PRODUCTION OF IRON AND STEEL IN COMMUNIST CHINA COMPARED WITH JAPAN , FRANCE , AND THE UK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00369R000200200020-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: May 25, 2010
• Sequence Number: 20
• Publication Date: January 1, 2000
• Content Type: REPORT

Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
Production of Iron and Steel in Communist China Compared
with Japan, France, and the UK
1. The iron and steel industry of Communist China is much smaller than
the iron and steel industries of Japan, France, and the UK, as shown in
the attached table. China is the world's 8th largest producer of crude
steel, with an output comparable to that of Italy, Canada, Poland, Belgium,
and Czechoslovakia. Japan is the 3rd largest producer of crude steel in
the world, exceeded only by the US and the USSR, while the ITK is 5th
and France is 6th.
2. Communist China is self-sufficient in the production of both
iron ore and coking coal. Japan imports over 90 percent of its iron
ore and almost all of its coking coal. France is self-sufficient in
iron ore but also imports almost all of its coking coal. The UK
produces its own coking coal but imports over 50 percent of its iron
ore. In terms of finished steel, however, only Communist China among
these four countries is a net importer, purchasing several hundred
thousand tons a year, mainly from Japan. In 1965 Japan exported
9.4 million tons of finished steel, France 6.5 million tons, and the
UK 3.9 million tons.
3. In addition to the positions of these four countries in basic
raw materials, there are other factors that affect the relative strengths
and weaknesses of their iron and steel industries.
a. Communist China -- In the past Communist China acquired
much of the equipment to build its iron and steel industry, especially
steel finishing facilities, from the USSR and Eastern European Communist
countries. Since the Sino-Soviet split in 1960, this source of supply
has been cut off, and Communist, China itself has not been able to
produce this kind of equipment. Any further expansion of the industry
will require additional imports of finishing facilities, and these
imports probably will be available to China only from countries of the
Free World. At the present time China is trying to purchase a large
number of various kinds of finishing mills from a Western European
consortium led by Demag of West Germany. China is also dependent
upon imports of nickel, chromium, and cobalt -- alloying materials
essential to produce many of the higher-quality alloy steels.
b. Japan -- In spite of its poor domestic resource base,
Japan has been remarkably successful in building a large, modern,
and efficient iron and steel industry. Because of adequate world
supplies of iron ore and coking coal, Japan has encountered no
SECRET
ErcEnd d frs an^amai~c
dawn raJng and
Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
 Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
difficulty in meeting its needs for basic raw materials through imports.
The location of the industry on or near the sea coast enables Japan to
benefit from cheap water transportation rates. Most of the industry,
built since World War II, is relatively modern, and much of the
equipment was either purchased from Free World countries or engineered
for Japan by Free World firms, principally US. Japan's exports of
9.5 million tons of rolled steel in 1965 ranked it with West Germany
and Belgium-Luxembourg as world leaders in exports of steel products.
c. France -- France is the world's 3rd largest producer of
iron ore and a major exporter. Because of the increasing competition
of low-cost iron ore from other countries, however, French exports
of ore have been declining in recent years and domestic production
has been cut back. France has recently imported small quantities
of high-grade iron ore.
d. UK -- In recent years economic considerations have
influenced a shift in the relative use of domestic and imported raw
materials in the UK. High grade iron ore is now available on
world markets at prices competitive with domestic ore, and in
1964-65 imports of iron ore accounted for more than half of total
consumption. The UK has continued to use primarily domestic coking
coal and has restricted the importation of foreign coal. Some
industry spokesmen, however, advocate liberalization of import laws
in order to take advantage of current favorable prices for coking
coal on world markets, including coal from the US.
SECRET
Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
 Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
Production of Steel Industry Products in Communist China, Japan,
France, and the UK, 1962-65
1962
1963
1264
1965
Metallurgical Coke
China
6.6
6.8
7.1
7.8
Japan
10.9
11.3
12.9
0
France
13.8
13.7
14.3
13.7
UK
15.8
15.7
17.1
17.3
Iron Ore
China
18.4
20.4
22.5
24.8
Japan
2.6
2.4.
2.5
2.5
France
66.3
57.9
60.9
59.5
UK
15.5
15.2
16.6
15.7
Fig Iron
China
9.0
10.0
11.0
12.0
Japan
18.0
19.9
23.8
27.5
France
14.0
14.3
15.9
15.8
UK
13.9
14.8
17.6
17.7
Crude Steel
China
8.0
9.0
10.0
11.0
Japan
27.5
31.5
39.8
41.2
France
17.2
17.6
19.8
19.6
UK
20.8
22.9
26.7
27.4
Rolled Steel
China
5.7
6.4
7.1
7.8
Japan
22.3
25.6
31.9
33.4
France
13.6
13.7
15.6
15.7
UK
15.7
17.2
20.2
20.8
CIA/ORR
22 March 1967
SECRET
Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
 Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0
SENDER WILL CHECK CLASSIFICATION TOP AND BOTTOM
UNCLASSIFIED CONFIDENTIAL SECRET
CENTRAL INTELLIGENCE AGENCY
OFFICIAL ROUTING SLIP
TO
NAME AND ADDRESS
DATE
INITIALS
D/ORR
MAR ]i
2
ODD/I
3
4
6
ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks: S-2252.
1. The attached is in response to two
questions from Congressman Bell.
FOLD HERE TO RETURN TO SENDER
FROM: NA
DATE
Chief Economic Research Area,,
23 Mar 6
UNCLASSIFIED CONFIDENTIAL
SECRET
FORM MO. 237 Use previous editions
0_L1
Sanitized Copy Approved for Release 2010/05/25: CIA-RDP69B00369R000200200020-0