1. CORPORATIONS ORGANIZED BY THE KUNGS 2. GERMAN NATIONALS AND FIRMS IN CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001800930006-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: November 9, 2016
• Document Release Date: February 8, 1999
• Sequence Number: 6
• Publication Date: September 14, 1948
• Content Type: REPORT

A
,Scll ICA i f )N
Approved For R~L1 1L~I~LCl~82-004V#?8W
FO 25X1A2g
COUNTRY China
SUBJECT 1. Corporations Organized by the KUNGs
2. German Nationals and Firms in China
PLACE . 25X1A6a
ACQUIRED -
DATE OF Il
25X1X6
DATE DISTR. 14 September 1948
NO. OF PAGES 1s
NO. OF ENCLS.
(LISTED BELOW)
GGA LIBRARY
SUPPLEMENT TO
REPORT NO.
KUiJG- Gr. aniz~d Chinese C9rygq 9,qs with German Personnel.
1. The Yangtze development Corporation was originally organized by David KUNG.,
Its offices are at 314 azechuen Road, Shanghai, in the Chase bank Building,
which is also occupied by the Chialing Development Corporation. This firm
has on its staff K. lauerer, formerly Hankow manager of Di;F -G (Deutsche
Farhen-Handels?;esells chaft, t'vaibel & Company', who is in charge of the dyes
and chemical section.
2., a large shipment of dyestuffs was sent from the British zone in Germany to
Hong Kong. T. V. SOLING, while premier, was negotiating through,the Chinese
Ambassador in London to obtain these dyestuffs for DEFAG. I. hile the London
negotiations were pending, the shipment was actually made to Hong Kong, to
the Yangtze Devveiopnent Corporation. These dyestuffs are now being, smuggled
in small quantities to Shanghai, but. the bulk is still in Hong Kong because
its entry into China is barred at present., Stanley of the 'u Chung
Trading Company, is involved in the attempts to have these dyestuffs
imported to China.
3. The Chialini, Development Corporation, 344 Szechuen "Road, shanghai, vas
organized by Jeanette KU'3G, daughter of H. H. RU:,G and a sister of David
KUia x, who formed the aangtze Developzlcrit Corporation. Since the Yangtze
Development Corporation was organized before the Chialing Development Cor-
poration , Lli ss KU (r named her company after the vhial ink; itiver, which is a
tributary to the Yangtze giver. The corporation is said to be engaged
principally in import-export activities, but the bulk of the present activity
is in the shipping of goods between Korea and L:acao and the subsequent
smuggling of these goods into China. These smuggled goods consist of
ginseng, sea food products, and radio parts.
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4. The following Germans are associated with the Chialing Development Corporation:
Walter Stennes
Erich Kayser Formerly of the afar .ast Ring Traveler Mfg. Goa
A. 0id.emann Formerly of A. 0 G. China Electric Go.
Muck Austrian, representing t3ohler Brothers & Go.
5. There have been various rumors circulating for some time in Shanghai that
the Chialing Development Corporation was created as a "cover" for certain
intelligence activities directed by Walter Ster nee.. It is' extremely
doubtful that the corporation is a "cover" for anything more than V-1
shielding of the Germans listed above, enabling them to conduct tire: r
business affairs,
6, Stennes has always been a subject of suspicion because of the position he
once held in Germany and because he has never been trusted by certain groups
of Chinese and Germans, He has remained close to the Generalissimo and
Madame CHIANG Kai-shek and, since his arrival in, China in 1933, he has
remained aloof from the German community in general and from Chinese not
25X1X6
closely associated with the Generalissimos circle.
Stennes freely states that he reports the situation in Shanghai regularly
to Madame CHIANG, since he considers himself her representative in Shanghai
for the protection of her properties and her interests.
8. Madame CHIANG has stated that Stennes is now a tired old man, and that both
she and the Generalissimo are grateful for his loyal service and feel
obligated to care for him so long as he remains in China.,
9, Stennes is subordinate in the Chialing Corporation to Zrich Kayser, who was
a millionaire before the war. Kayser's principal interest is in textile
machinery and equipment. He is now engaged, according to his inn statement,
in giving technical advice and assistance to certa:i_. Chinese operating
cotton mills associated with Jeanette KUNGO Kayser is first of all a
businessman, and has never been suspected of intelligence activities. Ho
has never occupied a strong position in the German community because of his
Chinese wife and Chinese business associates. At the present time he is
extremely bitter against the Chinese, and complains of the way he has been
"squeezed" since the wards end. He has never joined the Nazi Party nor any
of the other Nazi organizations in China
10.. In the offices of the corporation the Germans are separated from the Chinese
staff.
33., Neither the Germans nor the Chinese appear to have much to do with each
other iasofar as the actual business of the firm is concerned. The Germans
keep regular office hours and are apparently occupied throughout the
business day,
German Firms in Process of Liquidation
12. The German firma of Waibel & Company (D.6FAG) and Bayer Pharma Company have
not yet been organized as Chinese concerns, but are still alien property
under the control of the Chinese Government. There has been talk of a
possible reorganization under T. V. SOONG and H. H. KONG. The present
status of these firms is given below:
a.. DL AG is in the process of liquidation under the "DEAG" Liquidation
Office; Liquidation Office of German ' 3 k operties; Alien Property Administration,
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Kiangsu, Chekiang and Anhwei Area; 261 Szechuen itoad, Shanghai The present
staffs are:
Karl Kuhn, Chief (formerly co-manager; now on leave to ltaly)(see
paragraph 16)
Commercial Staff
Technical Staff
R s Hager
Oskar Franz
'4.
litlbricht
L Kruse
A.
Gatz
K.
LLnann
Frederick Schilk
Dr.
Kurt Miss
H.
Hossback
C, Simon
G.
Ungewitter
E"
b4itt
hQ Bayer Pharma Company is in the prose of liquidation under the "';-yerr:
Liquidation Office, , { at the above address. Members of the present ;.tuff are:
Dr. He ( Yiilperl.~
R. A. Leckebuach
R. Staeps
Other German Nationals Connected with German Firms In China
13. Carl G. Gadow was formerly managing partner of DFAG in partnership with
Johannes Hildebrandt, and chairman of the German Chamber of Commerc He
was repatriated to Germany in July 1946 aboard the 33 111iRINE ROBINW
14, Walter itaufmano, formerly with the fire, of Reuter-Brockelmarur, is a German
Jewish refugee and was never a member of the German community, He is now
in business with a Drs Kilian.
15~ Dr. ',vilhelm Has was loosely connected with Di FAG as an adviser after his
dismissal from the Consular Service because of Jewish blood, lie returned
to Switzerland with his wife and four children in July 1947, He was
connected with Gerhard L. Flatow0 Flatow, who came to China from Germany
about 1934, was manager of the Far 6 astern branch of Otto holff, Cologne,
with office; in the redder Building, Hong Kong. Haas also knew Eric
IJothmanno Both Flatow and Nothmann were connected with Theresa Ir ,mayer
and Walter Stennes before 1940, and acted in some (currency) transactions
for both the Germans and the Japanese after 1939. Flatowv smuggled arms for
the Chungking Nationalist Government o Haas was at least socially intimate
with these men,
16. Karl Kuhn was in Tsingtao during part of 10,416 and 1947 to aid the Chinese
Government in the reorganization of a Japanese fiin previously engaged in
the manufacture of dyestuffs,. Afton the war Kuhn worked under the direction
of the Chinese Government o On 24 February 1948 he left China for L;ilan,
Italy, aboard the 33 FLYING INDLPa!;NDi4N 0 Throughout and after the war his
residence was in Shanghai.
17. Rudolf Dohse, formerly with DEFAG, was repatriated to Germany in September
1947.
1C Johannes Hildebrandt, formerly managing partner of DEFAG with C. G,. Gadow,
was repatriated to Germany in September 1947,
19. Fritz von Behring, formerly head of Bayer's Far .ast agencies, is the son
of a world-famous scientist and serum manufacture.,,, He went to Switzerland
in 1947,
2Ofl Franz Iden, formerly with the Bayer Pharma Company, went to Switzerland in
1947. 1
21.., Fred Uemssen departed for Italy in July 1947 on the 33 LARIN LYNX, He was
formerly the head of the German community in Shanghai and was succeeded by
Dr. Hermann ?..iedao
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22. Werner Amtage, formerly director and chief engineer of Siemens, China, was
considered an ardent Nazi. In 1941 he was listed in German records as a
member of SA. Sturm, III Troop Scha.r. 2. tie was repatriated on the
SS MARINE ROBIN. At one time he was aer adviser to ru Ta--wwei and the Minis-
try of Communications.
233 Walter Bastanier, formerly connected with the German radio station XGRS, is
now employed by the Ministry of National Defense as an adviser. He is
closely associated with Siefken and Karl Lavarentz, both of who are employed
in Nanking by the Chinese Government.
24. Karl Goetz is well known as a German armament expert. He Yeas in 1'garo.: ng and
Is now in Shanghai. He is employed by the National Board oA Supplies and is
engaged in handling surplus materials purchased from the United States.
25. Wilhelm Maier is head of the firm of Mutual Friends & Company =. ?8 a ted
von YANG Yin "(directed by YANG Yin), Maier, formerly owner of Wilhelm
Maier & Company, was considered one of the wealthiest German businessmen
in China.. lie is closely associated with Stennes and Kayser. Mutual Friends
Co., Ltd. is at 233 Nanking; Road East., YANG Yin,, formerly head of the German
Jdfairc, Bureau in Shanghai and e?t comprador of Siemens & Company,, was re-
moved frota his official position after the first repatriation in July 1946
Captain YANG Yin is listed in the 1946 Dollar Directory' as general manager
of the Mutual Development Corporation Limited, also at 233 Nanking Road East.,
26, Werner Lohrer, formerly with Siemens, is now in charge of the telephone
service in Tientsin and is an adviser to the Ministry of Communications.
27. Egbert Hildenhagen., representative of the Nan Yang Company, was formerly
a repr=esentative of the firm of Otto Wolff, Cologne. He was repatriated
to Germany in September 1947,
28. Max Tiefenbacher, formerly with Sayer Pharwa Company; was repatriated to
Germany in September 1947.
29. Karl Schrage and Gunther Veth were repatriated to Germany in September 1947.
Veth was formerly with DEFAG, first in Chungking and then in Shanghai.
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