CHICOM OIL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01443R000300280008-2
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: December 11, 2000
• Sequence Number: 8
• Publication Date: March 23, 1955
• Content Type: BRIEF

Approved For Release 2001/09/01 : P80R01443R000300280008-2
NSC BRIEFING 23 March 1955
NSA Dclassification/Release Instructions on File.
CHICOM OIL
I. ChiComs use 1.5 million tons POL annu-
ally, get over two-thirds of it from
Soviet Bloc (this true in both '53
and '54).
B. China itself produces less than one-
third of its annual petroleum con-
sumption.
Approved For P80R01443R000300280008-2
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NSA
A. This pattern likely to change with
completion Trans-Mongolian railroad
(via Ulan Bator to Tsining). New
line, with annual capacity of some
2 million tons each way, will cut the
haul across Siberia to China proper
by about 680 miles.
B. If necessary, new line could carry
considerably more than whole amount
of Bloc POL now reaching China both
by land and by water.
C. Line will also open up new Mongolian
oil field (Sa.in Shanda) for exports
to China.
-2-
Approved For Release 2001/O 01 ;,CIA-P80R01443R000300280008-2
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Mongolian railroad is expected, to be
handling through traffic "before the
year (1955) is out.,, In view of
past rate of progress, line may well
be open for at least partial traffic
by May '55.
'III. Use of tanker deliveries to China, in '54
is attributable both to expansion of
Soviet tanker fleet and to relative
cheapness ocean transport.
_3_
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Soviet Far East requirements, we
assume most is being trans-shipped
to China.
or Keieas%1i
 %
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ally have controlling interest in
CHIPOLBROK (joint chartering orga.ni-
za,tion that operates vessels in China.
trade).
B. However, no firm evidence on this point..
C. Has also been suggested that, since
Poles lost PRACA to ChiNats, almost
lost KARPATY, they cooling in
enthusiasm for China trade.
IV. With the exception of the ARUBA, Western
tankers have not engaged in the China
trade in recent months. The high charter
rate the ChiComs were willing to pa.y for
the ARUBA, however, when taken with other
indications, suggests a. current demand for
POL in South China..
A. Until recently, the ChiComs have shown
no interest in procuring POL from the
Hong Kong - Macao area for some
21 years.
Approved For Release 2001/09/01 : CIA-RDP80RO1443R000300280008-2
 Appro-d Fnr R IPacP,2pga,/,; CIA-RDP80R01443R000300280008-2