CHINESE FOREIGN AND DOMESTIC TRADE EXPANDS; TRADE MINISTRY HOLDS CONFERENCE IN CANTON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600360896-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: July 22, 2011
• Sequence Number: 896
• Publication Date: December 18, 1950
• Content Type: REPORT

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.4h. CLASSIFICATION CONFIDENT
IAL
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY China
SUBJECT Economic - Trade
HOW
PUBLISHED Daily newspapers
WHERE
PUBLISHED Hong Kong; Tsinan; Sian
DATE
PUBLISHED 9 Aug - 29 Oct 1950
LANGUAGE
THIS DOCUMENT CONTAINS INPONNATION AFFECTING THE NATIONAL DEFENSE
Of THE UNITED STATES WITHIN THE MEANING OF ESPIONAGE ACT SO
U. S. C.. SI AND DI. AS AMENDED. ITS TRANSMISSION OS THE NSVELATIOw
OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIIEO PERSON IS PRO.
NIIITEO by LAW. REPRODUCTION OF THIS FORM IS IROHINITID.
DATE OF
INFORMATION 1950
DATE DIST. /Y Dec 1950
NO. OF PAGES 1" 5
THIS IS UNEVALUATED INFORMATION
CHINESE F^^^TGN AND DOMESTIC TRADE EXPANDS;
TRADE MINISTRY HOLDS CONFERENCE IN CANTON
icia1 figures show an 18.3-percent gain in Hong Kong foreign
trade in September over August. Total imports from China for Sep-
tember were valued at 118,700,000 Hong Kong dollars, exports to China,
18 ,860,000 Hong Kong dollars. US exports to Hong Kong in Septem-
ber rose 2,069,469 Hong Kong dollars over August. Malayan crude rub-
ber was Hong Kong's largest single import item.
US'and Pakistani export restrictions on cotton have sent Hong
Kong'buyers to Egypt for supplies. Hong Kong gunny bag prices rise
to 5 Hong Kong dollars each.
The volume o:L Shanghai exports for September rose 60 percent above
that for August. Tsingtno foreign trade for August showed a gain of
34.5 percent over July. Principal export items were tung oil, peanuts
peanut oil, and eggs.
Trade of the Northfiest with rest of China showed encouraging
growth during firdt half of year. Important items sold by the North-
west were 217,000 piculs of ginned and 11 million catties or raw cot-
ton, 250,000 catties of bristles, 12,038,000 catties of materia
medics 3,400,000 catties of wooly and 10 tons of sulfur.
The Ministry of Trade sponsored a Production and Marketing Con-
ference recently in Canton. The conference revealed a great many
weaknesses in the production and marketing system. The Ministry of
Trade has posted new uniform grain prices to aid in overcoming "scis-
sors crisis."
HONG KONG FOREIGN TRADE RISES IN SEPTEMBER -- Hong Kong, Wen-hui Pao, 25 Oct 50
According to official figures, Hong. Kong foreign trade rose 18.3 percent in
slue in September over August for a total value of 762,280,385 Hong Kong dollars.
Imports totaled 358,846,627 Hong Kong dollars and exports 403,433,558 Hong Kong
dollars.
STATE
IARMY
NSRB
FBI
CORF1OLE N- T-1.11 L
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The China mainland trade amounted to more than a third of the total for Sep-
tember, distributed as follows:
Area
Imports (HK dollars) Export
s (HK dollars)
North China
29,500,000 7
4,200,000
Central China
25,200,000 3
3,300,000
South China
54,700,000 6
6,4oo,ooo
Macao
9,300,000 1
4,900,000
Total
118,700,000 18
8,800,ooo
CHINA GREATEST SOURCE OF HONG KONG IMPORTS IN SEPTEMBER -- Hong Kong, Wen-hui
Pao, 25 Oct 50
The US was second to China as the greatest source of Hong Kong imports for
September, supplying 49,810,000 Hong Kong dollars worth of goods, a rise of
2,069,469 Hong Kong dollars over August. Crude rubber from Malaya was Hong Kong's
largest single item of import and cotton cloth the largest export item.
HONG KONG COTTON BUYERS SEEK NEW MARKETS -- Hong Kong, Wen-hui Pao, 28 Oct 50
Since the US and Pakistan have placed restrictions on cotton exports, Hong
Kong buyers have been seeking new sources of supply. One promising new source
is Egypt. A shipment of 1,200 bales already purchased is scheduled to arrive
here by mid-November.
GUNNY BAG PRICES ADVANCE SHARPLY -- Hong Kong, Wen-hui Pao, 26 Oct 50
The Indian government's increase in export duties on gunny bags has resulted
in a price rise in Hong Kong to as much as 5 Hong Kong dollars each for some
varieties.
SHANGHAI FOREIGN TRADE EXPANDS -- Hong Kong, Wen-hui Pao, 24 Oct 50
During September, the export goods that passed through the Shanghai export
inspection station amounted to 60 percent more in value than for August. Among
the articles passed were 35,836.9 quintals of tung oil and vegetable oils, 1,924.5
quintals of sheep, goat, and camel's wool, 196,100 sheepskins, and 908.5 quintals
of bristles.
TSINGTAO TRADE RISES IN AUGUST -- Tsinan, Ta-chung Jih-pao, 20 Sep 50
Tsingtao foreign trade figures for August were the highest for any month
since the liberation and show a gain of 34.5 percent over July. Exports showed
a gain of 34 percent and imports 27.7 percent. The alleged reasons for this
gain are: (1) Prices of the principal export items, eggs, peanuts, peanut oil,'
and tung oil have become stabilized and lowered. Exporters are able to realize
a better profit, hence are more active. (2) The foreign demand for peanuts,
peanut oil, and tung oil is active. (3) Revision of foreign exchange rates in
favor of yuan has encouraged importers to become more active.- (4) The government
has extended aid to exporters by loans and reduction of rail freight rates on
export goods.
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C,e f I ER11 L
Export figures from Northwest to the rest of Ching for the first and sec-
270,000 catties
400,000 catties
has imported products of factories in the
total value of 40 billion yuan. Among
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ond quarters are as follows:
First Quarter
Machine-ginned cotton
Second Quarter
Machine-ginned cotton (to East and Southeast China)
Raw cotton
22,000 piculs
11,000,000 catties
Bristles (by China Bristle Company)
Bristles (by private companies)
Materia medics
Northwest Local Products Company
Private companies
150,000 catties
100,000 catties
38,000 catties
12,000,000 catties
Hides and Wool (by China Hide and Fur Company)
Wool
3,400,000 catties
Fine wool and camels' hair
Hides
Intestines
9,000 cattie
31,000 catties
70,000 bundles
Trade between the Northwest and the rest of the country is showing an en-
couraging growth. Both government and private companies are participating in
the exchange of goods.
Flour (coarse) 300,000 bags
Chemicals and oil (China Transportation Company)
Sulfur
Peanut oil
10 tons
26 tons
Imports Lto Northwest from rest of Chin are as follows:
Second Quarter
Cloth (China Cotton Yarn and Cloth Company)
General merchandise (China General Merchandise Company)
600 items, valued at 41 billion yuan
Tea (Northwest China Tea Company)
Leaf tea
Brick tea
The China Trust Company in Sian
various other sections of China to a
these imports are:
Sugar
Cloth
Paints and dyestuffs
Cement
100,000 catties
45,000 bolts
1,100 boxes
12,000 kilograms
The May wool price was 90,000 yuan per 100 catties. The daily wool trade
at Hsi-ning, Tsinghai, amounted to 50 million yuan.
The Ministry of Trade recently convened a General Merchandise Production
and Supply Conference in Canton, the first of a series of six conferences
planned by the ministry for various lines of trade. The main questions
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G .'Ea IAL .
consider." at this first conference were: (1) production and marketing,
(2) relationships of industry and commerce, (3) relationships of public
and private enterprises, and (4) management policies and methods.
The present dullness in the market for general merchandise results from
costs being too high due to faulty accounting methods, careless handling of
raw material inventories, poor personnel policies, obsolete equipment, and
dependence on expensive foreign raw materials. Another factor is the failure
of producers to study the needs of the rural market. In contrast one company
that is producing a cloth that the country p'ople like is unable to meet the
demand for it.
Because of the above weaknesses, and although plants are only working at
50 percent of capacity, they cannot sell all of their product.
In the matter of industry's relationships with commercial fir!,s, the latter
have shown a mercenary spirit, endeavoring to take advantage of the medium-size
and small producers, charging high prices for raw materials and paying low prices
for finished products. Also they have often delayed payment for the goods they
bought, thus tying up the producer's capital. They have not been satisfied with
a reasonable profit and have sought by various means to keep the producers on
a low margin.
The relationships between public and private enterprise depend on mutual
helpfulness, but to date this cooperation has not developed as it should.
Some of the difficulties are that the China Cotton Yarn and Cloth Company
has not been able to keep factories supplied with yarn and factory owners.com-
plain that state companies do not sufficiently appreciate their problems. In-
dustrial concerns expect the state trade agencies to preserve a better balance
between supply and demand to prevent monopolization of raw materials by commer-
'ial firms.
Producers requested government trade agencies to adjust local prices to
match prices charged by private operators, see that there is a reasonable dif-
ference between wholesale and retail prices, permit more responsiveness to price
fluctuations, and effect better adjustment of yarn prices to market prices.
Since state trade organizations are established to stabilize prices, the idea
of greater responsiveness to price fluctuations in the market is contrary to
their basic purpose. Hence, this desire of the producers is out of line.
In the matter of management policies and methods, most firms are still
old fashioned. They remember that formerly 80 percent of their market for locally
produced cloth was foreign, so they do not try to please the Chinese country
market. They do not realize that their South Seas foreign market is being pre-
empted by Japanese products.
A large proportion of the 443 general merchandise companies of Canton are
without proper scientific accounting, personnel, and management practices.
CANTON JEWELERS CHANGE OCCUPATION -- Hong Kong, Wen-hui Pao, 24 Oct 50
Canton, 23 October -- The 260-odd jewelry firms that formerly operated in
Canton all closed down after the new municipal government announced its policy
toward their business on 5 December 1949. Since business conditions have im-
proved in Canton, nearly 100 of these firms have turned to other types of enter-
prise.
COMPERE TIAL
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CONFIDENTIAL
MINISTRY OF TRADE POSTS NEW GRAIN PRICES -- Hong Kong, Wen-hui Pao, 24 Oct 50
Peiping, 23 October (Hsin-hua) -- The Ministry of trade has posted new
uniform prices for grain to bring prices into line with consumer goods prices
and obviate local variations in grain prices as well as unwarranted differences
in the price of fine and coarse grains.
This adjustment was made necessary by the general drop in grain prices
since the harvest of a generally bumper crop.
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