COMMUNIST AID AND TRADE ACTIVITIES IN LESS DEVELOPED COUNTRIES, NOVEMBER 1974 (

Created: 12/1/1974

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Communist Aid and Trade Activities in Less Developed Countries,4

COMMUNIST AID AND TRADE ACTIVITIES IN LESS DEVELOPED COUNTRIES4

Africa

Central African Republic (CAR) Receives Soviet Military Equipment

The USSR delivered. armaments, includingrucks, to Ihc CAR in lateoviet-CAR military accord was signedut no credits are known to have been extended, nor have any military deliveries been reported previously. The CAR has requested renewal of9 agreement, which expires this year, as well as long-term credits for military purchases.

EUifftc

hirst Portuguese Delegation to Moscow

Negotiation uuand economic assistance agreements between

Portugal and the USSR reportedly were initiatedortuguese delegation that visited Moscow in late October. Further discussions are expected in December Portugal hopes to acquire Soviet machine bulling equipment in return for agricultural products, construction materials, and ligh. manufactures. Soviet embassy sources in Lisbon also have mentioned the possibility of supp'ving Soviet pcirolcum to Portugal. (Conjufrflilul)

Note: The substance of this publication has been coordinated wiih the Bureau of Intelligence arid Research of the Department of Slate, wiih the Defense Intelligence Agency, and with the Agency for International Development.

USSH To Work on Second Argentine Power /ro/eci

Argentina has agreed lo Soviet nadicipjlionI billion power project oo ihe Paiana and Paraguay mers. Moscow will provide technicjl assistance and possiblyIS.OOOkilowau turbines, valued0 million, fur Ihe complex. The protect is scheduled for complelionUnclassified)

The Soviet equipment probably will be financedycir open-ended credit agreement signed earlier this year. Argentina already is drawing on this credit for Ihe purchaseillion worth of Soviel lurbincs for the Salto Grande iirojcct. (Unclassified)

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Neard South.Asia

Afghanistan Receives More Soviet Military Equipment

Soviet military deliveries lo Afghanistan during November includedTR-IS2 armored personnel carriers (APCs) andrucks, some

containing construction equipment. The rcccnl deliveries bring tohe lotal number of APCs delivered this year. Moscow also has providedrucks

during Ihe year, afffonf^ential)

Aboutfghan military personnel are scheduled to go to the Soviet Union in December, S7 for air force training. These departures bring the number of army and air force personnel trained in the USSR4 up to. Ihe highest number in any recent year, reflecting Ihe surge of Soviet equipment deliveries io Afghanistan

USSR Completes Minesweeping in the Gulf of Sun

Soviet minesweepers completed clearance of the Sirail of Gubal onovember, and all Soviel ships involved in ihe opcralion are scheduled to leave

ihc area by ihc end of November. The work was doneoviet giant tooling anillion. (Secret

In rnid-Novcmbcr. four small Egyptian ships transited ihchc firs) commercial ships to do so sinceetnilar use of lhe canal is nol expected io begin for several months, when salvage and dredging by Western countries will have been completed. (Unclassified)

India May Purchaseircrafl

India may have decided io purchaseloggers from the USSR. Theill have been chosen over the British Jaguar for financial reasons inasmuch as Ihe air force has continuallyreference for lhe Jaguar. The Indians also have expressed concern lhat the vjriable wing aircrafl will he difficult lo maintain, especially in light of previous supply problems with the Soviets. (Sec^ .

ecision lo buy lheather than the Jaguar has been made, the conlracl probably has nol yel been signed. Most large contracts are signed by the chief of ihe service involved or lhe Secretary of Defense, and no high-level conlacts have been made between Indian and Sovjel military officials since early summer. The Chief of Ihe Indian Air Force had been scheduled to visit Moscow in August, bul the trip was canceled because thessue slill was not resolved. (Sec/i

Iran und USSR To Increase Economic /in

Iran and the USSR agreed in principle on new long-range economic cooperation projects, accordingommunique issued at the end of the Shah of Iran's three-day vint to Moscow in November. The two sides also arranged to resume trilateral gas negotiations with West Germany in December. Further negotiations On bilateral economic matters alio ire scheduled for December. (Confidential)

Sri ItnkaS Prime Minister Visits the USSR

The USSR agreed to provide Colomboaval training vessel valued atillion during the November visit of Prime Minister Bandaranaike to Moscow. Sti Lanka's acquisitionoviet ship had been thought unlikely for political reasons and because if maintenance difficulties experienced wilh other Communist-suppliedei."rous offeruch-needed Soviet Pelya-class destroyer escort was refused lastHowever, none of Colombo's traditional Western suppliers has presented alternate- offers. (Sccj/h

See ih' MoiMl, Rtpori third*

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No new economic agreements were signed, although the USSR agreed to continue to study participation0 million irrigation complex. The USSR also agreed toew trade protocol, which might provide for an improved supply of spare parts and raw materials tor Soviet aid protects. (Confidrasjffall

Moscow currently lias four ongoing projects in Sriovict-buill flour mill and steel rolling mill are being expanded, Soviet j> "legists arc conducting gas and petroleum surveys,refabricated housing plantbeing constructedoviet grant. The USSR hasotatillion of aid to Sri Lanka, of which some SIS million had not been drawn at the beginningConfidea^al)

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