POSSIBLE CHINESE COMMUNIST PURCHASES OF TELECOMMUNICATIONS EQUIPMENT IN JAPAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A002100200001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 13
• Document Creation Date: November 16, 2016
• Document Release Date: April 13, 2000
• Sequence Number: 1
• Publication Date: November 1, 1964
• Content Type: BRIEF

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NO FORFZGN a ISS M
CI:A/R.RCB 64-74
November 1964
G\FQSTgTESO PMT
117-
Copy No 212
INTELLIGENCE BRIEF
POSSIBLE CHINESJE COMMUNIST PURCHASES
O TE LECOMMUNiCATIONS EQUIPMENT IN JAPAN
DIRECTORATE OF. INTELLIGENCE
Office of Research acid Reports
QROIP 1
0 FOREIGN P S M 1Excluded, from automatic
downgrading and
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WARN. TNct
This material contains informatio L affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, TUC, Secs. 793 and 794, the trans-
mission or revelation of which in an.y manner
so an unauthorized person is prohibited by law.
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POSSIBLE, CHINESE COMMUNIST PURCHASES
OF TELECOMMUNICATIONS EQUIPMENT IN JAPAN
Recent negotiations by Communist China with Japanese firms for
the purchase of high-capacity microwave radio relay systems reflect
an,.intention to move ahead with plans to modernize its long-distance
telecommunications system. The acquisition of this equipment may
be only the first step in an extensive overhaul of communications in
China. The role of Japan in this probable buildup is not yet known,
but the sudden flurry of discussions underway with representatives of
Japanese electronic firms suggests that Communist China is prepared
to rely on Japan as a major supplier of civil telecommunications equip-
ment. The technologically advanced electronics industry of Japan is
capable, and probably willing, to meet the wide range of Chinese Com-
munist requirements for equipment. COCOM restrictions, which limit
the sale of high-capacity telecommunications equipment to Communist
countries, may prove to be the only major deterrent to a significant
increase in the volume of Chinese Communist purchases of telecom-
munications equipment.
1. Scope of Chinese Communist Negotiations
Since early in 1964, Communist China has increased steadily its
overtures to Japanese firms for the purchase of telecommunications
equipment. Current negotiations with Japanese firms have been
specifically concerned with the purchase of equipment for the con-
struction of a modern, high-capacity microwave radio relay system
for mainline routes radiating from Peiping north to Harbin and South
to Canton as well as an east-west arterial route connecting Shanghai
with Lan-chou. Although the precise technical characteristics of the
microwave system under discussion are not yet decided, it is prob-
able that a high-capacity system of at least 60 telephone channels is
being considered. (For the status of the main radio relay routes in
Communist China, see the map. )
Chinese Communist interest in the purchase of telecommunications
equipment in Japan has not been limited to the microwave field. Dis -
cussions to date also have explored the possible purchase of television
relay facilities, automatic telephone and telegraph switching equip-
ment, facsimile equipment, high-frequency and very-high-frequency
point-to-point radio equipment, and a 1, 000-kilowatt medium-wave
radiobroadcasting station.
S-E-C-R-E-T
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In addition to the attempts to buy telecommunications equipment in
Japan, Communist China has shown a continuing interest in developing
other Free World sources of supply. Starting in 1960, efforts were
accelerated to make purchases of this equipment in Sweden, France,
West Germany, and the UK. Although not extensive, deliveries of equip-
ment stemming from these efforts have included microwave television
relay equipment and teleprinters from West Germany and telephone
exchanges from Sweden. As yet, there has been no significant imports
of telecommunications equipment from France or the UK.
2. Potential Impact of Increased Purchases of Telecommunications
Equipment in Japan on the Telecommunications Resources of
Communist China
Currently the long-distance telecommunications systems of Com-
munist China operated by civil and military authorities consist of
low-capacity open-wireline and high-frequency point-to-point radio
networks. The low operational effectiveness of these networks has
severely limited their ability to respond to the strategic and economic
needs of the country. This ineffectual performance reflects to a con-
siderable degree the inability of the electronics industry of Communist
China to produce modern long-distance telecommunications systems.
Although production during the last 4 years has facilitated some minor
improvements in the communications system of Communist China (such
as the introduction of semiautomatic transmission modes on radio net-
works and the recent installation of a submarine cable connecting the
mainland with Hainan Island),its over-all communications capability
has not been altered appreciably.
Communist China's interest in purchasing increased amounts of
telecommunications equipment in Japan indicates that Communist China
is preparing to embark on a long-delayed buildup of its poorly developed
long-distance telecommunications system. Intentions to construct
nationwide arterial microwave radio relay routes indeed may signify
only the first step in a general overhaul of communications in China.
If abortive pre-1960 plans are reactivated, the program also could
include the introduction of high-capacity multiconductor and coaxial
cable systems and tropospheric scatter facilities over the next 7 to
10 years.
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3. Prospects
Although the role of Japan in the probable buildup of telecommuni-
cations in Communist China is not yet clear, the sudden flurry of dis-
cussions underway with representatives of Japanese electronic firms
concerning possible purchases of a wide range of telecommunications
equipment suggests that Communist China is prepared to rely on Japan
as a major supplier of communications equipment. The electronics
industry of Japan, which now ranks second in the Free World in terms
of total output, is ideally suited for this role. The industry not only
is a technological leader in production of equipment sorely needed by
Communist China but also is making vigorous efforts to enlarge its
trading base with Free World and Communist countries. Any increase
in Chinese Com'rxiunist purchases of telecommunications equipment in
Japan, however, would be contingent on an easing of COCOM restric-
tions, which up to now have effectively limited the overt sale of high-
capacity telecommunications systems to Communist countries.
Analysts:
Coord: ORR
25X1A
25X1A
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COMMUNIST CHINA
Status of Main Radio Relay Facilities U. S. S. R.
I December 1964
MICROWAVE RADIO RELAY
inIIIIIIIIIIIIin In Operation
Planned
Harbin
MONG.
VERY HIGH FREQUENCY (VHF) RADIO RELAY
In Operation Ch'ang-ch'un,
Exact routing of facilities is unknown.
0 400
I
STATUTE MILES 'Mukden
Chin-chou, NORTH
KOREA I
PEIPINGQ
SOUTH
Pao-t'ingKOREA
Lan-chou.
Cheng-chou
Sian
Shanghai
Nankin
g
Ping-hu
Ning-porTing-hai
Wu-han
c' Chang-sha
.Heng-yang
TAIWAN
,Canton
Q HONG
'
KONG r
MACAO (U.K.)
(Port.) PHILIPPINES
NORTH
BURMA VIETNAM 'Fort Bayard
Hsu-wei>C
Hai-k'ou
LAOS HAINAN
THAILAND
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NO FOREIGN DISSEM
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SE CRE T
 Analysts:
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-- OFFICE OF RE,3)F. ',R.CH .4. `W REPORTS
3t/P/RR + a'.Arol Section
MS/COM
25X1A
Control Sheet ~: SECRET
s M ~.. NO F DISSEM
SE
Scries Nt xber RR p Classification
of Document
_Zj 4
Recipient
GROUP 1
Excluded tram automatic
downgrading and
declassiticatiol
Number of Copies 280
Date
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