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ASIAN PERSPECTIVE, Vol. 8, No. 2, Fall-Winter, 1984, pp. 227-245. Elements of Soviet Economic and Technical Aid to Laos George G/nsburgs* An analysis of certain aspects of the Soviet economic and technical assistance program to Laos should prove instructive on several counts. First, before Laos swung politically to the left, the country had been a major recipient of U.S. aid and a comparison of how the Soviet record on that score resembles and/or differs from the American approach ought to be quite revealing. Seond, while general treat ments of the Soviet Union's foreign aid policy are common enough, individual case studies of the practical terms governing the USSR's system of disbursement and management of operations in this field are fairly rare.1 Third, to the extent that the USSR likes to promote itself as a major source of such assistance in today's world, especially vis-a-vis underdeveloped nations, and pictures these activities as an important feature of its global conduct, more information on the subject is sorely needed, preferably at the micro-level. Finally, Soviet spokesmen have elaborated an official version of the superior virtues of the socialist code of conduct in this area over the principles here followed by the capitalist competition and elementary prudence counsels a closer look at how well the USSR's performance in these * Dr. George Ginsburgs is Distinguished Professor of Foreign and Comparative Law, School of Law, Rutgers University, Camden, New' Jersey, U.S.A. 1. For a sample of such literature, see the author's "Soviet Currency Credits to Eastern Europe," in P.B. Maggs, G.B. Smith, G. Ginsburgs, eds., Law and Economic Development in the Soviet Union, Boulder, Colo., 1982, pp. 217-256; "Soviet Devel opment Grants and Aid to North Korea, 1945-1980," Asia Pacific Community, 1982, No. 18, pp. 42-63; "The Legal Framework of Soviet Investment Credits to North Koreas," Osteuropa-Recht, 1983, No. 4, pp. 255-277. A good general survey of the "socialist community's" record in this domain by a Soviet writer is provided in the article by 1. Shevel, "Kredity and bezvozemezdnaya pomoshch v otnosheniyakh mezhdu stranami narodnoi demokratii," Denyi i kredit, 1961, No. 9, pp. 61-72. 228 GEORGE GINSBURGS matters matches the approved script, at least on this particular occasion. I. Kingdom of Laos An official communiqué on the establishment of diplomatic rela tions between the USSR and the Kingdom of Laos was released on October 7, I960.2 Three weeks had not elapsed before a public an nouncement by Prince Souvanna Phouma to the effect that his govern ment had accepted a Soviet proposal of financial assistance, on terms described as "unconditional." The statement was prompted by the arrival of the new Soviet ambassador to Vientiane on October 13, his first interview with Prince Souvanna on October 15 and dis closure two days later that the Soviet government had made an offer in that vein.3 The report did not specify the size of the prospective aid package nor did it explain the meaning of the "waiver" clause, although in all likelihood the reference was intended to dispel any impression that the Soviets were thus hoping to get the royal govern ment to seek accommodation with rival warring factions, especially the Neo Lao party. Somewhat more tangible indications of Soviet intentions here surfaced during Souvanna Phouma's trip to the USSR on April 16-22, 1961. In the joint declaration marking the results of the negotiations conducted during this visit, the participants noted, inter alia, that acceding to the desires of the Laotian side, the Soviet government has expressed readiness to procure economic and technical assistance to Laos in the develop ment of agriculture, in exploration for natural mineral resources, the develop ment of transportation and communications, as well as in the field of health protection, culture and education with the object of raising the economy and lifting the material standards of the population. The parties agreed that the con crete questions of procuring aid to Laos shall be spelled out in the future in connection with negotiations between the governments of the USSR and the Kingdom of Laos. The Soviet government...
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