MINES OF THE BURMA CORPORATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004600320005-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 9, 2016
• Document Release Date: April 30, 1999
• Sequence Number: 5
• Publication Date: April 5, 1950
• Content Type: REPORT

CLASS! FeDENTIVA ITROL tI s O lCIALS ONLY
Approved For Refl~9~~''b~`~~P2-00453
25X1A
9 FO AT REPORT CD NO.
COUNTRY Burma
SUBJECT tines of the Burma Corporation
25X1A
DATE OF
A1%
DATE DISTR. 5; APB SO
NO. OF PAGES 3
NO. OF ENCL.
(LISTED ?ELOW3
SUPPLEMENT TO
February 1950 REPORT NO.
1- 1s' of February 1950, company mines in Bawdwin were on a care and maintenance
basis, wining operations having been sovorely curtailed by the following
factors:
(1) :trail e;oz murliceitions ov _r Ck k tc;ii: viaduct rhich brava yet to be
restored to their pre-;gar effocioncy,.
(2) .Interrurction of rail coin unicstions between Rangoon and Mandalay
by Karen activity,,
(3) Rofusal of the Government of Burma (GOB) to allow the Burma Cor-
poration unlimited use of its two Dakotas which are used to fly
food supplies and maintenance equipment from Rangoon to Lashio,
(4) Refusal of GOB to allow the Burma Corporation to purchase additional
planes unless the company pays additional "soueeze" which it is
unwilling to do,
(5)
CLASSIFICATION ~~CON7'ROT.. t~.s_ ~hFt('T J$ r+wr.v
STATE NAVY S" DISTRIBUTION
_I 04
ARMY _~. , A1R
Shortage of cable for nine pumps.
Mining at Aawdin was rosir.ted in December 1948 when more than a thousand
metric tons of ore was produced. In January 1949, 2,000 metric tons were
produced, with a peak output of 2,350 tons for the month of February 1949,
The mill at Naratu, rehabilitated and enlerged, and operating on an experi-
mental basis during October 1948 and Jaanurry and February 1949, processed
a total of 6,600 tons.
The smelter and refinery, presumably at Namtu, have not operated since
Janue.ry T1949, During the period betruen May 1940, when the smelter and
refinery were rebuilt, and Janu r;? 2349, when all production 'ceased as a
result of disrupted rail cornmaniostions, production from ore mined before
the war amounted to the followings 7,655 tons lead, 700,000 ounces silvor.,
750 tons copper matte, and 250 tons of speiss, comprised of 60 percent
nickel and 54 percent cobalt?
Co FIDENTIA I
' Document No. ----------------
No Change In Class. E]
^ Declassified
Class. Changed To: TS S
Approved For Release 1999/09/09: CIA-RDF~> 0r4!' 320005-5
I Dale. W &- 7 Ira 00.9
 CONFIDENTIAL
40~/C0NTROL = U.S. OFJ'I CI ALS ONLY
CENTRAL INTELLIGENCC AGENCY
Approved For Release 1999/09/09: CIA-RDP82-00457R004600320005-5
40 /+.s of February 1950 the Burma. Corporation had 550 tons of copper matte in
reserve at Mandalay while at Namtu it.had in reserve 255 tons of lead, 200
tons of copper matte, 250 tons of cobalt-nickel spaiss, 7,500 tons of lead
concentrates (70 percent lead), and a large quantity of zinc concentrates.
If and when rail communications between Mandalay and Rangoon are reactivated,
it is eatimstad that full production in the Burma Corporation plants would
not be.restored until August 1950. Rail communiottions would serve to ex-
pedite the shipment of much needed coal and coke reserves to the north from
R goon, where it Is ectimated the company has 20,000 tons of coal and
5,000 tons of metallurgical coke stored?
Known reserves throughout the company properties,. said to be limited, total
approximately 3,000,000 tons of ore averaging 22.5 parGent lead, 17.5 ounces
of silver per-ton, 14 percent zinc and .9 percent copper. Other deposits
ar3 of inferior grade,
6- Al-hough the Burma Corporation pays the best wag:-s of any mining company
in the East with good working; and living conditions there have been labor
difficulties. In February 1950 the total labor force was estimated to be
59 000 as compared with 10,000 before the war, the majority of these workers
be:.ng Chinese and Indians. Nrtive Burmans have generally refused to work
for the company as they think the GOB will soon expropriate the mines.
Thy Namtu Workers Union, comprised moztly of Burmans and a few Indians,
h a6 been exceedingly active and has pressed for reforms considered to be
fhxstastio for this part of the world.
7e At a meeting held in Rangoon on 31 JanuPry 1950 between representatives
of the GOB and. the Burma Corporation to arrange for the renewal of the
Burma Corporation's lease, prerequisite to the continuance of any opera-
tions, the following stipulations, to which the Burma Cor^,oration will not
ar.ree, were proposed:
(1)
1,2)
(3)
The GOB, by executive order of the President, may expropriate all
or part of the Burma Corporation, and at the option of the Govern-
ment pay the Burma Corporation either the amount of the subscribed
capital at the price of issue or the value of the physical assets,
said value to be determined by arbiters.
Burma Corporation will finance the education of 50 Burmese students
who will be sent to England and the United States to specialize
in smelting and mining.
The Burma Corporation is required to hire stipulated percentages
of labor in technical and administrative branches from among the
citizens of Burma.
(4) The Burma Corporation should erect a zinc smelter in Burma and
procassa its copper matte locally, rather than export such products
for more economical processing.
Officials on the GOB have stated that should a loan be obtained from the
United States or the World Bank the lease i-ould not be renewed under any
conditions. .Apparently, these officials believe that technicians to operate
the mines area available outside of the labor pool currently under the con-
trol of the Burma Corporation.
CONTROL .. Lj.3 > OFFI CI ALw ONLY
CONFIDENTIAL
Approved For Release 1999/09/09 : CIA-RDP82-00457R004600320005-5
 Approved For Release 1999/09/09 : CIA-RDP82-00457R004600320005-5
CONFIDENTIAL
00NOW/CON'TJ?OL - U.ti], OFFICIALS ONLY
9? The Burma Cor"oration hopes that conditions will become more favorable
for operr.4tions following the outcome of the elections now scheduled to
be hold in May 1950< in the meantime, the company will seek to arrive
at as working agreement with the government in power,
Comment. Approximately 40 percent of the Burma Corporation shares
of stock are held by Americans,,
Q fl "COi TR ], --- U S. OYr'TCIJLS ONLY
CONFIDENTIAL
Approved For Release 1999/09/09 : CIA-RDP82-00457R004600320005-5