(Sanitized) REQUEST OF MR. AMORY FOR CONFIRMING INFORMATION ON FOUR ITEMS ON CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000200140008-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 12, 2016
• Document Release Date: November 19, 2001
• Sequence Number: 8
• Publication Date: June 23, 1952
• Content Type: MEMO

Approved For Release 20 : CIA-RDP75-00662R000200140008-0
Assistant Director for Research and i,~eports 23 June 19`,2
i t : Zt1 t Chief, Industrial DivisI on
2A?~Jr 7Chief f I/I?
Request of Mr, A?aory for Confirming information on Four ite= s tin
1. Attached are summary statements of information in Industrial
Projects 8rta cchh files 25) 1 it topics which were subjects of conversation
between ?r, Amory ana _
a, Motor transport facilities and production in Tientsin,
b. Industrial develcnment in Lan-chow area,
c, Extent of Soviet technical aid to China indastr;ye
d. Nature and +urr ose of the arming of small craft in Wharnpoa.
2, Much of the infor-aation contained in the statements comes from
documents designated "U.S, Officials only",
25X1A9A
(listed above)
A
(Q
2
3 June 1952
l:istribution
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 SECURITY INFORMATION
b. .industrial Development in L a n,e hs?H _ ra.
informants who recently returned from the Chinese mainland have
confirmed that since the outbreak of the :orean conflicts the Chinese
have been moving industrial plants from southern . anchuria and other
areas to the Northwest. Thrsy state that the Chinese have changed their
original industrial development plans and are now concentrating on the
coast action of now piants in the inland provinces in anticipation of the
-:possibility that they will ;ae forced to retrt to the Northwest in the
event of an attack on the Chinese Mainland.
There are indications that Care-.chow, E;ansu has been selected as a
{: ossible co-capital of China should the government find it necessary to
evacuate Wing. Furthermore, Were is considerable evidence of major
plans to develop heavy industry in Lanchow, and in the "triangle" formed
by L.nchow, dsining, and iuwei.
The Project in Lanchodr 2
The project, commencing wit, the arrival of Russian engineers and
technicians in September, 135-6, involves the division of the city into three
areas for construction purposes as follows:
The first area covers an area from t he i&oet Gate to the Y ianR -iwieeng-hdao
(Temple of the Lady) - six riles in diameter. The construction of 2,000
houses was planned initially. The Russians, however, revised the plan, in-
croasinU the number to 4,000 prick, two-storied i astern-designed houses. A
area
thi
.
s
tour--storied office building was also planned for
The second area, covering k;lao-Tan-TZe on the north bank of the Yellow
liver, was designated the "cultural area, Lanchow University (combinn North-
west the Northwest Teachers College, the Northwest Medical College, and
west !ri. cultural College) will be located here, together with facilities
for student and faculty housing.
The third area, covering the largest territory, extends north fCr'ro r the
Yellow River Bridge to Peach rove, a distance of about fifteen miles.
Probably to be the now industrial area, it is directly across the Yellow
liver from the housing area.
TV be of construction w ark in September, 1950, the
i
nce
S
engine
increasing, i majority
been
s
e
f
tT laborers largely transferre and techni, d frog?
xae
i
number o
ciansrare? tun
d
bmp 7
vtiaravuu sabot
drafted labor. By November, 1951 more than 20,00 men were employed on the
project.
By November, 1951 the housing construction in the first area was complete.
Ork in the second area, delayed by cold weather, is expected to be complete
by August, 1952. The third area is not expected to be completed before the
end of 1952.
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SECURITY INFUMALT,
A special industrial area is NOW
sma" 04"ad by h 'as. and rch roa&
factories and r ,ea the tea se sovus
= 2010 1291; h/
mine shaft* in the a ea
arid prodxicin an estimated lQ000 Own
A bituminous coal disti .atian plant is located in NOW-
d to cpioy 1000 workers, and 60 Soviet and Japanssi
t
repor
e
TO capacity of the plant is 680 Wed to be 1400 tons Of coa
q there are f
construction of an additional 500 t,
now near Laohuklon with a cape
loys 20M workers, includ ?g some Soviet
addition thor is a steel M111 using equipment bought from the
. contain
Ansba n plant in Manahuria, and frow plants in Munkir
It and
over 60 furnaces; and employs 3 000 varkeres including
300 Soviet Japanese technicians.
are also a numbew of
in wor shops, employing 2000 " war
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1952
co *plo% d by NOW
 Approved For Release 200 AtSl-x'75-00662R000200140008-0
finery is located at Heinchan. It Includes
o; e 3000 - 4000 workers including 100 Soviet
the area*
n,
,in near Via Kansm-TaInghai border
t second is located at Ho Chi, southeast
capacity of the ttx plants .e 60,000 tai 70?
rat plant receiv its
second plant,
ft -a nar thest China in )xaroh, 1951.
a located at
employing 200 workers,, received its c ; ent from the
Ohungkinge
n Ho
located in Ta Ch'uan, under the direti-
be a former instructor at en
and 200 Soviet and Japanese
,ufact4 : hi h
i ns o *ng, north of
or Poison gas
s ., t plant is located at Tat
plant manuf a large tra nsforiaere * srii
then items* In addition, one section, +eeCy 1c3yi,x 6W
cue and radio parts, 'Most of the workers and
Shanghai and C k:ng,
n and ndina, tosses them are a number of m aahinery factories*
the Yi Ta, the W Fang, and the Ta Ha Plants fx Hankow
Works" mid t -seir familiese, tota.Lling 8#000 persons have
t e two cities.
sulphuric and nitric aci
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There arm also co en c factories and miscellaneous manufractur n$ plants
e'azin such items as wet cell batteries.
There are a number of armaments plants in the area, eqvIpped principally
with equipment received from Atussia. `7ie;, are designated as .s Northwest
il1tar r i .r.Lreenai a .
Arsenal
wwttyll44pptenC71~1 n,.7
}}y
R -MUnitiion.
h' iao Fem. This plant repairs
renal Located at t iear+chuapao, this plant, employing 3,000 rrkers,
produces 'n-chine guns and aainn znition. workers and equipment a trams-
erred from the Chin Line Arsenals Nankings
rsena i. #8. Loci a:ted at T r i ent' angszu an the Kans'u-Tsinghai border, this
n not m-anufactures %Qh extlosives and artillery shells.
Arsenal. *9. Also located at T 1 ienta engssu, this arsenal is reported to
be present ,7 pro d xci .w raw materials for dyestuffs. There are 500 workers
e r loved and 100 Japanese and European aadvisbra. There are unoonfinned
reports that the plant will manufacture poison gas.
25X1A2G
i a L Ho : h t iao Mrs the plant employs 11000 workers*
. 1.actoi cr, 19 1s the plant produces c onnon and
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Technical Aid to Chinas Industry
number of oviet advisors in China 1.9 rectuently cited
10,000 concentrated mostly In Manchuria, North China, a4.nd Sinkiang
in the centers of mining, -aeenufacturing and metal working industries.
es reports beering out the estimate that one or two
Soviet advisers are attached to each industrial plant. At the Anshan
Steel Works 8 Russians were attached. to the technical staff' in 1949 -
1950.
7e China Yearbook (..95f?) reports some 6,a; 00 registered factories
under the fallowing Cate cries s metallurgical, machinery, metalwork-
ing, ;."lectrical a a sanufaacturira? w id chem-lea1.
Based on this information we believe it is reasonable to assume
that the 10,000 figure Is on the low side.
1949-1i'#%C report states that the level of com tence of a dv
et one Manchurian plant was judged by the source to be third r
cause these oxen were considered to be the beat in China, source In
ted that Russia was not sending its top-flight technical men to the
.Fast. Soviet engineers, the source continued, are not -,)laced in
iminal control of enterprises, brat servo in an an advisory? zpscity.
'oviiet suggestions however were ;casually taken as orders.
'Interrogati.ora retorts of the same rind on 14anchurian Chinese
inc irate Chii %se animosity toward 0ovi.et personnel. This was due to
Soviet attitude of super4_ority, advaunta a enjoyed by Russian officials,
Soviet referential treatment -+f Japanese arid Gorman techn i ci area, and
?oaiammistas failure to live up to nrcoiaee.i/
That this ani. iosity was still current and perhaps growing was sug-
gested recently by a member of the Indian cultural delegation who stated
that while China was employing "thousands of Russian technicians," Russians
did not generally appear in public and that the government was "keeping
thou hidden from the c m -man."'t :
25X1P2G._..........,.
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