WOOL TRADE, CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004800440001-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: September 17, 2013
• Sequence Number: 1
• Publication Date: May 8, 1950
• Content Type: REPORT

CLASSIFICATION 57044/,
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17: CIA-RDP-8i-00457R004800440001-7
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COUNTRY China/US R
INF RMATIOR1 REPORT
CONFIDENTIAL
SUBJECT Wool Trade, China
PLACE
ACQUIRED
DATE OF
INF ,
0 \SAO ti.v,
CD NO.
DATE DISTR. 8 HAY 50
NO. OF PAGE'S 3
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
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THIS IS UNEVALUATED INFORMATION
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1.
the North China Skins and. Wool Corporation (NCSWC) was es-
tablished as the Chinese Communist Government monopoly for all wools,
hair, furs, skins, hides and casings. Its head office was. in Peiping,
with branches in Tientsin, Ealgnn, Tatung, Kweisui, Paoton,Tsinan, Taiyuan,
Yaifeng, Sian and other smaller centers. It had agents and collecting
stations scattered along all railroads and truck and animal routes in the
wool-producing areas. The cornoration was described as nurely a trading
agency and its functions were as follows:
a. To collect wools and other Products directly Iron the Producers and to
mnply them with manufactured goods, imnlements and other requirements.
b. To distribute collected wools, skins, etc., to domestic consumers,
factories, tanners, etc.
c. To sell these 'products abroad.
2. Private enterprises were allowed to carry on within China, but all exnorts
were strictly controlled, and foreign exchnnge was to be surrendered to
government-appointed banks.
3. According to the latest Chinese Comnunist decrees,* NCSWC
exports will be handled by the North China Foreign Trade Cornoration. Both
of these organizations are controfled by the following organs of the Chinese
Communist Government:
a. The Economic and Finance Comnission, which is the highest policymaker.
b. The Ministry of Foreign Trade.
c. The Foreign Trade Commission for North China.
4. The activities and cargoes of NCSWC in the various areas of China are under
the strict control of local Military Control Committees.
CLASSIFICATION SC
FIDE DAL
J_JC07TROL
DISTRIBUTION
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\
Thrtacorrteet
CONFIDENTIAL in accord, ice w:th Vie
letter of 16 October 1978 from the
Director of Central intelligence to the
Archivist of the United states.
Next Review Date: 2008
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17: CIA-RDP82-00457R004800440001-7
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17: CIA-RDP82-00457R004800440001-7
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SECRET/CONTROL - U.S. OPPICIAL3 ONLY
CENTRAL. INTELLIGENCE. AGE17CY
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5. The Chinese Communist Government has taken over some 10,000 tons of wool
at collecting stations in North Shansi, Shensi, Suiyuan, Ningsia, Yansu
and Tsingbai.which belonged to various organisations such as the MA Group
(a wool business operated by Nationalist Governors MA Hungekaei. and MA
Pu-feng), Nationalist-operated companies and former government banks.
This stock consists mostly of sheenlls wools collected
6.
a.
estimate of these privately owned wool stocks is as follows:
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Three thousand tons in Paotou, Kweisui, Tatung, Ralgon, Rsuanhua. Yulin
and three smaller centers of this area.
b. Eleven thousand tons in Tientsin and Pelting.
C. Not less than 10,000 tons in Ningsia (including Alagshan and the ?Hos
Region), Ransu and Tsinghai.
7. Thus the Chinese Cercrunist Government controls at least 24.000 tons of
exnortable wool, considering local consumntion rejects. Some stocks
of wool in Manchuria (Hailer and Jehol districts) are not included in this
estimate.
8. At least one-third of the export stocks is 4 to 5 years old, stale, Partially
water-damaged, discolored and moth eaten. These old stocks were never Proper-
ly warehoused nor protected from outside moistnre, but were piled un right on
the gronnd in the original grease, dung and dust, and some were adulterated
with sand. A large risk to export-import firms lies in'the fact that these
damaged wools may be brought to Tientsin for sale abroad0 such
wools were offered. in Paotou and Tientsin, mixed in with some fresher goods
and sold under various popular tyne-nnmes, mostly to newcomers or specu-
lators.' At Present, foreign wool buyersc activities are limited to stocks
which were brought into Tientsin
9. Partial trade between the USSR and Sinkiang has been resumed, and talks are
bein held to establish new arrangements for the wool trade.
Russian wool experts were sent from Sinkiang and Outer Mongolia to the
nc ou and Wuwei (102-48. 37-58) areas to supervise Chinese wool deliveries.
Russian experts are very familiar with China wools, particularly those from
the Northwest, and there is no doubt that they will reject all damaged or
stale wools. They will have the pick of the crop for their own use or for
export where prices and demand are very favorable
during the present World shortage in carpet wools. ?
10. The wool could be transported on trucks. from Lanchou via Ninghsia in 6 to 8
. days to the Russian rail terminal recently comnleted at Ulan Bator. Wool
can be transported from Sitting to flan Bator in 10 days and from Ninghsia to
Ulan Bator in I. or 5 days. Yormerly 18 to 20 dais were required to take wool
from these collection centers to Russian railheads in Sinkiang.
11. Wools could be washed hot or cold at Lanchou, and river-vashed at Wuwei to
increase the Value of the truckload,
12. There is very little chance of exporting North Inner Mongolian wools via
Dairen as in former years.
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13. Even if the Chinese Communist Government wool monopoly can keep some wools
for domestic use and for obtaining foreign exchange, lack of inland trans-
portation will prevent the delivery of any cargo to Tientsin until the
summer or fall . Ne stocks can be taken to Tientsin from Yensu or 50X1-H UM
Tsinghni in the near future. Only limited quantities of wool will be availa-
ble from places close to the Peiping-Sniyuan railroad or other rail lines, or
from nearby areas such as Suiyuan, North Shensi, North Shansi, Chahar or Ningsia.
All available motor tranenort and gasoline is comrandeered by the military. Be-
sides, the cost of moving wool by truck.over long distances is prohibitive; a
5-ton truck on fair roads can carry only 2-4- tons of the bulk 'wool. Only one
SECREZ/CONTROL - U.S. OFFICIALS ONLY
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17: CIA-RDP82-00457R004800440001-7
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17: CIA-RDP82-00457R004800440001-7
SECRET/CO:72710L - U.S. CfliTCIAIS ONLY
CENTRAL INTELT',IG7ICE AGIT:ICY
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round trip by camel in soring and one in fall is Possible between Lanzhou
and Uuwei. Two round trios in spring and two in fall are nossible between
Paotou and Rweisui. The Yellow River is fronen until April and has only
two high water seasons, May-Jtne and Sentember-November. A skin raft and
crew usually makes only a one-way trio from Lanchou and Paotou to the coast
during each season.
14. In Manchuria, North and Central Inner Mongolia (Loma Miao and 'Beitze Vino
districts), Haunt and Jebol, little or no production can be expected
ecause most of the livestock, including the Mongols sheep, have been
confiscated, first by the Russians and, later by the Chinese Commu-
nists. Transportation is also a problem.
Since the surrender, Chnrhar, Suiyuan, North Shansi and' Shensi
have been involved in civil strife with attendant loss of livestock,
though not as sevently as in Manchuria. Production is expected
to be very much less than in pre-war years, and less than that under
occupation.
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16. Ningsia. Nansu and Tsinghai enjoyed peace through the war years, and. no
other disasters occurred. Production will be the same or more 50X1-HUM
than in pre-war years.
le?. There will. be no production in Ronan and Shantung because livestock has been
sharply reduced, in numbers by contintous large-scale military deprelatione,
floods and droughts.
18. Szechuan and Sing wools are dependent upon restoration of inland trans-
portation for their availability. Hopei, South Shansi and Shensi were never
important wool-producing areas.
Comment. This new order brings in more middlemen between the
producer (and, for the tire being, the dealer) and the prospective
foreign buyer. It means more local and central controls and, conse-
quently, more outlays at the growerst expense, It is doubtful that
this new system will be an effective way for the Chinese Communists
to dispose of their wool.
Declassified in Part - Sanitized Copy Approved for Release 2013/09/17.: CIA:RDP82-00457R004800440001-7
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