SURVEYS CHINESE FOREIGN TRADE REGULATIONS, EFFECT OF US EMBARGO, CHANGES IN EXPORTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600370786-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: September 27, 2011
• Sequence Number: 786
• Publication Date: February 6, 1951
• Content Type: REPORT

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Uur1'IDLII II~-
FOREIGN DOCUMENTS OR RADIO BROADCASTS
? CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
INFORMATION FROM
SUBJECT Economic - Trade
HOW
PUBLISHED Daily newspapers
WHERE
PUBLISHED ' China
DATE
PUBLISHED
LANGUAGE
or TAD UNITED STATES .. __
O. S. C.. 3% AND $1. AS AN[NO[D. ITS TNAN1NISSIOM OR TAO R[TELA710N
Or ITS CONTENTS IN ART NORMAN TO AN UNAOTNORITED PARSON IS P10?
NINITE. NT LAW REPRODUCTION Or TNIS FORM IS PRONISITEO.
Newspapers as indicated.
DATE DIST. 6 Feb 1951
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
SUP'TEYS CHINESE FOREIGN TRADE REGULATIONS,
EFFECT OF US EMBARGO, CHANGES IN EXPORTS
his report is divided into four parts: I. Regulations on
Specific Export Items, II. Foreign Trade Regulations, III. Scores
US Embargo, and IV. Report on Exports.
Export of copper, brass and their manufactures, and of seed
cake, bean cake, and tobacco leaf has been embargoed by the Pei-
ping authorities.
According to new Peiping regulations, all import-export oper-
ators must secure permits from their local Foreign Trade Control
Bureaus. In case of foreign firms, requests must be sponsored by
local authorities and approved in Peiping before becoming effec-
tive. Regulations have also been issued covering small export-
import firms with no fixed place of business.
Orders from Peiping place Foreign Trade Control Bureaus of
the nine main ports of the country directly under control of the
Ministry of Trade of the'national government.
Two newspaper articles on the effect of the US embargo on
goods to China declare it must fail because the US fails to under-
stand the new spirit of self-reliance now prevalent in China and
the amount of goods available to China as a result of her trade
treaties with USSR and the other new people's democracies. An
editorial suggests that the US embargo will boomerang.
The first shipments of Chinese peanuts have reached Czecho-
slovakia under the new Sino-Czech trade agreement.
STATE
ARMY
AIR FBI.?
DISTRIBUTION
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CONFIDENTIAL
A study of tung oil exports from China over the 4-year
period 1946-49 reveals that the US took 41 percent of the
total exports for that period of 231,057 metric tons and
USSR slightly over 3 percent. Hong Kong was second and
Britain third. The Peiping government recently set tung
oil export price at 26 US cents per catty.
The branch of the China Bristles Company in Yang-thou,
Kiangsu,has recently imported 1,000 piculs i picul equals
133.3 pound] of bristles from Northwest China and farmed
them out to joint public-private and private processors in
the Yang-chou;area to the great advantage of the processing
industry, which has suffered in recent years from a short-
age of bristles
I. REGULATIONS ON SPECIFIC EXPORT ITEMS
PROHIBITS EXPORTS OF COPPER, BRASS, AND SEED CAKE EXPORTS -- Hong Kong, Ta
Kung Pao, 14 Dec 50
Shanghai, 14 December (special wire) -- The Shanghai Foreign Trade Bureau.,
on orders from the Central government, has placed an embargo on the export of
copper, brass, and all articles manufactured therefrom, except cloisonne and
other items using only small amounts of these materials.
Canton, 13 December -- The South China Foreign Trade Bureau has clamped
an export embargo on various sorts of seed cakes including tung-nut cake,
castor-bean cake, sesame seed cake, and top grades of cotton waste.
EMBARGOES BEAN CAKE AND TOBACCO LEAF EXPORTS -- Shanghai, Hain-wen Jih-pao,
5 Nov 50
The Central government, as of 5 November, has established a complete em-
bargo on the export of domestic bean cake and tobacco leaf to conserve ferti-
lizer supplies for agriculture and stocks of raw materials for domestic ciga-
rette production.
ISSUES NEW PROVISIONAL REGULATIONS ON FOREIGN TRADE -- Hong Kong, Ta Kung Pao,
10 Dec 50
Peiping 8 December (Hsin-hua) -- At the 62d session of the Government Ad-
ministration Council on 8 December, new provisional regulations on foreign
trade were passed, the substance of which is as follows:
1. These regulations are based on Article 37 of the Common Program.
2. They are to be carried out by the Ministry of Trade of the Central
People's government and its subsidiary organs.
3. All firms of Chinese nationality desiring to carry on foreign trade
shall secure permits from their local Foreign Trade Control Bureau.
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CONFIDENTIAL
4. All foreign firms in China desiring to carry on foreign trade shall
have their applications for permits sponsored by the Foreign Affairs-Depart-
ment of the local government where their business is located, but the permits
issued shall not be effective until they have been approved by the Ministry
of Trade of the Central People's government.
5. Imports shall fall into four classifications:as follows: (1) permitted
imports, (2) controlled-purchase or government-monopoly imports, (3) prohibited
imports which require permits from the Committee of Finance and Economics of_the
Government Administration Council, and (4) special permit imports, for which spe-
cial permits are issued by the Ministry of Trade.
6. Exports also fall into four classes: (1) permitted exports, (2) con-
trolled-sales or government-monoply exports, (3) prohibited exports, which re-
quire permits from the Committee of Finance and Economics of the Government Ad-
ministration Council, and (4) special permit exports, for which special permits
are issued by the Ministry of Trade.
7. Importers must obtain import or export permits from the local Foreign
Trade Control Bureau before taking any other steps in the transaction.
8. Postal parcels, gifts, advertising matter not for sale, samples, and
personal effects not exceeding the prescribed limits of value, when certified
as correct by the customs officials, shall not require export-import permits.
9. Export and import companies shall follow the prescribed foreign ex-
change certificate system of financing, but in cases of necessity the Ministry
of Trade may declare certain foods subject to barter or the link system in
which case the ministry shall promulgate the special orders.
10. Exporters engaged in foreign trade by mail-order methods shall secure
a permit in the prescribed manner from their local Trade Control Bureau before
proceeding to carry on such trade.
11. Violators of these or other pertinent regulations shall be corrected,
warned, have their businesses closed, or be taken to court by the local foreign
trade board authorities, according to the gravity of the offense.
12. Goods classified under Regulations 5 and 6 shall be listed by the Com-
mittee of Finance and Economics of the Government Administration Council; re-
visions shall likewise be made by the committee.
13. These regulations shall be effective from their passage and promulga-
tion by the Government Administration Council; also, revisions. The Ministry
of Trade shall issue detailed instructions for carrying them out.
Canton -- The South China Branch of the Committee of Finance and Economics
of the Central and South China Military and Administrative Committee has issued
provisional regulations concerning the registration of import-export firms as
follows:
1. These regulations are promulgated to promote the interests of South
China import-export companies and to provide for better organization and con-
trol.
2. The term "companies," as used in these regulations, has special refer-
ence to firms with limited capital and no fixed place of business that transport
domestic products from the interior to ports for export, or who have connections
in Hong Kong through which they purchase goods.for import.
CONFIDENTIAL
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(IIFWENT~AI.
3. All firms covered in Regulation 2 shall register with their local
foreign trade control organization. Upon investigation and approval, they
may receive a certificate of registration for import-export business. After
receiving this certificate they may register with the local Bureau of Indus-
try and Commerce and receive a business permit, after which they may carry
on import-export business in the area covered by the permit.
4. Firms applying for registration should, before applying, secure.
from a governmental organization above the lowest level in their native
place, a letter of introduction and a reliable shop guarantor located in
the area under the control of the foreign trade control organization where
they are applying for registration.
5. Firms covered by these regulations will not be permitted to handle
goods requiring official inspection.
6. Firms covered by these regulations may not apply for import-export
permits for lots of goods valued at more than 5 million yuan.
7. Except for goods forbidden to them to handle under Regulation,5,
firms may handle goods required to be handled under the link system as long
as they follow the established practice.
8. The procedure of application for import-export permits for firms
covered under these regulations are the same as for established firms.
9. Firms covered by these regulations may not act only for themselves.
Deviation from this principle in any form, if discovered, will result in
cancellation of registration.
10. Revisions may be made in these regulations from time to time.
11. These regulations shall be in effect from day of publication.
MINISTRY OF TRADE STRENGTHENS FOREIGN TRADE CONTROL -- Hong Kong, Ta Kung
Pao, 6 Dec 50
To strengthen leadership and control in foreign trade, the Ministry of
Trade of the Central government }?-s decided to place the Foreign Trade Con-
trol bureaus of the ports of Canton, Foochow, Shanghai, Hankow, Tientsin,
Tsingtao, Dairen-Port Arthur, and Kun-ming directly under its own jurisdic-
tion, but without prejudice to the political jurisdiction of the various re-
gional administrative districts where the ports are located.
SAYS US ECONOMIC BLOCKADE BOUND TO FAIL -- Hong Kong, Wen-hui Pao, 15 Dec 50
Peiping, 14 December (Hsin-hua) -- Under the title "Resist US Imperialist
Economic Blockade Policy," the Peiping Jen-min Jih-pao of 12 December made the
following comments:
That the KMT blockade of mainland ports was plainly instigated by the US
is indicated, by the fact that the US government threatened to withdraw the
mariner's licenses of American ship captains attempting to run-the blockade.
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During 1950, the US government gradually extended the range of items in-
cluded in its embargo of so-called "war materials" until finally on 2 December
1950, a complete embargo was declared against China, Hong Kong, and Macao.
On 18 July, Great Britain under the urging of the US, embargoed petroleum
shipments to China and, on 8 September, SCAP forbade the export of oil, metals,
medicines, and industrial raw materials from Japan to China. The Philippines
were required by the US to embargo "war material" shipments to China, on 24+ July.
The US hopes by these measures to force China to comply with American wishes.
So far, China has suffered very little while the policy of the US and her fol-
lowers has injured their own interests.
Chinese reconstruction has been hindred to some extent by the blockade,
but the spirit and resourcefulness of the Chinese people has steadily risen,
and the determination to become self-sufficient in so far as possible has
been greatly strengthened. The 1950 cotton crop has guaranteed national self-
sufficiency in that important raw material.
Closer relations with the USSR and the other people's democracies have
been hastened by the US policies.
China will overcome all difficulties placed in her path by US imperialism.
EDITORIAL SAYS US EMBARGO WILL BOOMERANG.-- Hong Kong, Ta Kung Pao, 6 Dec 50
The US embargo on the shipment from or via the US of over 2,000 items of
so-called war materials to China directly, or to Hong Kong lest they go on to
China, will do only harm to her own interests.
It has already aroused in China a boycott toward US goods. It is also un-
veiling the real imperialistic nature of US designs to those Hong Kong traders
who have thrived in the past on US trade and now see their incomes greatly re-
duced. Therefore, in the future, they will seek to build their business on
trading the goods of other countries.
The embargo, in so far as it is intended to embarrass China, indicates
ignorance of the fact that the New China has in only one year's time taken
long strides toward self-sufficiency at home, and has entered into important
trade agreements with the various new democracies that obviate, to a large
extent, China's dependence upon imperialist countries for the items in which
she still lacks self-sufficiency.
FIRST CHINESE PEANUT SHIPMENTS REACH CZECHOSLOVAKIA -- Hankow, Chang-chiang
Jih-pao, 3 Nov 50
Prague, 26 October (Hsin-hua) -- On 20 October, China's first shipment
of peanuts was unloaded at a river port near Prague, Czechoslovakia. Numerous
representatives of the Czech Ministry of Foreign Trade, Ministry of Industry,
and Ministry of Transportation, together with representatives of the Chinese
Embassy in Czechoslavakia, were present at the unloading.
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COMPARES TUNG OIL EXPORTS FOR 4 YEARS -- Shanghai, Ta Kung Pao, 4 Nov 50
Ninety percent of China's tung oil is produced in Central and South China
and the Southwest. In normal times, 90 percent of the tung oil exports pass
through the port of Shanghai. The peak year for tung oil export was 1937 with
102,969 metric tons, while the lowest in recent times was 1945 with only 112
metric tons exported.
Export quantities and countries of destination for 1946 through L949 are
shown below (in metric tons):
Great
US Hong Kong Britain USSR Others
Total
1946 16,280 10,216 1,753 402 3,004
35,264
1947 24,837 40,809 6,469 3,002 5,420
80,537
1948 39,324 26,700 3,515 2,543 4,012
76,094
1949 15,824 16,105 1,249 1,847 5,139
39,162
Ordinarily, tung oil is the second or third item of importance among
China's exports but at times has ranked first.
ADJUSTS EXPORT PRICES -- Shanghai, Ta Kung Pao, 8 Nov 50
Canton, 7 November (special wire) The tung oil export price has been ad-
justed to 26 US cents per pound, including freight to New York.
BRISTLES COMPANY EXPANDS ACTIVITIES -- Yang-thou, Su-pei Jih-pao, 3 Nov 50
The branch of the China Bristle. Company at Yang-chou, Kiangsu, to solve
the difficulties of supply in private factories in Northern Kiangsu has had
over 1,000 piculs C picul equals 133.3 pound of raw hog bristles shipped es-
pecially from Sian. Except for a small portion allotted to the Nan-t'ung fac-
tory for processing, the shipment has been farmed out to private factories at
various places: T'ai-chou, 35,000 catties; Yang-chou, 13,000 catties; and Nan-
t'ung, 25,000 catties.
Bristles shipments continue to come in and deliveries should be complete
at any time.
Of the firms granted allotments on this occasion, those in the T'ai-chou
region were estimated to have five joint public-private processing plants.
These are, in turn, organized by combinations of 35 home factories. In Chuang-
chia-chiao, a processing cooperative has been organized. In addition, there
are two independent factories. Together, they are estimated to have over 350
workers.
In-Yang-chou and Nan-t'ung together, five joint public-private factories
have been organized, together with several independent factories with a total
of more than 300 workers.
To secure standardization of their product, the Bristles Company has set
up a technical advisory board to do research and give advice to the'member fac-
tories on technical problems.
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Hog. bristles are the most important supplementary farm product of North
Kiangsu. Among the 17 classes of bristles recognized in Shanghai, North Kiang-
su's products are of the first class, and the number of bristle workers is the
highest in East China, except for Shantung, there being approximately 1,700.
Because of the war, processing of bristles has decreased more than one third,
mainly because of lack of materials, resulting in recent years in the serious
situation of a surplus of manpower and a shortage of raw materials. After re-
ceiving assistance from the Bristles Company, such as advance payment for prod-
ucts and subsidies, the prosperity of the bristle industry has begun to improve.
At present, the company has bought up a great quantity of raw materials,
largely entrusting processing to private factories. It has overcome the diffi-
culties of production in slack periods and solved over'80 percent of the immedi-
ate living problems of its unemployed workers, in addition to improving and
raising the efficiency of processing. All these factors are of great signifi-
cance to the work.
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