APPLICATION TO PURCHASE WAR-BUILT VESSELS FILED BY CHINA TRADING & INDUSTRIAL DEVELOPMENT CORPORATION A CITIZEN OF CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP57-00384R001100100024-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 11
• Document Creation Date: December 16, 2016
• Document Release Date: September 30, 2004
• Sequence Number: 24
• Content Type: CONT

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Filed by
CHINA TR4DIN G & INDUSTRIAL DEVELOPMFNT CORPORATION
The undersigned hereby offers to purchase the
war-built vessels hereinafter described (Herein called
the "war-b t vessels") at the statutory sales price, in
accordance th the provisions of the Merchant Ship Sales
Act of 1946, Public Law 321, 79th 60 ) 2nd Session,
approved March 8. 1946 (herein called the "Act"), and the
rules and regulations proscribed by the United States
Maritime Commission (Herein called the "Commission"), sec-
tions 299.1 to 299.91, inclusive, of General Order 66,
published in the Federal Register m
(herein called the "regulations"), which the applicant agrees
shall be binding in all transactions in connection with this
application. Applicant also agrees that any amendment or
modification of the rules and regulations shall be binding
in all transactions approved by the Commission after the
date of publication of such amendment or modification in the
Federal Register.
In order to induce the Commission to act favra
ably on this application, the applicant submits in support
thereof the following informations
A, As to the applicants Its citizenship and affiliations.
If Exact name.
China Trading & Industrial Development Corporation
to Form or type oferganizatien.
Corporation.
EXHM
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3. state or other sovereign parr under the laws bf
which organized.
China.
4. Address of principal executive offices and of im-
portant branch offices, if any.
Principal office&
131 Museum Road, Shanghai, China.
Branch Offices,'
52 Wall Street, New York 5, N.Y.
353 Strand, London W.C. 2, England.
65 Esplanade Road, Bombay, India,
22. Tau Kong Road, Somie, Canton, China.
5. A brief description of (a) the shipping business of
the applicants and (b) any other business activi-
ties of the applicant during the preceding eight years.
If within such period the applicant has aoquired.the
business of another person or has been reorganized,
there should be included a. brief description of such
acquisition or reorganization,
Applicant is a limited liability company, incor-
porated in China in 1944, with a capital of approxi-
mately $1,000,000 ,00 Chinese currency (prewar value).
Applicant is engaged generally in exporting and im-
porting oil products, steel products, industrial
chemicals and other commodities and raw materials,
It ante as the agent for the Paragon Oil Comoany in
shipping oil to China, During 1946 the total volume
of applicant's business amounted to approximately
$8,000,000.
Applicant is not directly engaged in the shipping
business, but is affiliated with Chung-Yuan Steam-
ship Company, as set forth in the answer to item 6
below.
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6. A list of (a) all subsidiaries, (b) parent company,
and (a) all other affiliated interests of the appli-
cant, together with an indication of the nature and
extent of the business transacted for the past eight
years by e, 1-h, This information may be furnished in
the form of a charts indicating clearly the rela-
tionships between the persons named, and the nature
and extent of control.
Applicant has a subsidiary, Hung-Shin Dyestuff &
Chemical Company, which owns and operates a dye fac-
tory in China and is capitalized at approximately
820C,000 (United States currency). Applioant'a ac-
tivities in the United States are conducted through
a wholly-owndd subsidiary, a Delaware corporation,
which bears the name China Trading & Industrial
Development Corporation.
Applicant is affiliated with Chung-Yuan Steam-
ship Company of Chino, which is one of the leading
private Chinese
steamship companies, with a capital
of approximately $1,200,000 and now operating five
steamships.
Applicant is also affiliated with the Chung-Yuan
PAper Manufactory of China, which has capital of
approximately V3,000,000 United States currency and
during the last eight years has had gross revenues
aggregating approximately ;40,000,000 (United States
currency).
Applicant and Chung-Yuan Steamship Company and
Chung-Yuar_ Paper Manufactory a re affiliated by vir- P1?l
tue of the fact that the controlling interest in each
such corporation is held by the same persons.
7. The following information with respect to each offi-
cer and director of the applicants
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,i
IV
i
Office
Nationality
D. N,, Tian
Chairman of Bard
Chinese citizen
Shanghai, Chino
of Diro ctors
K. S. Kou
Dire ctor
Chinese citizen
Shanghai, China
S. K.Chen
Director
Chinese citizen
Shanghai, China
Y. F. Chen
Director
Chinese citizen
Shanghai, China
Director
Chinese citizen
Shanghai, China
M. H, Yuan
Shanghai, China
C. T. Shen
Shanghai, China
Y. C. Chang
C. Y. Chan
52 Wall Street
New York, N.Y.
C. C. Wei
52 Wall Street
New York, N.Y.
General Manager
and Director Chinese citizen
Assistant General
Manager and Director Chinese citizen
Director and Vice-
President Chinese citizen
Vice-President Chinese citizen
The directors listed above own in the aggregate approx-
imately 659E of the stock of applicant.
?
8. Applicant represents that he is a citizen of China.
B. As to the management of the applicant.
9. A brief description of the principal business activities
during the past eight years of each director and each
pz2inoipal executive officer of the applicant, if re-
quested.
D. N, T j ian is Chairman of the Board of applicant,
General Manager of Chung-Yuan Steamship Company and
Chairman of the Board of Directors of Kan Yuan Bank.
K. S. Kou is Chief Engineer of the Chung-Yuan Paper Manu-
factory.
S. K, Chen is Vice-Director of the Central Chinese
Government Mint.
Y. F. Chen is Assistant Manager of thi B..nk of
M. S. Sze is Vioe-President of Chi.j S'iiei: C?.n4-n: Worku,
the largest oerrent works in China ind G--oral Manager of
,.r3 Yau Hwa G ~r s ; '7. ' ?+?
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V. H. Yuan,, formerly President of applicant, is
now inactive.
C, T. Shen is General Lance gur of applicant and, in
addition, Geno ral Manager of applicant's subsidiary
Hung-Shin Dyestuff & Chemical Company,
Y. C. Chang is Assistant General Manager of appli-
cant and Secretary General of the Chinese National
Association of Importers and Exporters.
C. Y. Chen is in charge of applicant's activities
in the United States and is President of its United
States subsidiary.
C. Wei for the last year has been Vice-President
of the applicant and Vice-President and Secretary of
its United States subsidiary, and previously had acted
as engineer for the National Resources Commission of
10. The name and address of each other organization en-
gaged in shipping activities with which any person
named in answer to the preceding item has any pre-
sent substantial business connection, the name of
such person and, briefly, the nature of such con-
nection, if requested.
None, except as stated above.
!1. The name and address of any person who is now acting
or within the past eight years has c.cted as managing
or operating agent of the applicant or in any simi-
lar capacity and, briefly, the general terms of any
agreement with reference thereto, if requested.
Applicant intends to employ Messrs. Sieling & Jarvis,
74 Trinity Place, NowYork 6, N.Y., as managing agents
cf the vessels for which application is herein made,
upon their usual terms. No form of agreement has been
entered into.
C. As to the war-built vessels.
12. Applicant offers to purchase, at the stat,~t:~, -9y:
prices, as determined by the Commission, tn- w r r
built vessels designated in items 13 and
alternative vessels designated in item : ),
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13. Ii specific vessels a re applied for, as distin-
guished from any one or more of a given type,
the names of the vessels must be given under this
item.
2:o specific vessels applied for.
14, If applicant is willing to accept any one or more
vessels of a given type or designation, as dis-
tinguished from particular vessels, the type or
designation of the vessels desired should be set
forth as followat
Applicant applies for two tankers of type T2,
Commission's designation T2-SE-A1.
If no T2 tankersere available applicant applies
for three tankers of type EC2, Commission's designa-
tion Z-ETI-S-C3,
15. If more than one vessel is applied for, state whether
applicant will buy any one or more if all are not
available for sale to him by placing an "X" or the
appropriate number; as the case may be, in the pro-
per space below: In the absence of any indication,
it willbe assumed that the applicant is willing to
accept, ailor any of the vessels.
(a) All only ( )
(b) All or any (x)
(c) Any but not leas than
D. Terms and conditions of sales,
If the application. is approved by the Commission, the
applicant agrees to execute a contract of sale in
form prescribed by the Commission. State what por-
tion of the purchase price (not less than 25 per-
cent of the statutory sales price) applicant agrees
to pay hot later than upon delivery of the vessel.
Applicant agrees to pay not le ss than 25% of the
statutory sales price not later than upon delivery
of the vessels applied for.
1?. Furnish full details as to the manner in which the
applicant proposes to obtain the amount needed to
defray the purchaso price of the, vessels (that is,
at least 25 percent of the purchase price). The
applicant should also furnish full details of any
proposed security issue, including '.arses of under-
writers.
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Applicant proposes to pay a t least 25% of the
purchase price. from its own cash resources Appli-
cant may request mortgage aid from the Commission
for the balance of the purchase price or maywpay
the balance of the purchase price with funds ad-
vanced by the National Resources Commission of
China. After payment of 25% of the purchase price,
applicant willhave avaijab o sufficient working
penses of the vessels applied for for a period of
at least sixtydays.
18. If this application is approved by the Commission,
state whether or not applicant intends to apply
to the Commission, pursuant to Section 9 or Sec-
tion 37 of the Shipping Act of 1916, for approval
to transfer or place under foreign registry or
flag the vessels referred to above after appli-
cant has purchased them. If applicant intends to
apply for such approval, state to what foreign
r'?gistry or flag.
Applicant intends to operate the vessels applied
for under Amorienn registry, and has no intention
of applying, for approval to transfer such vessels
to any foreign registry,
19. Does applicant propose to trade in old vessels for
an allowance of credit on the purchase price of a
war-built vessel. If so, is application contin-
iont thereon' State date of application for de-
termination for allowance of credit, if filed.
Not applicable.
20. A statement showing the extent to which losses and
requisitions of the applicantfs prewar tonnage have
been overcome and other information in support of
request for preference.
Not applicable.
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Supplemental information
21. A brief description of the general oharaaker and
location of the principal property of the appli-
oantjo other than vessels, employed in its
business.
Applicant has no physical property, other than
its stock of merchandise valued currently at
about $600,000 (U.S. currency).
22. (a) A list of vessels owned by the applicant,
including (1) names (2) gross tornlage; (3) net
tonnages (4) deadweight tonnage; (6) bale capa-
cities; (6) year built; (7) types (8) speeds,
(9) registry; and (10) identification of route
or service on which operated.
(b) Information similar to that specified in (a)
as to any vessels chartered to and operated by
the applicant.
23. Briefly, the neral terms of each charter for
operation (a) of vessels owned by the 'applicant
and chartered by it to other persons, and (b) of
vessels chartered by the applicant from other
persons.
Not applicable.
24. Full details concerning the services, routes, or
lines an which vessels owned or chartered by the
applicant are now operated, including ports of
call, terminal and dock faoilities at allsuch
ports, frequency of sailings per year, descrip-
tion of services and voyages, a nd names of
vessels segregated according to services, routes,
or lines.
Not applicable,
25. Type and kind of cargo now carried in the trade
served as stated in the answer to item 24, in-
formation as to how the service or line may be
developed for carrying additional types and
kinds of cargo, and any factors influencing
cargo expectations for the future. If the war-
built vessel is to be a combination passenger
and freight vessel, state also, by classes, the
passenger accommodations and the number of passen-
gers carried and eny factors influencing traffic
expectations for the future.
Not applicable.
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~~. lnformati 'n similar to th^t called for by th. two
^r a din.- it: ns with r, sp, of to any nrw service,
mate, or lire which the ncolic:.nt preposes pre-
s, n.Iy to ostab isr..
is nt prc, cses to use the tankers ^pplied
for to .::rrF Iil from Persian Gulf ports to
;f:i-.ese ports for tho 'hinese Governmmn%.
27. ldc:tif ? er tion of the sorvi3e, route, or line
do s cribt?d in inswe r t j item 24 or item 26, on
w'lich the Rpplicnnt proposes to operate the 'war-
built vessel, brief descriFtion of passenger
ticcmT:,o.i.:tions, ^.l st_- tcrront of tvpc. Lad kind
arpo to b_ carried by the r: ;r-built vessel.
.y s-~.-ci,i requir:,mt~nts of such s.-rvioe, route,
or li:r .nd the ^i~ni:cr in which thr may be -get
by thr, use of the war-built v, sse; should be
dis-ussed briefly,'. Any chanres in existing ser-
r.~utes, or lines .0-.ich he atpli:ant pro-
7cs^s in cor.n?_?ction with th use of the
war-built v,ss:l should also be ir:-iicr.tod.
c .n sv?,'r __ item 26.
28, i. statement as to wh, _,.~.cr or not th- war-built
vessel is to be used to replace _ vessel now
operated by the anti icant and, if so, the mane
of such vessel and the proposed disposition to
be made of it by the applicant.
N of _ rplicable.
G. As to exhibits furnished.
29. A list of exhibits, rrooerly identified, w hi-r, shall
include at the time cf original filing, the f,7liow-
Exhibit I - A copy of the Certificate of Incor-
per_,tion of the applicant or other orrrnization
pr.pers, includin- all amendments thereto nresently
in effect.
To be supoli~d by amendment.
Exhibit II - A. Ccpy of the by-aws or ether g-~.ern-
ing instruments of the .rclican* -:3-
meats :hereto presently jr. effect.
:o be supplied by iment ent.
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Exhibit III - A copy of (1) a balance sheet as
of a date wltFln six months of the date of filing
the application with the Commission, (2) a brief
statement of iho nature of ary substantial changes
in the financial condition of the applicant or the
results of its operations since the date of the
balance sheet required hereunder, and (3) profit
and lose statements for the theee fiscal years
preoedinjg the date of such balance sheet and the
three fiscal years ending in 1939, 1940 and 1941.
If during the period covered by such profit end
loss statements, the applicant succeeded to the busi-
ness and assets of another person, the statements
furnished should reflect the operations of such pre-
deoessor or predecessors fbr that part of such.
period preceding the date of acquisition.
To be supplied by amendment.
Exhibit IV . A copy f specimw it available) of
each Tom ot'bonds or notes included in the funded
debt of the applicant and a copy of each indenture
or other instrument under which such securities
were issueda including all amendments thereto pre
sently in effect.
Not applicable
CHINA TRADING & INDUSTRIAL D!V$LOP-
MT TION
eme o ap oant
By
December 10, 1947
(Date)
?
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BTATE QF 1t* Y)
1 ss:1
CCJTY OF W YY X )
Is C. C. WI, being duly sworn, depose and
ssy, that I an a Vice-President of MINA TR1tDIlla & IltT$TRIAL
D LOPWW' C(1PC TION, the applicant on whose behalf I
have'exeouted the foregoing application; that the applicant
is a citizen of China; that this application is made for
the purpose of inducing the United States Maritime Ca?is
lion to take the action requested herein, pursuant to the
provisions of tho Merchant Ship Sales Act of 1946, and
particularly to section 6 thereof that I have carefully
examined the application and all documents submitted in
connection therewith and, to the beat of nay laiowledge,
information and belief, the statements and representations
contained in said application and related documents are
full, complete, accurate and true.
subscribed and sworn to before me,,a Notary Public
in and for the State and County above named, this
10th day of December, 1947.
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