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• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01049A000300050001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 18
• Document Creation Date: November 16, 2016
• Document Release Date: March 6, 2000
• Sequence Number: 1
• Content Type: FORM

Approved FQr Release 2000/05/12 : CIA-RDP79TO1049A000300050001-2
Approved For Release 2000/05/12 : CIA-RDP79TO1049A000300050001-2
 Approved For' 'lease 2000/05/12 : CIA-RDP7I1049A000300050001-2
.Junbcr :Jatc of Dc
'Y .10. 11011 01i xiG JCY
25X1A
DATE _Ir 'n;
25X1A
25X1A
Approved For Release 2000/05/12
CIA-RDP79TO1049A000300050001-2
CC):; FI;);
L'kL
DLI:,eta U",11- d
 Approved For Release 2000 r IlA-RDP79TO1049QO6O300050001-2
25X1A\ \
25X1A
)/'a#DAs=uM
Approved For Release 2000/05/12 CIA-RDP79TO1049A000300050001-2
 Approved FeRelease
2 : CIA-RDP719T01049A0003000501?01_-2,,
99
MAY 8 1951
lL
)
I ()BANDUM FOR THE ASSISTANT DIRECTOR FOR RESEARCH AND REPORTS
SUBJECT: Request for Information on Chinese Communist Seaborne
Imports
1. It is requested that this Office be furnished a 'brief mem-
orandum in answer to the following questions:
a. What are the Chinese Communists importing by sea?
b. Where are these imports coming from?
c. How are they being procured, financed, and transported?
2. Information is requested on all imports reaching Communist
China by sea, including those from the USSR and the European Satellites.
3. It is desired that this information cover the period since
1 January 1950 and that, where feasible, it be broken down on a
month-to-month basis.
4. The quantity and dollar value of each important category.
(such as "motor vehicles," "machinery," "POL,11 I'medical supplies")
should be stipulated wherever possible. Less important items may
be included under a general heading of "miscellaneous."
25X1 A 5. - of this Office has talked with of
0/RR about this request, and is available to discuss any further
25X1A
Assistant Dire:
SECRET
25X1A
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 4 ,.
Approved FQ Release 20SKRU: CIA-RDPWT01049A000300050001-2
Roasting:
R Pa.TS DI VISION
=a MIN
Note: This cover sheet moot aoc o:WwW the draft under review at all times within
D/ R. When the draft is returned to the producing division, the date will be re-
corded, proper entry made in the log, and the cover sheet and attachm nts returned
to the file4 When the draft is again received in D/fA, the cover shoal, will be
attached with notation of the date on it and in the log. The Initiation and Control
Branch should be advised of the above transactions.
No drafts should be accepted by the Editors without an Editorial Review
cover sheet.
Editors will advise the producing division prom pt7,y of the results of their
initial review.
Projects IP-213 Received fms D/S
Subjects' Chinese Communist Seaborne Imports Date: 10 May 1951
1950-1951
Remarkes 0/NE request
Results of initial review ccsammioats d to
Divisions
Dates
Deadline for editing: 11 May noon
Returned to Divisions
Received in D/Rs
8mmmecr7 of Initial Review fuse reverse side if necessary)s
25X1A
Firm] Draft approved by Divisions D/Rs?~,, Dates ~~Cl~3r
C w f ~e Chief, D/R gLA__ Date Qf I-" &4k
Cover sheet, at s, editorial cents and edited draft will be returned
to file upon completion of project.
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 Approved For Release 2 5/12: CIA-RDP79TO1049A000300050001-2
CENTRAL INTELLIGENCE AMY'
12 M q 1,951
SUBJECT; Chinese Co isst Seaborne Imports 1950 1951
In 1950 the Chinese ianporte frem the non-Orbit world ,ntod to about
96500 million. Noarly half of these imports oa through Hong Kon China's
non-Orbit imports in 1950 showed a 0200 million ixaoreaee over the 1949 total of
03W million, It is estimated that non-Orbit trade mo about four the China's
Orbit treaded China's seaborue imports from the Orbit were negligible en the
baulk of much imports entered China overland (from June to December 1950 Polish
ships, which carried alnst all of the Satellite trade, delivered not more than
56,000 tons).
Z. 7[a orta by s of Coaiwditidars a td Couaatriers
Rubber, ohomio is (including ph ocutic .n), and minerals and their
ma=facturee aaaoimtod for two-thirds of the total Chinese imports tbrough Ibag
Kong in the period August 1950 through January 1951. Rubber was imported
in y* from I; 3.sya, but also frol is UK, Indonseia, and North Borg; chardeals
am n largely from the US, the UK, Hal land,, a Japan; and the US, the UK, Sweden,
Qe , Franoo. and Belgium were the n suppliers of minerals end their
manufactures.
The US, , , Japan, Switsorla , crest Ceara , the U!, and Belgium.
Iaas nbourg were major direct exporters to China during 1950. Sia to mid-1960
t 1, yen, Japanee, Swiss, smd Belgian aaxporta have increased ra djly, ale t1B
?zporto have bccome negligible, I3 ayan exports (in US dollars) in 1950 to
China s d an inere ss of 900 port over 1942. Direct Chinos* imports of
rubber from Uslays began in July 1950, r &ohod a peak of 12,000 toss per month
by Ootobor, than fell off to a monthly average of 6, 000 tons in two first
quarter of 1951& probably boeau ae of the discussions on rubber z Wort quotas
? prior to W wan an onbargo. Bog rubb Imports from LWAyaj, a high per-
aent of which asic re rted to China, have follov zd a a izd1o trend.
It is ,stinted, that S ,se w Torts to Chian are ourrent]y reaching the pro-
portione of a yearly avvorage of 050 million,, aeraw only 318 million were
forted in the whole of 1950.
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Sa Tranashipmente, and LMN. a
Ibug Kong is tho major trans9ship1 x nt point booauso of its rail con-
neoti.on with South Gld.m. and Its oxcollont harbor faaacili.tieas. In tho fake of
the incroa ing flow of Chinosse iral orrta, ooup'1od with tightening export controls
in Hong Xoi , several additional tr slxipment points haver developed in ire-
portanae. Ltaoaoe for example, which bas few r eatriotions on trade. with Chit a
is a growing traauaashipmant point, as well an a major ss=ggling ci.ta, between
Bong Ko, and Ghinne The Hong Yong administration still finds itself leg,aUy
justified in trading (within th um-its of a fee rcaztriotiona) with !Jaea3.o an a
Portuguese tarsi rya
Sinoo they imposition of the US o arrgo on shipmcn'ars to Gc-mmunist China
in Doooatber 1950, further trasss+ashipm:+zrt points have been nought: Amst?rd ua
A.nt' rp, Genoa, and I1 iburg 'in ESaropej SinGaporo and ports in Indiaaa Pakistan,
Via, and Indoncssia in than East have bocome t zzasahipment points in t1 Chin
traadeo If mn aaport:ea* can makes ahipa enta to rn r of these poiutc, the Chinese
will arrange for shipping bottoms.. Belgian exports to China direct and via
lbnC Itorag in k:overbaxr alone were 30 percent of the 1950 total through that month;
and India?another new tsm ssddpwnt area, has axportcsd to Chin over a million
ck leas vlo rth of tires from September 1950 through January 1951.
Clandestine trade betvmen China and Southeast Asia is apparently fairly"
xtensivee Chinose junky ply between China and Bong Kong, t aasaao?, and other
points aloe the a inaive coast l.iz, in particular southorn Vietnam and I: laara0
Ships are engaged in picking up potroleum ssupplioss in remote ports in Borneo,
Indonesiag, and Malaya.
Hong Kongs LIacao, Indonesia,, or Indochina era oft designated as the
destinations on the bills of lath gag, but onto at sea this ships area da.vorted to
China.
40 ShipP Bottoms of Chinas InmorLa
vino AuCu t ,1950, rfoabor a xpoxrts from the rest of the world to
Hong Kong havo been carried predomtinanntLy by British ships; Paananmi?an and Nor-
re ian ships oomo not in this trado. As to shipments from Hong Kong to China
British bottom are again predoz in&nt, though Chineao-cxrned ships have made
about half as many runs a have the Dritiah$
5o Cho=3.s for Purchases
Tho Chinoco are =king purchases through their oven agouoies in tho
country of origins through export-import agencies in various oounbries, and
through direct contacts with fm.taufaaotuerzs abroad or their reprewitatives in
Hong Kong v Singapore, or the Chin waainlande
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Cl aols of ~3nencir,
Up to November 3950
Chi
,
Swiss
nese,; banks arranged for dollar, storlinga or Iyaw lottgrse of credit opened in favor of US, Europoan, and Asiatio
shippers. Prier to the freezing of Cou nict Chinese asssatn in the US, china
tranf 3 red largo dollar deposits, largely inherited from the l otioxjata in
1949, from tY US to Switzerlaasds vrhrsnoo payments wore made to agents and ox.?
po irts@
In additions t Chi-nose hmvo been recently eraga od in large-scale
Mugglin of opium? gold# and silver abroad to supplement depleted foreign
o= c recorvese Comers over foroign, exchange in also ahoy, 'L7 recant
rapt area taken by, the Chinese trades authorities in liberalizing regulations in ordor to augment foreign exchange ea,raings, sport
SECRET
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SECRET
TABLE I
VALUE OF MUG KOIIG EXPORTS TO 0131M BY MNTIM
Ja w iy 1960 'a JcuU j 2951
h ong Kong
Dollars
Lnmil)
US Dollar
Equiva.1onb
(in millions)
1950
JQUUM7
93.4
1603
Fobzuy
82.0
14.4
I k;oh
9405
16,5
April
83.6
1418
MY
7604
13?4
June
77.7
1308
July
9402
1615
August
113?5
1919
Sep
173,9
3064
Ootobo-
X96?3
39.4
Novembor
19803
34e7
Dsoeiubo
17704
3100
1987
Jenuus7
249 o1
43 m6
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TADI II
H+?NG KONG EXPORTS TO CHINA BY COLUODITIF.S AND VALUE
DURING THE SIX-WNW PERIOD AUGUST 1960 TO JANUARY 1961
(in tbousan& of Ibng Kong doll:")
C ct G u
2
0~t
Nov
Doc
Jan
Tog
a
Food produots
90741
130483
219021
11,276
68413
11;0870
720783
Non-food produota
40210
4?728
70064
3,782
3,628
965
.240367
C1 1OVls
31.,343
460677
.42,986
$80003
400621
60,097
279,9626
Rubber and
M= 4f aotmws
208307
33xO6O
410816
62,384
540746
770046.
2790368
TToodD .pulp, and
i u2aoturas
I$601
40361 _
28,584
18,780
3,883
70788
21896
Hides$ akiva., leather
and mart faotu o
308
340
241
379
271
245.
10780
Toxi1az, fibers
2,310
248341
120296
68602
49602
71t362
570315
Torti1es3, finished
products
104,408
7,000
118935
94924
158508
184,656
759430
Petroleum produots
10443
10416
10692
1,9985
18369
1;,066
8,9939
Lino la and
Iftatures3
190071
26$704
410038
31,9930
270529
38,0928
184x320
I;Itanufeaturea
10576
3,081
2,844
3.,991
30903
50228
20$423,
thohiner3r
78881
50107
6,159
9,634
90675
111,356
490813
Vo1io1o3 and
trezoport equipment
1,0994
3,079
20960
4,702
66,129
6;,643
249526
IS.rsoe11aneous3
16448
1,0550
10748
2,9647
10215
19829
9$797
Toil c+
113 .
17
19 ;
198,297
1.77 392
249 0089
1
7
(31 not add up to totals duo to rou tdings
Equivaloarb to US 011939976,000,
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 Approved For Release 2000/05/12 : CIA-RDP79TO1049A000300050001-2
SECRET
UBM4 III
UON( SONG PORTS TO I3ACAO
DUIIIPIGG TIM. T2)NTfS SEIPTffiBt 3960 do I. Y 1951
lars)
.tin tb usaxds of IbM Mmg
.L& UU
Food products
Non?9bod products
Cl miea1
Rubber aufil
sufaotures
Wood and
otU as
Pulp and
mono.ruabure5
ie, Oct
3,9378 7.0955
1, 093 18031
4,164 48360
Nov DOC
26300 2,9115
1,033 1,179
48996 4,201
ion
3p26ck
1,29:
13,501
2,0J1.
Total
150810
6,628
. 31,222
2,940
282 135 239
293 416 427
390 436
1,138 38103
57 71 269
11,926
Fi24 627.
N .chat, akinsy and 57 42 43
leather
Laufaoturo of
l author
T*xtilefis fibers
Tiles, f1miGbOd
products
Fe tro1ou producsto
Ilinerm1s and
maxaufaOtUX s
L pine y
vehicles and trans"
port oq.u p t
7 7 6 6
4 30
324 469 354 86 1,927 3&159
1,,204 183OG 18323. 1@443 1x316 6591
762 558 18167
967 693 10532
630 757 3,875
1 @166 992 5033x'
545 , 372 791 35 $19 2?381
655 169 300 159 270 10 553?,
636 645 954. 610
216 168 226 220
I,j 862 11 16 214 14
544 38283
267 1,087
. $.. 6 `2. ?
23L
a a not add up to to*La1s due to rouadix%0
Fguival p `b!dP 'deease 200Q%2 : CIA-RDI'79T01049A000300050001-2
 Approved 6r Release 200DJ h I CIA-RD9TO1049A000300050001-2
Project: 1171-213
CENTRAL INTELLIGENCE AG1 NCY
OFFICE OF RESEARCH AND REPORTS
Project Initiation Memorandum
Date : 10 May 1951
To: D/S
.Prom: D/R
Subject: Chinese Communist Seaborne Imports
Statement of Project
Origin: o/NE
PrObh m: To furnish information as to (a) Chinese Co munist seaborne
imports; (b) source of these imports; and Zc) method of
procuring, financing, and transporting.
Ste: It is requested that information include all Chinese Communist
imports, including those from USSR and European Satellites,
to cover period since 1 Jan 1950, broken down on a month-to-
month bass where feasible, stipulating wherever possible
quantity and dollar value of each important category
(i.e. motor vehicles, machinery, PUL, medidal supplies).
Less important items may be listed under "Miscellaneous."
Grica (if ally):
For n: Memorandum Di-gueminktion deadline
Draft dues in D/R s 10 May 1951
Respon ible Div i3 ion: D/S
Internal Coordination:
DeRartmeental responsibilities:
C1aacgification to benoa_bi ,1 even: SECRET
wa to a rorie~.-.
Roao)mmended Dissemination: Requester only
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 SECRET
A roved ForXelease 2000/05/12 : CI 1
CHINESE C0I'JIMUNIST SEABOF'1E IMPORTS
11 1950 - 1951
1. Summary
J,~ _ z ,
49A000300050001-2
In 1950 the Chinese import
P
f
~
on
rom the non-
rbit world
' at! D'v M, i ae_ t.i~
fir
#' n is r- 4,vt..e,..
h
At
rough Hong Kong, pEt ids estimated that ` non-Orbit trade
was about four times China's Qrbit trade. Seaborne imports from the Orbit
z
to December 1950 Polish ships, which oarried almost all of theSatellite
were negligible as the bulk of such imports entered China overland (from June
largely from the $ !~ alvt"4
0 the ~$miiirrt.~iMr, Holland, and Japan; Iris
Rubber, chemicals (including pharmaceuticals), and minerals and their
, , e. S6
manufactures accounted for two-thirds ofd total imports through Hong Kong in
the period August 1950 through January 1951. Rubber was imported mainly
from Indonesia, and North Borneo! chAmi r.A 1 c name
2. Imports by1 pes of Commodities and Countries
showed a $200 million increase over the 1949 total of,$300 million,
trade, delivered not more than 36,000 tons), China's non-Orbit 'i~rnias. in 1950
oweuen., uermany, Prance? and Belgium
were the main suppliers of minerals and their manufactures,
" K
The ps Malaya, Japan, Switzerland, West Germany, the
u and Belgium-Luxemburg were major exporters uri g 1950 to China
Since mid-1950 Malayan, Japanese,
t) Swiss, and Belgian exports have increased rapidly, while US exports have
te' become negligible. Malayan exports (in US dollars) in 1950 to China showed
A
an amazing increase of 900% over 1949. Direct Chinese imports of rubber
from Malaya began in July 1950, sail it, reached a peak of
quarter of 1951, probably-4a" the discussion prior to Ma ay n em argo4
Hong Kong rubber imports from Malaya, a high percentage of which are re-
P-4 ,
exported to China, have followed a similar
It is estimated that
14
Swiss exports to China are currently reaching the proportions of a yearly
average of $30 million, whereas only $18 million were exported in the whole
of 1950.
Transshipments and ,~muggling-
increasing flow of Chinese imports, coupled with tightening export controls
k-c cam o
Hong Kong is the major transshipment point-Fits rail connection
A
with South China and its excellent harbor facilities. In the face of the
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l
in Hong Kong, several add itional transshipment points developed in importance.
~#? Macaois a gro ing ransshi nt ?goixt, s well as a
major smuggling site, between Hong Kong and China.
few restrictions on trade with China;
tration still finds itse legally justified in trading (within the limits of
few restrictions) with Macao as a Portuguese territory.
Since the imposition of the US embargo on shipments to Communist China in
December 1950, further transshipment pints have been sou ht. Amsterdam,
v- c 1 e
,10 il~
Antwerp, Genoa, and Hamburg in Europe; India, Pakistan, =
Burma, and
Indonesia in the East have become transshipment points in the China trade.
If an exporter can make shipments to any of these points, the Chinese will
arrange for shipping bottoms. -Belgian 'exports to China, e~d??~
in
November alone were 50%. of the 1950 tots thro
g ~~; and India, another
WLA-A'1" fG G ;through-x----
ri
new transshipment ,,, has exportedd over a million dollars worth of tires
from September 1950 through January 1951.
Clandestine trade between China and Southeast Asia is apparently fairly
extensive. Chinese junks ply between China and Hong Kong, Macao, and other
points along the extensive coast line, in particular southern Vietnam and
Malaya. Ships are engaged in picking up petroleum-supplies in p in
Borneo, Indonesia, and Malaya.
or Indochina as the
_9 -an i d , destinatiozt on the bill4 of _ lading) but once
at sea the ships are diverted to China.
4. Shippinglottoms of Im. orts
Since August 1950,
wet" *"Ow9poe* exports from the rest of the world to
Hong Kong have been carried predominantly by British ships; Panamanian and
Norwegian ships ,*\next ~t # ,,in this trade. As to shipments from
Hong Kong to China, British bottoms are again predominant, though Chinese-owned
ships have made about half as many runs as have the British.
5. Channels for rchases
The Chinese are making purchases through their own agencies in the
country of origin, through export-import agencies in various countries, and
through direct contacts with manufacturers abroad or their representatives
in Hong Kong, Singapore, or the China mainland.
6. Channels of .hinancin
Up to November 1950, Chinese banks arranged for dollar, sterling, or Swiss
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franc letters of credit opened in favor of US, European, and Asiatic shippers.
Prior to the freezing of Communist Chinese assets in the US, China transferred
large dollar deposits, tar ely inherited from the Nationalists in 1949, from
the US to Switzerland, payments were made to agents and exporters.
In addition, the Chinese have been recently engaged,,in large-scale smug-
gling of opium, gold, and silver abroad to supplement depleted foreign exchange
reserves. Concern over foreign exchange is also shown by recent measures
dk~Ar
VVV
taken byChinese trade authorities* liberalizing import-export regulations
in order to augment foreign exchange earnings.
J: P 2i3
arn
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VALUE OF 3)NG KONG EXPORTS TO CHINA BY IK)NTHS
1.9.x' JANUARY _1951
)(r J
MONTH
,(in millions}
_
January
February
March
94.5
16.r
April
83.6
14.6?,
May
76.4
13.4
June
77.7
13.6
July
94.2
16.5
August
113.5
19.9
September
173.9
30.4
October
196.3
34.4:-
November
1 98.3
34.7
December
177.4
31.0
1951
January
249.1
43.6
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T X/
HONG KONG EXPORTS TO CHINA BY C00,)DITIES AND VALUF
DURING THE SIX MJNTH PERIOD $W-AUGUST 1950 TO JANUARY 1951
(in thousands of
dollars)
Grou
C
dit
Lu
Oct
Nov
Dec
Jan
Total
y
ommo
z
Food products
9,741
13,463
21,021
11,276
5,413
11,870
72,783
Non-food products
4,210
4,728
7,054
3,782
3,628
965
24,367
Chemicals
31,343
46,577,
42,985
58,003
40,621
60,097
279,626
Rubber and manufactures
20,307
33,060
41,816
52,384
54,746
77,045
279,3'8
Wood, pulp,`and manufactures
1,501
4,361
2,584
1,780
3,883
7,788
21,896
Hides, skins,'-;leather, & mfrs.
306
340
241
379
271
245
1,780
Textiles, fibers
2,310
24,341
12,295
6,502
4,502
7,362
57,313
Textiles, 'inished products
10,408
7,000
11,935
9,924
15,508
18,656
73,430
Petroleum products
1,443
1,415
1,692
1,965
1,369
1,056
8,939
Minerals and manufactures
19,071
25,764
41,098
31,930
27,529
38,928
184,320
Manufactures
1,576
3,081
2,644
3,991
3,903
5,228
20,423
Machinery
7,881
5,107
6,159
9,634
9,675
11,356
49,813
Vehicles andatransport equipment
1,994
3,079
2,980
4,702
5,129
6,643
24,526
Miscellaneous
1,408
1,550
1,748
2,047
1,215
1,829
9,797
Total
113,519
173,864
196,251
198,297
177,392
249,069
1108,372
1P AV
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IDNG KONG EXPORTS TO MACAO
DURING THE IVDNTHS AW-SEPTEMBER 1950 TO JANUARY 1951
(in thousands of
dollars)
Commodity Group
i6l
Oct
Nov
Dec
Jan
Food products
3,378
1.,955
2,300
2,915
3,263
Non-food products
1,093
1,031
1,033
1,179
1,293
Chemicals
4,164
4,360
4,996
4,201
13,501
Rubber and manufactures
282
135
239
191
2,092
Wood and manufactures
293
416
427
345
444
Pulp and manufactures
390
435
524
621.
1,138
Hides, skins, and leather
57
42
43
57
71
Manufacture of leather
7
7
6
6
4
Textiles, fibers
324
469
354
85
1,927
Textiles, finished products
1,204
1,306
1,321
1,443
1,316
Petroleum products
762
558
1,167
630
757
Minerals and manufactures
967
693
1,532
1,153
992
Machinery
545
372
791
353
319
Vehicles and transport equipment
655
169
300
159
270
Manufactures
536
645
954
610
544
Miscellaneous
216
158
226
220
267
14,862
12,751
16,214
14,168
4Columns may not add up to totals due to rounding .0
Total
13,810
5,628
31,222
2,940
1,925
3,109
269
30
3,159
6,591
3,875
5,337
2,381
1,553
3,288
1,087
SECRET
Approved For Release 2000/05/12 : CIA-RDP79TO1049A000300050001-2