HIGH PRICE OF WOLFRAM STIMULATES BLACK MARKET OPERATIONS IN KWANGTUNG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600400401-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 401
• Publication Date: July 19, 1951
• Content Type: REPORT

CLASSIFICATION CONFIDENTIAL tQA Kj%M.
CENTRAL. INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY China SfC1111TY INF011MAT111Y DATE OF
INFORMATION
SUBJECT Economic - Nonferrous metes, wolfram
smuggling
HOW DATE DIST. 9 Jul 1951
PUBLISHED Daily newspaper
WHERE
PUBLISHED Hong Kong
DATE
PUBLISHED 30 May 1951
LANGUAGE
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF TN! UNITED STATES WITHIN TN! MEANING OF ESPIONAGE ACT 50
V. S. C.. SI AND SE. AD AMENDED. ITS TRANSMISSION OR THE 11.1111-A 3.01
01 ITT CONTINTf IN ANT MANNER TO AN UNAUTHORIEID PERSON IS PRO-
HIBITED ST LAW. RRPRODUCTION OF THIS FORM ID PROHISIT!D.
NO. OF PAGES 2
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
HIGH PRICE OF WOLFRAM STIMULATES
BLACK MARKET OPERATIONS IN KWANGTUNG
Hui-yang -- Reflecting the tense world situation, the price of wolfram
ore has risen in the Hong Kong and Amoy areas. The eagerness of various foreign
firms in Hong Kong to purchase wolfram ore has stimulated the growth of a black
market. Since legal export of the ore is generally difficult, and the turnover
is slight, smugglers are seizing e?Tery opportunity to obtain the ore for export.
The Central People's government of the People's Republic of China has ruled that
al.: mines producing wolfram, tin, antimony, and bismuth ores m:.st market the
ores at prices posted by the government and that all sales must be made through
control stations net up by the Canton Office, Central and South China Nonferrous.
Metals Control Bureau. But in their eagerness to buy the ore, smugglers offer
high prices, with the result that wolfram mines generally are selling their ores
on the black market for undercover shipment to Hong Kong.
The wolfram-producing region extends from Hui-yang, Po-lo, Ho-yuan, Tzu-
chin, Hai-feng, and Lu-feng hsiens, in Tung Chiang Ch'u, to the upper reaches
of the Han Chiang. In general, the ore is of high quality and that which is
produced aroung T'an-kung-ch'ing, Shu-to-chu Ch'u, Hui-yang Hsien, is especially
good. The ore deposits are rich in the mountains around Liang-hua Hsiang,
Ch'1-hsing Ts'un, Ta-chou Hsiang, Kuan-yin Shan, Ping-shan. Hsiang, Pi-sung Ling,
Yung-hu Hsiang, and Mao-tzu Feng.
Several days ago, Ma Ts'an and Yu Hsiung-chih were intercepted by Communist
militia at Kao-sha Hsiang, Hai-feng Hsien, while attempting to smuggle 8 piculs
of wolfram ore hidden in charcoal. Ma and Yu escaped and summoned 26 armed anti-
Commnnists from the neighboring hills. Thin group, lead by Ma, retook the wol-
fram ore through force of arms. In the ensuing skirmish, the militia were soon
defeated and three of their number, including Lu Wen, were wounded. Subsel-
quently, the militia reported the incident to the Hai-feng Hsien People's govern-
ment. The Hai-feng Municipal Bureau of Public Security promptly sent out a large
force which surrounded the 28 armed anti-Communists and returned them in custody
to Hai.-feng City.
I ONEIDENTIAL
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ONEIDENT1AL
The Chinese Communist South China Office of Maritime Customs acknowledges
that the maintenance of the embargo in this eastern district is still lax. As
a result, cattle, wolfram ore, and hog bristles are being illegally exported in
quantity from the area around Hui-yang, Tung-kuan, and Pao-an, while small
amounts of foreign goods are seeping into the area. The San-men Inspection
Station has determined to tighten controls, to plug these leaks.
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COPFIDENTIAL
CONEIDENTIAt
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400401-1