THE FIXED NITROGEN INDUSTRY IN COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01093A000600030001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 67
• Document Creation Date: November 9, 2016
• Document Release Date: July 6, 1999
• Sequence Number: 1
• Publication Date: September 1, 1954
• Content Type: REPORT

pproved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
PROVISIONAL INTELLIGENCE REPORT
THE FIXED NITROGEN INDUSTRY
IN COMMUNIST CHINA
fdf_XI R VIEW DATE: ._.
CIA RR PR-71 u~ 4
1 September 1954
CENTRAL INTELLIGENCE AGENCY
OFFICE OF RESEARCH AND REPORTS
SE
Approved For Release 1999/09/26 : CIA-RDP79-01093A0006000300
 Approved For Release 1999109/26_ CIA~RbP79-0,1b93AOOO60003OQ01-9
WARNING
This material contains information affecting
the National Defense, of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
Approved For Release 1999/09/26 CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
C0iMFJpKW
TkAL
US OFFICIALS ONLY
PROVISIONAL INTELLIGENCE REPORT
THE FIXED NITROGEN INDUSTRY IN COMMUNIST CHINA
CIA/RR PR-71
(ORR Project 22.159)
Office of Research and Reports
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
CONTENTS
Page
Summary . . . . . . . . . . . . . . . . . . . . . . . . . . 1
I. Introduction . . . . . . . 2
A. Significance 2
B. Resources . . . . . . . 3
C. Natural Sources of Nitrogen . . . . . . . . . . . . . 3
II. Production . . ? . . ? . . . ? . 4
A. History . . . . . . . . . . . . . . . . 4
T3. Recent Production . . 6
C. Determining a Nitrogen Balance 7
III. Consumption . . . . . . . . . 10
IV. Transportation Problems . . . . . . . . . . 14
A. Statement of the Problems . 14
B. Chemical Fertilizer . . . . . . 14
C. Other Fixed Nitrogen Products . . . . . . . . . . . . . 15
V. Expansion Plans and Probabilities . . . . . . . . . . . . . 15
A. Synthetic Am, onia . . . . 15
B. Byproduct Nitrogen . . . . 18
C. Comparison of Nitrogen Capacity and Production . . . . 18
VI. Capabilities, Vulnerabilities, and Intentions . . . . . . . 19
A. Capabilities 19
B. Vulnerabilities . . ? . . . . . ? . . ? . . . . . . . 19
C. Intentions . . . . . . . . . . . . . . . ? ? ? . . ? 20
S-E-C-R-E- T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Page
Appendixes
Appendix A. Imports of Ammonium Sulfate . . . . . . . . . . . 21
Appendix B. Fixed Nitrogen Plants in Communist China . . . . 23
Appendix C. -lethodolor . . . . . . . . . . . . . . . . . . . 41
Appendix D. Gaps in Intelligence . . . . . . . . . . . . . 47
Appendix E. Sources . . . . . . . . . . . . . . . . . . 49
1. Estimated Production of Ammonium Sulfate in China,
1928-53 . . . . . . . . . . . . . . . . . . . . . . . . . 5
2. (N) Content of Ammonium Sulfate Produced in China,
1928-53 . . . . . . . . . . . . . . . . . . . . . . . . .
3. Estimated Fixed Nitrogen (N) Capacity in China, 1928-53 . 9
4. Indexes of Production in Communist China, 1951-53 . . . . 11
5. Estimated Allocation of Production of Synthetic Ammonia
in Communist China, 1951-53 . . ? . ? ? ? ? ? ? . . . . . 11
6. Estimated Consumption of Ammonium Sulfate Fertilizer in
China, 1928-53 . . . . . . . . . . . . . . . . . . . . . 13
7. Estimated Material Requirements in Production of Ammonium
Sulfate at Selected Plants in Communist China . . . . . . 16
8. Predicted Allocation of Production of Synthetic Ammonia
in Communist China, 1954-55 . . . . ? . . . . . . . . . . 17
9. Imports of Ammonium Sulfate into China, 1924-S3 . . . . . 21
10. Indexes of Chinese and Japanese Production of Ammonium
Sulfate, 1934-45 . . . . . . . . .. . . . . . . . . . . 112
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Page
11. Indexes of Japanese Production of Dyestuffs, Nitric Acid,
and Explosives, 1934-45 . . . . . . . . . . . . . . . . 43
Figures
Following Page
1. Communist China: Fixed Nitrogen (N) Capacity, 1928-53 . . 6
2. Communist China: Byproduct Nitrogen Capacity Compared
with Ammonium Sulfate Production . . . . . . . . . . . . 8
3. Communist Chiina: Synthetic Nitrogen Capacity Compared
with Ammonium Sulfate .Production . . . . . . . . . . . 8
4. Communist China: Synthetic Ammonia Production
Allocation . . . . . . . . . . . . . . . . . . . . . . . 10
5. Communist China: Fixed Nitrogen Capacity Compared with
Ammonium Sulfate Consumption . . . . . . . . . . . . . . 12
6. Communist China: Synthetic Ammonia, Estimated
Allocation . . . . . . . . . . . . . . . . . . . . . 18
7. Communist China: Fixed Nitrogen Capacity Estimates Com-
pared with Production Estimates I8
8. Communist China: Ammonium Sulfate, Production Indexes . . 12
9. Communist China: Japanese Production Indexes . . . . . . 42
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
CIA/RR PR-71
(ORR Project 22.159)
S-E-C-R-E-T
THE FIXED NITROGEN INDUSTRY IN CHINA*
Summary
In 1953, Communist China's consumption of chemical fixed
nitrogen is estimated to.have been 107,280 metric tons.** This is
approximately the same amount as is used in Poland. China imported
50,900 tons, or 47 percent of total 1953 consumption, from other
countries.
Agriculture consumed 91 percent of this fixed nitrogen, 100,780
tons, in the form of 475,000 tons of arrlimonium sulfate fertilizer. Of
the remaining 6 percent, approximately 1 percent was used in military
explosives and 5 percent for the production of industrial chemicals.
Domestic production of ammonium sulfate is expected to rise
from 235,000 tons in 1953 to 274,000 tons in 195L, and to 313,000
tons in 1955. The amounts of chemical fertilizers used in China
are so small as to have little effect on total agricultural out-
put. The primary crop upon which chemical fertilizers have been
used, however, is cotton; this development has helped to make the
Chinese Communists virtually self-sufficient in that commodity.
The government is using chemical fertilizers to aid collectivization
of agriculture by channeling available supplies to collectives
rather than to privately operated farms.
History has demonstrated a necaldity for fixed nitrogen capacity
in time of war. During military emergency, nitrogen is diverted
from the production of nonstrategic chemical fertilizers and dye-
stuffs to increased production of nitric acid, for use in making
explosives.
Because the fixed nitrogen capacity of Communist China is
inadequate for even peacetime requirements, it is believed that
Chinese intentions are to expand capacity as rapidly as possible.
* he estimates and conclusions contained in this report represent
the best judgment of the responsible analyst as of 1 June 1954.
Throughout this report tonnages are given in metric tons.
S-E-C -R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Under present conditions, however, the inadequacy of the Chinese
chemical industry would force the government to depend almost
entirely on foreign supply in the event of war.
I. Introduction.
A. Significance.
The fixed nitrogen industry is important to the economy of
Communist China for three reasons: (1) it contributes to increas-
ing yields of agricultural crops as a fertilizer; (2) it is essen-
tial for the production of explosives; and (3) some of its products
enter into a variety of industrial uses, primarily into the chemical
industry.
In bulk-tonnage use of fixed nitrogen products, the agri-
cultural sector consumes by far the largest proportion of Chinese
production. The use of chemical nitrogen fertilizer in China is
so small, however, that in terms of total agricultural production
its effect is not pronounced. Furthermore, in 1953 approximately
two-fifths of the chemical fertilizers used were imported.
In terms of specific agricultural crops, the Chinese are
emphasizing the use of chemical nitrogen fertilizer. This is
particularly true in the case of cotton production, where fertilizers
have materially assisted the Chinese in becoming self-sufficient.
The Chinese Communist state is actively engaged in producing
military and mining explosives. While large-scale warfare by the
Chinese undoubtedly would require explosives from the USSR, as were
supplied during the active fighting and military buildup of North
"?;orea, the increasing domestic production of fixed nitrogen im-
proves the Chinese war potential.
Production of dyestuffs is probably restrained in favor of
explosives manufacture -- it is possible to import dyes and utilize
the domestic production of the required raw materials, including
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
concentrated nitric acid, an important fixed nitrogen product, for
manufacturing explosives. Moreover; much of the specialized equip-
ment used in making dyestuffs can be used in producing explosives.
B. Resources.
The fixed nitrogen industry of China depends upon three
principal sources of nitrogen: nitrogen in the atmosphere and
byproduct nitrogen of bituminous coal and oil shale processing.
Modern technology has provided an economical method for fixing the
nitrogen of the atmosphere, a system linking the production of
fixed nitrogen products to an inexhaustible supply of raw. material.
The fixed nitrogen products derived from bituminous coal are
secondary products resulting from gasification of coal, a process
used to produce fuel gas and coke. Also of a secondary nature are
the fixed nitrogen products resulting during retorting of oil shale
for its mineral oil content.
However the fixing of nitrogen is accomplished, once it is
"fixed" it enters a processing cycle which makes it available to
Chinese industry and agriculture. By using techniques and equip-
ment suitably adapted for the processing of ammonia, the initial
product, nitrogen is transformed into an ammonia-water solution,
liquid ammonia, nitric acid, ammonium sulfate, and/or other ammonium
and nitrate salts.
In addition to the three principal sources of fixed nitrogen,
there are several other sources which are not developed to a signifi:-
cant scale in China at the present time. The one which will require
future consideration is the source of fixed nitrogen found in the
production of calcium cyanamide which is obtained from calcium
carbide.
C. Natural Sources of Nitrogen.
A traditional source of fixed nitrogen in China has been
the production of potash salts from the processing of urine-contain-
ing soils. Such processing has never advanced beyond the cottage
industry level. Other natural sources of fixed nitrogen include
organic and nonorganic materials. Nitrogen fixation is accomplished
by certain soil organisms, called nitrogen fixers, as those living
symbiotically on roots of various leguminous plants. Most important
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
of the organic sources include animal manures, bean cakes, and night
soil, all of which are widely used in China as fertilizer and provide
significant amounts of nitrogen for Chinese agriculture. Additional
organic sources include dried blood, tankage (from garbage), sewage
disposal sludge, bone meal, dried albumin, dried fish scraps, oil
meal resulting from the expressing of oil from soy beans, cottonseed,
and groundnuts. Small deposits of sodium nitrate similar to the
large natural deposits of inorganic "Chile saltpeter" are also found
in China. The working of these natural deposits is not, however,
a significant factor in the supply of fixed nitrogen.
A. History.
Production of synthetic ammonia was undertaken in China
during the thirties. In 1935 the Manchurian Chemicals Company, a
Japanese firm, began operating a large plant at Kanching-tzu. 1/*
Following the occupation of the mainland by the Japanese, production
of ammonia expanded considerably in the occupied portions of China
and Manchuria. The drive for industrialization of this portion of
their empire came to fruition, in one sense, in the production of
ammonia, both synthetic and byproduct.
At first the bulk of production was converted into ammonium
sulfate fertilizer, reaching a peak production of 259,000 tons in
1938. (See Table 1.)** Then as the Japanese became more deeply
involved in war, larger quantities were diverted to the manufacture
of explosives and other related chemicals.
Following the capitulation of Japan in 19115, Soviet dis-
mantling in Manchuria and Communist and Nationalist civil strife
resulted in destruction of processing facilities and of large
portions of the industries supporting the production of fixed
nitrogen products. 2/ By 1950 the efforts of the Communists to
restore and replace production facilities damaged or stolen during
the immediate postwar period resulted in a total production of
65, 000 tons of anur.onium sulfate, about 25 percent of the 1938 level.
* Footnote references in arabic numerals are to sources listed in
Appendix E.
-'~ Table 1 follows on p. 5.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Estimated Production of Ammonium Sulfate in China
1928-53
3/
Year
Byproduct
Sources
Synthetic
Sources
Total
Production
Percent Synthetic
to Total
1928
11,300
o
11.300
0
1929
11,900
0 11,900
1930-32
No Data Available
1933
28,900
0
2 8, 900
0
1934
27,200
0
27,200
0
1935
39,000
118, 000
1574000
75
1936
39,000
142,000
181,000
79
1937
42,000
180,000 a/
222,000
81
1938
60,000
199,000 13/
259,000
77
1939
46,000
144, 000 F/
1901000
76
1940
36,000
175,000 5/
211,000
83
1941
57,000
163,000 '/
220,000
74
1942
1~8, 000
103,000
151,000
68
1943
45,QOO
54,000
.99,000
55
1944
29,000
78,000
107,000
55
1945-49
No Data Available
1950
30,000 c/
35, 000 c/
65, 000
54
1951 d/
69,000
82,000 _
151, 000
54
1952 e/
90,000
106,000
196,000
54
1953 1/
108,000
127,000
235,000
54
a. To the known production from synthetic sources is added 35,000
metric tons, the estimated production of the Liu-ho Yungli Chemical
Works during 1937. This estimate is based on the fact that the
plant started up in February 1937, and was reported operating at
capacity up until seizure by the Japanese in November 1937.
b. To known production from synthetic sources is added 30,000
metric tons, the estimated annual production of the Liu-ho Works,
under Japanese operation for the years 1938-41. The plant is
believed to have ceased operations in 1941 for lack of coal sup-
plies, and no subsequent production for the pre-V-J Day period is
estimated. Operation by the Japanese was reported to have been at
about 60 percent of capacity during 1938.
-5-
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Estimated Production of Ammonium Sulfate in China
1928-53
(Continued)
c. By-product and synthetic production or 1950 estimated on the
basis of available data on operative plant capacity, partially
supported by the ratio of synthetic production to the total
estimated for 1950.
d. Production for 1951 is based on an estimated rate of increase
of sulfuric acid production, a direct input item, 1951 over 1950.
The percentage ratio of synthetic production to the total is.
estimated to be the same as 1950, supported by direct interpola-
tion between 1953 and 1950 estimates of production.
e. Production for 1952 is based on the reported Chinese Communist
plan figure of 130, with the 1951 production index being 100. The
percentage ratio of synthetic production to the total is estimated
the same as 1950, supported by direct interpolation between 1953
and 1950 estimates of production.
f. Production-for 1953 is estimated on the basis of available data
which indicate maximum utilization of plant capacity. This estimate
is supported by Chinese Communist announcements of expansion programs
undertaken during 1953, which are to increase the amounts of domes-
tic fertilizer available for consumption. The percentage ratio of
synthetic production to the total is based on the individual plant
production estimates.
B. Recent Production.
Recent efforts in the fixed nitrogen field have been inten-
sive, since the production of fixed nitrogen at once feeds the
demands of war, industrialization, and agriculture. As indicated
in Table 1 and Figure 1,* these efforts resulted in a total pro-
duction of 235,000 tons of ammonium sulfate in 1953, approximately
90 percent of the 1938 peak. Table 1 shows estimated production
of ammonium sulfate in China, 1928-53.
Figure 1 follows p. 6.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
H
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-G-R-E-T
C. Determining a Nitrogen Balance.
The common denominator for fixed nitrogen products, both
synthetic and byproduct, is nitrogen. Amounts of fixed nitrogen
products can be compared on the basis of their common denominator.
This is what is generally referred to as a "nitrogen balance."
In considering the data available for obtaining a nitrogen
balance of Chinese fixed nitrogen products, the first step is to
reduce the established production figures for ammonium sulfate to
(N).* The data presented in Table l * have been converted to (N)
and are presented in the converted form in Table 2.***
The record of Chinese plant capacity for production of
fixed nitrogen is then introduced, along with estimates of maximum
operable capacity for production for the years 1950 and 1953.
These data are presented in Table 3',-:i* and are shown in Figure 1.*****
Outstanding trends indicated in these data are: (1) a
significant increase in capacity for fixed nitrogen production in
1935, when the first plants for production of synthetic ammonia were
installed; and (2) a rapid buildup of capacity for byproduct fixed
nitrogen production during the period 1911.0-44, when intensive
efforts were made by the Japanese to build war potential by con-
structing metallurgical coke and shale oil plants.
In Figure the data on byproduct ammonium sulfate
production ;riven in Table 2 have been compared with byproduct
capacity indicated in Table 3. Trends indicated in this compari-
son are: (1) ammonium sulfate production fell off during the
war years of .191.11-L against a rapid increase in capacity for
byproduct pro du.ction,'and (2) production estimates for 1950-53
follow closely capacity interpolations between the same years.
is his symbol designates the nitrogen content.
,, P. 5, above.
Table 2 follows on p. 8.
x ; f Table 3 follows on p. 9.
Following p. 6, above.
',-~i'88,P- Figure 2 follows p. 8.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
(N) Content of Ammonium Sulfate Produced in China
1928-53
Year
Byproduct
Sources
Synthetic
Sources
Total
1928
2,400
0
2,400
1929
2,520
0
2,520
1930-32
No Data Available
1933
6,130
0
6,130
1934
5,770
0
5,770
1935
8,300
25,000
33,300
1936
8,300
30,100
38,400
1937
8,900
38,200
47,100
1938
12,800
42,200
55,000
1939
9,700
30,600
40,300
1940
7,600
37,200
44,800
1941
12,000
34,600
46,600
1942
10,200
21,800
32,000
1943
9,500
11,500
21,000
1944
6,200
16,500
22,700
1945-49
No Data Available
1950
6,400
7,400
13,800
1951
14,600
17,400
32,000
1952
19,100
22,500
41,600
1953
22,900
27,000
49,900
Comparison of synthetic ammonium sulfate production figures
in terms of (N) with synthetic nitrogen capacity (see Figure 3)*
indicates that: (1) since ammonium sulfate production drops rapidly
during the war years 1940-43 against an increase in capacity, a
buildup of synthetic ammonia capacity increases war potential; and
(2) production estimates for the years 1950-53 parallel the
estimated buildup of operable capacity to 1953.
%~ Figure 3 f lows p. 8.
- 8 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
d
W
?
W
U
---
a
\ `
/
I
i
I
I
I
Ile
i
Us 00<
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
SECRET
Figure 3
COMMUNIST CHINA
SYNTHETIC NITROGEN CAPACITY
COMPARED WITH AMMONIUM SULFATE PRODUCTION
SECRET
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Table 3
Estimated Fixed Nitrogen (N) Capacity in China 4/
1928-53
Year
Byproduct
Sources
Synthetic
Sources
Total
1928
3,100
0
3,100
1929
3,100
0
3,100
1930
6,300
0
6,300
1931 .
7,200
0
7,200
1932
7,200
0
7,200
1933
7,200
0
7,200
1934
10,400
0
10,400
1935
11,000
38,400
49,400
1936
11,000
38,400
49,400
1937
12,400
51,400
63,800
1938
14,000
51,400
65,400
1939
14,000
51,400
65,400
1940
14,000
51,400
65,400
1941
15,900
56,400
72,300
1942
2.5, 400
56,400
81,800
1943
29,400
56,400
85,800
1944
36,700
56,400
93,100
1945-49
No Data Available
1950
7,300
11,400
21,700
'1951
No Data Available
1952
No Data Available
1953
25,500
32,40
57,900
There are not enough data on the production of the important
fixed nitrogen products other than ammonium sulfate to allow direct
examination. However, this production contributes directly to
Chinese military strength in the form of such products as ammonium
nitrate and nitric acid. Fortunately, there is a historical refer-
ence to productive capacity for these products in Chinese synthetic
ammonia installations, and some recent Communist government produc-
tion indexes are available to permit a partial analysis and inclusion
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
in a nitrogen balance. The Chinese Communist State Statistical
Bureau in Peiping has announced nitric acid and ammonium nitrate
planning and accomplishment in terms of production indexes, with
1951 as the base year. 5/ Table 4 presents these indexes of pro-
duction in Communist China.*
Maximum capacity for production of these products at syn-
thetic ammonia plants believed to have been operable in 1953 is
estimated as follows: (1) nitric acid, 20,100 tons per year, or
4:500 tons (N) per year; and (2) ammonium nitrate, 11;400 tons per
year, or 2,000 tons (r?)a, per year. Operation of these facilities
for the production of nitric acid and ammonium nitrate is estimated
at 100 percent of capacity during 1953, on the basis of Chinese
announcements on planned or actual expansion of facilities during
1953. 6/ It is believed that announcement of expansion assumes
maximum operation of existing facilities.
Applying the Chinese Communist production factors to the
estimated production capacity for nitric acid and ammonium nitrate,
production is indicated in comparison with estimated production of
ammonium sulfate in Table 5.'H-F;
In Figure 4.,**** allocation of synthetic ammonia production
(as nitrogen) for the products listed above is shown graphically
for the years 1951-1953. It will be noted that production estimates,
as total nitrogen are 3.4 percent above the capacity estimate for
1953. It is believed that this variance is within a reasonable
limit of error.
III. Consumption.
Because agricultural production has always been the foundation
of China's economy, it is apparent that the bulk of fixed nitrogen
consumption has been chiefly in the agricultural sector. Chinese
* Tamefollows on p. 11.
'** The fixed nitrogen portion indicated represents only the
ammonium part of ammonium nitrate. The fixed nitrogen portion of
the nitrate is included in the nitric acid estimate.
-H ? Table 5 follows on p. 11.
?'** Figure 4 follows p. 10.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-PECRET
Figure 4
COMMUNIST CHINA
SYNTHETIC AMMONIA -
PRODUCTION ALLOCATION
1952
SECR1Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
Table 4
Indexes of Production in Communist China
1951-53
Fixed Nitrogen
1951 1952
1953
Production Plan Acco Plan Accomp. Plan Accomp.
Nitric Acid
N.A.
100
164
176
236
N.A.
Ammonium Nitrate
N.A.
100
108
169
223
N.A.
Table 5
Estimated Allocation of Production of Synthetic Ammonia
in Communist China
1951-53
1951
1952
1953
Equivalent Product Equivalent
Product Equivalent
Product
(N)
(N)
- _ .
(N)
Nitric Acid
8, 500
1"900
15, 000
3,360
20,100
4
500
Ammonium
Nitrate
5,100
900
8,650
1,520
11,400
,
000
2
Ammonium
Sulfate
82,000
17,400
106,000
22,500
127,000
,
27,000
Totals
95,600
20,200
129,650
27,380
158,500
33,500
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
consumption of nitrogen during 1953 amounted to an estimated
107,280 tons. A breakdown of these requirements follows:
(N) Content
Agriculture
(As ammonium sulfate fertilizer)
100,780 tons*
Military explosives
(As propellants and high explosives)
1,790
Industrial chemicals
Nitric acid
2,710
Ammonium nitrate
2,000
Total
107,280
Using the data presented in Table 2.,** in combination with the
net imports into China of ammonium sulfate as nitrogen, consump-
tion of ammonium sulfate fertilizer as- nitrogen may be estimated.
This combination of data is presented in Table 6.**** The estimated
consumption of ammonium sulfate as nitrogen is compared with total
Chinese capacity for production of fixed nitrogen in Figure 5.**
It is clear from an analysis of the Chinese Communist press
that requirements of-nitrogen as chemical fertilizers greatly exceed
the current supply, including imports. Crop yields per acre could
be significantly increased if adequate supplies of chemical fertili-
zers were available. Long-range plans are to increase the supply
of chemical nitrogen fertilizer. Since an increase of agricultural
production remains the principal source of investment funds for
Chinese Communist industrialization goals, a high priority may be
assigned to such a program. Moreover, Communist China is not
This quantity includes 50,880 tons of nitrogen imported as
ammonium sulfate fertilizer.
** P. 8, aboie.
3** Net imports adjusted during the years 1928-lth for Manchurian
and pre-World War II Chinese trade.
Table 6 follows on p. 13.
Figure 5 follows p. 12.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
z
0
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
N
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C -R-E-T
Table 6
Estimated Consumption of Ammonium Sulfate Fertilizer in China
1928-53 7/
Nitrogen Equivalent in Metric Tons
Ammonium Sulfate (N)
Total (N)
Year
Ammonium Sulfate
Production (N)
Net International Trade
(+) Imports (-) Exports
Estimated
Consumption
1928
2,400
(?)
20,940
23,340
1929
2,520
(
21,990
24,510
1930
3,500 a/
e
39,870
43,370
1931
4,400 a/
(4)
27,250
31,650
1932
5,300 a/
(4)
17., 910
23, 210
1933
6,130
(+)
14,330
20,460
1934
5,770
(+)
4,630
10,400
1935
33,300
(-)
6,430
26,870
1936
38,400
(-)
11,110
27,290
1937
47,100
(+)
1,880
48,980
1938
55,000
(.-)
22,430
32, 570
1939
40,300
(4)
470
40)770
1940
44,800
(-)
11, 634
33,170
1941
46,600
(-)
23,050
23,550
1942
32,000
(
j
8,500
23,550
1943
21,000
+
3,240
24,240
1944
22,700
0 223700
1945-1949
No Data Available
1950
13, 800
(+)
21,200
35, 000
1951
32,000
(+)
21,200
53, 200
1952
41,600
(4)
47,700
89,300
1953
49,900
(+)
50,880
100, 7 80
a. Obtained by interpolation from Figure 2.
- 13 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
self-sufficient with respect to the production of military explosives,
which require nitrogen, particularly smokeless powder and bursting
charges. The agricultural, ammunition, and industrial requirements
for nitrogen are such that they will be unable to fulfill them
through the period of the First Five Year Plan, ending in 1957.
IV. Transportation Problems.
A. Statement of the Problems.
Transportation is an essential element in the study of
fixed nitrogen in China because of the physical bulk of the raw
materials and of the manufactured products. In obtaining byproduct
nitrogen from coal, a very small percentage of the total coal bulk
is yielded in fixed nitrogen. This same condition holds in the
recovery of fixed nitrogen in the retorting of oil shale. Fixed
nitrogen obtained from synthetic ammonia processes also requires
bulky amounts of coal and coke. And finally, the chief product in
terms of bulk is ammonium sulfate fertilizer. Distribution to
individual agricultural systems, ranging from the peasant to the
collective farm, creates a particularly difficult transportation
problem.
Aside from a consideration of the transportation problem
in terms of bulk, other problems arise from the special nature of
certain fixed nitrogen products. Precautions must be taken in
handling of nitric acid, a highly corrosive liquid, and also in
transporting ammonium nitrate, a highly explosive material. Special
shipping containers are required to transport such products as
liquid ammonia, which is gaseous at atmospheric pressures and must
be compressed and confined to be handled as a liquid.
B. Chemical Fertilizer.
Tonnages of chemical fertilizer handled by the Chinese
Communist transportation system amount to some one-half million
tons per year. Tradition, climate, and usage have determined that
the bulk of fixed nitrogen fertilizer is ammonium sulfate. Approxi-
mately 50 percent of the ammonium sulfate consumed in China is
imported from other countries, which involves at least 25 ocean-
going ships capable of handling 10,000 tons each when fully loaded.
Distribution within China involves about 25,000 Chinese railway
- 14 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
freight cars, each containing 20 tons. Because railway transporta-
tion is not sufficiently available to agricultural areas, a large
part of the ammonium sulfate is distributed by river junk, motor
truck, cart, hand truck, and by manual labor.
The domestic manufacture of ammonium sulfate involves the
metallurgical coke, fuel gas, shale oil, sulfuric acid, and synthetic
ammonia manufacturing plants of China. These plants require coal,
oil shale, coke, pyrites, and sulfuric acid.
In this industry, supply of the large tonnages of basic raw
materials is provided by modern transportation nets. These nets
include the present-day Chinese railways, canals, river and coastal
shipping systems, and motor truck transport. An estimate of the
quantities of materials involved in the manufacture of ammonium
sulfate by various methods is shown in Table 7.*
C. Other Fixed Nitrogen Products.
Little is known of the specific transportation problems
arising in the actual transfer of other fixed nitrogen products
such as nitric acid, ammonium nitrate explosives, or liquid ammonia.
However, these materials, while of strategic importance, do not
bulk as large as the movement of fertilizer nitrogen. In addition,
many of the transportation problems involved in movement of materials
mentioned above consist of inter-plant transfers, using primarily
the modern transportation nets of the industrial sector. (Example:
the Chiang-ch-un rail net in the industrial Northeast.)
V. Expansion Plans and Probabilities.
P. Synthetic Ammonia.
Chinese intentions are to expand existing synthetic ammonia
plants. It is believed that they will also construct new plants.
At least one site for the construction of a new plant has been
located.
Production estimates for 1953 have been based on maximum
utilization of plant capacity. These estimates have been supported
Table o ws on p. 16.
- 15 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C R-E-T
Table 7
Estimated Material Requirements in Production
of Ammonium Sulfate at Selected Plants in Communist China
1.
Coal byproduct (example: An-shan Iron and Steel Combine)
a.
Production-ammonium sulfate
21,800
b.
Coal required
1,900,000
c.
Iron pyrites required
15,100
d.
Sulfuric acid required
16,200
2.
Oil Shale byproduct (example: Fu-shun No. 1 Plant)
a.
Production-ammonium sulfate
75,000
b.
Oil shale required
7,500,000
c.
Iron pyrites required
51,900
d.
Sulfuric acid required
55,600
3.
Synthetic ammonia plant (example: Liu-ho Yungli Works)
a.
Production-ammonium sulfate
61,300
b.
Coal required
50,800
c.
Coke required
314,800
d.
Sulfuric acid required
13,500
e.
Iron pyrites required
146,000
by information which indicates expansion activities under way at
both the Dairen Chemical Works and at the Liu-ho Yungli Chemical
Works. At the Dairen Works expansion plans, apparently begun in
April 1953, were reported in progress in late 1953 and are expected
to require a minimum of 3 years. 8/ Expansion of the Liu ho Yungli
Chemical Works was announced as completed in November 1953. 9/
Prior to the collapse of the Nationalist Government on the
Chinese mainland, the Liu-ho Yungli Chemical Company had started con-
struction of a synthetic ammonia plant at Wu-t'ung-chriao, in Szechwan
Province, near the wartime provisional capital of Chung-ch'ing. 10/
This plant contained enough equipment to warrant completion of the
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
project, and it is believed that Chinese efforts will be directed
toward completion. In view of this construction activity, capacity
for producing synthetic ammonia as nitrogen for 1954 is estimated
at 37,000 tons (N), and for 1955 at 46,000 tons (N). These are
compared with production estimates for nitric acid, ammonium
nitrate, and ammonium sulfate -- all as nitrogen -- and the predicted
allocation of production of synthetic ammonia in Communist China
is given in Table 8.
Table 8
Predicted Allocation of Production of Synthetic Ammonia
in Communist China
1954-55
1954 1955
Product
Equivalent
(N)
Product
Equivalent
(N)
Nitric Acid
24,800
5,500
29,300
6,500
Ammonium Nitrate
13,100
2,300
15,400
2,700
Ammonium Sulfate
749,000
31,500
169,000
35,900
Total
186,900
39,300
213,700
45,100
The above estimates are compared graphically in Figure 6.*
It will be noted that capacity and production estimates vary as
follows: (1) production estimates, total nitrogen, are 6.2 per-
cent higher than the capacity estimate for 1954; and (2) the
capacity estimate is 5.1 percent higher than production estimates
for 1955. It is believed that this variance is within a reasonable
limit of error.
Figure 6 follows p. 18.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
B. Byproduct Nitrogen.
Capacity for production of byproduct nitrogen is expanding --
additional byproduct coking and oil shale plants are undergoing con-
struction at existing plant sites, and at least one major byproduct
coking plant is reported under construction at a new site.
Capacity estimates for 1953 have been based on a considera-
tion of this expansion of Chinese byproduct plants. Expansion
activities have been reported at the Fu-shun Shale Oil Plant 11/
and at the An-shan Iron and Steel Plant during 1953. 12/ Comple-
tion of the An-shan expansion is indicated to be in 1554, 13 but
it is believed that the Fu-shun plant will not be fully expanded
until 1955. Further expansion of the T'ai-yuan byproduct coking
plant was announced as completed in 1953. 14/ Plans for expansion
of byproduct coking plants have been reportd since 1950 at Kung-
yUan 15/ and Peiping. 16/ Construction of a plant at Choi-lin, a
new site for byproduct coking, began in 1951. Completion of this
plant is to be in 1954. 17/ On the basis of reported expansion in
byproduct nitrogen capacity, predicted capacities for production
of byproduct nitrogen are: 1954, 29,700 metric tons (N); and 1955,
38,000 metric tons (N).
C. Comparison of Nitrogen Capacity and Production.
In Figure 7* these capacity estimates have beencombined
with synthetic nitrogen estimates, and with earlier capacity data
from Table 3,-,Ht to show a comparison with total nitrogen production.
as obtained from data in Table 23*** and Table 5**** and projection
of byproduct nitrogen production data shown in Chart 2.*****
Total capacity and production data show relatively close agreement
except for 1955, when the predicted rapid increase in byproduct
nitrogen plant capacity results in capacity rising above projected
production.
Figured follows p. 18.
P. 9, above.
P. 8, above.
P. 11, above.
Following p. 8, above.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
Figure 6
COMMUNIST CHINA
SYNTHETIC AMMONIA
ESTIMATED ALLOCATION
1955
SECREApproved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
SECRET
Figure 7
COMMUNIST CHINA
FIXED NITROGEN CAPACITY ESTIMATES
COMPARED WITH PRODUCTION ESTIMATES
Estimated Capacity
/
Estimated Production
/
SECRETApproved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
VI. Capabilities, Vulnerabilities, and Intentions.
A. Capabilities.
The fixed nitrogen industry of China is incapable of meeting
domestic demands. To meet the demand for chemical nitrogen fertili-
zer, about one-half of the supply is imported from abroad. The
Chinese Communist government is instrumental in controlling the
allocation of chemical nitrogen fertilizer to various segments,of
agriculture. Since importation is directly controlled by the state,
it is probable that the government is encouraging use of chemical
nitrogen fertilizer above the capacity of the domestic industry to
produce it.
While the amounts of ammonium nitrate and nitric acid are
considered inadequate for domestic requirements, it is believed
that they are being used in increasing amounts in the production
of explosives. This trend is predicted as continuing, with fairly
constant allocation of some 6 percent of the synthetic ammonia
production into ammonium nitrate. Nitric acid allocation is pre-
dicted as rising from 9.4 percent in 1951 to 14.4 percent in 1955,
indicating an apparently increasing demand by industry for nitric
acid.
The most obvious vulnerability of the Chinese fixed nitrogen
industry is its dependence upon an external supply of approximately
one-half of the fixed nitrogen consumed. This dependence upon
foreign sources of supply indicates inadequacy of technical equip-
ment and/or raw materials and personnel for production of sufficient
domestic fixed nitrogen.
External supply of fixed nitrogen has taken a number of
forms: (1) supply of "nonstrategic"* ammonium sulfate fertilizer
from Western countries, carried by Western shipping 18/; (2) supply
of "strategictt** ammonium nitrate from USSR and European Satellites
* "Nons rt ategic" means types of products which are destined for
civilian consumption.
3* "Strategic" means types of products having an actual or potential
use as war material.
- 19 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
using Communist transportation 19/; (3) supply of nonstrategic
dyestuffs from both Western and Communist countries 20/; (4) supply
of strategic chemical processing equipment from USSR and European
Satellites 21/; and (5) supply of technical manpower from USSR and
European Satellites. 22/
Within the Chinese fixed nitrogen industry, the byproduct
division has been receiving substantial amounts of production equip-
ment, apparently because of the importance of metallurgical coke
and shale oil production to the industrial economy of the country.
The synthetic ammonia division. of the domestic fixed nitrogen
industry, on the other hand, apparently has not received any new
equipment beyond requirements for restoring existing plant capacity
to top efficiency. This is believed to indicate that all objectives
of Chinese Communist industrialization cannot be met simultaneously.
C. Intentions.
The fixed nitrogen industry of Communist China is an
indicator of intentions only to the extent that a marked shift in
the use pattern from agricultural and normal industrial applications
to the expanded manufacture of explosives might indicate preparation
for military activity. At the present time, there is no apparent
shift of that nature.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
APPENDIX A
IMPORTS OF AMMONIUM SULFATE
Growth of imports into China, as indicated in Table 9, demon-
strate the increasing demand for ammonium sulfate fertilizer.
Imports of Ammonium Sulfate into China 23/
(Prewar boundaries except as noted)
1924-53
Metric Tons
Year
Amount
Year
1924
17,000
1939
122,200
1925
23,800
1940
26,400
1926
49,800
1941
10,500
1927
55,300
1942
9,900
1928
105,100
1943
15,400
1929
112,300
1944
N.A.
1930
189,500
1945
N.A.
1931
139,700
1946
50,500
1932
112,800
1947
87,600
1933
101,200
1948
20,000 a/
1934
49,900
1949
N.A.
1935
68,600
1950
100,000 a/ b/
1936
124,000
1951
100,000 a/ b/
1937
163,)400
1952
225,000 a/ b/
1938
106,400
1953
240,000 9/ b/
a. Estimate
b. Present area of Communist China.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
APPENDIX B
FIXED NITROGEN PLANTS IN CO12AUNIST CHINA
I. Plants on Which There Is Reliable Information.
A. Dairen Chemical Plant. 24/
1. Location: Kan-ching-tzu
2. Coordinates: Kwantung, 490)21 N - 119?L1' E
3.
1..
Started operations: 1935
Raw Material Sources: Synthetic Ammonia:
5. Processes: Synthetic
Byproduct
6.
8.
60 metric tons per
Ammonium sulfate 200
Nitric acid (50 percent) 5
Nitric acid (98 percent) 40
Ammonium nitrate 20
Sodium nitrate 0.1
S-E-C-R-E-T
Equipment :
Nitrogen: Air liquefaction
Hydrogen: Coke oven-water gas
Byproduct Ammonia: Coal
Ammonia: Uhde Method
Ammonia: Otto Byproduct Coking
Synthetic Ammonia:
Byproduct Ammonia:
Method
2 Uhde Synthesis Units
20 Otto Byproduct Ovens
Nitric acid (50 percent)
Nitric acid (98 percent)
Ammonium nitrate
Sodium nitrate
Ammonia
Ammonium sulfate
Capacities: Ammonia
day (rated
capacity)
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
9. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1934 0
1935-1940 37, 000 synthetic
550 byproduct
1941-1944 55,000 synthetic
700 byproduct
1945-1949 N.A.
1950 0
1951-1952 N.A.
1953 18,000 synthetic
310 byproduct
10. Comments: Three Uhde synthetic units were looted by
the Soviets. A construction pro grain, reportedly undertaken in April
1953, is estimated to take three years to complete. The plant was
riot producing byproduct or synthetic ammonia in 1949. It has
operated.in partlas a chemical plant in support of explosives
production since 1949.
Yung Li Chemical Works.
1.
Location: Liu-ho 25/
2.
Coordinates: Kiangsu, 32020'
N - 1180 51' E
3.
Started operating: 1937
4.
Raw Material Sources: Synthetic Ammonia
Nitrogen: Air-producer gas
Hydrogen: Coke-water gas
5.
Processes: Synthetic Ammonia: A
merican (Nitrogen Engi-
nearing Corporation)
Method
6.
7.
1 N.E.C. Synthesis Unit
Ammonium sulfate
Nitric acid (63 percent)
Nitric acid (98 percent)
Ammonium nitrate
Equipment: Synthetic
Products: Ammonia
- 24 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
8. Capacities: Ammonia 45 metric tons per
Ammonium sulfate 135
Nitric acid (63 percent) 10
Nitric acid (98 percent) 10
Ammonium nitrate 10
9. Fixed Nitrogen Capacity Estimates:
day (rated
capacity)
Period Metric Tons (N)
1928-1934 0
1935-1944 13,000 synthetic
1945-1949 N.A.
1950-1953 13,000 synthetic
10. Comments: Expansion of the synthetic ammonia plant
was announced as completed in November 1953. Its pre-expansion
capacity is estimated at 4,167 tons per month in June 1953. Its
post-expansion capacity is estimated-as 5,250 tons per month in
August 1953 and 6,100 tons per month in December 1953.
C. Tien-Li Nitrogen Plant.
1. Location: Shanghai 26/
2. Coordinates: Kiangsu, 310i41 N - 1210281 E
3. Started Operating: 1935
4. Raw Material Sources: Synthetic Ammonia:
Nitrogen: Air-hydrogen combus-
t ion
Hydrogen: Electrolysis of water
5. Processes: Synthetic Ammonia: American (Nitrogen Engi-
neering Corporation)
Method
6. Equipment: Synthetic Ammonia: 1 N.E.C. Synthesis Unit
7. Products: Ammonia
Nitric acid (63 percent)
Nitric acid (98 percent)
Ammonium nitrate
- 25 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
8.
Capacities:
Ammonia
Nitric acid (63 percent)
Nitric acid (98 percent)
4 metric tons per
day (rated
capacity)
12
7.5
9.
Ammonium nitrate
Fixed Nitrogen Capacity Estimates:
2.5
Period Metric Tons (N)
1928-1934
0
1935-1944 1,400 synthetic
1945-1949 N.A.
1950-1953 1,400 synthetic
D.
Fu-shun -lining Bureau, West Shale Oil Refinery.
1.
location:
Fu-shun 27/
2.
Coordinates: Liaotung, 41?52' N - 1230531
3.
Started Operating: 1930
Li..
Law Material Source: Byproduct Ammonia: Oil Shale
5.
Processes:
Retorting of oil shale
6.
Equipment:
100 metric ton retorts:
80 (capacity 150,000
tons crude oil per
year)
200 metric ton retorts:
60 (capacity 225,000
tons crude oil per
year)
7.
Products:
Ammonium sulfate
8.
Fixed Nitrogen Capacity Estimates:
Tmtric Tons (;)
1928-1929 0
1930-1933 3,200 byproduct
1934-1941 6,400 byproduct
1942-1944 15,900 byproduct
1945-1949 N.A.
1940 4,250 byproduct
1951-1952 N.A.
1953 15,900 byproduct
S-E-C-R-h-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
9. Comments: The plant was reported in two-thirds operation
in 1950. From July to December 1952 a production of 185,000 metric
tons crude shale oil was reported.
E. Fu-shun Mining Bureau, East Shale Oil Refinery.
1. Location: Fu-shun 28/
2. Coordinates: Liaotung, 41052' N - 135?35' E
3. Started Operating: 19411.
4. Raw Material Source: Byproduct Ammonia: Oil Shale
5. Process: Retorting of oil shale
6. Equipment: 150 metric ton retorts: 60 (capacity 170,000
tons crude oil per
year)
7. Product: Ammonium sulfate
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1943 0
1944 7,200 byproduct
1945-1949 1.A .
1950-1953 0
9. Comments: This plant ceased operations in 1945, but
was reported under reconstruction in 1953.
F. Fu-shun Coke Plant.
1. Location: Fu-shun 29/
2. Coordinates: Liaotung, 41?52' N - 123?53' F
3. Started Operating: 1915
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Koppers Byproduct Coking Method
6. Equipment: 30 Koppers Byproduct Ovens (capacity 136
metric tons coke per day)
7. Products: Ammonium sulfate
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 160 byproduct
1945-1949 N.A.
1950 0
1951-1952 N.A.
1953 160
9. Comments: The coke ovens were reported as inoperative
in 1947-1948. The gas plant was reported in operation in 1953-
G. An-shan Iron and Steel Works.
1. Location: An-shan 30/
2. Coordinates: Liaotung, 410071 N - 122?571 E
3. Started Operating: 1920
4. Raw Material Source: Byproduct Ammonia
5. Process: Koppers and Otto Byproduct Coking Methods
6. Equipment: 432 Otto and 240 Koppers Byproduct Ovens
7. Products: Ammonium sulfate
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1930 0
1930 1,300 byproduct
1931-1936 2,200 byproduct
1937 3,140 byproduct
1938-1942 4,750 byproduct
1943-1944 9,760 byproduct
1945-1949 N.A.
1950 1,090 byproduct
1951-1952 N.A.
1953 4,520 byproduct
9. Comment: First production under Communist government
was reported in June 1949. The rebuilding of inoperative batteries
has been reported in progress since June 1952.
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
H.
Pen-ch'i Coal and Iron Works. 31/
1.
Location: Pen-ch'i
2.
Coordinates: Liaotung, 41?20' N - 123?45' E
3.
Started Operating: 1927
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process: Kuroda (?) Byproduct Coking Method
6.
Equipment: 98 Kuroda (?) Byproduct Ovens (capacity 700
tons coke per day)
7.
Products : Ammonium sulfate
8.
Capacity: Ammonium sulfate - 2,600 tons per year
9.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 860 byproduct
1945-1949 N.A.
1950-1953 860 byproduct
10. Continents: The plant was reported to be operating in
the fall of 1951 at 700 tons coke per day.
I.
Pen-ch'i Coal and Iron Works. 32/
1.
Location: Kung-ygan
2.
Coordinates: Liaotung, 41018' N - 123?45' E
3.
Started Operations: 1941
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process: Otto Byproduct Coking Method
6.
Equipment: 120 Otto Byproduct Ovens (capacity 1,LGOO
tons per day)
7.
Products: Ammonium sulfate
8.
Capacity: Ammonium sulfate - 10,000 tons per year
9.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1936 0
1937-1944 1,720 byproduct
1945-1949 N.A.
1950 0
1951-1952 N.A.
1953 1,720 byproduct
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
10. Comments: Operation of 40 coke ovens was reported in
the fall of 1951, as well as the ammonium sulfate plant. Extensive
removals by Soviets were reported after V-J Day.
J.
Kirin Chemical Works. 33/
1.
Location: Chi-lin
2.
Coordinates: Kirin, 43?511 N - 126?33' E
3.
Started Operating: 1942
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process: Otto Byproduct Coking Method
6.
Equipment: 38 Otto Byproduct Ovens (estimated capacity
960 tons coke per day)
7.
Products: Ammonia liquor
8.
Capacity: Ammonia liquor - 10 tons per day of 25
ercent NH
li
uor
p
q
3
9.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1953 0
10. Comments: One battery of byproduct coke ovens was
reported to be operating in 1953. Reconstruction, begun in 1951,
is to be completed in 1954.
Y.
Shih-ching-shan Iron and Steel Works. 34/
1.
Location: Peiping
2.
Coordinates: Hopeh, 39?561 N - 116?241 E
3.
Started Operating: 1938
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process: Semet-Solvay, Mitsui (?), and Kuroda Byproduct
Coking Methods
6.
Equipment: 100 Semet-Solvay Byproduct Ovens (capacity
400 metric tons coke per day)
35 Mitsui (? )
65 Kuroda
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1937 0
1938-1944 120 byproduct
7945-1949 N.A.
1950 240 byproduct
1951-1952 N.A.
1953 480 byproduct
8. Continents: In 1949, 50 Semet-Solvay coke ovens were
reported in operation. The 1950 plans called for rebuilding
batteries Nos. 2 and 3. The production goal was announced as 1,30,000
metric tons of coke per year. "itsui and Kuroda ovens were still
under construction at end of World War II.
L. Taiyuan Iron and Steel Works. 35/
1. Location: T'ai-yUan
2. Coordinates: Shansi, 37?52' N - 112?33' E
3. Started Operations: 1937
4? Raw Material Source: Byproduct Ammonia: Coal
5. Process: Byproduct coking method (unknown)
6. Equipment: 36 Byproduct ovens (original equipment)
(capacity 240 tons coke per day)
30 Byproduct ovens (reported completed
September 1952)
7. Products: Ammonia
Ammonium sulfate
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1936 0
1937-1944 290 byproduct
1945-1949 N.A.
1950-1952 290 byproduct
1953 580 byproduct
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
M. Shanghai Gas Company. 36/
1. Location: Shanghai
2. Coordinates: Kiangsu, 31?14' N - 121?28' E
3. Started Operating: 1876
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Gasification of coal in retorts with recovery
of byproducts
6. Equipment: 30 vertical retorts (capacity 113,500 cubic.
meters per (Jay)
7. Products: Ammonia liquor
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1941 260 byproduct
1945-1949 N.A.
1950 130 byproduct
1951-1952 N.A.
1953 260 byproduct
9. Comments: The plant was taken over by the Communist
government in November 1952.
N. Wu-sung Gas Works. 37/
1. :Location: Wu-sung
2. Coordinates: Kiangsu, 31023' N - 121?29' E
3. Started Operating: 1937
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Gasification of coal in retorts with recovery
of byproducts
6. Equipment: N.A. (capacity 28,400 cubic meters per day)
7. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1936 0
1937-1944 66 byproduct
1945-1949 N.A.
1950 33 byproduct
1951-1952 N.r.
1953 66
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C R-E-T
0. Shen-yang Gas Works. 38/
1. Location: Shen yang
2. Coordinates: Liaotung, 41048t N - 123?27' E
3. Started Operating: 1913
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Gasification of coal in retorts with recovery
of byproducts
6. Equipment: 32 horizontal bench retorts (70,000 cubic
meters per day capacity)
7. Products: Ammonium sulfate
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 160 byproduct
1945-1949 N.A.
1950 80 byproduct
1951-1952 N.A.
1953 160 byproduct
9. Comments: The plant was reported in operation in 1947
at 20 percent of capacity. It was also reported in operation in
1953.
P. Shih-chia-chuang Smelter. 39/
1. Location: Shih-men
2. Coordinates: Hopeh, 38?03' N - 111?29' E
3. Started Operating: 1925
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Otto and H inselmann Byproduct Coking Methods
6. Equipment: 20 Otto Byproduct Ovens (original installa-
tion) (3 metric tons coal per 24 hours)
10 Hinselmann Byproduct Ovens (installed
in 1930) (9 metric tons coal per 30 hours)
7. Products: Ammonia liquor
- 33 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
8.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1938-1930 51 byproduct
1931-1944 113 byproduct
1945-7949 N.A.
1950-1953 113 byproduct
Q.
Dairen Coke and Gas Company. 40/
1.
Location: Ta-lien
2.
Coordinates: Kwantung, 38?55' N - 121?39' E
3.
Started Operating: 1913
4.
Raw Material Source: Byproduct Axrmonia: Coal
5.
Process:
Gasification of coal in retorts with recovery
of byproducts (planned capacity 23,000
tons coke)
6.
Products:
Ammonium sulfate
7.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 80 byproduct
1945-1949 N.A.
1950-1953 80 byproduct
8.
Comments:
Plans called for operation of the plant in
1949.
R.
It was reported in operation in 1953.
Chang-ch'un Gas Works. 41/
1.
Location: Chang-ch'un
2.
Coordinates: Kirin, 43?52' N - 125?21' E
3.
Started Operating: 1925
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process:
Gasification of coal in retorts with recovery
of byproducts
6.
Equipment:
306 retorts (capacity 16.5 million cubic
meters per year)
7.
Products:
Ammonia
Ammonium sulfate
- 34 -
S-E-C R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
8. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 102 byproduct
1945-1949 N.A.
1950 0
9.
Comments:
1951-1952 N.A.
1953 102 byproduct
The plant reported in operation in 1953.
S.
An-tung Gas Works. 42/
1.
Location: An-tung
2.
Coordinates: Liaotung, 40?081 N - 124?24' E
3.
Raw Material Source: Byproduct Ammonia: Coal
4.
Process:
Gasification of coal in retorts with recovery
of byproducts
5.
Equipment:
10 horizontal bench retorts (20,000 cubic
meters per day)
6.
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 46 byproduct
1945-1949 N.A.
1950 0
1951-1952 N.A.
1953 46 byproduct
T.
Plant Name:
N.A.
1.
Location:
Wu-tlung-chliao 43/
2.
Coordinates: Szechwan, 29?21' N - 103?511 E
3.
Started Operating: 1943
4.
Raw Material Source: Byproduct Ammonia: Coal
5.
Process:
Byproduct coking method (unknown) (capacity
50 tons coal per day)
6.
Products:
Ammonium sulfate
- 35 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C R-E-T
7. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1942 0
1943-1944 11 byproduct
1945-1949 N.A.
1950-1953 43 byproduct
1. Location: Ch rung-ch ring 14/
2. Coordinates: Szechwan, 276341 N - 106?351 E
3. Started Operating: 1944
4. Raw Material Source: Byproduct Ammonia: Coal
5. Process: Byproduct coking method (unknown)
6. Equipment: 5 Byproduct Ovens (capacity 60 tons coal
per day)
7. Fixed Nitrogen Capacity Estimates:
Period
1928-1943
1944
1945-1949
1950-1953
V. Chin-hsien Gas Works. 45/
Metric Tons (N)
0
13 byproduct
N.A.
52 byproduct
1. Location: Chin-hsien
2. Coordinates: Liaosi, 39?061 N - 121?431 E
3. Raw Material Source: Byproduct Ammonia: Coal
4. Process: Gasification of coal in retorts with recovery
of byproducts
5. Equipment: 10 bench retorts (capacity 10,000 cubic
meters per day)
- 36 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E Q R-E-T
6. Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 23 byproduct
199455-1949 N* A*
0
1951-1952 N.A.
1953 23 byproduct
7. Comments: The plant was reported as being imperative
in 1947 but operating in 1953.
W. Harbin Gas Works. 46/
1.
2.
3.
4.
5.
6.
Location: Harbin
Coordinates: Sungkiang, 45045' N - 126039' E
Raw Material Source: Byproduct Ammonia: Coal
Process: Gasification of coal in retorts with recovery
of byproducts
Equipment: 5 bench retorts (capacity 5,000 cubic
meters per day)
Fixed Nitrogen Capacity Estimates:
Period Metric Tons (N)
1928-1944 13 byproduct
1945-1949 N.A.
1950-1953 13 byproduct
7. Comments: The plant reportedly resumed operations
in July 1948.
II. Plants on Yhich There Is Insufficient Information.
A. Liao-yang Explosives Factory. L7/
1. Location: Liao-yang
2. Coordinates: Liaotung, 41017' N - 123?111 E
3. Raw Material Source: Liquid Ammonia: Dairen Chemical
Plant
49 Process: Catalytic oxidation of ammonia to produce
nitric acid
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
5. Products: Nitric acid (50 percent)
Nitric acid (98 percent)
6. Coments: Three catalytic converters for oxidizing
ammonia to produce nitric acid were dismantled during Soviet
occupation. No further information is available.
B.
T'ai-yUan Number 1 Powder Plant. 48/
1.
Location: T'ai-yitan
2.
Coordinates: Shansi, 37?52' N - 112?33' E
3.
Started Operating: 1934
4.
flaw Material Source: Saltpeter (Potassium nitrate:
t
l)
ura
Na
5.
Process:
Acidification of saltpeter with sulfuric acid
to produce nitric acid
6.
Products:
Nitric acid (50 percent)
Nitric acid (98 percent)
Ammonium nitrate
7.
Comments:
Reported undergoing expansion in June 1953.
C. Po-shan Chemical Works. 49/
1. Location: Po-shan
2. Coordinates: Shantung, 36029' N - 117?50' E
3. Products: Nitric acid
D. Plant Name: N.A. 50/
1. Location: Chu-chou
2. Coordinates: Hunan, 27050' N - 113?09' E
3. Started Operations: 1953 (?)
4. Products: Ammonium sulfate
5. Comments: An ammonium sulfate plant was reported as
included in a construction project under way in 1953.
E. Central and South Plant No. 884. 51/
1. Location: Liu-chou
2. Coordinates: Kwangsi, 24?l9' N - 109?24' E
3. Products: Nitric acid
- 38 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
F.
Nan-ping Sulfuric Acid Plant. 52/
1.
Location: Nan-ning
2.
Coordinates: Kwangsi, 22?49' N
- 108?19' E
3.
Started Operating: 1952
1i..
Products: Nitric acid
G. Yungsheng Chemical Works. 53/
1. Location: Heng-yang
2. Coordinates: Hunan, 26054' N - 112?36' E
3. Products: Nitric acid
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
APPENDIX C
ME' IODOIOGY
1. General.
Inasmuch as no Chinese statistical data other than the figures
for ammonium sulfate can be fully tabulated for the World War II
and immediately preceding periods, Japanese production statistics
for the 10 years prior to 1945 have been introduced.
The comparative relationship of the production of ammonium
sulfate in China and Japan is expressed in Table 10.* It is believed
that this relationship offers a clue as to the effect of war on the
total production of fixed nitrogen in China. This comparison is
considered valid because the bulk of fixed nitrogen produced in
China during the 10-year period originated in the Japanese-con-
trolled segment of the Chinese mainland, and reacted to the same
influences as the homeland production.
The relationship of the indexes of the production of ammonium
sulfate in China and Japan, shown in Table 10, below, are more
sharply brought out in Figure 8.,1P* In the attempt to supplement
home production of ammonium sulfate with that of China, the rate
of increased production in China exceeded that of Japan until 1940.
By 1941, probably because of better control of the home industries
than on the Chinese mainland, the rate of production in Japan ex-
ceeded that of China and then fell off until the close of the war,
but with a less rapid decline.
Based on the reliability of a direct relationship of Chinese
ammonium sulfate production indexes to Japanese figures for'the
10-year period under consideration, as shown above, additional
Japanese indexes may be employed to indicate by analogy to Japanese
performance a possible qualitative trend of the production of fixed
nitrogen from byproduct and synthetic sources in China. These
data are given in Table 11. **
Table 10 ollows on p. 42.
Figure 8 follows p. 42.
Table 11 follows on p. 43.
- 41 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-_C;ft-E-T
Table 10
Indexes of Chinese and Japanese Production
of Ammonium Sulfate
1934-45
1934-36 = 100
Year
Chinese
Japanese
1934
22.3
74.9
1935
129.0
92.8
1936
148.7
132.3
1937
182.4
140.8
1938
212.8
167.6
1939
156.1
152.5
1940
173.3
167.7
1941
180.7
187.7
1942
124.0
173.3
1943
81.3
146.1
1944
87.9
107.9
1945
N.A.
36.5
The Japanese relationship of ammonium sulfate to dyestuffs,
nitric acid, and explosives, as graphically expressed in Figure 9,*
shows the following trends:
a. Production of all four of these basic products, which re-
quire significant amounts of fixed nitrogen, trends upward from the
base period, as the Japanese ammonia industry was expanded, until 1938.
be Explosives and ammonium sulfate production decreased
in 1939, as increasing production of dyestuffs required increasing
amounts of nitric acid.
c. At the beginning of World War II period, ammonium
sulfate and explosives production began expanding, but as increasing
amounts of nitric acid were required for wartime explosives produc-
tion, ammonium sulfate and dyestuffs production began falling off.
* Figure Tfollows P. 42.
- 42 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : cc.A-RDP79-01093A000600030001-SECRET
COMMUNIST CHINA
AMMONIUM SULFATE
PRODUCTION INDEXES
Chinese
Japanese
(1934-36 = 100)
SECRETApproved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9SECRET
JAPANESE PRODUCTION INDEXES
Explosives
Nitric Acid
Ammonium Sulfate
lo~ Dyestuffs
(1934-36 = 100)
'I
I
1
sECRi pproved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Table 11
Indexes of Japanese Production of Dyestuffs,
Nitric Acid, and Explosives
1934-45
w 100
1934-36
Year
Dyestuffs
Nitric Acid
_
Explosives
1934
92.3
79.1
95.9
1935
104.5
100.3
95.9
1936
103.1
120.6
108.3
1937
115.5
168.2
230.3
1938
123.8
299.9
405.6
1939
155.4
351.6
388.8
1940
134.0
335.2
396.0
1941
117.8
358.2
520.5
1942
47.7
397.0
624.7
1943
42.3
438.9
647.4
1944
16.8
445.3
715.4
1945
3.5
128.3
195.9
4.. Finally, when the Japanese collapse came in 1945, all
production fell rapidly.
The above relationships are believed to be directly analogous
to the Chinese situation during the 10 years preceding 1945.
2. Method Used in Calculating Chinese Indexes of Ammonium Sulfate
Production.
Ammonium sulfate production figures appearing in Table 1*
for the years 1934-36 total 365,200 tons. The annual average
for these three years is 121,733 tons. Using this 3-year
average as the denominator, indexes of ammonium sulfate production
are calculated by dividing ammonium sulfate production for the
years 1934-44 by 121,733, and appear in Table 10.-*
above.
P. 42, above.
- 43 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
3. Method Used in Calculating Fixed Nitrogen (N) Content of Nitrogen
Products, or Vice Versa.
Conversions appearing in Tables 2,* 4.,*
on the basis of the following stoichiometric
and 8*- ,P,* are calculated
relationships:
Product
i~ ,olecular
Weight
(N) Content
Percent (N)
Ammonium sulfate
132
28
21.2
Nitric acid
63
ih
22.2
Ammonium nitrate
80
28 (total)
35.0
14 (ammonium portion)
17.5
4. Methods Used in Obtaining Chinese Fixed Nitrogen Capacity.
Capacity figures appearing in Table are summations based
on capacity estimates for the years indicated as they appear for
individual plants in Appendix B. These capacity estimates are
based on the analyst's technical interpretations of information re-
garding capacity variations for individual plants.
5.
Method Used in Estimating Maximum Operable Capacity for Produc-
tion of Nitric Acid and Ammonium Nitrate at Synthetic Ammonia
Plants.
Total capacity for nitric acid production at synthetic ammonia
plants (Plants 1 to 3 in Appendix B) amounts to 57 tons per day.
The annual production estimate is 20,100 tons, based on 350 days
operation. Using a similar calculation, ammonium nitrate production
appears as 11,400 tons, based on a daily capacity of 32.5 tons in
the three synthetic ammonia plants.
6. Methods Used in Calculating Net International Trade in Ammonium
Sulfate.
Because of the political division existing up until unification
of the present geographical area of Communist China, net international
P. 5,
above.
P. 11,
above.
? *
P. 17,
above.
i'Lip**
P. 9,
above.
-44-
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
trade calculations had to be based on Chinese and Manchurian imports
and exports of ammonium sulfate for the years 1928-44. The net
trade was then converted to nitrogen, in order to facilitate a
nitrogen balance.
Complete data were not available for the years covered. Esti-
mates made by the analyst to supplement available data include:
(1) no Manchurian exports during 1928-1931, (2) no Chinese exports
during 1933-1939, (3) 101,500 tons exported from Manchuria in 1941
and 1942, and (4) no international trade during 1944?
7. Methods Used in Calculating Material Requirements in Production
of Ammonium Sulfate at Selected Chinese Plants.
The amounts of ammonium sulfate production shown for the
selected plants in Table 7* are calculated from the estimated 1953
fixed nitrogen capacities given in Appendix B.
Iron pyrites required in the production of sulfuric acid at the
An-shan and Fu-shun plants are estimated at 35 percent sulfur content,
and are calculated to furnish theoretical amounts of sulfur for pro-
duction of sulfuric acid sufficient for the estimated ammonium sulfate
production. Coal required for byproduct nitrogen production at An-shan
is calculated on the basis of 0.244 percent nitrogen yield per ton.
Oil shale required for byproduct nitrogen production at Fu-shun
is calculated on the basis of 1.0 percent ammonium sulfate yield
per ton.
Input items required for production of ammonium sulfate at the
Liu ho synthetic ammonia plant are calculated on the basis of factors
given in a 1948 Yungli Pre-Project Report.
8. Methods Used in Estimating Synthetic Ammonia Capacity for 1954
and 1955.
In V. above, 1954 synthetic ammonia production is estimated as
37,000 tons. This estimate is based on an increase of 20 tons per
day of ammonia over 1953 estimated daily capacity at the Dairen
P. 13, above.
- 45 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
Works. Capacities at the Yungli and Shanghai plants are unchanged.
The calculation is: 129 tons of ammonia times 350 operating days;
converting this product to a nitrogen basis yields 37,000 tons (N).
In calculating the 1955 estimated synthetic ammonia capacity,
a method similar to the above is used. To an estimated 129 tons of
ammonia capacity per day for 1954 is added 30 tons in consideration
of estimated production at Wu-Clung-chniao for 1955. This gives a
capacity of 46,000 tons (N) for 1955.
9. Methods Used in Estimating Byproduct Nitrogen Capacities for
1954 and-1- 1 .
The predicted increase of 1G,200 tons of byproduct nitrogen
capacity in 1954 over' estimated 1953 capacity is based on estimates
of new construction at An-shan, Chi-lin, and Kan-ching-tzu. The
increase predicted for 1955 is 8,300 tons of byproduct nitrogen
over 1954 capacity, based on estimated completion of additional
facilities at Fu-shun and An-shan.
- 46 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
APPENDIX D
GAPS IN INTELLIGENCE
A study of the information available has allowed the formation
of some broad conclusions regarding the strategic importance and
vulnerability of the Chinese fixed nitrogen industry. If more
information were available on the state of the industry since the
Communist seizure, a more precise account of fixed nitrogen capabili-
ties could be drawn.
Apart from data presented on ammonium sulfate fertilizer produc-
tion and consuumption, more complete information on the other products
of the fixed nitrogen industry would provide a greater insight into
Chinese intentions and capabilities. Such information would show
the industrial and.~ilitary requirements and consumption of fixed
nitrogen, and demonstrate more clearly the strategic implications
of the fixed nitrogen industry.
- 47 -
S-F-C -R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
APPENDIX E
Evaluations, following the classification entry and designated
"bal.," have the following significance:
Source of Information
Information
Doc. - Documentary
1
- Confirmed by other sources
A - Completely reliable
2
- Probably true
B - Usually reliable
3
- Possibly true
C - Fairly reliable
4
- Doubtful
D - Not usually reliable
5
- Probably false
E - Not reliable
F - Cannot be judged
6
- Cannot be judged
"Documentary" refers to original documents of foreign govern-
ments and organizations; copies or translations of such documents
by a staff officer; or information extracted from such documents by
a staff officer, all. of which may carry the field evaluation "Docu-
mentary."
Evaluations not otherwise designated are those appearing on the
cited document; those designated "RR" are by the author of this
report. No "RFZ" evaluation is given when the author agrees with
the evaluation on the cited document..
- 49 -
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
25X1A2g 1.
2. Report on Japanese Assets in Manchuria, Jul 1946. U.
Evan. RR 1.
3. The Economic Vulnerability of Japan: Ammonium Sulfate,
Prepared for the Office of the Administrator of Export
Control, 7 Apr 1941. C. Eval. RR F-2.
25X1X7
e P?Zanchukuo Yearbook., 1931. U. Eval. RR B-2.
Far East Yearbook, 1941, U. Eval. RR B-2.
The Orient Economist, Tokyo, 1940. U. Eval. RR F-2.
Report on Japanese Assets in Manchuria, op. cit.
JANIS, No. , C ap er IX, Feb1946. C. Eva RR A-2.
Yungli Pre-Project Report, 1948. U. Eval. RR B-2.
CIA, FDD U-3789, Report No. 257779, Research Section, South
Manchurian Railroad Company, 20 Jan 1943. C. Eval. RR B-3.
State, American Consulate General, Hong Kong, Press
Translation, No. 262, 1 Oct 1953. U. Eval. RR F-2.
4. Repor on-Japanese Assets in Manchuria, op. cit.
25X1A2g
CIA, FDD, Report No. U-3027, 12 Mar 19 3. C. Eval. RR B-3.
China Mission Data Report, 330.951, A 58108C, Sep 1944. C.
Eva l. RR B-3.
25X1A2g
25X1X7
STATSPEC
25X1A2g
The T;anchukuo Yearbook, 1942. U. Eval. RR B-2.
The New York Times, 27 Jul 1953. U. Eval. RR B-3.
- 50 -
S-E-C-R-E-T
25X1A
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C-R-E-T
25X1X7 6.
25X1A2g
Yungli Pre-Project Report, op. cit.
7. Mina Trade Monthly, "Ammonium Sulfate Trade in China,"
Shanghai, Jun , p. 38. U. Eval. RR C-2.
China Trade Monthly, op. cit., "Consumption of Chemical
Fertilizers in China U. Eval. RR C-2.
China Trade Monthly, op. cit., "Net Value and Quantities
of China's PrincipalTrnporUs, 1926-1947." U. Eval. RR C-2.
25X1A China Trade Monthly, op. cit., Sep 1948, "Prewar Imports
of Chemical- Fe i izer." U. Eval. RR C-2.
25X1A2g
25X1X7 8.
STATSPEC9-
25X1 A2g 10.
11.
STATSPEg2.
Survey of Industrial Development in Manchukuo Since 1931,
prepared for the Projects Section Economic Defence Board,
Bureau of Foreign and Domestic Commerce, 1 Dec 1941. U.
Eval. RR B-2.
CIA, FDD 233499, Annual Returns of Foreign Trade of Man-
churia, 1951. C. Eval. RR B-2.
Foreign Minerals Survey, "Mineral Resources of China,"
Jan 1948., Vol. 2, No. 7, p. 161. U. Eval. RR B-i.
Hong Kong Trade Returns, Department of Commerce and Industry,
Hong Kong, Dec 1952. U. Eval. R?. A-1.
Hong Kong Trade Returns, op. cit., Exports, Oct 1953. U.
-51-
S-E-C-R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-G-R-E-T
13. Ibid.
25X1 X7 14.
25X1A2g i5-
16.
17.
25X1 X7 18.
25X1A2g
25X1A
19. The Washington Star, 25 Jan 1953. U. Eval. RR B-2.
20. The New York Times, 20 Dec 1953. U. Eval. RR B-1.
21.
22.
The Washington Star,
26 Mar 1953.
U.
Eval. RR B-2.
The New.YorTimes,
27 Jul 1953.
U.
Eval. RR B-1.
The New York Times
28 Jul 1953
U.
Eval. RR B-1.
,
.
25X1A
TE-e-TTa'-sHington S r, 13 Jul 1953.
U.
Eval. RR B-2.
23. China Trade Monthly, "Ammonium Sulfate Trade in China,"
Shanghai, Jun 1947, p. 38. U. Eval. RR C-2.
China Trade Monthly, op. cit., "Consumption of Chemical
Fertilizers in C ina.rl ! Eval. RR C-2.
China Trade Monthly, op. cit., "Net Value and Quantities of
China's Principal Imports 191 6-19L 7.'I U. Eval. RR C-2.
China Trade Monthly, op. cit., Sep 1948, "Prewar Imports of
Chemical Fertilizer. U. Eval. RR C-2.
Survey of Industrial Development in Manchukuo-Since 1931,
prepared for the Projects Section Economic Defence Board,
Bureau of Foreign and Domestic Commerce, 1 Dec 1941. U.
Eval. RR B-2.
CIA, FDD 2334993 Annual Returns of Foreign Trade of Man-
churia, 1951. C. Eva l- RR B- .
Foreei~n- Minerals Survey, "Mineral Resources of China,"
Jan 190. Vol. 2 N677. P. 161. U. Eval. RR B-1.
25X1A2g
Hong. Kong Trade Returns, Department of Commerce and Industry,
Hong Kong, Dec 1-97.-U. Eval. RR A-1,
Hong Kong Trade Returns, op. cit., Exports, Oct 1953. U.
Eva. RRA- .
- 52-
S-E-C R-E-T
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
S-E-C R-E-T
25X1A2g 24.
25X1X7
25X1A2g
25.
STATSPEC
26.
27.
25X1A2g
Report on Japanese Assets in Manchuria, op.
STATSPEC
29.
25X1A2g
STATSPEC 30.
25X1A2g
25X1A2g
31.
32.
25X1A2g 33.
34.
Yungli Pre-Project Report, oT. cit.
CIA, FDD Report No. U-3032., op. Me
Hsin Weh Jih Pao, Shanghai, 4 Nov 1952. U.
Repo on Japanese Assets in Manchuria, op. cit., Chapter V.
I id.
Report on Japanese Assets in Manchuria, op.
- 53 -
S-E-C-R-E-T
cit., Chapter
25X1A
Eval.RR C-2.
cit., Chapter V.
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 Approved For Release 1999/09/26: CIA-RitJIA000600030001-9
CONIF
25X1 A2g 35.
25X1X7
STATSPEC
25X1 A29 36.
Third World Power Conference, Vol. 3, Washington, 15130. U.
Eva l. RR B-2.
37.
25X1A2g 38.
39. Third World Power Conference, op. cit.
40. CIA, FDB 328781, 1937. S. Eval. RR C-2.
25X1A2g
41.
25X1A2g 42.
43.
44.
25X1A2g
45.
46.
Report on Japanese Assets in Manchuria, op. Cit., Appen-
lx Plant Inspection Report, -C-2.
China Mission Data Report, 330-951, AS BlObC, Sep 1944? C.
Evan RR B-3.
Ibid.
47. Report on Japanese Assets in Manchuria,
48.
25X1 A29 49.
50.
51.
52. Ibid.
STATSPEC 53.
-54-
0'.
25X1A
Approved For Release 1999/09/26 : CIA-RDP79-01093A000600030001-9
 ec Fob R en a 999#a .. ' ' ...:.m,' 9 'to 3 3QQ 003:o0a1-9.
S T
US OFF IALS ONLY
ICONFIDIN
O
US OFFI ONLY
~~
Approved for Release 199 :"CTTIA-RDP79-01093A00060003000
1-9