RECENT SOVIET AND COMMUNIST CHINESE AID TO NORTH KOREA (S-3416)

Created: 11/19/1970

OCR scan of the original document, errors are possible

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CIA HISTORICOEMEW PROGRAM

RELEASE AS SANITIZED 8

Hecent Soviet end Ccmmnlst Chinese Aid torca

After tbe5 visit of Soviet Premier Kosygin to Horth Korea, economic relations Improved considerably. Inorth Korea concluded an economic cooperation agreement with the USSR* which probably included aid provisions for many of the unfinished projects ofl agreement. ompleted Soviet-assisted projects included the Klmchaek Iron Works, the Puxchang Thermal Power Plant, the HoBpo Iron Works, the P'yoogyexg Thermal Power Plant, the Hjagaam Chemical Plant, and the P'yoagyocg Textile Plant. In addition, the USSR Is providing assistance for the construction of an oil refinery capable ofillion tons of refined products.

Soviet trade statistics provide the only consistent set of information on the value of drawings under6 agreement. Toe following tabulation lists Horth Korea's trade with the USSR:

Million US $

Sorth Korean Imports North Korean Exports Worth Korean 3alftr.ee

1.5

6.7

2.3

orth Korea's trade with the USSR Ins was roughly in balance.owever, imports have far surpassed exportseficit of0 million has been generated. An additional deficit5 million may have been generated

Two new aid agreements were concluded0 with the USSR and Communist China, and in neither case was the value of tbe agreements announced. OnO, North Korea concluded an aid agreement with the USSR for the expansion of the machine building industry and expansion of other industrial enterprises. Tho agreement also stipulates that the products of thebuilding industry will be exported to the USSR and probably represent repayment for tbe credit. Loss information is available on tbe aid agreement concluded with Communist China in However, the presence of the Chief of Staff of the Chinese Army may indicate that military aid was involved as well as economic aid.

Original document.

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