USSR PROCUREMENT OF TUNGSTEN IN CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004100430005-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: February 12, 2001
• Sequence Number: 5
• Publication Date: January 19, 1950
• Content Type: REPORT

25X1 A
Approved For Re 0 O IA9 82-0045?$M
NrO1MA ON REPOT CD NO.
COUNTR? China/Hong Kong/USSR/Korea./Burma
SUBJECT USSR Procurement of Tungsten in China
PLACE
ACQUIRED
DATE OF IN
25X1A
25X1 X REPORT NO
1. In 1948 the National Resources Commission (7-MC) is reported to have shipped
to the USSR more than 3,000 metric tons of tungsten concentrates through
Shanghai, on a barer" agreement. During the same ye^.r, 2,400 metric tons,
65% WO , were shipped through Hong Kong. Several hund.red'tons were sent to
3.
confirmed. The USSR also acquired some tungsten from Burma and small amounts
from Thailand.
US R through Macao. Export circles in Hong Kong believe that Shanghai
ate traders for the USSR account. These figures indicate that the USSR
ived over 6,006 tons of Chinese tungsten concentrate in 1948. This is
q.ite apart from the amount received bps the USSR from North Korea, although
some oe the South Korea tungsten concentrates were shipped to the USSR through
Hord Kong and are included in the Hong 'gong figures. It is alleged in Hong
Song that the production of tungsten concentrates in North Korea has been
Increased to, 3,earlyw52.,O00 metric tons per year, but this figure cannot be
441*05
When the Chinese Communist armies advanced toward the sout'_o, USSR urc?^ases
in Hong Kong decreased considerably, and Hong Kong exporters attribute the
falling prices to this drop in sales. 1MC officials in Hong Kong said they
did not know whe her any tungsten had been shipped to the USSR in 1949 under
the barter agr ement. Purchases of tungsten in Shanghai decreased early in
1949, while in Hong Kong there were few offers, even at greatly reduced
prices, The Soviet lack of interest in the purchase of tungsten in 1949
attributed,, by Hong Kong exporters, to the USSR1s confidence that they would
have the first change at Chinese Communist sales of tungsten, once the mines
were captiured.
In 1948 the USSR purchasing in Hong Kong and. Shanghai was done by Eksportkhzleb
representatives through Chinese cover firms. In Hong Kong, Ivs.nchenko, the
Eksportkhl.eb representative, did his purchasing through the Yangtze Supply
Corporation*, a small Chinese firm which took the offers of the exporters.
Payment wasnimlly made in American dollars, The Yangtze Supply Corporation
also made purchases through small brokers and from smug.^;lers, and stored the
concentrates until large stocks were accumulated for shipment. The Kwong
Sh1tg Cheong** aided the Yangtze Supply Corporation in the hanriiing of tungsten.
lv idhe-nko collected a considerable squeeze from this business in 1949 both
throtith making false invoices at market prices and by demanding a direct cash
squeeze before agreeing to buy.*** In October 1949 he no longer was able to
A rove
NAVY
AIR FBI
STATE
DATE DISTR. 19 JAN 50
NO. OF PAGES - 2
NO. OF ENCLS.
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 Approved For Release 2001/03/17 : CIA-RDP82-00457R004100430005-8
CO'T"RCL - U.S. OFFICIALS ONLY
CENTRAL INTELLIGENCE AGENCY
25X1A CONFIDENTIAL
make purchases without first obtaining the -permission of. his superior in
Shanghai or North China.
Ne.t all of the tungsten concentrates shipped from Hong Kong to the USSR in
1918-went in Soviet ships, but in 1949 all shipments.of tungsten and tin were
made in Soviet vessels. On two occasions in the sunnier of 1949, such shipments
appen.re1 on the manifest as general c'rgo, and the Hord; Kong` Government had no
rtzord of the shipment.****
The Channel Trading Company, Lintted, 14 Queenss Road Central, has handled
Ehipaing of tungsten to the USSR. Three small Hong Kong firms also handle
goods destined *or the USSR; Tai Hong, Manuel Trading Company, ;and Chinese
Trading Company.
6. Although the procurement of tungsten concentrates for the USSR through
Tvanchenio and"the Yangtze Sup,?ly Corporation has definitely fallen off,
there are indications that the USSR is still buying tungsten, but in a
different manner. The demand from Western Europe nnq inc ed`and this
apears to be the route by which most Chinese to
the USSR in 1949. Metal Traders of London, whi.c
to handle large shares of the metal business in
tract to supply tungsten concentrates to a Swedish m which repr sents
the USSR.' Hong Kong dealers do not believe that Lazarus has a. similar con-
tract. Metal Traders, of London shiuuus in its own name from London and Belgium.
T. 0. WONG and Company, Limited,***** of Hong Kong Wien been trying to male
connections'in Gothenburg, having learned that Metal Traders has bean shipuing
to Gothenburg tungsten concentrates consigned to them in Lo don.
7. Metal Traders of London also handles some o_f the Burma concentrates,, a.hich
are sent to Gothenburg,. but this production is very small since the Ma.t.rchi
mines were closed in. May 1949.
25X1A
This document is hereby regraded to
CONFIDENTIAL in accordance with the
letter of 16 Oc~.o`,er 1978 from the
Director of Central lnte,'igence to the
Archivist of the United States.
Next. Revi te: 20 8
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