SERVICES DIVISION COMMITTEE ON CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200160004-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: July 9, 1998
• Sequence Number: 4
• Publication Date: December 4, 1958
• Content Type: MIN

Sanitized - Approved For ReI : CIA-RDP61SO0527A000200160004-5
Services y~o~siQn
Committee nChin~
Committee Minutes - 184th Meeting - 4 December 1958
i?/S RepresentHtiveeg
25X1A9a
25X1A9a
1~ The 1958 plan for the production of crude oil in Communist China
was reported to have been completed on 4 Octobers 88 days ahead of schedules.
Earlier in Februr.ry, the Chinese Communists announced a modest -production
goal of 155 million tons of petroleum for 1958, which subsequently was
raised to 1666 million tons in March 19.58,
COidt'1El+T It is not known to which tarprt the completion claim
refers, in either case, production this year should be about 2 million
tons (the original First Five Yee.r Plan goal) and should approximate recent
claims of a 50 percent increase over let year?s production of 1;,46 million
tons of crude oil,
2, According to a recent announcement by the Chinese Communists,,
construction of the natural crude oil refinery in Nanking wee scheduled
to start in November 1958, Theieported annual capacity of the first phase
of construction will be 1 million tons,
COX-iMlg This would be the same capacity As the Lan-chou refinery
which was completed recently? Since the construction time of the Lan-achou
refinery was approximately two years, it is possible that construction of
the first phase at Nanking can be completed by l96a,,
25X1A9a M/FY.
3,, According to Communist Chinese press announcements, the production
of coal had reached a total of 221 million tons by the and of October, Pro-
duction from the big mines (the Chinese are now dividing coal mines into
categories of big mines and small mines) increased from 9 million tons in
January to 18,5 million tons in October, while production from small mines
increased from 3 million tone in January to about 9 million tons in September,
in the first 20 days of October the small mines produced about 8 million
tons; but in the last 11 days of the month alone they produced nearly 43.,5
million tons,
COM14E1T~- The announced total of 221 million tons exceeds the most
ambitious of the v_..rioue "'leap-forwardtl6 goals for the year by 11. million tons,,
Sanitized - Approved For Release : CIA-RDP61S00527A000200160004-5
 - Sanitized - Approved Ft .er: CIA-RDP61SO0527A000200160004-5
The met--iod of utilizing; mass labor in aa. sporadic manner mekes suspect the
?.ccuracy of the production figures re'ortede '.'he que.ntity of coal mined
will be enough to s=itisfy all requirements but it is,doubtful if they will
#?e eble to move it to ind.ustriel consumers in time to allay all shortrges.,
25X1A9a 14/FP
,.; On 26 November traackleying was re_oorted comalpterl to Foochow on
the Nan-p"ingiinoochow lime, 15 Mays ahead of scheduled It has been announced
also thet fe.cilitiea alonp the Xing-t"an-Annoy line are beinp expanded to
handle adaitionel trf,ffic,
:U. "I T-. With the corn ietion of the Na p"ing-Poochow line the
two main +orts of Fukien Province, Foochow and. Amoy, -re connected by rail
with the rest of China,, Since the northern section of the line from
Nan.--p?ing to O.yang wc:s opened to trFffic earlier in the year,, nearly
4W0,,000 tons of cargo and more than 180,000 pess?ngers have been tr=~ngxaorted..,;
Present facilities on the Y1ne-t?ann-Amoy line r.re renortedly inadequctee for
the large quantities of raw materials to be shipped out of h'ikien', and the
manufactured g?oeis being shipped into the -provinces,
25X1A9a f, S/TEL
5,, On 3 December it wes announced by the Chinese Communists that track
was being laid on the last 37 kilometers of the 2u}1-J~uei-yang section of
the Kweichow wpnpsi railroad.
!~U+~MFIvTo This line was constructed over extremely rugged terrain
requiring more than 20 tunnels, Bepun in 1956f, it was originally Ached.uled
for construction after 1958 but w=g moved forward. in the Chinese Communist
timetable, It is a trategic ally end economice.lly imports It beceuse it will
connect the southweaat border area (Lei-pin-Ku