CHINA'S MERCHANT FLEET EXPANSION SINCE 1971

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01098A000500070001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 37
• Document Creation Date: November 16, 2016
• Document Release Date: February 28, 2000
• Sequence Number: 1
• Publication Date: June 1, 1975
• Content Type: REPORT

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Secret
No Foreign Dissem
EL L IC~rNC
~Qv 9G~
rn
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6-TES of
China's Merchant Fleet Expansion Since 1971
Secret
ER RP 75-16
June 1975
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NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 015319
Exempt from general declassification schedule
of E.O. 11652, exemption category:
65B(1), (2), and (3)
Automatically declassified on:
Date Impossible to Determine
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CHINA'S MERCHANT FLEET EXPANSION SINCE 1971
1. China's international merchant fleet is growing rapidly. Since the end
of 1971 it has acquired more than 2 million deadweight tons (DWT), enabling
the PRC to carry a larger portion of its foreign trade and reduce chartering costs.
Acquisitions have included the international fleet's first tankers and bulk carriers,
accounting for 50% of the new tonnage acquired.
2. Ocean shipping tonnage now exceeds 6 million DWT. The international
fleet and its joint stock companies control about 2.9 million DWT, while China's
Hong Kong fleet owns another 1.4 million DWT. The coastal fleet manages the
remaining 2.1 million DWT.
3. China is cautiously moving into new shipping technologies.
Containerization began with a limited China-Japan service in 1973 and expanded
with an additional service to the United States and Western Europe from Hong
Kong in 1974. Three major PRC ports now are being equipped for handling
containers.
4. The share of PRC trade carried by Chinese ships increased from less than
10% before 1972 to about one-third in 1974. In addition, the acquisition of
substantial tanker and bulk carrier tonnage has allowed the fleet to carry a larger
portion of China's growing petroleum exports as well as grain, ore, and fertilizer.
The international fleet should approach 4 million DWT by the end of the Fourth
Five-Year Plan (1971-75), with tankers and. bulk carriers accounting for more than
one-third of the total. The role of the Hong Kong fleet will decline as the
international fleet expands and international restrictions on Chinese-flag ships are
eased.
25X1A
Note: Comments and queries regarding this publication are welcomed. They may
be directed to of the Office of Economic Research, Code 143,
Extension 7931.
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5. China's international merchant fleet is expanding rapidly. Since the end
of 1971 it has added over 2 million DWT at a cost of $700-$800 million.
Acquisitions have included the fleet's first tankers* and bulk carriers, amounting
to more than one million DWT, or 50% of the tonnage acquired during this period.
6. The international fleet was formed in 1961 with two freighters transferred
from domestic service and one passenger ship acquired abroad. Fleet growth was
steady during the next decade, with the greatest expansion during 1964-67, when
net additions totaled about 300,000 DWT, and in 1970, when 200,000 DWT entered
the fleet. By the end of 1971 the international fleet had reached more than
800,000 DWT.
7. Acquisitions accelerated in 1972, reaching 276,000 DWT, more than twice
the tonnage acquired in 1971. Purchases continued in 1973 as another 556,000
DWT entered the fleet. In 1974, new tonnage exceeded by 60% the total added
in the previous two years as about 1.4 million DWT was purchased for the
international fleet. International fleet acquisitions during this period are listed in
Table 1.
Rationale of Chinese Fleet Expansion
8. The Chinese are expanding their international fleet to carry a greater
share of their growing foreign trade and to cut chartering costs. Before 1972, the
fleet carried slightly less than one-fourth of the total in 1973 and about one-third
of trade in 1974. However, as the fleet expands, severe shortages of skilled officers
and crews are becoming evident.
9. China is still a major world charterer and a leading client in the London
chartering market, with chartering costs exceeding $500 million, or approximately
No of China's import bill in 1974. During early 1975, however, a shortage of
foreign exchange curtailed some of this activity. The fleet's recent growth and
the change in its composition is allowing Chinese ships to carry cargoes, particularly
petroleum and bulk products, previously carried on chartered ships.
* The international fleet operated a tanker, Hong Hu, between 1966 and 1972. The Ta-Ch'ing 29, a
domestic-fleet tanker, sailed to North Korea under international fleet registry in 1972 and early 1973.
2
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Table 1
Total
2,182.9
275.6
109.2
166.4
556.2
159.5
396.7
1,351.1
332.9
1,018.2
Non-Communist
1,849.4
207.8
41.4
166.4
495.0
98.3
396.7
1,146.6
128.4
1,018.2
Sweden
578.8
....
....
....
107.1
....
107.1
471.7
....
471.7
West Germany
321.9
58.9
....
58.9
32.0
....
32.0
231.0
30.4
200.6
Yugoslavia
165.3
27.0
27.0
....
69.2
69.2
....
69.1
69.1
....
Netherlands
144.8
31.3
....
31.3
87.7
....
87,7
25.8
....
25.8
United Kingdom
134.0
26.0
....
26.0
71.0
....
71.0
37.0
....
37.0
Belgium
118.2
....
....
....
....
....
....
118.2
....
118.2
Finland
107.9
64.6
14.4
50.2
29.0
14.6
14.4
14.3
14.3
....
Norway
85.3
....
....
....
31.8
....
31.8
53,5
....
53.5
Japan
83.4
....
....
....
29.7
14.5
15.2
53.7
14.6
39.1
Denmark
50.4
....
....
....
....
50.4
....
50.4
France
46.9
....
....
....
25.0
....
25.0
21.9
....
21.9
Italy
12.5
....
....
....
12.5
....
12.5
....
....
Communist
333.5
67.8
67.8
....
61.2
61.2
....
204.5
204.5
....
China
236.0
53.2
53.2
....
42.6
42.6
....
140.2
140.2
East Germany
68.8
....
....
....
13.9
13.9
....
54.9
54.9
....
Poland
14.6
14.6
14.6
....
....
....
....
....
Romania
14.1
....
....
....
4.7
4.7
....
9.4
9.4
Fleet Profile
10. The composition of the international fleet shifted dramatically in 1974.
At the end of 1973, general-purpose dry cargo ships accounted for 85% of the
fleet. During 1974, purchases of tankers and bulk carriers totaled nearly 900,000
DWT, reducing the share of dry cargo freighters to 60% by the end of the year.
Purchases in 1974 included 16 bulk carriers with a total capacity of 500,000 DWT
and 7 tankers with a capacity of over 400,000 DWT. With the addition of four
more tankers in early 1975, the international fleet's petroleum-carrying capacity
exceeds 600,000 DWT. This will allow the PRC to carry as much as one-third
of 1975's estimated petroleum exports of 8 million tons to Japan. Chinese
purchases, by ship type, are reflected in Table 2, and fleet composition at the
end of 1973 and 1974 is shown in Table 3. (For a listing of international fleet
ships, see Appendix A.)
11. As the international fleet has expanded, it has improved in size and age.
With the addition of the larger bulk carriers and tankers, average size reached 16,000
DWT at the end of 1974, about the world average and a 40% increase since 1971.
Average age decreased to about eight years. This trend should continue as larger,
more modern vessels are purchased.
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Chinese International Fleet Acquisitions, by Ship Type
Type of Ship
Number
of Ships
Thousand
Deadweight
Tons
Number
of Ships
Thousand
Deadweight
Tons
Number
of Ships
Thousand
Deadweight
Tons
Total
22
275.6
37
556.2
61
1,351.1
Dry cargo
22
275.6
27
342.2
37
436.6
Bulk carrier
....
....
9
211.0
16
500.5
Tanker
....
....
....
....
7
402.2
Passenger/cargo
....
....
1
3.0
1
11.8
Chinese International Fleet Composition, by Ship Type
Number
of Ships
Thousand
Deadweight Tons
Percent
of Fleet
Type of Ship
1973
1974
1973
1974
1973
1974
Total
117
178
1,522.7
2,873.8
100
100
Dry cargo
105
142
1,296.3
1,732.9
85
60
Bulk carrier
9
25
211.0
711.5
14
25
Tanker
....
7
....
402.2
....
14
Passenger/cargo
3
4
15.4
27.2
1
1
China's Merchant Marine Assets
12. The Ministry of Communications controls most of China's transportation
resources, including those involved in international trade. Two bureaus subordinate
to the ministry manage ocean shipping. The Sea Transport Bureau controls Chinese
vessels moving in coastal trade, and the Ocean Shipping Bureau directs ships in
international trade. Under the latter, the China Ocean Shipping Company (COSCO)
operates the international fleet, except for ships assigned to joint stock companies
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and controlled by the offices of the companies directly attached to the
Ocean Shipping Bureau. A department of COSCO (Coschard) also charters
Chinese-controlled Hong Kong ships. The China National Charter Corporation
(Zhongzu), also subordinate to the Ocean Shipping Bureau, manages all other
Chinese chartering of foreign vessels and schedules foreign liner services in the China
trade.
13. COSCO, headquartered in Peking, maintains branches in Canton,
Shanghai, and Tientsin. As of 31 December 1974, the Canton Branch, COSCO's
largest unit, controlled 76 ships; the Shanghai Branch, 58; and the Tientsin Branch,
37.
Hong Kong-Based Ships
14. In addition to its expanding international fleet, China controls two Hong
Kong shipping firms, Yick Fung Shipping and Enterprises, Ltd., and Ocean
Tramping Co., Ltd. By the end of 1974, these firms owned 121 ships totaling
more than 1.4 million DWT that were registered for the most part under the Somali
flag (see Appendix B). On long-term charter to China, these ships provide Peking
with greater flexibility in international trade, permitting entry to ports and trades
that are prohibited to Chinese-flag vessels. This arrangement also involves smaller
expenditures of hard currency than the chartering of foreign ships.
15. The two companies purchased 1.2 million DWT during 1972-74, some
of which was transferred directly to the Chinese international fleet. The combined
Hong Kong and Chinese international fleets amounted to 4.3 million DWT at the
end of 1974.
Joint Stock Shipping Companies
16. Seven ships in China's international fleet are assigned to three joint stock
shipping companies established with Poland, Albania, and Tanzania. These vessels
are controlled by joint stock company offices attached to the Ministry of
Communications through the Canton Branch of COSCO. The Chinese-Polish
company, Chipolbrok, is the largest of the three, operating an inventory of 6
Chinese and 14 Polish freighters. These ships operate mainly between China and
Europe, with occasional calls in North Vietnam and Africa. The Chinese-Albanian
venture, Chalship, operates three ships, all under the Albanian flag. One of the
ships, the International, is Chinese-controlled and Chinese-manned. Vessels assigned
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to Chalship travel primarily between Albania and China. The Chinese-Tanzanian
company, Sinotaship, operates three ships - one Chinese and two under Tanzanian
registry. These ships move between China, Tanzania, and Europe.
17. The Sri Lanka Shipping Corporation, Ltd., was established in a joint
shipping service agreement between China and Sri Lanka in April 1972. Under
the agreement, Peking purchased two ships for the corporation and provided
financial assistance to Sri Lanka to obtain two additional ships. The corporation
now owns eight ships, all under the Sri Lanka flag. These ships operate from Sri
Lanka to China, the Persian Gulf, and Western Europe. China provides liberal
financial aid to purchase ships and supplies attractive insurance coverage.
18. Peking's coastal fleet, which represents about one-third of China's overall
merchant fleet, operates almost exclusively in Chinese and nearby waters. Controlled
by the Sea Transport Bureau, this fleet consisted of 285 vessels totaling 2.1 million
DWT at the end of 1974. General cargo ships, mostly in the 1,000-15,000 DWT
range, account for more than 60% of the fleet's tonnage, while tankers of up to
25,000 DWT represent one-third of the tonnage. The remainder are passenger/cargo
and passenger ships. The coastal fleet carries all of China's internal seaborne trade,
except for a small amount between North and South China that moves on ships
of the Hong Kong fleet. In addition, it carries nearly two-thirds of China's seaborne
trade with North Vietnam and a large share of the China-Hong Kong trade.
19. The coastal fleet is divided into North and South China components.
The North China fleet, which controlled 189 ships at the end of 1974, operates
in the area from Wenchou to the North Korean border. The smaller South China
fleet operates 86 ships in the region between Shan-t'ou and southern North
Vietnam. The coastal fleet also controls 10 small tankers that operate exclusively
on the Yangtze River.
Application of Intermodal Shipping Technology
20. China is cautiously approaching new shipping technologies.
Containerization, LASH (lighter-aboard-ship), and Ro/Ro (roll-on/roll-off)
intermodal systems are capital-intensive technologies requiring large initial
investments in specialized ships, equipment, and port facilities. China's abundance
of unskilled labor is a ready substitute for these systems at a substantially lower
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cost. The efficiencies of these new technologies, however, are becoming more
attractive as PRC foreign trade expands. As a result, the Chinese have entered
the initial stage of containerization and are actively exploring alternative intermodal
systems.
21. Chinese containerization began with the establishment of a joint
Sino-Japanese container service in September 1973. Under a preliminary agreement,
a trial service was opened, with one sailing a month by a Japanese and one by
a Chinese ship. In November 1973 the Yancheng, a conventional dry cargo vessel
carrying 30 containers to Kobe, became the first Chinese ship to deliver containers
abroad. Following the initial success of the trial service, two Japanese shipping
companies agreed to expand their service to eight sailings a month during the last
half of 1974. Vessels in this trade call at Yokohama, Osaka, and Kobe in Japan
and at Tientsin and Shanghai in China.
22. In the summer of 1974, the Chinese began a limited container service
to the United States and Western Europe from Hong Kong. Working with Danish
Maersk Lines, cargoes are containerized in China and shipped by rail to Hong Kong,
where they are loaded on Maersk Lines containerships. This service is scheduled
to expand in 1975 when Chinese coastal vessels are to load containers at Chinese
ports and deliver them to Hong Kong for transshipment.
23. The Chinese are equipping port facilities at Shanghai, Canton, and
Tientsin for handling small numbers of containers. The installations at Canton and
Tientsin - two of China's major ports - will use specialized container-handling
equipment, some of it manufactured in Japan and the United States. By the end
of 1978, two containership berths will be available at each of the three ports.
24. Ships of China's international fleet were used most heavily in the Japanese
trade, followed closely by calls to Western Europe. In Western Europe, the Chinese
fleet called most often at ports in the Netherlands, West Germany, and Italy --
important sources of machinery, equipment, and fertilizers for the Chinese
economy. Chinese ships continued to call at East European ports, particularly
in Albania and East Germany, but none has called at a Soviet port since 1966.
25. Bulk carrier and tanker acquisitions totaling more than one million DWT
have allowed the international fleet to carry bulk commodities and petroleum in
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China's trade for the first time. COSCO's bulk carriers have participated in the
grain trade with Canada, Australia, Argentina, and Japan. So far, the rapidly growing
tanker fleet has principally carried Chinese petroleum exports to Japan. This trade
is expected to increase sharply in the next few years, offering added employment
for China's tankers.
Outlook
26. The international fleet will continue to expand, increasing China's share
of the movement of its growing foreign trade. Fleet tonnage should approach 4
million DWT by the end of the Fourth Five-Year Plan. Domestic shipyards are
expected to deliver over 200,000 DWT, and foreign purchases will add up to
1 million DWT.
27. The composition of the fleet will continue to shift toward bulk carriers
and tankers. Althoug?Z acquisitions of general cargo ships will continue, more
emphasis will be placed on additional bulk carriers for imports of grain, fertilizer,
and other bulk commodities" The growth of the tanker fleet, however, will
outshadow all other fleet acquisitions. The fleet acquired over 200,000 DWT of
new tanker tonnage during the first four months of 1975, about 80% of the total
tonnage added during this period. China is negotiating for additional tonnage in
the 40,000-75,000-DWT range and is actively seeking larger (100,000-DWT) tankers.
The growing importance of petroleum exports in China's foreign trade and
balance-of-payments position assures additional tanker purchases through Peking's
next five-year plan, beginning in 1976.
28. Somalia's cancellation of its flag of convenience in early 1975 may hasten
the transfer of the Chinese-controlled Hong Kong fleet - currently registered under
the Somali flag - to China's international fleet. A sudden absorption of an
additional 1.4 million DWT, however, would worsen the international fleet's severe
shortage of skilled officers and crews. As a result, the Chinese may allow Hong
Kong Chinese or foreigners to sail under the PRC flag or transfer the Hong Kong
fleet to other flags of convenience.
29. During early 1975, as China encountered foreign exchange shortages,
some chartering activity was curtailed and new shipping contracts were being settled
in Hong Kong dollars to employ Peking's substantial Hong Kong foreign exchange
resources. The foreign exchange problem, however, did not seriously impede fleet
expansion, as purchases during the first four months of 1975 approached $60
million.
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PRC: SHIPS OF THE INTERNATIONAL MERCHANT FLEET
AS OF 31 DECEMBER 1974
Built
Ship
Deadweight
Tons
Year
Acquired
Total (178 ships)
2,873,853
Tientsin Branch (37
ships)
627,252
Bao Shan
10,442
West Germany
1959
1974
Boating
13,851
Finland
1965
1972
Changting
14,605
Finland
1971
1972
Da Feng
13,000
China
1974
1974
Da Li
13,000
China
1972
1972
Da Xing
13,000
China
1974
1974
Da Ye
13,000
China
1972
1972
Dacheng
14,522
Japan
1973
1973
Darning
12,350
West Germany
1958
1970
Datian
14,522
Japan
1974
1974
Datong
12,352
West Germany
1959
1970
.
Dunhuang
15,340
United Kingdom
1967
1967
Haifeng
12,530
East Germany
1969
1969
Hainen
12,430
East Germany
1968
1968
Hongmen
13,870
East Germany
1974
1974
Huating
14,434
Finland
1972
1973
Jian Hu
50,390
Denmark
1964
1974
Jiangmen
12,295
East Germany
1966
1966
Jiangting
14,500
Finland
1972
1972
Jin Hu
45,725
Sweden
1963
1974
Jinsha
15,340
United Kingdom
1967
1967
J iuj fang
15,663
France
1966
1966
Leting
13,893
Finland
1966
1972
Long Men
13,600
East Germany
1974
1974
Qimen
13,870
East Germany
1973
1973
Tian Men
13,600
East Germany
1974
1974
Xing Hai
30,525
West Germany
1961
1974
Xiu Shan
N.A.
N.A.
N.A.
1974
Yanting
14,555
Finland
1973
1973
Yin Hu
58,555
Sweden
1965
1974
Yong Men
13,870
East Germany
1974
1974
Yu Hua
11,765
Netherlands
1958
1974
Yu Men
12,295
East Germany
1965
1965
Yu Ting
14,200
Finland
1974
1974
Yun Hai
33,700
Sweden
1963
1974
Yushan
N.A.
N.A.
N.A.
1974
Zhenjiang
15,663
France
1966
1966
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Ship
Deadweight
Tons
Year
Acquired
Shanghai Branch (58
ships) 799,755
Anting
14,326
Finland
1970
1971
Bei An
4,695
Romania
1974
1974
Bei Hai
23,000
West Germany
1963
1974
Bin Hai
33,001
Sweden
1963
1973
Chang An
4,500
Romania
1967
1967
Chao Yang
13,488
China
1967
1967
Chong Ming
14,000
Netherlands
1961
1974
Ding Hai
16,205
Sweden
1963
1973
Dong An
4,695
Romania
1974
1974
Dong Hai
28,360
United Kingdom
1965
1973
Dongfeng
13,488
China
1966
1966
Feng Bao
14,800
China
1974
1974
Feng Ge
14,800
China
1974
1974
Feng Lang
14,800
China
1974
1974
Feng Ming
14,800
China
1973
1973
Feng Qing
14,800
China
1974
1974
Feng Xiang
14,800
China
1974
1974
Feng Yang
14,800
China
1973
1973
Feng Yi
14,800
China
1974
1974
Feng Ying
14,800
China
1974
1974
Fengcheng
7,153
Poland
1971
1971
Fengguang
14,800
China
1971
1971
Fenglei
14,163
China
1970
1970
Han Chuan
14,000
Yugoslavia
1973
1973
Han Yin
15,184
West Germany
1970
1973
Hengshui
10,801
Netherlands
1961
1972
Hong Qi
15,952
China
1965
1965
Hau Yin
15,202
West Germany
1969
1974
Huai An
4,500
Romania
1967
1968
Huai Hai
26,331
West Germany
1962
1974
Huai Yin
14,050
West Germany
1959
1970
Jiande
12,530
Italy
1959
1973
Jiang An
4,695
Romania
1973
1973
Jiang Chuan
15,000
Yugoslavia
1973
1973
J iangcheng
14,555
Poland
1972
1972
Jiangyin
13,029
West Germany
1958
1970
Jinghai
19,710
United Kingdom
1968
1973
Kang Ding
13,770
Sweden
1956
1970
Li Yang
13,000
China
1973
1973
Nan Hui
13,301
Finland
1961
1970
Nanxiang
12,500
Sweden
1959
1970
Ping Yin
13,246
West Germany
1962
1974
Qingshui
11,160
Netherlands
1964
1972
Qingyang
13,000
China
1972
1972
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Deadweight
Ship Tons
Country
Year
Acquired
Shan Yin 13,356
West Germany
1962
1974
Tang Yin 12,995
West Germany
1960
1974
Tian Shui 9,301
Netherlands
1963
1972
Tong Chuan 15,000
Yugoslavia
1974
1974
Tuan Jie 6,185
China
1964
1964
Wangting 14,326
Finland
1970
1971
Wei Hai 31,825
Norway
1964
1973
Xiang Yang 14,371
China
1969
1969
Yin An 4,500
Romania
1967
1967
Yancheng 7,153
Poland
1971
1971
Yin Chuan 13,500
Yugoslavia
1974
1974
Yiyang 14,145
China
1972
1972
Yu Quan 4,365
Sweden
1959
1973
Yue Yang 14,143
China
1970
1970
Canton Branch (76 ships) 1,349,347
An Hua
11,700
Sweden
1960
1973
Changde
12,770
Sweden
1964
1970
Changdu
8,189
Finland
1962
1971
Changhai
20,080
Norway
1964
1974
Changshu
12,490
Sweden
1958
1970
Chunlin
13,215
Yugoslavia
1973
1973
Cong Hua
13,005
Sweden
1962
1973
Daan
12,514
West Germany
1958
1972
Dade
12,623
West Germany
1962
1972
Danhai
24,800
United Kingdom
1963
1974
Daning
12,625
West Germany
1962
1971
Dapu
12,548
West Germany
1959
1971
Dedu
10,289
Sweden
1962
1973
Dong Ming
15,424
Netherlands
1964
1973
Dongshan
11,188
West Germany
1961
1972
Dunhua
12,430
Sweden
1961
1970
Fuhai
18,490
Netherlands
1963
1973
Gao Hu
74,480
Sweden
1966
1974
Guanghe
16,780
West Germany
1972
1973
Guangming
14,987
Netherlands
1965
1965
Guangshui
9,583
Netherlands
1959
1973
Guhai
47,750
Sweden
1968
1974
Haining
11,650
Poland
1969
1969
Hangzhou
10,020
East Germany
1958
1965
Hong Hu
52,525
Sweden
1965
1974
Huang Hai
22,140
West Germany
1961
1974
Hulin
13,500
Yugoslavia
1974
1974
Jiang Du
8,198
Finland
1962
1971
Jianhua
5,400
France
1951
1967
Approved For Release 2000/05/15 $etehA-RDP79T01098A000500070001-4
 Approved For Release 2000/05Pf5e! CIA-RDP79TO1098A000500070001-4
Ship
Deadweight
Tons
Country
Year
Year
Acquired
Jianshui
9,606
Netherlands
1960
1973
Jining
11,803
Poland
1966
1966
Kai Ping
15,151
Japan
1961
1973
Kuang Hai
33,450
Norway
1965
1974
Kunming
15,424
Netherlands
1963
1973
Lan Hai
18,530
Sweden
1960
1973
Lanzhou
10,070
East Germany
1957
1965
Liaohai
26,739
Japan
1961
1974
Liao Yang
10,000
China
1974
1974
Liming
15,372
Sweden
1963
1965
Lishui
9,606
Netherlands
1960
1973
Long Hai
39,845
Belgium
1968
1974
Longlin
13,520
Yugoslavia
1974
1974
Lu Chun
N.A.
N.A.
N.A.
1974
Meishan
11,472
West Germany
1959
1972
Ming Hai
38,440
Sweden
1967
1974
Minghua
3,000
France
1962
1973
Nan Ping
12,390
Japan
1964
1974
Ping Hai
39,450
Belgium
1967
1974
Ping Hu
46,045
Sweden
1964
1974
Qianjin
10,400
Poland
1965
1965
Qinghai
22,906
United Kingdom
1962
1973
Qingshan
11,072
West Germany
1960
1972
Qiong Hai
33,370
West Germany
1963
1974
Songlin
13,500
Yugoslavia
1973
1973
Tai Hu
74,480
Sweden
1965
1974
Tangshan
13,594
Sweden
1957
1966
Taolin
13,520
Yugoslavia
1974
1974
Tian Hai
38,990
Belgium
1965
1974
Tianlin
13,500
Yugoslavia
1972
1972
Wenshui
9,606
Netherlands
1959
1973
Wuxi
12,760
Yugoslavia
1958
1967
Xing Ming
N.A.
N.A.
N.A.
1974
Xinghua
12,700
Sweden
1960
1970
Xingning
11,760
Poland
1966
1966
Xuchang
8,550
Finland
1954
1967
Yang Chun
12,250
United Kingdom
1963
1974
Yang Lin
13,520
Yugoslavia
1973
1973
Yaohua
7,000
France
1967
1967
Yichun
13,040
United Kingdom
1962
1972
Yidu
7,850
Finland
1962
1972
Yong Chun
12,975
United Kingdom
1963
1972
Yongning
11,763
Poland
1967
1967
Youhao
11,515
West Germany
1959
1964
Yulin
13,520
Yugoslavia
1972
1972
Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
Secret
 Approved For Release 2000/05/15: C(r1DP79T01098A000500070001-4
Ship
Deadweight
Tons
Country
Year
Acquired
Zhenhai
21,900
France
1963
1974
Zhuhai
22,000
France
1964
1973
Joint stock
companies (7 ships)
97,499
Asia Afrika
12,675
Sweden
1960
1967
Chang Xing
15,200
West Germany
1974
1974
Dexing
15,200
West Germany
1974
1974
Jiaxing
14,429
Denmark
1963
1970
Lufeng
12,530
East Germany
1970
1970
Taixing
14,935
Netherlands
1960
1971
Xinfeng
12,530
East Germany
1970
1970
13
Approved For Release 2000/05/15 : Q RDP79TO1098A000500070001-4
 Approved For Release 2000/05/15: RDP79TO1098AO00500070001-4
FLEET INVENTORY OF THE PRC-CONTROLLED YICK FUNG SHIPPING AND
ENTERPRISES CO., AND OCEAN TRAMPING CO., LTD., 31 DECEMBER 1974
Deadweight
Flag: Somalia
(Except When
Year
Ship
Tons
Otherwise Indicated)
Built
Acquired
Total (121 ships)
1,438,526
Yick Fung Shipping
and Enterprises
Co., Ltd. (54 ships)
783,539
Adriatic Sea
28,515
1964
1973
Aegean Sea
16,400
1962
1972
Arafura Sea
12,580
1958
1972
Arctic Ocean
12,692
United Kingdom
1956
1964
Atlantic Ocean
11,950
1962
1971
Azov Sea
15,408
1958
1973
Bali Sea
12,449
1960
1972
Baltic Sea
11,830
1959
1973
Banda Sea
12,393
1959
1972
Barents Sea
13,067
1961
1972
Beaufort Sea
24,375
United Kingdom
1961
1974
Bering Sea
9,565
1952
1972
Black Sea
11,830
1958
1972
Caspian Sea
15,944
1958
1972
Celebes Sea
10,322
1950
1972
Cheung Chau
11,850
United Kingdom
1956
1964
China Sea
24,840
1964
1972
Chukchi Sea
17,000
1958
1973
Coral Sea
16,400
1962
1972
Crete Sea
14,627
United Kingdom
1957
1974
Drake Sea
46,850
1966
1974
Eastern Lion
10,450
1952
1972
Fuchunkiang
13,073
1961
1971
Greenland Sea
12,500
1956
1973
Ionian Sea
13,200
1956
1973
Irish Sea
14,980
1957
1973
Java Sea
12,395
1957
1972
Kara Sea
10,200
1951
1972
Kinross
9,221
1949
1963
Koro Sea
19,620
1962
1972
Lin Shan
4,963
1970
1974
Mindanao Sea
13,404
1958
1973
Mirtoan Sea
14,040
1958
1973
Molucca Sea
12,980
1958
1973
15
Approved For Release 2000/05/15: CIA-RDP79TO1 O98AOOO5OOO7OOO1-4
Secret
 Approved For Release 2000/05i1&t: CIA-RDP79TO1098A000500070001-4
Deadweight
Flag: Somalia
(Except When
Year
Ship
Tons
Otherwise Indicated)
Built
Acquired
Mu Shan
5,820
1971
1974
Nan Fung
9,102
1944
1968
New East Sea
13,330
1958
1967
New North Sea
14,775
1953
1972
Norwegian Sea
13,600
1962
1973
Red Sea
17,300
1957
1972
Ross Sea
12,460
1956
1971
Salton Sea
16,880
1958
1973
Sapphire
13,400
1957
1969
Shen Shan
4,963
1970
1974
Snow Lily
17,787
1950
1969
Starlight
10,568
1944
1969
Steed
13,080
United Kingdom
1956
1969
Sulu Sea
19,240
1961
1972
Tasman Sea
25,800
1962
1973
Venice
12,350
1958
1964
Weddell Sea
12,990
1961
1972
White Lily
17,000
1951
1972
White Sea
10,580
1955
1969
Zuider Sea
10,601
1954
1972
Ocean Tramping Co.,
Ltd. (67 ships)
654,987
Aihua
7,755
1955
1974
Aimin
7,859
1955
1974
Anyi
12,725
1969
1974
Atlantic Star
5,610
1948
1964
Bailu
5,250
1966
1972
Baima
12,454
1958
1972
Baining
8,400
1955
1973
Baipao
12,651
1959
1973
Baisiung
12,671
1958
1973
Baiyen
8,401
1955
1972
Baodi
4,400
1957
1973
Bibo
13,965
1959
1974
Bihua
10,326
United Kingdom
1956
1972
Chinshakiang
27,930
1960
1971
Chinsing
7,625
1959
1971
Eastglory
12,775
1959
1967
Feichi
6,956
1959
1972
Feihang
12,501
1957
1972
Feita
12,501
1957
1972
Feiyueh
6,958
1959
1972
Gaopeng
9,200
1956
1972
Approved For Release 2000/05/19: CIA-RDP79TO1098A000500070001-4
Secret
 Approved For Release 2000/05/15 : ~1 RDP79T01098A000500070001-4
Flag: Somalia
Deadweight (Except When
Year
Ship
Tons Otherwise Indicated)
Built
Acquired
Gaoyan
12,440
1958
1973
Hemisphere
12,730
1957
1963
Hengshan
5,790
1960
1971
Hungmien
9,150
1956
1972
Hungsia
9,140
1955
1973
Jollity
12,530
1958
1964
Kaigo
9,170
1957
1972
Kailok
9,170
1958
1973
Kaiyun
9,170
1957
1973
Laoshan
15,970
1957
1969
Lingnan
4,805
1968
1973
Luhuan
4,450
1969
1973
Maijin
11,490
1957
1973
Meiki
8,021
1955
1972
Meiru
8,021
1955
1972
Minai
6,619
1957
1972
Minfung
10,290
1956
1972
Mingchang
9,276
1957
1972
Mingwei
10,413
1957
1972
Mingyao
10,413
1957
1972
Minhao
6,619
1957
1972
Minshan
6,619
1959
1972
Mintsung
6,619
1959
1972
Mounthwa
5,890
1957
1967
Musing
7,263
1959
1972
Nancheng
9,700
1953
1973
Nanhua
9,700
1954
1973
Nankuo
9,700
1954
1973
Nantao
9,700
1953
1973
Nanwu
9,700
1953
1973
Peikiang
6,285
1958
1971
Seasage
5,472
1947
1964
Siehchih
7,701
1956
1973
Siehhui
5,038
1956
1973
Siehmin
7,701
1955.
1973
Siehting
5,130
1955
1973
Sinkai
12,750
1953
1973
Sinyeh
12,798
1953
1972
Siungfei
13,280
1957
1974
Sunniao
24,732
1968
1974
Taipieng
8,820
.
1950
1966
Taishan
6,565
1957
1968
Weikuo
12,728
1958
1973
Weili
12,701
1959
1973
Weimin
12,717
1958
1973
Yungming
11,088
1960
1973
17
Approved For Release 2000/05/15: Q&RDP79T01 098AO00500070001-4
 Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
Secret
Secret
Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
 CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION 25X1A
DISSEM: 13 Jun 75 NO ELITE
SERIES NUMBER
ER RP 75-16
CLASSIFICATION OF REPORT
SECRET/NFD
DISTRIBUTION TO RC
40
DATE OF DOCUMENT
June 1975
NUMBER OF COPIES
225
NUMBER I
33
COPY
RECIPIENT
DATE
N
SENT
RETURNED
1-2
DDI
12 Jun 75
3-6
Reserve
7
D/OER
19 Jun 75
8
DD OER
IT
9
loff via O/D/OER 25X1A
10
SA ER & D SA/ER
IT
19 Jun 75
11
Ch/D S
IT
12
S/IT 25X1A
"
13
D/NIO
14
NIO/ CH
"
15
O NIO EC
16
Ch D /I
13 Jun 75
17
DCh D I
"
18
Ch/'D/ D
19
Ch DS
20
Ch/ D/ C
21
C/RE
22
C/IN
23
C/CH
24
Ch/D/U
25
DCh D U
26
St/SD
27
St/CS
28-31
S/IT
32
Finished Intelligence Project 154, PSD Bld
g.
33
Rm. 1005, K
ey
STATSPEC
34
-
D/OPR 3E63, H q.
35
D/CGAS Rm. 7G00 H .
36
Ch/ DC D Rm. 811, Key Bldg.
37, 38
OTR/II, Rm. 926, CoC
39
Rm. 1005, Key
40
D/CRS 2E60
"
41
CRS ISG/SAID 1H19
42
D/OGCR, Rm. 1011, Magazine Bldg.
43
D/OCI, 7G15
44
D/OSR, 3F50
"
45, 46
GB38, H q.
47
OCI/S ecial Projects 7G07
"
48
4B29
"
49
D/IAS, 1S5'18,
"
25X1A
50
D/NPIC, Rm. 15315,
IT
25X1A
51-95
098A0'005000
-j
0001-4
Analyst: S6/TT
Q roved For Release 2000/05/15: CIA-RDP79T0~1 U?9Aab0~5~0a8'Ob01-4
FORM 2353 (13)
2.65
 COPY
RECIPIENT
A
NO. (S)
SENT
RETURNED
96, 97
CIEP, J.M. Dunn
13 Jun 75
98, 99
Jerry Crawford, Dept. of the Treasury
100-102
NSA, B25
"
103-105
It
106
Peter Smith, State/EA/PRCM
"
107
Richard K. Bank, State, EB/TT/MA
"
108
Robert B. Wright, State /EB/ITP/EWT
109
Richard L. Williams, State/INR/REA
"
110-135
State/INR/CC for Embassies - see attached
136
Melba Howard, Dept. of the Navy, Naval
"
Ocean Surveillance Center, 4301 Suitland
d.
137
Francis Lee Brady, Dept. of the Navy, Nav
al
Ocean Surveillance Center, 4301 Suitland
d.
138
Lunette Waddell, Dept. of the Navy, Naval
"
Ocean Surveillance Center, 4301 Suitland
d.
139, 140
Charles Dra onette, Dept. of the Navy, Nay
1
Intelligence Support Center, 4301 Suitland
141 -144
DIA, DI-4B2
"
145
St/P
"
146
CRS /ADD
147
II
148
149
"
150
II
151
II
152-154
9- OAA.. 7r
155,156
25X! G
157, 158
159, 1 ti0
161-164
,.
165
rc
166
OER
13 Jun 75
167, 168
DDO/EA 25X1A
16 Jun 75
169
OR D
20 Jun 75
170
William W. Thomas, Jr., Chief, Economic
20 Jun 75
and Commercial Section, US Liaison Office
Peking via State /INR
171
Lin Starbird, Chief, Economic Section
20 Jun 75
American Consulate General, Hong Kong
via State INR CC
172-184 Filed in St/P/C 20 Jun 75
185 Archives 16 Jun 75
186-225 Records Center "
pprovea or a ease
 CONTROL RECORD FOR SUPPLEMENTAL DISTRIBUTION
SERIES NUMBER
ER RP 75-16
CLASSIFICATION OF REPORT
SECRET/NFD
DISTRIBUTION TO RC
DATE OF DOCUMENT
June 1975
NUMBER OF COPIES
NUMBER IN RC
COPY Y
RECIPIENT 25X1 A
DATE
SENT
RETURNED
a -r
z -7 7 s-
ic- ~k
25X1A
1 1
25X1 A
-~
1 17
0
,*.>a d PAC
v -'
45- /D -2
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7
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ti. 7
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25X1A
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14 JOE.
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000
0001-4
PAGE 2
Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
FOR
f131
2- 6M5 2353
 COPY 71pj RECIPIENT .
NO. (S) SENT RETURNED
Approve or Release
 Approved For Release 2000/05/15: CIA-RDP79TO1O98AOOO
External Distribution List -- China's Merchant Fleet
Expansion since 1971
0 Melba Howard
Naval Ocean Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
Francis Lee Brady
Naval Ocean Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
Lunette Waddell
Naval Ocean Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
(3 copies)
Room 7A190
National Security Agency
Fort Meade, Maryland
STATINTL
10- - (3 copies)
Room 2A190
National Security Agency
Fort Meade, Maryland
STATINTL
Charles Dragonette (2 copies)
Naval Intelligence Support Center
Code 341
4301 Suitland Road
Suitland, Maryland 20390
Mr. Peter Smith
EA/P RCM
Room 4318A
New State
Department of State
Mr. Richard K. Bank
Director of Office of Maritime Affairs
EB/TT/MA
Room 2830
New State
Department of State
Approved For Release 2000/05/15: CIA-RDP79TO1098AO00500070001-4
 Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
01
Mr. Robert B. Wright
EB/ITP/EWT
Room 3819
New State
Department of State
Mr. Richard L. Williams
INR/REA
Room 8840
New State
Department of State
(4 copies) STATINTL
Defense Intelligence Agency
Arlington Hall Station
DI-4B2
26 cys - for Embassies in Berlin, Warsaw, Bucharest, 2 cys for Brussels
(1 cy for Ralph Moore, US Mission to NATO), Copenhagen,
London, Helsinki, Paris, Bonn, Rome, The Hague,
Oslo, Stockholm, Belgrade, Canberra, Taipei, 2 cys for Hong Kong,
Tokyo, Seoul, Ottawa, Mogadiscio, Dar es Salaam, Colombo,
and Buenos Aires
VIA DEPARTMENT OF STATE, INR/CC
Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
 Approved For Release 2000/05/15: CIA-RDP79T01098A000500070001-4
MEMORANDUM FOR: Department of State
INR/CC
Room 6510
New State Building
The attached twenty-six (26) copies of ER RP 75-16, #110-#135, 5/NFD,
are for your transmittal to the Embassies in Berlin, Warsaw, Bucharest,
2 cys for Brussels (1 cy for Ralph Moore, US Mission to NATO),
Copenhagen, London, Helsinki, Paris, Bonn, Rome, The Hague, Oslo,
Stockholm, Belgrade, Canberra, Taipei, 2 cys for Hong Kong, Tokyo,
Seoul, Ottawa, Mogadiscio, Dar es Salaam, Colombo, and Buenos Aires.
CIA/OER/St/P/C
13 June 1975
Approved For Release 2000/05/15: CIA-RDP79T01098A000500070001-4
 Approved v F fea 2000/05/15 :CIA-F DP791i1 098A000500070001-4
Project No. 43,
SOVIET BLOC
Bulgaria, Sofia
Czechoslovakia, Prague
, ~rmany, Berlin
Hungary, Budapest
4,P61and, Warsaw
mania, Bucharest
USSR, Moscow
Austria, Vienna
T
B
l
gum,
russe
s
(1 copy of all reports for Hoor,G
Milton KrrL-r, US Mission to NATO)
(1 copy for US Mission to the
European Communities)
,,0enmark, Copenhagen
and, London
i'filand, Helsinki
ance, Paris
rmany,
Munich
Iceland, Reykjavik
Ireland, Dublin
y, Rome
Luxembourg, Luxembourg
Malta, Velletta
atherlands, The Hague
,,N Tway, 0 slo
Portugal, Lisbon
Spain, Madrid
,SvVieden, Stockholm
Switzerland, Bern
Geneva
1igoslavia, Belgrade
25X1A
"Australia, Canberra
Melbourne
Philippines, Manila
New Zealand, Wellington
,FAR EAST
Burma, Rangoon
,.-Formos a, Taipei
ae.- '- 'Kong
(/ Indonesia, Djakarta
,l. 'an, Tokyo
i,~cafea, Seoul
Laos, Vientiane
Malaysia, Kuala Lumpur
Singapore
Thailand, Bangkok
(2 cys - I cy for US Rep
Vietnam, Saigon
(2 cys if report receives
Vietnam distribution)
2NADA, OTTAWA
(see reverse side)
Approved For Release 2000/055 RBARD P79TO 1098AO00500070001-4
 SECRET'
Approved For Release 2000/05/15: CIA-RDP79T01098A000500070001-4
AFRICA NEAR EAST AND SOUTH ASIA
Algeria, Algiers
Botswana, Gaberones
Burundi, Bujumbura
Cameroun, Yaounde
Afghanistan, Kabul
~Geyleit, Colombo
Central African Republic, Bangui
Chad, Fort Lamy
Congo, Kinshasa
Dahomey, Cotonou
Ethopia, Addis Ababa
Gabon, Libreville
Gambia, Bathurst
Ghana, Accra
Guinea, Conakry
Ivory Coast, Abidjan
Kenya, Nairobi
Lesotho, Maseru
Liberia, Monrovia
Libya, Tripoli
Malagasy Republic, Tananarive
Mali, Bamako
Malawi, Zomba
Mauritania, Novakchott
Mauritius, Port-Louis
Morocco, Rabat
Mozambique, Lourenco Marques
Niger, Niamey
Nigeria, Lagos
Rhodesia, Salisbury
Rwanda,- Kigali
Senegal, Dakar
Sierra Leone, Free Town
ialia, Mogadiscio
South Africa, Pretoria
Sudan, Khartoum
Swaziland, Mbabane
L,T mania, Dar es Salaam
Togo, Lome
Tunisia, Tunis
Uganda, Kampala
Upper Volta, Ouagadougou
Zambia, Lusaka
Cyprus, Nicosia
Egypt, Cairo
Greece, Athens
India, New Delhi
Iran, Tehran
Iraq, Baghdad
Israel, Tel Aviv
Jordan, Amman
Kuwait, Kuwait
Lebanon, Beirut
Nepal, Katmandu
Pakistan, Rawalpindi
Saudi Arabia, Jidda
South Yemen, Aden
Syria, Damascus
Turkey, Ankara
gentina, Buenos Aires
Bahamas, Nassau
Barbados, Bridgetown
Bolivia, La Paz
Brazil, Rio de Janeiro
Chile, Santiago
Colombia, Bogota
Costa Rica, San Jose
Dominican Republic, Santo Domingo
Ecuador, Quito
El Salvador, San Salvador
Guatemala, Guatemala
Guyana, Georgetown
Haiti, Port au Prince
Honduras, Tegucigalpa
Jamaica, Kingston
Mexico, Mexico City
Nicaragua, Managua
Panama, Panama
Paraguay, Asuncion
Peru, Lima
Trinidad, Port of Spain
Uruguay, Montevideo
Venezuela, Caracas
Approved For Release 2000/05/19EC IFMP79T01098A000500070001-4
 Approved For Release 2000/05/15: CIA-RDP79TO1098A000500070001-4
External Distribution List -- China's Merchant Fleet
Expansion Since 1971
Melba Howard
Naval Ocean Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
Francis Lee Brady
Naval Ocean Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
Lunette Waddell
Naval Ocean-Surveillance Center
4301 Suitland Road
Suitland, Maryland 20390
(3 copies). STATINTL^
Room 7A190
National Security Agency
Fort Meade, Maryland
(3 copies) STATINTL
Room 2A190
National Security Agency
Fort Meade, Maryland
Charles Dragonette (2 copies)
Naval Intelligence Support Center
Code 341
4301 Suitland Road
Suitland, Maryland 20390
Mr. Peter Smith
EA/PRCM
Room 4318A
New State
Department of State
Mr. Richard K. Bank
Director of Office of Maritime Affairs
EB/TT/MA
Room 2830
New State
Department of State
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L
Mr. Robert B. Wright
EB/ITP/EWT
Room 3819
New State
Department of State
Mr. Richard L. Williams
INR/REA .
Room 8840
New State
Department of State
(4 copies)
Defense Intelligence Agency
Arlington Hall Station
DI-4B2
STATINTL
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MEMORANDUM FOR: CRS/ADD Release
Release of ER RP 75-16, China's Merchant
Fleet Expansion Since 1971, June 1975,
Secret, to Foreign Governments
1. It is requested that the attached copy of subject report be
forwarded as follows:
25X1 C
#165
2. All OER responsibilities as defined in the DDI memorandum
of 13 August 1052, "Procedures for Dissemination of Finished
Intelligence to Foreign Governments, " as applicable to this report
have been fulfilled.
25X1A
Chief, St/P/C;/ER
.Fj
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PUBLICATIONS SOURCE SURVEY
11
' USE OF INFORMATION FROM COLLECTION PROGRAMS IN FINISHED INTELLIGENCE
GENERAL INSTRUCTIONS
Rating forms will be completed for each finished intelligence publication prepared by the DD/I and DDS&T. This is a
machine-supported system and information must be gathered in a formatted fashion. Therefore, each analyst will complete
the NON-SHADED parts of section I and II of this form. Please type or print legibly. Questions should be directed to
CGAS/HSG, Room 2G 40, x1829 (red) or x5577 (black).
SECTION I - PUBLICATION TITLE AND CONTENT
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S
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RECORD
OFFICE (9-10)
SURVEY NO.
TYPE
01 OCI
03 OSR
06 CRS
08 OWI
(1-6)
(7-8)
02 OER
04 OBGI
07 OSI
09 OPR
40 DRA
60 State
70 Treasury
0
L
JOINT OFFICE (specify): (- - )
TOPICAL CATEGORY GEOGRAPHIC AREA CATEGORY
Domestic Politics USSR
International Relations Eastern Europe
X Economics X China
Military Other Far East
Science & Technology Near East/N. Africa
Geography South Asia
Biography Africa
Latin America
Western Europe
LIST SPECIFIC COUNTRIES: People's Republic of China
TO BE COMPLETED BY CGAS
REC TYPE
TOPIC
AREA
(13-16)
(7-B)
(1 1-12)
- wed For Releas
20 005M-LCUL-RDR79M
098A.000500070001.4
FORM '2A01 PREVIOUS SFC'RFT
 SECRET
t-or eaai conecnon pruyru'n wnuwv?.,y ------- ._ ..._ , -
collection program may be rated as Key, Supplemental, or Incidental for each publication. If the source did not provide any reporting
useful in the publication, check the box labeled Not Applicable.
If a single publication treats more than one geographic area and/or topical category and the source mix for each varied then
additional forms must be completed; e.g. India-economics-State and Japan-economics-FIk's.
Rating categories are defined as follows:
Key-Information from a particular collection program was of such importance that basic conclusions of the finished intelligence
- item could not have been reached without it.
Supplemental-Information from a particular collection program was important but not essential to basic conclusions of the finished
-" - intelligence item.
Incidental-Information from a particular collection program was useful or interesting primarily as background but was used, only
(27) I 6. DEFECTOR RPTS (e.g., FIRK's)
*12 Translation of Foreign Lang. documents
IBIS JPRS etc
(40)
(41) *13. Non-USIB Agency Rpts. (USIA, AID, other
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(43) 14. r .. _.. _._._._
US wire ser_, items, etc.)
(45) *15. OTHER (IMF, OECD, foreign government reports, etc.)
KIQ Related Publication: Yes EJ No
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04 IM ( 108 R
CLASSIFICATION CONTROLS: No Foreign Dissem
List DDO FIR'S and Defector reports that were key or supplemental information sources:
TRANSLATIONS:
NON-USIB AGENCY(S):
e t Li Qoc,. -PO r ut: -e a -t /t e-
xipjjFaepXIF g@%p 9NWQW is QAPvQP7 TO1sQ@&AWGsGQ67oeO4k.
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SECRET *ftol
 SECRET
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DATE
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UNEDITED DRAFT
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25X1A
REMARKS
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FORM 2358
4- 70 EDITIONS Excluded from automatic
I downgrading and declassification
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CHINA'S MERCHANT FLEET EXPANSION SINCE 1971
1. China's international merchant fleet is growing rapidly. Since the end
of 1971 it has acquired more than 2 million deadweight tons (DWT), enabling
the PRC to carry a larger portion of its foreign trade and reduce chartering costs.
Acquisitions have included the international fleet's first tankers and bulk carriers,
accounting for 50% of the new tonnage acquired.
2. Ocean shipping tonnage now exceeds 6 million DWT. The international
fleet and its joint stock companies control about 2.9 million DWT, while China's
Hong Kong fleet owns another 1.4 million DWT. The coastal fleet manages the
remaining 2.1 million DWT.
3. China is cautiously moving into new shipping technologies.
Containerization began with a limited China-Japan service in 1973 and expanded
with an additional service to the United States and Western Europe from Hong
Kong in 1974. Three major PRC ports now are being equipped for handling
containers.
4. The share of PRC trade carried by Chinese ships increased from less than
10% before 1972 to about one-third in 1974. In addition, the acquisition of
substantial tanker and bulk carrier tonnage has allowed the fleet to carry a larger
portion of China's growing petroleum exports as well as grain, ore, and fertilizer.
The international fleet should approach 4 million DWT by the end of the Fourth
Five-Year Plan (1971-75), with tankers and. bulk carriers accounting for more than
one-third of the total. The role of the Hong Kong fleet will decline as the
international fleet expands and international restrictions on Chinese-flag ships are
eased.
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5. China's international merchant fleet is expanding rapidly. Since the end
of 1971 it has added over 2 million DWT at a cost of $700-$800 million.
Acquisitions have included the fleet's first tankers* and bulk carriers, amounting
to more than one million DWT, or 50% of the tonnage acquired during this period.
6. The international fleet was formed in 1961 with two freighters transferred
from domestic service and one passenger ship acquired abroad. Fleet growth was
steady during the next decade, with the greatest expansion during 1964-67, when
net additions totaled about 300,000 DWT, and in 1970, when 200,000 DWT entered
the fleet. By the end of 1971 the international fleet had reached more than
800,000 DWT.
7. Acquisitions accelerated in 1972, reaching 276,000 DWT, more than twice
the tonnage acquired in 1971. Purchases continued in 1973 as another 556,000
DWT entered the fleet. In 1974, new tonnage exceeded by 60% the total added
in the previous two years as about 1.4 million DWT was purchased for the
international fleet. International fleet acquisitions during this period are listed in
Table 1.
Rationale of Chinese Fleet Expqnsion
8. The Chinese are expanding their international fleet to carry a greater
share of their growing foreign trade and to cut chartering costs. Before 1972, the
fleet carried slightly less than one-fourth of the total in 1973 and about one-third
of trade in 1974. However, as the fleet expands, severe shortages of skilled officers
and crews are becoming evident.
9. China is still a major world charterer and a leading client in the London
chartering market, with chartering costs exceeding $500 million, or approximately
No of China's import bill in 1974. During early 1975, however, a shortage of
foreign exchange curtailed some of this activity. The fleet's recent growth and
the change in its composition is allowing Chinese ships to carry cargoes, particularly
petroleum and bulk products, previously carried on chartered ships.
The international fleet operated a tanker, Hong Hu, between 1966 and 1972. The Ta-Ching 29, a
domestic-fleet tanker, sailed to North Korea under international fleet registry in 1972 and early 1973.
2
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