Loans granted by East European Communist states and outstanding in 1965
(in terms of United States dollar equivalents) were given by a Soviet
source as follows: Bulgaria, US$11 million; Czechoslovakia, US$25
million; East Germany, US$15 million; and Romania, US$7.5 million.
Information about repayments of these loans was not available. Only a
fraction of the outstanding amounts could have been liquidated through
Albania's trade surplus with these countries. Some Western estimates
placed the debt to the Soviet Union and East European Communist states
at the end of 1968 at a minimum of the equivalent of US$500 to US$600
million.
Economic aid by Communist China dates back at least to late 1954. Stated
in United States dollar equivalents, Albania received in that year a
grant-in-aid of US$2.5 million and a loan of US$12.5 million. An
additional credit of US$13.75 million was made available in early 1959,
and a loan of US$123 million for the purchase of industrial equipment
during the Third Five-Year Plan (1960-65) was extended in early 1961,
after Albania's break with the Soviet Union. Two more loans, for
undisclosed amounts, were negotiated in June 1965 and November 1968 to
finance the fourth and fifth five-year plans, respectively. In public
references to the 1968 loan, Party and government officials gave the
impression that it was substantially higher than the loan of
US$123-million obtained in 1961. Aid has been provided by Communist
China free of interest.
A Western scholar reported unidentified sources to have suggested that
the 1965 loan amounted to about US$214 million, a sum substantially in
excess of the credits granted up to that time. Another Western source
estimated total direct credits for the 1960-68 period to have been more
than US$450 million, exclusive of substantial grants. Yet, other Western
sources thought at the time, and also in 1970, they had discerned
evidence of disappointment on the part of the leadership with the extent
of the financial assistance, delays in the supply of machinery, and an
unwillingness or inability to supply much-needed consumer goods. The
leadership's awareness of the inadequacy of foreign aid in relation to
the planned development program has been evidenced, in its appeals for
greater productivity, by the high frequency of references to the Party's
principle of reliance on the country's own efforts and in its continuing
campaign for the utmost economy of resources.
The country's cumulative clearing debt to Communist China on the
commodity trading account at the end of 1968 was estimated at roughly
US$300 million. This amount did not include the substantial additional
costs of assistance in the form of technical advisers who have guided
the construction and operation of major industrial projects. Estimates
of these costs or of the number of aid technicians in the country were
not available.
Foreign Trade
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