SALES OF HIGH PERFORMANCE TRANSPORT AND CARGO AIRCRAFT TO COUNTRIES OUTSIDE THE

Created: 3/23/1962

OCR scan of the original document, errors are possible

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CIA HISTORICAL REVIEWAS SANITIZED

SALES OF HIGH-PERFORMANCE SOVIET TRANSPORT AND CARGO AIRCRAFT TO COUNTRIES OUTSIDE THE SINO-SOVIET BLOC AS2

CENTRAL INTELLIGENCE AGENCY Office of Rcst-.ircli and Reports

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This reportummary as2 of export sales of high-performance Soviet transport and cargo aircraft tooutside the Sino-Soviet Iiloe. The prices of tho aircraft and thc terms of sale, as far as they can bc determined, have been included. Because Soviet efforts to export aircraft to the underdeveloped nations of the world are indicators of the over-all Soviet attempt to gainin these nations, this report includes past unsuccessful Soviet offers of high-performance transport and cargo aircraft to thecountries and those offers that are presently undor consideration.

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CONTENTS

Page

Summary and

I. Sales of

11. Offers of

A. Egypt

H.

C

Appendixes

Appendix A.

Appendix B. Gaps in Intelligence

p. Source

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Table-

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Sales of High-Performance Soviet Transport

and Cargo Aircraft to Countrios Outside tbeBloc, as2

of Higb-Performance Soviet Transport and

Cargo Aircraft to Countries Outside the Sino-Soviet

Bloc, as2

Characteristics of

as Establishedune

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SALE5 OK 1UGI1-PERFORMANCK SO VIET TRANSPORT AND CARGO AIRCRAFT TO COUNTRIES OUTSIDE THE SINO-SOVIET BLOC ASEBRUARY

Summary and Conclusions

At the beginning2 the USSR had in service or in the proving stage eight types of high-performance transport and cargo aircraft. Of these, only two types, theurboprop civil transport, and thc Cuburboprop militaryhave been sold to countries outside the Sino-Soviet Bloc. The number of aircraft exported, the terms of sale, and the principalof those aircraft arc summarized in Tables, and*

Thc USSR has concentrated its efforts to sell high-performance transport aircraft in Africa, the Middle East. Southeast Asia, and India. These efforts were unsuccessful untilhen Ghana contracted to purchase fourircraft. Since thatotal ofoot and Cub aircraft have been sold to five developing countries. These sales indicate that the USSR is becoming more successful in its attempts to infiltrate underdeveloped countries through thc sale of aviation equipment.

Soviet success can bo attributed in large part to the liberal terms of sale offered. Trade agreements provide for long-term credits, low interest rates, and. in some instances, payment in native currency. In addition, the USSR provides for thc training of native crews or sends

* The estimates and conclusions in this report represent tbe bestof this Office as

** Tables.ollow on pp.. andespectively, below.

Soviet crews lo operate the exporteduch terms of tradein addition to increased sales efforts in thc future as additional types of high-performance Soviet transport and cargo aircraft are made avail-able for export to non-Bloc countriesan be expected to leadreater acceptance.of Soviet aviation equipment by the developing

I. Sales of Aircraft

A. Ghana

L-atc in the summerhana contracted to purchaseaircraft from the USSR. The terms of the contract statedaircraft, together

costotal.ach aircraft including spare equipment was priced Payment was to be made in pounds sterling as follows: ercent on delivery at Accra and the remaining balance to be paid in eight equal annual installmentsate of interest ofercent on the unpaid balances. In addition, thc USSR was to send four sets of crews at no cost to Ghana and four sets ofcrewsost0ll eight sets of crews to be made available foronths. 2/ The four aircraft were delivered to Ghana between0

ontract was signed for the purchase of twoircraft, 'hihird contract was signed ono purchase twore rait, bringing to eight the number of such aircraft purchased by Ghana. 4/ Of theircraft purchased

* Western aircraft companies also train native crews but at ahigher cost.

** iscussion of the derivation of dollar values in this report, see the methodology. Appendix A.

*** Thc Western aircraft that is comparable toircraft isckbeedKlgctea.ourwere offeredouth American carrierriceer aircraft. In addition, each spare engine was pricedhereas the price ofircraft included four spare engines. 1/

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byanian governmentwo were delivered in April, one in July, and one in August. These aircraft were purchased under the same terms as the original four.

Although, as late ashe Soviet Ambassador in Conakry, Guinea, was reported as saying thatircraft operated by Air Guinea were not thc property of thc Guincan government but were only under charter,here is evidence that sometime1 Guinea did purchaseircraft.

Bylightin-

otal ofircraft

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purchase of three aircraft by thc government of Guinea. 6/ It isthat these aircraft were soldine of creditgranted by the USSR to Guinea in/ The terms of sale are unknown but probably were similar to those for Ghana.

D. Iraq

E. Mali

In accordance with the Sovict-Malian trade agreement signed onali contracted to purchase certain Soviet aircraft, among which wereircraft. The price of each aircraft. The terms of trade are unknown but probably were similar to those offered to Ghana. Theircraft were delivered to Mali in

II. Offers of Aircraft

A- Egypt

Negotiations for the purchase of Camelfor lhe Egyptian Misrair began as early as In8 the USSR specified that fourircraft andircraft could be purchasedear commercial agreement for7 million . Delivery was scheduled.

In view of the fact that Misrair officials were reserved in their acceptance of thcircraft and thai Soviet and Egyptianofficials could notutally satisfactory trade agreement, negotiations were not completed. No further reports of attempts on the

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part of tbe Egyptian government to purchase high-performanceaircraft have been received.

B. Afghanistan

Reports of Soviet efforts to sellircraft to the Ariana Airlines of Afghanistan duringave not been verified, and it tccmG unlikely that Afghanistan ueriously considered purchasing ouch aircraft- Ariana Airlines hadontract with Pan American World Airways to purchase US aviation equipment, and Arianaimited air traffic at that time would not have warranted the purchase ofaircraft. Pan American's contract expiresowever, and Ariana may consider the purchase of Soviet civil aircraft in the future.

C. Iraq

0 the USSR offered to sellircraft to Iraq Airways. On the basis of findingsoard of inauirv the offer was not accepted by the government of Iraq.

no reports of Iraq's intent to purchase additional high-performance Soviet transport aircraft have been received.

Earlyir Ceylon waa considering the purchase ofircraft. The Soviet offer of these aircraft included arrangementsong-term loan olearsate of interest ofercent per year. The price of eachircraft was approxi. mately/ In addition lo the Soviet offer. Air Ceylon ha* received offers of aircraft from French and British aircraft companies, but the liberal terms offered by the USSR might be the factor that would lead Ceylon to purchase Soviet-made high-performance transport air craft.

E. India

Reportsoviet offer of threeircraft to Air India appeared innd rumors ofalc of such aircraft contiitueil

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APPENDIX E THODOL.OG Y

Thc conclusions presented in this report are based onlitftvtw 4 aircraft were estimated fromfrom information reported by

various US intelligence services. Wherever possible, the prices of aircraft and aviation equipment and the terms of sales were taken from copies of actual contracts. When documentary sources were notestimates were based on intelligence reports.

In order to present the prices of all aircraft in terms of current US dollars, thc prices ofircraft and aviation equipment sold to Ghana were converted from pounds sterling, as stated in the contract, into dollars, using the current rate of exchange. All other intelligence sources that were used quoted the prices of aircraft and auxiliary equipment in terms of US dollars.

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APPENDIX B

GAPS IN INTELLIGENCE

In the preparation of this report, significant gaps inencountered in the determination of the terms under whichtransport aircraft have been sold to countriesSino-Sovietavailable for only

two trade agreements, and little detailed information was available concerning agreements with Guinea, Iraq, and Mali. In addition,

thus making it auiicult to estimate thehe Soviet attempt to sell high-performance transport aircraft to non-Bloc countries. '

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APPENDIX C

SOURCE REFERENCES

Evaluations, following thc classification entry and designated have thc following significance:

Source of Information

- Documentary

Confirmed by other sources

- Completely reliable

Probably true

- Usually reliable

Possibly true

- Fairly reliable

Doubtful

- Not usually reliable

Probably false

- Not reliable

Cannot be judged

- Cannot be judged

Evaluations not Otherwlll designated are those appearing on tlie cited document; those designated "RR" are by thy author of this report. No "RR" evaluation is given when lhe author agrees with the evaluation on Mir cited document.

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Original document.

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