients, notably Ethiopia.
The Tanzanlan People's Defense Forceto establish'fiveattalions,of Soviet experts that ater! unit are required for successfulA shortage of funds probably haspurchases. Tanzania has given training on the systemand willPDF personnel toearly In April. Dar es Salaam will paytraining and: willransportationbeen allocated for
this purpose, although the total cost probably wiQ surpass this figure. Training, scheduled to begin In October, may be moved up because ofvacancies created by, the early departure of Ethiopian personnel/he USSR abo has offered to expand itsof Tanzanlan military personnel in other fields.isit toyear program -for Instruction In| modern weapons, advanced tactics, and mechanicsield engl-'Steers and technicians would receive training on field artillery, air defense weapons, radar, and 4iv'es.bo suggested tactical and ," td military trainingarger number of
es Salaams distrust of theanzania has accepted increasing amounts of Soviet military assistance In recent years.or example, Tanzania was thetj first sub-Saharan country to receive medium'; altitudeurface-to-air missile systems, and jjoscow agreed! toorth of arms to Tanzania.
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'which has been delivered. The Sovietrovide large quantities of modern weapons has enabled Moscow to displace China (whose arms aid In the past three years was less than|_
as Tanzania's major arms supplier.Interest Inroad range of modem Soviet equipment is ruHedesire to Improve border security and protection for Rhodeslan guerrilla bases. President Nye re re's! deteriorating relations with Kenya over theof the East African Community havehis concerns about that country as well.
ganda, Uganda reportedly orderedJet fighters from Ihe USSR in early April.Ethiopia is the only sub-Saharanhas been providedlthoughare not scheduled for delivery untilix Ugandan pilots will be sent toUnion later this year to beginsix operationalre to beto Ihe USSR after delivery of theto offset pari of the cost of the
Mexico (The Mexican Army recentlyInformation on the price andSoviet artillery and antiaircraftequipment Items that Mexico punsover Ihe next two to three years'toIts defense plan. The scheduledinclude atattalion ofPCs. rockets, and artillery.
Last August ^he' Mexican Army's directorrtillery visited Ihe USSR and was shown mor-t'S
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rnvltaers,^'ar^ surface rockets, Mexico also expressed Interest in
7 In Sovietndransport aircraft and medium!helicopters. It Is unlikely, 'however, that Mexico will actually buy Soviet;
. military equipment at this time, whensources remain available.and Western equip-as welloncern over Sovietsupply of spareill probably inhlbUt i
Ieruvian delegation that arrived in Moscow In late March hasoviet agreement to defer0 payments falling due on Peru's military debt Peru: was able, toillion in principal inpayments and deferred downpeymentsj million of paymentsima willo make Interest payments ofillionnd scheduled payments on unidentifieddebts ofillion perhe Soviet rescheduling [Is somewhat less than the Peruvians had askedoratorium onand deferred downpayments; for at least four or five veara Peru carnal ;un^ from International lenders late! last year tothe Soviet debt when Lima applied for cash loans to ease its payment0 million loan from foreign banks was madeon Peru's' restructuring Its Soviet debt
capacity of the Syrian armed forces. Newsupplies to Syria under
agreements signed last year were madeon the recently completed study. Moscowto; hold arms supplies for Damascusthe armed forces can readilyThe'l"" December arms deal callsot advanced weaponssystems andem equipment. Improved SA-6tanks, and targe
quantities of aircraft and land armamentswere reportedly Included in thealready has taken deliveryargeof equipment underinince men, tne Syrianhasarge numberndjThe'Army hasTecelved large quantitiesand spare parts, as; well asincluding about|armored reconnaissance veniclcs,combatm field guns,rocket launchers. Increased amountsdefense weaponry! particularly SA-6equipment, aisoj have been observed in Syria Inpast few months. Ik1 .
addition to scheduling routine deliveriesmilitary equipment during theAssad may have obtained Sovieton emergency resupply in the eventArab-Israeli
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: North Yemen. The USSR delivered; " Zhuk-class patrol boats to North Yemen in Januarydelivery probably was made under g| agreement inked
Indin. New Delhi has turnedoviet offer of an Improved version of theighterttempt to counter Indian plans to purchase aircraft from West European sources. The Soviet package called for the outright purchaselanes and licensed assembly/manufactures ot an additionalnumber of upgradedoscow's offer included attractive pricing, quick delivery, and easy credit terms.
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Original document.
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