NVN COAL EXPORTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80R01720R000500030016-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 15, 2016
• Document Release Date: August 12, 2004
• Sequence Number: 16
• Publication Date: August 2, 1966
• Content Type: MEMO

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DATE: 2 August 66
r
Mr. Robert Komer
Special Assistant to the President
G. A. Carver, Jr.
NVN Coal Exports
STAT
In response to your telephone request of
1 August, I asked our Office of Research and
Reports (ORR) to prepare the attached memo-
randum on the points you raised. If you have
additional questions or desire further details
please let me know.
1-DCI
1-DD/
;1- WH Liaison
.1 - VAS Chrono
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 J66
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NORTH VIETNAM: CURRENT EVALUATION OF
ANTHRACITE COAL EXPORTS
The Export Problem
U.S. airstrikes, carried out on Cam Pha in April 1966, caused very
significant damage to the coal washing and grading plant at that port city.
Virtually all of North Vietnam's anthracite exports are seaborne, and 90
percent of these normally flowed through the Cam Pha facilities. As a
result of the strikes, seaborne exports, which averaged 127,000 tons a
month in the first quarter of 1966, were cut to only 42,500 tons by June,
even though coal processing facilities at Hon Gay, the location of the only
other plant processing exports, have been used much more intensively. Hon'=
Gay's capacity is severely limited by the shallow draft of its harbor. (See
Table 1) .
North Vietnam has attempted to maintain anthracite exports to Japan by
virtually eliminating shipments to other consumers, particularly to Communist
China. Even so, shipments to Japan have been erratic and well below the
monthly average of 1965. (See Table 2). We believe reports of Japanese
disquiet over their supplies of anthracite from North Vietnam are probably
true. The primary source- of this information is a Japanese businessman who
has furnished reliable data for many years. The decline in shipments is
25X1 Also, aerial photography of Cam
Pha taken in June 196-6 showed that the plant may be in partial operation,
but there were no signs of repairs being made to the extensively damaged
parts of the facility. Hence, the quality of North Vietnamese anthracite
has probably declined as stocks of washed and graded coal have dwindled toward
exhaustion.
Alternate Sources of Anthracite for Japan
When properly processed, North Vietnam's anthracite meets the highest
st:Lndards of quality in terms of heat value and low ash content. Much of
the current export no longer meets these standards, and presumably would
not in the future if the Cam Pha facility were to be kept neutralized.
.Alternate sources of high quality anthracite exist however, including South
.Africa, the United States, and the Soviet Union. North Vietnam traditionally
is a favored source by Japan in part because of low shipping costs. In.1965,
nine countries shipped significant quantities of anthracite to Japan, with
North Vietnam accounting for about 37 percent of the total. (See Table 3).
If Japan were to meet her import requirements entirely from suppliers other
than North Vietnam, an increase in shipping costs would result. We have been
unable to quantify the precise cost differential to Japan, but it could run
$5 a ton or more.
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 STAT
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Foreign Exchange Earnings from Anthracite Exports
In 1965, North Vietnam earned about $6 million from its shipments
of anthracite to Japan, and about $1.3 million from other Free World
sales, lamely made to France. In 1966, earnings from anthracite exports
to hard currency nations, will run between $3 and $4 mi" ion, and most of
this will be from Japan.
North Vietnam uses its hard currency earnings to import capital and
consumer goods. Our information on these shipments is relatively firm
and is obtained from overt sources in Free World countries. Chemicals,
foodstuffs and machinery and equipment are"the largest three categories
from a dollar value standpoint.
2 August 1966
C:rA/DDI/oI
25X1
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North Vietnam: Seaborne Exports of
Anthracite Coal by Port of
Monthly Average
1965 First Quarter 1966, April MaY June
Total 95.8 127.1 82.9 56.6 42.5
Cam Pha 86.1 .118.0 72.3 .36.7 26.8
Hon Gay 9.7 9.1 10.6 19.9 15.7
a. Except for a very small quantity shipped by rail to Communist China,
all of North Vietnam's exports of anthracite are seaborne.
North Vietnam: Seaborne Exports of
Anthracite Coal by Destination
Importing Country
1965
First Quarter 1966
April
May
June
Total
1,150.1
381.3
82.9
56.6
1+2.5
Communist China
11.95.1
256.0
55.1
12.0
8.7
u apan
1113.1
71+.5
19.5
21+.9
30.8
Other
211.9
50.8
8.3
19.7 ?
3.0
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Japan: Sources of Anthracite Coal Imports in 1965 J
Supplier
Percentage of Total
North Vietnam
36.7
South Korea
18.5
South Africa
15.6
Canada
10.5
Communist China
9.9
USSR
5.4
Australia
1.4
North Korea
1.2
Other
0.7
Total 100.0 b
a. Total volume of imports of anthracite: 1,165,000 metric tons.
b. Components do not add to total because of rounding.
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