ECONOMIC INFORMATION: SMUGGLING ACTIVITIES, KWANGTUNG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R000100710002-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: November 9, 2016
• Document Release Date: January 22, 1999
• Sequence Number: 2
• Publication Date: August 21, 1946
• Content Type: IR

Document A
No C.24NGE in Class.
DECLASSIFIED
Class. CFiUE
Auth:
Date :
.- t t.'&t3 revenuer of the Cotnrn.oe.itay ax Bureau has been cut by fifty
i r'O 21 August 1946
SUBJECT Economic foximation: ding Activities
,__ _4 ------ 1,Dt 5 December 1946
OFAGIN
CLASSIFIcArffla C01 ;'o
25X1A8a
___ 25X1.A9~1~__...
DATE?
PAGES 5
SUPPLEMENT
ATTAC71M1E?T
1. Smuggling activities in and around Canton have reached the
proportions of a major industry. Canton and Hongkong newspapers
daily carry stories of the smuggling activities In both ports,
and newspaper editorials in Chinese and English language news-
papers have commented critically on the. seeming inability of the Cus-
toms services to keep smuggling under control. The situation is
such that the Canton newspaper "Kien Kwok Pao" on 26 Ju:.y 1946
quoted an s~.nnamed Chinese naritirr+ Customs official to the effect
that nearly fifty per cent of the goods coming from Hongkong into
Canton at the present time are smuggled. The "Canton Daily Sri"
on 2 July 1.946 carried a Customs statement that while tiwentyr-five
ni?illi.os-is CKC in duties are ecl?ected daily by the 'Caan.trn Customs,
an additional fifty milli.o-a CILC $ duties are lost daily through
e ooerat4.ons of smugglers.. The same paper on 30 July 1946 stated
r -
e t in the st three month s because of the influx of smuggled
%, U Pa
prohibit.:-d, -.he in1eren e 'nast obviously be th at tha yarn Is
ar.a; g.le d .
1 -6. placed cotton yarn on the list' of commodities whose export
Hongkong daily. Since the Chinese Government at the beginning
chi over one hundred bales o Cott n 'Tarn were 1;:elm " ."a nst'forted
1946 tlia :eK -,,n .Kv,.ck Pao" printed an item saying
In addition to the loss of tax revenue, smuggling has had the
2ect of hampering the re:bailding of a number of local industries
such as chemicals., cosmetics, paper and rubber goods, which can-
not produce at a price and quality to compete with foreign articles
on which no duty has been said; in some cases, notably cigarettes and
match manufacture, -local Industries already established have been
effectively destroyed. The Canton "Ki :n lcwok Pro" stated 13 July
11946 that whereas ninety-nine cigarette faotories were operating in
Canton after the Japanese surrenders, the. present number is only ten,,
On 13 August 1946 the"Canton Tal Kwong Pao" cited "authoritative
economic circles "as saying, that- local industries are in a critical
condition because of the -oreign goods which have appeared on the
Market.
coming in. But whether the goods go out or in, the main centers
of the traffic are Hongkong qLpd Cant FHongkcon is the port where
C.t.~. ..i 6G
ri,La.e.a.ia one r.~i:l7i.-^'i sLI.Gh as cotton yarn and 4~~: ~7''al3: ore a!`
smuggled. out of South China,, the min flow consists of foreign goods
ase 1999/09/08 : CIA-RDP82-00457R000144-716
TIJ L
RAL INTEEMENCE GROUP
INTELLIGENCE REPORT
 Approved For ~.1AJiQi-0045780001
u bU i cot ;on and shin it to HongkoY.g, agree ing to pay crash three da
cape a of carrying a cargo of rapproximato1 one hundred and thirty
tons,, The boats do not operate on a regular schedule, but one leaves
for fongkong from Canton on an average of every other day,, with a sim-
ilar frequency at the other end of the trip. The main types of cargo
carried from Canton to Hongkong are cotton yarn, Chinese piece goods,
wood oil and cassia bark., From Hongkong; to Canton tho ma,iix cargoes are
flour and tinned foodstuffs.. One of the organizations in Hongkong
which. handles large quantities of goods. de st in d for C-xnton by the way
loci. :...z?:3 (t v1~l sea route
?
a s :. 'z--tac~yi 00n rid ,almtork 1aot'..iooq jig Isla?i~
< :r cm Hongkong to Chian thence to the inter
.?`': ri How' ng t ; Macao i-n. via Shih7.C'h d i t
Interior s .(!. t .:~7 4 diver Aren 7 rt
3" ., 't: ( r1 f1.OVI1e)of to '3 1 taut'ok
m C y x, through KUE. :.tuns;
,etch, of t o e v Ante Is it- "9t-
Approved For Release 1999/09/O8 }
C h>. gig shan
From ow I.a on to d'ap o vi_a ;:aly &tung (:,` 3 thence to the
:00457 R000100710002-4
Canton during the