NON-SOVIET SOURCES OF AVIATION GAS AND LUBRICANTS IN COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000900300001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 27, 2016
• Document Release Date: July 30, 2013
• Sequence Number: 1
• Publication Date: June 26, 1950
• Content Type: MEMO

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1.44-40.-4 it 1/4107 ,
ONTRAL INTELLIGENCE /LIMY 2.1
26 June 1950
INTELLIGENCE MEV:MAUCH NO. 299
SUBJECT: Non-Soviet Sources of Aviation Gas and Lubricants in Communist China
.Problom: To determine Hhether the Chinese Communists have received or are nou
receiving significant supplies of aviation gas and lubricants from non-Soviet
sources,
A. Conclusions.
1. There is no evidence that the Chinese Communists have received or are
non receiving significant supplies of aviation gas or other petroleum products
on the.US "1-A" export control list from US sources.
2. The only verified instance of the redeipt of "1-A" petroleum
products b;%. the Chinese Communists from non-Soviet sources other than the US
is a shipment of 3,500 drums (approximately 500 metric tons) of aviation gas
which Has assigned by CNAC Hong Kong to CNAC Tientsin and shipped from Hong
Kong on g April 1950 on the Panamanian-registered ship EASTERN TRADER.
3, The 7,500 metric tons of aviation gas stored rithin Communist China
by the three major foreign oil companies, Caltex (US), Standard Vacuum (US)
and Shell (British), have remained unseized by the Communists since December
1949, In addition to these 4tockay'the Communists probably possess 1-2000
tons acquired in 1949 from the Nationalist Air Force.
B. Discussion.
1. Non-Soviet Shi manta of "1-A" FOL Products throuah Hong Kona,
Despite a large number of reports and rumors to the effect that the
Chinese Communists have been receiving significant quantities of aviation as
or other POL items on the US "1-A" list through Hong Kong from non-Soviet
sources, there has been only one verified shipment. On 8 April 1950 the
EASTERN TRADER, of Panamanian registry, sailed from Hong Kong to Tiontsin uith
the following items of cargo as recorded on the export manifests:1/
Note: This Intelligence. Memorandum is in process of coordination uith the
intelligence organizations of the Departments of State, Army, Navy, and
the Airforce.
1/ S y% Tik De intisibiENINCrect687-gay 11, 1950.
Document Afl ? NAMMIN
S
C DECLASSIFIED
CLASS. CHANGED TO: TS
ALAI: HR 701.14,
NEXT REVIEW DATE6
TgtD
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3,449 drums aviation gasoline, point of origin Abadan;
50 drums gasoline, point of origin Bahrein;
50 drums light diesel oil, point of origin Bahrein;
50 drums RPM aviation oil 860, point of origin, USA.
These petroleum products uere involved in the Hong Kong legal proceedings
concerning the disposition of CNAC assets and the shipment does not necessarily
reflect on the adequacy of Hong Kong export controls since it represented the
transfer of a company's assets rather than an export transaction.
All other reports whil4 US representatives have investigated have been
proved doubtful or falee04/
2. Non-Soviet Shi manta of "1-A" POL Products from Other Areas.
Reports that the Chinese Catimuniata have received shipments of aviation gaS
from non-Soviet Sources via Macao have been investigated by the US Consulate
General in Hong Kong but have not been substantiated.
Although Chinese Communist efforts to obtain aviation gas from the
Philippines, Indonesia, and Singapore have been reported, such attempts have
apparently been unfruitful. Rumors of direct or indirect shipmrlts to China
from Mexico have been unconfirmed and are probably false.
(In
jOierosene Shipments to China.
Although kerosene is on the "1-8" export control list, it is roith noting
that kerosene rather than aviation gas is the fuel for jet aircraft. China's.
normal civilian requirements for kerosene are so large and so flexible, horever,
that end-use determination of kerosene shipments mould be virtually impossible.
4. Non-Soviet Stocks of Aviation Gas in China.
Stocks of aviation gas in major foreign oil installation in China hate
remail3q4 virtually intact since the end of 1949 as indicated in the following
table:
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kr)
(In Barrels of 42 American 2a112E121.
Company
On Hand Dec 49
Sales
'
Or_ Janel_dar 50
Caltex (US)
SVOC (u8)
.Shell (Br)
3572
13,770
48.2732
309
3,263
13;736
48,732
Total
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It is believed that, as of the end of April at least, the Chinese
Communists have not obtained significant quantities of aviation gas from the
stocks of US and British companies in China. /f the Communists are faced
with heavy requirements, however, they till have no difficulty in acquiring
the aviation gas.stocks of the foreign companies by purchase or requisition,
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Declassified in Part - Sanitized Copy Approved for Release 2013/07/30: CIA-RDP78-01617A000900300001-8
Declassified in Part - Sanitized Copy Approved for Release 2013/07/30: CIA-RDP78-01617A000900300001-8
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