INTELLIGENCE REPORT SHANGHAI

• Document Type: SPECIALCOLLECTION
• Collection: The Nixon Collection
• Document Number (FOIA) /ESDN (CREST): 06928801
• Release Decision: RIFPUB
• Original Classification: U
• Document Page Count: 34
• Document Creation Date: February 23, 2022
• Document Release Date: February 11, 2022
• Publication Date: January 1, 1972

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Co n ial
No Foreign
DIRECTORATE OF
INTELLIGENCE
Intelligence Report
Shanghai
Confidential
CIA/BGI GB. 72-7
January 1972
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WARNING
This document mation affecting the national
defense of the Unit States, within the peaning of Title
18, sections 793 and of the US Code, as amended.
Its transmission or revela n of its contents to or re-
ceipt by an unauthorizedprohibited by law.
Exctuded from outoni
downgrading and
docloctif,olioo
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CONTENTS
Page
Introduction .... . ..... . 1
Overview of the City � 5
Selected Points of Interest 12
Downtown Shanghai . ...... .. . � . 12
Area of Former Fdt4eigii Settlements . 12
The Old Chinese Town .... . 19
Other Areas of Shanghai 20
Western Area . . ............. � 20
Southwestern Area . ........... 22
Selected Industrial Areas . 22
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People's Republic of China
Names and boundary repreentation
are not necessarily authoritative
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CENTRAL INTELLIGENCE AGENCY
Directorate of Intelligence
January 1972
INTELLIGENCE REPORT
Shanghai
Introduction
1. Shanghai is China's largest port and
industrial city and the most populous urban center
on the mainland of Asia. The half-caste child of
East and West, it was built by Western capitalists
on the mud flats of the winding, Whangpoo River
(Huang-p'u Chiang). Around the fourth century
A.D., Shanghai was only a small fishing village at
the confluence of the Huang-p'u Chiang and Soochow
Creek (Su-chou Ho). In later centuries it became
the port for the city of Su-chou, then the center
of this part of China. In A.D. 1279 the port
declared itself independent of Su-chou, began
paying taxes directly to Peking, and changed its
name to "Shanghai," which literally means "up
from the sea"; it must still have been relatively
unimportant, however, as Marco Polo, who wrote of
all the major cities in the region at this time,
failed to mention it.
2. By the mid-1700's, agents of the British
East India Company had become impressed with
Shanghai's potential as a trading post. Sited
only 14 miles from the estuary of the Yangtze
Note: This report was prepared by the Office of
Basic and Geographic Intelligence and coordinated
within the Directorate of Intelligence.
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River, it had as its hinterland the 750,000 square
miles of Yangtze Basin, an area that has always
contained perhaps as much as half of China's
population. Further, it was in a location destined
to become the center of coastal trade between north
and south China. The British, as well as traders
from Europe, America, and later on from Japan,
finally gained free access to Shanghai and the
Chinese ports of Canton, Amoy, Foochow, and
Ning-po as a result of the 1842 Treaty of Nanking
that ended the Opium War; these ports were then
opened to foreign trade and their foreign residents
were place outside the jurisdiction of Chinese laws.
3. In 1843, the first British Consul to
Shanghai arranged for the acquisition of a 43-acre
site for the foreign traders, most of whom were
British. This land, located near the confluence
of the Huang-p'u Chiang and Su-chou Ho, comprised
the initial British Concession, which within the
next 6 years was expanded to 470 acres. In 1863,
the British Concession and an American settlement
that had never been legally established were com-
bined to form the International Settlement. The
other major foreign land holding in Shanghai, the
French Concession, was held independently. It was
located south of the International Settlement and
just north of the walled Old Chinese Town. To-
gether, the two foreign settlements covered
slightly more than 3 square miles.
4. Within the 25-year period following the
signing of the Nanking treaty, Shanghai gained
national primacy in both foreign and domestic
trade. The foreign population had grown to 1,000
by 1860. (In 1936, foreigners numbered about
60,000 in an estimated total population of 4
million.) Shanghai became a city of opportunity
that attracted individuals from all over the
world; they came to build empires for themselves,
and in the process, erected Shanghai. Sited on
a mud flat with bedrock about 1,000 feet below,
Shanghai was ill-suited for the construction of
multistoried buildings. Yet about a dozen
Western-style skyscrapers of stone and cement,
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rising as much as 300 feet, were built on the west
side of Shanghai's famous Bund to house banks,
clubs, firms, and hotels. (The muddy tidal fore-
shore along the Huang-p'u Chiang and Su-chou Ho
could not be used until embankments were con-
structed -- a process known in all the China
treaty ports by the Anglo-Indian term, "bundin .
The Shanghai Bund was constructed in 1862.)
S. As Shanghai flourished, it became notorious
as the "Paris of the East" and the "Adventurer's
Paradise," appellations that were associated with
its seaport bawdiness, brothels, opium dens,
cabarets, clubs, and night life that were so
popular with visiting sailors and tourists as well
as with the "Shanghailanders," the Western foreign
national residents. Shanghai gave its name to the
practice of kidnapping men to sail ships whose
crews had deserted for the "better things" to be
found in Shanghai. In 1934, it was estimated that
Shanghai led the world's major cities in the
incidence of prostitution. Perhaps the most odious
of the vices that permeated Shanghai was the opium
trade. In the French Concession, street vendors
sold paper packets of opium that were labeled with
the seller's name, address, and telephone number.
Opium dens flourished openly, particularly in the
French Concession until the late 19301s, and well
into the 1940's under only the thinnest of disguises
6. The Army of the People's Republic of China
moved into Shanghai in May 1949; in the eyes of
the Chinese Communists this must have been an act
of poetic justice as the Chinese Communist Party
was founded in Shanghai in 1921. With extraordinary
patience and deliberation, the new administrators
of the city set about ridding the city of a
multitude of beggars, prostitUtes, and drug addicts,
thousands of which were sent to rehabilitation
schools. Slowly, but with almost surgical precision,
the Government rid Shanghai of most of the vices
that had flourished there for more than a century.
Today only vestiges of the city's vice-ridden past
remain -- such as occasional prostitutes in the
park, but they do not enjoy Government sanction.
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7. The old monuments to foreign rule have
been transformed since 1949. The race course is
now a People's Park; the Hong Kong and Shanghai
Bank building has been taken over by the municipal
administration; the once exclusive Shanghai Club
was converted to the Seamen's Club; and the ornate
Cathay Hotel, revolutionized, has emerged as the
Peace Hotel.
8. Shanghai has always been noted for its
political radicalism and sense of independence.
As a result of this, as well as its size, it is
accorded the rank of municipality and thus reports
directly to the Central Government in Peking.
More Westernized than any other Chinese city,
Shanghai still has an air of subdued levity blended
with political practicality that makes it unique in
China.
9. Population transfers to the interior were
carried out immediately following "liberation" in
1949 and on into the 1950's -- some of which par-
alleled earlier abortive industrial relocations;
during the Cultural Revolution of the 1960's
additional people were sent to the countryside.
Notwithstanding these moves, however, greater
Shanghai now has a population of over 10 million,
of which it is estimated that 6 to 7 million live
in the city proper. The rural countryside
immediately surrounding the city has a relatively
high population density, too; but many of these
people live in the net of service centers outside
the edge of the city and are separated from it by
broad expanses of cultivated fields.
10. Shanghai today is one of the most
important cities in China, whose relative rank
reflects its favorable location and the richness
of its commercial and industrial inheritance.
Following the establishment of the ,PRC, a removal
of industry to the interior was planned and, in
part, carried out; however, the regime realized
the economic foOlishness of this plan by the late
1950's, and Shanghai's existing industrial plants
were then renovated and expanded. Shipbuilding
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and repair facilities, an expanded chemical
industry, and a greatly increased machine building
and iron and steel industry, account for an in-
creasing proportion of the city's industrial
output.
11. The Chinese are proud of Shanghai's
industrial accomplishments, and they commonly
display their "show_ piece" industrial plants and
worker's apartments to visitors. Buildings and
other relics of the Treaty Port Era, however, may
actually be of more interest to the Westerner. A
visit to the Old Chinese Town gives the hurried
visitor an appreciation of the traditional Chinese
town that still exists in many parts of China.
Overview of the City (See Figures 2 and 23)
12. Shanghai evolved from the walled Old
Chinese Town that foreigners found upon their
arrival in 1843, when the city was opened to
foreign trade. The encircling walls have now been
replaced by streets, but many of the characteristics
of the traditional Chinese town remain in this
section of the city.
13. The original foreign settlement, which
was under exclusive British control, was established
near the confluence of the Huang-p'u Chiang and the
Su-chou Ho. The settlement area extended southward
from the area of the Su-chou almost to the Old
Chinese Town. The major commercial core of the
present city -- established by Westerners -- is
found in this area. Tall office buildings,
characteristic of the central business districts
of most large Western cities, line the Chung-shan
Tung-lu (the Bund) and Nan-ching Lu (Nanking Road).
14. The former French Concession lies just
south of the British Concession, from Yen-an Lu
on the north to Tung-men Lu on the south. The
commercial importance of this area was second only
to that of the British; presently, several
institutions including the Shanghai Museum and
other governmental and cultural buildings are
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Figure 2
Peng-p'u Distrtot
to Hun h
-.�Inter ational
Airport
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Shanghai
Former French
Concession
to Wu-ofong and
Min-hsing
to Area of Proposed
Civic Center
located here near the Bund. Pleasant residential
neighborhoods with quiet streets and large secluded
homes were established in the westward extensions
of the French Concession; now many institutions are
located here. Included are a medical college,
several hospitals, Culture Square -- a huge
auditorium -- and the former home of Dr. Sun Yat-sen
which now houses a small museum.
15. The British foreign settlement area was
later extended westward and north of Su-chou Ho
and eastward along the Huang-p'u Chiang, incor-
porating the American settlement; it was renamed
the International Settlement. As the city expanded,
the Chinese themselves developed additional out-
lying areas, only one of which merits special
attention -- the intended Civic Center area of
Greater Shanghai in the Chiang-wan district. At
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Fu-
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Tao
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the hub of the district is a traffic circle, from
which streets radiate in spokelike pattern, the
spokes being joined, in turn, by other streets.
Many educational, governmental, or military in-
stitutional facilities are in this area; included
among them is the well-known Fu-tan University,
specializing in the sciences, and T'ung-chi
University, an engineering school.
16. After the establishment of the PRC, the
old industrial centers along Su-chou Ho and on
both banks of the Huang-p'u Chiang became relatively
less important as industry in other areas expanded.
The highly touted heavy manufacturing district of
P'eng-p'u has been established north of the city,
and an integrated iron and steel plant has been
built nearby in the Wu-sung district. The
Kao-ch'iao district on the right bank of the
Huang-p'u, north of the island of Fu-hsing (Fu-hsing
Tao), now boasts a petroleum refinery and petro-
chemical plant. South of the city a widely publicized
new industrial suburb, Min-hsing, has been established,
while closer to the city is the Wu-ching Chemical
Complex.
17. Industrial expansion has been complemented
by the construction of new housing -- commonly
workers apartment buildings -- in the areas of new
industrial activity as well as in some of the former
slums. Such expansion has also required the
provision of additional services -- such as child
care centers, dispensaries, and retail stores.
18. Most civilian visitors arriving in
Shanghai by air land at Hung-ch'iao International
Airport, west of the city, or possibly at Lung-hua
Airfield to the south if on a domestic flight; the
two airfields north of the city are exclusively
military. The main railroad station is located
within the city north of the central business
district. Ship passengers are landed at the
customs wharf, alongside the Bund, directly in
front of the Customs Building.
19. Shanghai's climate is fairly similar to
that of Norfolk, Virginia. The Shanghai winter,
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Figure 3. Shanghai. Looking south along the Bund
from Shanghai Hotel. The Su-chou Ho in foreground
flows into Huang-p'u Chiang to left. P1u-tung
district is on far side of Huang-p'u Chiang,
opposite the Bund. Huang-p'u Park in left middle-
ground extends south between the Bund and the
Huang-p'u Chiang.
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Figure 4. Su-chou Ho. Looking west from Shanghai Hotel.
The Central Post Office, with clock, is in right middle-
ground. Lower buildings of Cha-pei district, right
background, provide sharp contrast to those of former
International Settlement in foreground.
Figure 5. Shanghai. Looking north from
Shanghai Hotel. The intricate street and lane
pattern within each block is in sharp contrast
to that of central business district in the
old International Settlement.
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Figure 6. Slums of Shanghai. Some of these
have been replaced by more modern workers'
apartment buildings (background).
Figure 7. Typical Shanghai neighborhood close
to main business area. Shops commonly occupy
the front of the first floor. Living areas
are relegated to the rear of the first floor
and to overhanging second and subsequent
floors. Note lack of motorized transport.
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Figure 8. Modern worker's housing. These units were
erected near Su-chou Ho northwest of the central
business district.
however, is cooler than its latitude might indicate,
with temperatures averaging close to 50�F in the
daytime and dropping to near freezing at night.
Winter precipitation is less than that of Washington,
D.C.; precipitation is experienced about 3 days out
of 10, and occasionally it snows. Most of the
annual precipitation (45 inches) falls between
March and October. Summers are hot and humid,
particularly the months of July and August, but
autumns are pleasant and relatively dry.
Selected Points of Interest
Downtown Shanghai (See Figure 24)
Area of Former Foreign Settlements
20. The Bund and Nanking Road are probably
the most attractive parts of the city for Western
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visitors. The Bund, still the major focus of
commercial and banking services, offers the sky-
line for which Shanghai is known among Westerners;
tall buildings present an imposing view similar to
those in large cities of Western countries. The
closed British Consulate, a compound with gardens,
is found at the north end of the Bund. Farther
south, at the northwest corner of the intersection
with Nanking Road, is the imposing Peace Hotel;
formerly known as the Cathay Hotel, it is presently
used to accommodate foreigners. The former Hong
Kong and Shanghai Banking Corporation offices,
which now serve, in effect, as the city hall, are
farther south on the Bund. The once exclusive
Shanghai Club, which was supposed to have the
longest bar in the world, is now called the Seamen's
Club. It stands at the southeastern end of the old
International Settlement. Immediately south of
Yen-an Lu is the tower of the former meteorological
observatory. Different flags were hoisted on this
tower to indicate the weather; also, at midday, a
signal indicated the exact moment that the sun
passed the meridian.
21. Huang-p'u Park, a well manicured, flower-
filled enclave amidst the din of the city, is
situated between the Bund and the Huang-p'u Chiang.
Across the river, to the northeast of Su-chou Ho,
and to the south are the numerous godowns, or
warehouses, and wharves that are so essential to
the development and growth of the city.
22. The Shanghai Hotel, formerly the Broadway
Mansions, is situated on the north side of Su-chou
Ho near its confluence with the Huang-ptu Chiang.
Farther east the dirty, older industrial district
of Yang-shu-p'u extends along the left bank of the
Huang-p'u Chiang to Fu-hsing Tao.
23. Nanking Road, the busiest street in the
city, extends westward from the Bund. Two major
department stores are located along this road; the
larger is the No. 1 Department Store, whose
merchandise is representative of the kinds of
consumer goods available to the Chinese people --
particularly those living in urban areas. Farther
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Figure 9., Yang-shu-p'u wharf area on left bank of Huang-p'u
ChiangjoOking west toward the Bund. Shipping and associated
activitie have long been the lifeblood of the city.
west aping the People's Park, is an imposing
black 'Taarble edifice, the International Hotel (the
former: Park Hotel), in which foreigners may also
stay. Reputedly, an inexpensive, good restaurant
is on the 12th floor. Nearby is the Hotel for
Overseas Chinese.
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Figure 10. Nanking Road. Looking west
on the main shopping street. Inter-
national Hotel is the tall building in
left background; Overseas Chinese Hotel
with high spire is in center background.
Figure 11. Nanking Road. Looking east. No. 1 Depart-
ment Store is the large building in left middleground with
Chinese language signs. Spire of Overseas Chinese Hotel
left foreground.
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Figure 12. Looking east across People's Park. The Inter-
national Hotel is the tall building to the left while the
No. 1 Department Store is in the center of view.
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24. The People's Park and People's Square,
occupying the area of the former race course, form
a focal point for many buildings of cultural
interest. Immediately west of the park is the
Shanghai Library, while to the south are the Music
Hall of Shanghai and the People's Amusement Center,
formerly the "Great World." The People's Amuse-
ment Center consists of several floors with
galleries built around a central courtyard. The
visitor may take an elevator to the top floor for
a view of the city; if he walks down, he may look
in on various performances, such as plays, being
given in different places simultaneously. The
central courtyard is where the best performances
are usually given. Farther north, the Worker's
Palace of Culture fronts on the People's Square.
25. Southeast of the People's Park lies the
formerly walled Old Chinese Town. Enroute to the
Town one may wish to stop at the Shanghai Museum,
on the southwest corner of Yen-an Lu and Ho-nan
Lu, or at the Shanghai Museum of Natural Science
on the opposite corner.
Figure 13. Westerner visiting Shanghai. Westerners
constitute a curiosity to Chinese, particularly
children, many of whom have never seen foreigners.
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Figure 14. Part of Yu Garden -- a lovely enclave in the
Old Chinese Town -- which contains the well-known Willow
Pattern Tea House.
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The Old Chinese Town
26. The Old Chinese Town is surrounded by an
oval pattern of streets, where the encircling wall
once stood. The labyrinth of streets within this
part of the city may prove confusing to the Wester-
ner. The town, however, offers the layout and
architecture of a traditional Chinese town. The
streets are narrow and twisting and the buildings
are low, and the appearance of the area is in sharp
contrast with that of the foreign settlements area.
27. The lovely Yu Garden, with its picturesque
rock garden and famous "Willow Pattern Tea House",
set in a small pond, are perhaps the most beautiful
sights in the old city. The bridges extending to
the tea house were constructed in a zig-zag pattern.
According to Chinese belief, this pattern wards off
evil spirits, which are baffled when they are unable
to travel in a straight line. Just south of the
Yu Garden is the Chteng-huang Temple, or Temple of
the Town God, that used to be a feature of every
town in old China. These points of interest have
been cleaned up and restored after Many years of
neglect.
Figure 15. So-called "Willow Pattern Tea
House" as it appeared in 1959. Located in
the center of a pond in Yu Garden, it is
connected to the shore by crooked zig-zag
bridges.
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Other Areas of Shanghai (See Figure 23)
Western Area
28. West of the downtown district are several
features of interest. The Sino-Soviet People's
Friendship Building, on Yen-an Lu, is an imposing
structure with its high spire and broad expanse.
A permanent exhibition of products manufactured in
Shanghai is housed within the building, and other
Figure 16. Main exhibition hall of Sino-Soviet People's
Friendship Building. The name of building may have been
changed during or since the Cultural Revolution. The
building is located west of the main business district.
Photo dated mid-1960's.
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Figure 17. Shanghai Children's Palace west of central
business district. Here children pursue educational
hobbies and games under guidance of experienced
instructors.
exhibitions are held there from time to time.
Children's Palace -- an educational-recreational-
amusement center where all recreational activity is
meant to be instructive -- is found farther west.
29. Northeast of the Children's Palace, at
the intersection of Nanking Road and Fan-huang-tu-lu,
is the Buddhist Ching-an Monastery with its well-
known Temple of Serenity. Though not considered
particularly impressive, many Chinese have made
pilgrimages to it. Farther north, at the western
corner of Chiang-ning Lu and An-yuan Lu, is the
renovated Yu-fo Monastery with its Temple of the
Jade Buddha. The outside walls are a rich yellow;
inside are two superb jade statues of Buddha,
brought from Burma by a Chinese monk. The monastery
also possesses a fine collection of Buddhist classics
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Southwestern Area
30. The Lung-hua Pagoda, the only pagoda in
or near Shanghai, is just north of the Lung-hua
Airfield. Should a visitor not be going elsewhere
in China, it would be worthwhile to see the pagoda.
It is not very impressive, however, when compared
with more elaborate pagodas elsewhere in the country.
Figure 18. Lung-hua Pagoda as it appeared
in late 1940's. Residents of the city en-
joyed outings here in the spring, when the
peach blossoms were in bloom.
Selected Industrial Areas
31. A tour of Shanghai's industrial plants
offers a unique opportunity to view industrial
development in China's largest industrial center.
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Figure 19. Oceangoing freighter being launched at the
Chiang-nan Shipyard, south of the Old Chinese Town. The
largest shipyard in Shanghai, Chiang-nan is one of the
several yards that together make the city the leading
shipbuilding center of China.
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Increasingly heavy emphasis has been placed on
development of the metallurgical and machinery
building industries since 1950, with secondary
efforts being made to expand chemical production
and light manufacturing.
32. Just south of the Old Chinese Town lies
the Chiang-nan Shipyard -- the largest in Shanghai.
Shanghai leads the nation in shipbuilding, and it
is this shipyard, of the many in the city, that
is most widely heralded in Government propaganda
releases. Prior to 1949, Shanghai's shipyards
were largely devoted to repairs and to building
riverine and coastal vessels. Chiang-nan yard was
modernized and expanded since 1949, however, and
oceangoing vessels are now built in it.
33. South of Shanghai, but separated from it
by expanses of open fields, lies the Wu-ching
Chemical Complex on the left bank of the Huang-p'u
Chiang. A coke chemical plant and a large ferti-
lizer plant are its primary features of interest.
The Chinese are very proud of this complex, and
they state that all the equipment used here was
manufactured in China.
Figure 20. Wu-ching Chemical Complex south of
city. View is south along the Huang-p"u Chiang,
left middleground. Agricultural fertilizers are
an important product of this complex.
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34. Southwest of the Wu-ching Chemical
Complex, and west of the nearly right-angle bend
of the Huang-p'u Chiang is Min-hsing, a highly
publicized industrial suburb of Shanghai. The
four major factories there concentrate on heavy
manufactures: electrical machinery, heavy machine
tools, boilers, and steam turbines. As Min-hsiang
was formerly a small rural village, it was neces-
sary to erect apartment blocks and other facilities
to provide for workers brought in from Shanghai and
elsewhere. Many visitors have been received here
as the Chinese are proud of this newly developed
and planned industrial district.
35. The recently developed P'eng-p'u heavy
industrial district is north of old Shanghai.
Although perhaps not as aesthetically pleasing to
the eye as Min-hsing, P'eng-p'u also reflects the
increasing emphasis being placed on the development
of heavy industry in the Shanghai area.
36. The No. 1 Iron and Steel Plant, the only
fully integrated plant of its type in the Shanghai
area, is located in the Wu-sung district northeast
of the P'eng-p'u industrial district. In com-
bination with two other major steel plants, it
places Shanghai as a ranking producer of iron and
steel in China.
37. The recently constructed Shanghai Petro-
chemical Plant and the Shanghai Petroleum Refinery
are situated downstream from Fu-hsing Tao on the
opposite side of the river in the Kao-ch'iao dis-
trict. Construction of the petrochemical plant,
along with the complex at Wu-ching, has served to
strengthen Shanghai's importance as a leader in
chemical manufacturing.
38. The No. 17 Cotton Mill, the largest
textile factory in Shanghai, is found downstream
from the Bund on the left bank of the Huang-p'u
opposite Fu-nsing Tao in the Yang-shu-p'u district.
Shanghai leads the country in textile manufacturing,
primarily cottons, although such artificial fibers
as nylon are gaining in importance.
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Figure 21. New in
miles south of cit
the left -- worker
trial suburb of Min-hsing, about 12
1Shanghai Steam Turbine Plant is on
ousing is to the right.
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Figure 22. Part of P'eng-p'u Machinery Plant. This plant
is located in the P'eng-plu heavy industrial district north
of the central business district.
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