SHANGHAI FACTORIES CONTINUE FLIGHT; FOREIGN BUSINESSMEN SEE DIM FUTURE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600300344-6
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 8, 2011
• Sequence Number: 344
• Publication Date: April 19, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300344-6
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COUNTRY
SUBJECT
HOW
Economic - Industry
DATE DIST.
KI
Apr 1950
PUBLISHED
WHERE
PUBLISHED
Daily newspapers
Hong Kong NO. OF PAGE
S
2
DATE
PUBLISHED
15 Mar 1950
LANGUAGE
SUPPLEMENT
REPORT NO.
TO
SHANGHAI FACTORIES CONTINUE FLIGHT;
FOREIGN BUS - __I FUTURE
MORE FACTORIES MOVE TO TIENTSIN -- Hong Kong Hsing-tao Jih-pao, 15 Mar 50
Tientsin -- Shanghai public and private industries are now being moved
to Tientsin. In their new location, they will be near their source of raw
materials and their finished goods markets and will escape bombings and the
blockade.
The following factories either have already moved from Shanghai and
begun operations in Tientsin or are looking for suitable sites and making
preparations; K'ang-lo Cigarette Factory, Min-chung Cigarette Factory,
Huan-ch'in Undergarment Factory, Mel-lo Printing Plant, Sen-ta Liquid Ink
Factory, Hein-an Electrical Apparatus Plant, K'ai-ling Electrical Apparatus
Plant, Ya-thou (Asia) Electrical Apparatus Plant, Sheng-sheng Glass and Iron
and Steel Utensils Plant, and Ch'ing-ch'eng Dyestuffs Factory.
According to recent reports, the Ta-lai Electric Bulb Plant and the
Wei-ch'ang Machine-Manufacturing Plant, which is under the jurisdiction of
the United Shanghai Commerce and Industry Staff Office set up at Tientsin,
are also among those plants planning to move or to establish branch plants
there.
The various Shanghai industries which have moved. to Tientsin and
started operations, or which are preparing to open in Tientsin, have had
great success in moving their machinery, finding plant sites, raising suf-
ficient capital to market finished goods, arranging for their manufactured
products, etc. Wages are comparatively low in the North, and the workmen's
zeal for production is high. Tho problems of raw materials and marketing
channels are all being easily solved with the help of the government and all
public and private business enterprises in north China. Consequently, these
facts serve to persuade.. industry to come to Tientsin.
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CLASSIFICATION CONFIDENTIAL CaNFIDEN 1,~~'
THIS IS UNEVALUATED INFORMATION
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A0006003003
 Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300344-6
CO
CONFIDE NFIDN~[
The K'ang-lo Cigarette Factory moved and began operations on 6 Janu-
ary 1950. In the following month, production improved daily, to the point
where the original daily output of five cases has now increased to nine.
The cigarettes are being marketed throughout Peiping, Tientsin, and Tsing-
tao.
The Huan-ch'iu Undergarment-Weaving Plant began operations in Decem-
ber 1949. In addition to retail sales, wholesale lots are sent to depart-
ment stores in Tientsin, to cooperatives, and to all the large urban areas
in the Northeast. This firm enjoys the security and the convenient com-
munications facilities of the Tientsin section and hold..- high hopes for
the future.
The Ya-cbou (Asia) Electrical Apparatus Plant has already rented of-
fice and factory apace on Chien-she and Pei-ching streets in Tientsin.
Their machines and equipment in Shanghai are rapidly being dismantled and
shipped. This plant specializes in the manufacture of insulated wire,
electric cable, etc.
The Val-ling Electrical Apparatus Plant has arranged for the rental
of factory and office space on Ma-ch'ang and Chien-she streets. Their
Shanghai machines are now en route to Tientsin.
The Hain-an Electrical Apparatus Plant has arranged to rent office
space and a factory site on Chieh-fang South Street and Chien-she Street.
Some of their machinery, equipment, and workmen are soon to be moved to
Tientsin. They pan to start production sometime in April 1950 and have
already secured many orders.
The Sheng-sheng Glass Iron and Steel Tools Plant has practically com-
pleted the job of moving into Tientsin and will be able to begin production
within a matter of days. This plant specializes in the manufacture of
thermos bottles and can produce 2,000 per day.
The Ch'ing-ch'eng Dyestuffs Factory has arranged to purchase a factory
site in Tientsin and is preparing to build a dye plant. They intend to in-
crease production, reduce costs, and supply the tremendous needs of the large
agricultural towns. As a primary step, they are preparing to manufacture
sulfide black, and expect a daily output of about 50 cases. Next they plan
to set up machinery to manufacture basic colors (red, black, blue, etc.).
This firm has already made a report to the Industry and Commerce Department
of the city government and is now undertaking to build the plant.
FOREIGN MERCHANTS PLAN TO CLOSE BUSINESSES -- Hong Kong Kung-shang Jih-pao,
15 Mar 50
Foreign business firms in Hong Kong, in view of the reports that they
are receiving from their representatives in the large trading centers and
ports of the Chinese mainland, take a dim view of the future of foreign busi-
ness in Communist China. Because of heavy taxation, forces purchase of bond
issues, and high inflation of the people's currency, foreign businessmen be-
lieve that they will not be able to carry on more than 6 months longer. They
are laying plans, therefore, to close up and move elsewhere.
Some reports from business sources indicate that in most of the large
cities under Communist control one third of the Chinese business houses have
already closed, another third are planning to close ae soon as they dispose
of present stocks, and the others see no hope of any real future for business.
Approximately nine tenths of all gold and silver shops have gone or are going
out of business as soon as they can.
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CONFIDENTIAL
Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300344-6