THE IMPORTATION DISTRIBUTION AND CONSUMPTION OF PETROLEUM PRODUCTS IN CHINA AND MANCHURIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01093A000200020019-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 43
• Document Creation Date: December 21, 2016
• Document Release Date: October 23, 2007
• Sequence Number: 19
• Publication Date: February 26, 1953
• Content Type: IR

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5
'.E "TAT, (N. DI tI11N ION
PRO SIONAL nQ ELT E RmwT
PBM01EW m THE SOS BLOC
AND CSuamON
CLVM PR-la (M B)
26 February 1953
--1-
1 Ve
2he data and conciueionta in this report
do not necessarily represent the fixtai
position of OIL and should be regarded as
provisional only and subject to revision.
Additional data or coxrmEnts which may be
available to the user are solicited.
DIA review(s)
completed.
State Dept. review
completed
ARMY review(s)
completed.
TW IA'.1RIAL CO2I?AS mA.'ON AzE_ mi,
NATIO . DBPZNM OF THE UNITED STAhS WI M= THE
HEEANI OF THE ESPIt AOE LA 1, TITLE 18, USC, SECS.
793 .X) 79L.: E T f SSI ' CZ B EV`ELl 1?It T OF
UUH m AN Nr TO AN UNA11JTH XZED FI iS t IS
PR 1 BY LAST T.
AL D U GE OE tom'
Office of Research and Reports
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S-E-C?Rw J
Summery and Comlusion* ? 0 ?? . O . O O a . a a 0 0 a 0 ') a 0
L Deports of Petroleum Products . . a ? O a O a a . O a 4 O
A. y Tear and by Type of Product . . a . . . . . 3'
C. Sources . . . ? . . o . o? e a . . o e . 0 . 1 . a 0 0 I
C!
. Quantities, Types, amp. Ports of retry a o o a a v a v 5
DEC. Storage of Petro um Products by Ara and by ',k'yp* of A
Product ? a D a a 0 O a . a . a ? a a . ? 0 a o 3 4 .0 8
A. Pxirsr Patters
E5 Poster PatteM
e . ? a 0 O . ? a . 0 O e a .+ n . . '0
n ? r. a w '~. r 0 .i e 9 D O -u J 4 0
III. Dietributiou of Patroleun PrOdUCU e e. o J a J O u a a y
A. Preww Pat rn . s o e v a s o e n y a m 4 o v v a o It
S. Postwar P.tti Y o O v a 0 0 e O ? u u o u `D J a a 13
IL CoMumptiona- of Petroleum Products ? . 0 O . a . . ? . . . 13
A. Hawburis a 0 a 4 0 O a 4 0 0 a 4 I 0 O 0 . 0 % L J 14
I. Prior to 1932 . ..... 0 a 0 v a 0 a a a a 0 0 104
2. J$ ncs OmoupstioU a a?. a a u a 0 0 o 0 a m o A
3. Postwar v o . v o . o a a a 0 a 0 0 a a a 0 m a a i$'
ao Niue .. a a. a. a a. o o a n o u a m v? a o ~
. a a o a 0 a s o. 0 0 v a o a ~~
1 Prier to JL937
a. JS amppo tion o a O a 4 O . e . a a J n o J 17
12.1 HsilrV*ft o a e m? a e o O ~ o a
2 Motor i'cbic1ee . o . . a v . . a .
3 Shipping ..... a m a a a e?
v a J 17
o 0 a 18
ZMus r y a e a a 0 v O o o a a a o a d. .a o 19
Domestic Eewting, Cooking, and #.ghticg - a - 19
a a 11 a a 0 4 6 a 0 3 a a 0 0 . u 0 0 a 21
1 ou~aion a c a o a a . .. Y O O a a i'
ae asp ~,.,es y~g
b. gRYatione~Sist China ... a o 0 o O a 4. .a 4
C. Tbw . o a. 4 a. o ?. a u 0 0 v o 0 0.. .
Q
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par
Pautxar (Including iaahuria) . . . . . a O ? . all
g. reaioyp tatio o a o c o . e o a o 0 0 o e e 25
(1) Railroads O O o A ? . O O A 9 6 ? O U d 6~ 95
(2) Motor W~2hicl . ... . . . . a . . a . 26
Military and Civil Aviation . . . . . . . 99
&) Shipping o . . . . . . . . . . . e . . e 30
b., bdustlry a ? o 0 ? 0 0 0 O . 0 0 O v 0 - 0 e
a. Daestic i sting, Cooydmg, sad $.igbtiog . a . 34
C. Chinese Communist PC o Ro%uireaenta ? . . . 0 o 0 a . 3~
Ap ndi s
Appendix D. MHthodol ogy . o . . . . . . . . . . . o . . o o 38
illustrations
Following --
Chitrese POL Imports, IM-50 (Chart) . . . . . . . . ,~
Prover Distribution of Petroleum Products in China Proper
(MOP) . . . . . . . . . . . . 0 . ? 0 0 ? . 0 0 O 0 0 . . 0 38
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CA/RI: PE -v I-B S-E-C-R-E-T
(ORR Project 6..52)
SECCR Rt+J&TIG I
THE DTATEL DI OMRI C , IM CONSUMM
um IN
6ummarY and Conclusions
Although Nationalist China imported approximately 2 million tons
of petroleum, oil, and lubricating oil (POL) in 19117, an historioe.t
analysis of basic petroleum requirements of the Chinese econogr
reveals that much less than this q antity probably will satiety the
demands of the Chinese Coiimnniatt military and civilian con?sumare.
China's demazad for petroleum appears to be almost totally elastic,
and the few inelastic reStiranents for petroleum products do not
seem to bulk large in gpantity. In fact, the problem of petroleum
consumption in Chi seems primarily to have hinged, on the availability
of supplies of petroleum products.
In the period before Japanese occupation of North China in 1937,
China and Manchuria Imported POL at the annual rate of approximately
900,000 uric tons. The bulk of this -total wan made up of kerosene
and fuel oil. The demand for diesel oil, motor gasoline, and
lubricating oil zras very low. During World tzar II, the Japensse-
occupied areas of China, Manchuria included, consumed an undetermined
Quantity of POt which is estimated to have been no less than 80,000
metric tons and no maw than 326,000 metric tons per year. The areas
left to unoccupied China consumed POL at an approxim to annual rate of
56,000 metric tons, Thua, wartime requirements for all China, 'mexuaxaxg
the areas occupied by the Japanese, are estimated to have ranged between
136, 000 and 400#000 metric tons per year. Mach of this PW want to the
military effot. Buie civilian requirements for P. in the Japanese-
occupied areas of China and Manchuria are presently unkoown, and the
civilian consumption of POL in +unocaupied Chinas was considerably less
than} 20 percent of the total PULL and petroleum substitutes available
After the war, primarily because coal was not available, u=Aoma y
large quantities of fuel oil were imported into China.. Factors which
Contributed to the Importation as constuaprtion of mare petroleum products
than had occurred in any previous periocl included the reconstruction
efforts of VEM, the continuing struggle against the Chinese Comma aistep
the internal attempt by the Chinese SationGl.iste to rehabilitate the
Chinese ecou ao ', and the policies of the foreign oil compMUS who brought
T report contains Information avai. ,ble to M as of 1 Jtay W52.
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
RESTRICTED
CHINESE POL IMPORTS 1925-50
(approx.)
A
U
0
4`
0
-
0 CL-
ker
10
ose
j 1 o~i
Ib
0
k
L
~
I 1~
9
\
I
1 1952 known supplies
oil
Kerosene I from western sources
continue downward
Gasoline . -1
Gaso/ine
.
Lube Oils
, ,5
Cube 0
RESTRICTED
SECURITY INFORMATION
45
L
"Free
China"
1950
Includes Manchuria
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S-F-C-It-.E-T
a+s- rram
Since - t1aaachuria was a part of Japan from 1932 to 19la5, the
statistics on iianchurian imports must ix-, dealt with sepa.?ately,
Imports into Hailchuria, before 19)2, reached 100,000 metric tons
per yearb In the 3-year period preceding Japan's envelopment of North
China' ; Fanchuri an J L imports ranged from 60,000 to 1513,000 metric
tons per year. In '19140, Japan imported 234,774 metric tons of
petroleum products and crude oil into Manchuria, s
Thus, before 19146, imports of petroleum products into China
and Manchuria rarely exceeded 1 million metric tons per year,, and,
for a great number of those years, they fell below this mark,
BQ Sources,
13,-fore 19+141,, petroleum products came principally from UK, US,
and Javanese sovrces0 In 1934, Japan took over from foreign oom-
petitors the distribution of oil prods to In Manchuria and, as 1937
approached, began to threaten the operations of the UK and US com-
panies in China. Before 1937, however, Japan succeeded in oaoturing
only about 10 percent of the Chinese POL markets
Once the Japanese were established in the major port cities
of China after 1937, the sales of US and UK companies fell off greatly,
and the Nationalist Chinese were forced to subsist upon uncertain
supplies from the US and its allies and upon substitute fuels developed
within the eoonc q
Following the defeat. of the Japanese in the Pacific in 1945,
the restitution of Manchuria to China, and Japan's displacement as an
oil supplier, POL supplies flooded into China once again from prewar
sources, From 1946 to 19$9, Standard Vacuum (Staanvac ), California
Texas (CalTax), the Asiatic Petroleum Company, and the Ghipeeo
Petroleum Corporation imported and distributed to Chinese consumers
almost all the petroleum products sold in Chinas The Chinese Petroleum
Corporation was not up by the Chinese Nationalists to share in the
marketing business which,, in prewar years, had been a virtual monopoly
of the three foreign companies,
The defeat and removal of the Chinese Nationalists to Formosa
in 1949, and the ensuing embargoes imposed by Western nations upon the
shipment of strategic materials to the Chinese Commdamists in 1950,
forced the Cc m iniets to. rely on imparts from the USSR, to maximise the
use of substitute fuels$ and to expedite the development of their
indigenous production in order to obtain supplies of liquid fuels for
their econauo
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S-E-C-R-E--
C C. ttities, IYDes, and Parts at Entry.
?ortunately, a precise breakdown by quantities, types, and
marts of entry of Chinese Imports of PCL in the prewar and postwar
periods is ava1lable. h.is informat1od is a zized in ale 1'
and Table 2-** in Table 1, north China is defiged to imlude the
following ports: Tientsin, aingtao, Chefoa, Ch' San-huang-tao,
wag-k off, and Wei-h"-+wei.. Central. China includes Sbangbai, p ea-
Chiang, . la knag, -Wu-Hn, Chiu-chien,. Hannkatw, To..chou, Chiang.. ",
Stun-shah, I-ch'ang, Wan-hsien, Cbungk1ng, Soochow, Hangehosr, sing-go,
and Wenchow. Central China iaclodea the Tangtse river ports. South
China Includes San-tu-ao,;!'o*chs r, Amoy, Swatow, Canton, Karloon,
Ang-pei, Chiang-men-chiang, San-shui, .Ww how, Ass-ning, Lei-gbou,
Pie i-hat, Lung-chi g, ling-tzu,. Sau moo, and T ' eng-yueh . J
The postwar paru.of-entry pattern shifted considerably, a
fact that can beat be ascribed to the uneven rate at which various
Chinese ports were restored to service. In table 2, North China in-
cludes the ports of Ch' in-h nig..taa, ,ent.ln, and Taingtao. Central
China Includes lFnnkmt and, Shet ghat, and South China includes Amo]r,
Swatow, Canton, Kosarloon, KOOVK~ML, S ocbow; Han-ning, and Lei-ebaat.
Central China in 1936 and 1937 was the greatest iagorter of
petroleum products, when It brought 'la about 60 percent of the total,
and Shanghai and Ean11o w accounted for 80 paroent of the P jqported
into China in 1946.. These facts su.,gge at that Central aft a has
always been the aiaJor P -coaavmig area of Chim.
a1tho its did not exceed 1. million neetric tons up to
andim luding 1946, IM is zoomed above 2 million metric tons in 1947.
T n 1948, however, iapperts began to fall. o f f , and they continued down-
vatd in 1949. T a b l e 3 rmmaarizee Pte, isglort details for the 1947-49
period. J
ble 1 follxawe on p. 6.
Table 2 follows an p. 7.
Table 3 follows on p. 8.
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MgPoft at PM. Into Mdm by Area
1936-3/ -.
North ChIm
Oentral Chi s.
South Whin
Amu"
OrMA Tbta1
OTC
.
1936
Gasoline
14, 000
100,o65
32,503
1++6, 566
Kul and Diesel Oil
15, 5-18
170,766
156,085
344,379
]lrsr oe
91, 96'2
212,983
35,368
340, 313
Lubricating Oil.
3,4a
31,153
999
35t573
Total.
124,21
1
2
'726 5
Percent of AnmW
Omad fttal
-
(14.4)
(59.4)
(100)
1937
22, 874
940157
56,91'
173, 9r+3
?*l and Diesel Oil
12,748 ,
284.P367
234,163
531,278
.roans
66,96.
77,522
47.,296
191,780
IMbrtcmtiWg 011
3,186
28,815
1.0425
33,426
-1
484, $fZa:
334,796
930A 427
Fer"Ut of
grow Total
(52.1)
(36.5)
(iooa0)
1938
VISMUM
10,260
22, 081
95, 706
128, o,+j
1 ael and Diesel OU
2
e
71,159
90,984
170,115
roman
6
, 424
6o, o56
81, 615
210, 095
Dubaiicatiasg Oil
4,43?
6,703
1,541
12, 681
Total
Percent of Anuual
Grand Zbta1
9 ,093
(17.5)
M~JZQ &J"
(31L,O) (51?,.
s2o,s3e
taote U Tabl* I f*3.Uws o p. 7.
.- 6
(~.ooao
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!able 1
IWWU of POL into MU& by Arta
1936-39
(C~t)
Metric 2tum
Pftt vt 1 icth China
Amm'
Ceaottr 1 Cblm Sciutffi China Grand ' tal
1939
Gasoline 1 llr1 M Diesel 091 13, 570 66wee 79,368 36j"34
,207
2 bricati,. t1i1 9,228. 9.267
Total _e
Pe, of a1.
erad Sate.. (3000)
(344)
60,276 107,817
53,608 134,026
340058 149, 633
607 19,1.02
1 410
_623
(300) (LO0oa)
` .to `vas tip Sn the , , 3b7 tsMlc taiam .
tm S o a r 1 9 3 7 a t 258
9 9 ' ~ " e
,
firs was ftitrais L to the State Depsrte t by Ch1xrae offSci la is a
orranrbs vz9.ttea in 1948.
.
Table 2
Uporte of POL Into Chas by Alm
1946
Metric Tb"
PrObAc
limb Cht"A
Cautmi. Luaa
..........
Carolim
38,803
193,362
34,,194'
M6,359
Gael and D1 med. O U
2,776
317.256
690
11
712
331
seroeeaae
40
148647
,
33
464
,
222
2
8
Yubsrieatis 01.1 e/
8,9 ;6
W,081.
P
3,237
,
7
280
59
Paraffin Ilex
3
4p x+98
680
,
5,18 .
jai
10
PQ & ELI
Pemmt of Tabal
(10.5)
Sc~D?)
5)
(9
10O
)
.
L
D'.7
,u1. aces.
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Table. 3
its of POL into Ctitna
1947-49
aa
79oiw
Pr?dixet
1247
1Le
.
Jamoline
,
2500706
126,000
1 and Dill 4f1
1, 20T
996,540
49T, 000
Kerosene
285.581
106,800
56,000
Iubricatin 0i1.
57,746
44,308
21,000
Paraffin Was
5.0712.
NQAAQ
. NoA'
Asgbsslt
17,350
N*Ao
NoAo
U UM Imparts of AU Products
1a 31+5
0
0
2922j,
I 54
00 000
A. ee totals ude grease. =4 f-r the weir-. .
b. U U colum of figures w derived by accepting total. iaaaports for 1949
as being equal is value to aYjpwdmte3y w e.ba1t that of 19tt8 and by
distributing the to e1 mmona the products by the pereantsage distrth tiara
that obtained in 1948.
At the Wevent tUm the MM is supp13is Mina vith allsA au
its MgAired pets . CMOeq=ntly, no firs data exist cmt ubi s twat bases
estiamrates of curr'eiit Wis.
1%. ~`lsaarr 0 fttteole ?rodwsto b Are% =A of Pr+fet.
There we,, 14 osreral, three possible typee of starew for mil:
( I ) storage lacil sties f *.ruft oil., usoaU}13- lcacaimd near pzwetioa
amrc" and 3nlog f tallati ; (2) bulk tutorage fbcilitie s 9+ w refissed
pralI cts, tamatd swear reftmerU sm m a;
(3) wre3,-+aaxaa xtorW a ss pace su d a . art . t m three try es,
boamer, o44 the deemd aced thUd t In the Cae oia
esp A t the lades ale, Sarm"Ottost, the facilitfas
far a cxag crude on in the f v. Chinese o11,1lsids we of the pmosasa amt.
COl3asting ay$t.ms rot ffa34 crude oils are also pzl*itiv . Tics stare
of ,uets'.ia the u oil field refinery a ea in Xmm Pie yea a
pressing and unsolved psvblm as Ina " Dew 1942, "the aamn *t vben to be stared tot*aid ]mss than 13j, 000, ' aaatrla tmaas.
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Storage facilities for UVOrted prods cts, however, were aleWate
-l 'tdtie past. y. eyy were built by the foreign oil cos .es .. Once-the
mean-going tankers unload d .tbo,ir, cargoes In the bulk term, . storage
depots located In the Cbainem+e port cities, care of do things generally
happened to the petroleum products. They were either maned to other
inland storage facilities by railroad took cars, oil bargee, and Junks,
or were packaged is cans and barrels to be moved to caaa.sumptioo points
by' more various magna of transportatiax, including the.. human back.
Because of their dt inatioc- over the distribution of petrol.
lWodeacte in China, the foreign oil companies have masiatained the most
accurate historical information an the storage facilities Su China.
During Wor34 War II, those oil co a nhes furnished the ii'breign Operatiane
CanIttee of the Petroleum Admiaiaaatratioan for War with a detailed
listing of bulk storage facilities by. location sod by type of product. ?r
These data were brought up to date in March .1949 by further oampaaay re-
losses an postwar storage to IAC agencies. 2/ ' Informatics on the storage
of Petroleum products in Coo?wuist China is extremely fragmentary, alter
it can beat be eeticaated against the backdrop of the data furnished by
tine tore iga oil companies.
.The total prewar facilities for bulk product storage in 'Chun.,
nchuria, the Kwaagtung Peninsula (Dairen), and Bong Kong (194:919
matriae tames' a a tar.led 1,,025"000' metric tons. 10 ft e scattered varehmse a
used for barrel and drum stage In those same areas Increased the total
storage capacity by another 2i0, 000 metric tam.
Table 4* lists the prewar storage capacity of bulk tank and ware -
bouse package oil storage facilities by province . 12/
2.. Postwar Pattern. ?
A VS Naval Attache report from Sranghe l dated 12 Joie 19+7 gave
the totals for usable POL tank storage on the Chinese n - nland. at
approximately 580,000 metric tons. Sin source was a group of Chine aria
Nationalist officials whose account reportedly took cegnizaance of losses
of tacks during the war period..
le follows cc p. 10.
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S?r' C=R-r,-T
Tab) a fir'.
Prewar Storage Canacitiea for NOT, in China
by Province and by Tyne of Storage
Warehouse Caoacit
Bulk Product
Tank Capacity
(Metric Tons)
Stan.Vae and CalTex
(Metric Tons)
Asiatic Petroleum Co,
(Square Feet)'
9wangtung
540779
100219
84,'59
Kwangal
2,449
1, 735
18p280
lien
25,1055
11,649
55o722
K.an$au
289,916
32,498
176,1?
Chekiang
5,415
2,281
.30, 338
Anhwei
13, 5' 8
14,702
34,063
ridAgol
25,0557
_
6,081
4o,,236
HUwh
159, 465
15, 402
106, 8i2
nailan
47,031
4,438
49,262
Szechwan
29, 675
3,685
28, 746
S atuz g
52,861
90039
63t546
weh
100,758
L3,6814
138,687
Chahar
360
291..
3, 098
Shensi
0
473
0
Shen+ 3
224
241
12#300,
0
725
0
Subtotal ?92 OQ U?,14 3 81+1
135,000 27,063. 90$360 .Ewa Kong mreutt Praviace
(Dairen,) 56,446 6,660 11,000
xswhuria 26,900 5,582 113,391
Grand Total 1 02 40 K&446 1 . 1
mates to eblc 4 'Q].Ura ca p. 11.
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Table 5
Poatwer Storage of PAIL i n, . Chian by Product aM by Area
Aviation Notor,
N o r t h C h .n"-
Taingtao 7, 5,757 6,412 1,606
Tientsin Area 7,652 17,749 28,570 9,380
Subtotal l.t 474 2 06 34
20
Percent of
Area Total . (1OQ5)
(l6 O )
Gaeo3.Sm ftsWAw Kerosene, Oil ft el Oil If-led Total.
'21 o) (lLk3)
3, 251 208
0 48,379
5&221 484 5!2Z _6x 786
(202) (330o) (110000);
Central Ana
mmwgb" 27,168 45,,34o 61,439 128, 809
.'e tze Port& 3,543 16,717 31,947 14,408
a btatal L%111 6 14 21
Percent or
Area Total
math Chin
(6Qo)* (12pp.):
Canton . 3, 370 8,105
btotai 3, 7) 8 2
Percent of
Area Tota2
f6p9~). :`(5~t)
Grand !o 55 .. 93d668
Percent of
Area E3rand Total. (TOO)
115,P382 15,092
P 52,426
RW.82 a- 5
(1. 8oo). (284) (2300) (13oo) (1000)
13,9543 Ila 702 2, 783 13, 353
I ,, 11 702. 2 gj1Q 52,656
.;:0507 )
Diesel th O. Area
12. 2a3 )
(2300). (2090) ' (2590 )
(5Q2) (25,o) (ooo)
.fit,,, a.120 3 , 1
(11760) (18Q0)
(?)
a. 7 3 1 , 0 7 1 3 - total 3 nh c tms of image ca ty rera.-ral"W t e oil
eels, the entity of store a rejoeted.to not 3n use shaild be subtracted.
this swun6ed to 15,255 motric tons. Mms, the total svaUabla storage ev a ed
about 596,000 uric two as the Chinese main1andj exclusive of Hong .Kongfl
3 bvria, and DaIrm.
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Table 6
co u pt xa of Pal by ncbur Iustry
1933
Jlstric ' Taus
Heavy
Coal.
Coke
ftsolim
Oil
Kerosene
Oil
S1~x~i
17,717
8
0
2.1
9.3
0
xeta1. Ow
5,068
503.1
1.6
0.7
0
.4
]ta 1 ry, Ra' 1
Stock' ; a Sits buildin 4o,668
33,; 929
22
6
2
396
Cent, Rrik, and We
nu act r
202, 352
17, 090
0.7
0
3.8
6
C ica1
114, 88~+
~ 25, 015
0
0
17
0
Pion Proc~east
31,465
483
0
0.9
6
0
Pa r Plfa
, ,578
0
C.
0
0
0
Natural fts
fwwraoturing
4:954
7, 037
0
0
0
0
aaw WIUn and.
Wood%mrklng
376
6
0
0
0 *3
0
P l tii
Bookmaking
.2,812.
30
0.9
0
0.9
0
Viecellamaw
1,413
39
0.7
0
0.5
0.3
Total
h 2Qqq
?71.148
26.3,
9.7
~y .8
Tabu 7
C as t iou of POL by i nchuri a n Ra .lro1940-41
tylx of Pte. ,Y.
1 0
.1241
Steam Cylinder Oil
1.2013
1,037
Axle cam.
i., 817
1,0+13
laabrleatit*g Oil
93
79
Orease
844
813
Total 3~7t~2
_15..
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5~~~-C--K-K-~
~. China.
1. Prior to 1937.
Like Manchuria, the Chinese economy was coal burning in the
prewar years. Kerosene for domestic lighting, cooking, and beating
bulked largest as the petroleum product most in demand in prewar China.
The demand for lubricating oil and gasoline was emil.l., reflecting the
s11 number of motor vehicles and the backwardness of Chinese
industrialization.
Xt should also be emphasized at this point that not all
the oil products imported by the foreign oil companies were consumed by
the. Chinese. In fact, a significant percentage of imported POL was
consumed in this period by foreigners living in the foreign settlements
and missions. They owned a large number of China's automobiles, and
their demands for PO1for heating and lighting were great. In 1935,
for instance, .approximately 1OQ,O00 foreigners resided in China.
.Shanghai alone contained 39,000. If the 1937 per capita POL consumption
for US residents of about 1 metric ton per person is applied to foreign
residents of China, in the absence of any better data, then approximately
100,000 metric tons may have been consumed by foreigners In. 1937.
This estimaate?means that PQL consumption by the Chinese nationals alone
would have been considerably lower than Import figures indicate. Since
no better statistical support for consumption by foreigners exists, this
distinction is not made in this report for the'period prior to 1937.
Consumption by other categories in China Is detailed in the following
sections.
a. Transportation.
`1) Raids
A study of Chinese railroads made by the Japanese
prior to their Invasion of China reveals how much POL was used by those
railroads in the pre-1937 period. According to the Japanese study, a
total of only 9,500 metric tons was needed for the annual operation of
the Chinese railroads between 1931 and 1934. The breakdown by type of
product used and rate of consumption per locomotive mile is given in
Table 9.! L4/
The average size of the Chinese locomotive park
between'1931 and. 1934 was 1,195 locomotives. The distance traveled per
locomotive per year averaged 26,533 miles. Thus, the total average number
* Table 9 follows on p. 18.
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S-E-C-R-E-T
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
Table 9
Conars Lion of POL by Chinese Railroads
1931-34
Cylinder Oil
Machine Oil
Axle Grease
Year
G= per Agile.
(MME
(
cilogrems r )
(_is ama per Axle)
-
i
3.931
0.0822
0.226
5.08
1932
0.0768
0.198
4.28
1933
0.0858
0.217
6.91
1934
0.0798
0.201
6.80
Average
0.812
0.210
5.
of miles traveled by all locomottvee in an average year during this period
was 31,706,935 miles. / Applying this average figure to the consumption
factors listed in Table 9, the quantity of POL coned by Chinese rail-
roads in metric tons vas as follows: cylinder oil,, 2,537; machine oil,
6,658; grease, 429e; makIn a total of 9,624.
(2) Motor Vehicles.
Motor vehicles were, for the most part, limited to
jai and other large cities in prewar China. It.1ma been estimated
that in 1936 there were only 37,700 motor vehicles of all types in
China. L6/ Imports of gasoline. for that year totaled 146, 568 metric
tons, 2f` Allowing a 5-percent loss between ocean terminal and vehicular
conau`ricion, approximately 1x40, 000 metric tons of motor gasoline were available
to consumption by motor vehicles in China in this period. Taking into
account such miscellaneous uses of motor gasoline as ],ing stationary
motors, motor gasoline consumption may have ranged from 100, 000 to
150,000 metric tons, or from 3 to 4 metric tons per vehicle per year.
(3) ~.
Mast of the Chinese inland water and coastal
shipping was in foreign hands before 1937,. and, ? in? addition, most of it
he f i :o or grease conarnrption was reached, by multiplying the number
of locomotives, passenger cars, and freight cars by the number of axles (4)
and by 5.77 kilograms, the average factor for grease consumption per axle
per year.
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
was coal burning. 28 Some, lubricating oil was needed but the amount can
be considered to have been negligible . The lubricating oil resgtirement
for this period should not have exceeded 5,000 metric tons, although
it should be emphasized that this figure is only a guns.
The various means of transportation in China, there-
fore, accounted for between 115, 000 and 155, 000 metric tons of POL at
standards of operation that fell well below Western standards.
b. Xndusts.,t.
It might be expected that industry would be the other
.major consuming sector of the Chinese economy in the period under study.
Industry,, however, including thermal.. electric power stations, consumed
at an annual rate of less than 20,000 metric tons of petroleum products
before 1937. All Chinese industry, in fact, consumed petroleum products
at the approximate rate of only 63 metric tons per day. Three hundred
working days per year for all Industries are assumed in Table 10.* The
data on which the table is based are taken from oagtured. Japanese .
statistics on Chinese industrial fuel requirements.
c. Domestic Seating, C22Kin and .
Transportation and industry required less than 200,000
metric tons of PCL in the period, before 1937. The balance of POL not
used by those sectors of the economy may, therefore, arbitrarily be
assigned to the category of domestic heating, cooking, and lighting.
This category of POL consun tion is the most difficult to pin down and.,
at the sty time, is the area of constion in which the greatest cut-
backs can be made in time of emergency or In the event of a decrease in
supplies. To quantffy these variations historically Is difficult; that
the variations existed and that there were extreme fluctuations is borne
out by testimony from many different sources.
One method by which to estimate the amount of POL available
to consumption by the domestic sector of the Chinese economy Is to work
from the imports for 1936. These imparts totaled 866,833 metric tons.
Subtracting 5 percent for. losses, 823,1+92 metric tons of POL were available
to consumption. Subtracting from that total the range of requrements by
transportation and industry of 135, 000 to 175,000 metric tons, the
quantity available to dametic heating, cooking, and lighting ranged
between 648,492 and?688,492 metric tons. One rough cross-check on these
Table i0 follows on p. 20.
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
S-E-C-R-E
Table 10
Consurgption of Fuel Oil by Chinese Industries
1935
8usf
Metric Tons
Percent
Saw Mills and. Cabinet Manufacturing
Parniture M
f
31
0.17
anu
acturing
Metal7
i
0.02
.urg
cal
Ma
hi
48
0.26
c
nery and Fetal Goods Manufacturing
Trans
t
t
580
3.15
por
a
ion Equipment Manufacturing
Til
361
1
96
e, Cement, Pottery, and Related
Product D .ufacturing
til
Te
933
.
5.06
x
e
Power Pl
t'
7P105
37.72
an
s
Chemical
4659
9.01
.
Garment M
f
853
2.32
anu
acturing
Leather
d R
63
0.34
an
ubber Goods Manufacturing
Food Processing
289
1.6
Paper Mills and Printin
,69
36.
g
Ornament and Instrument Manuf
t
1
1,1161
5
6.5
ac
uring
Mere
31
0'17
72
0.4
figures is possible, If the figures listed for the import of lamp fuel oil given in Table 1 on page 6 are addled, and if it is assumed that
most of these two products went to various domestic uses, the total of
684, 692 metric tons is derived --- a figure which substantially agrees
with the one which gives transportation and industrial consumption as
135,000 metric tons. It must be recalled, however, that no losses were
subtracted from the 684,692-metric-ton total. If this 5 percent loss gyotow
is subtracted, a total of 650,368 metric tons is reached, a figure which
closely agrees with the assumption of 175,000 metric tons consumed by
transportation and industry. For convenience; and recogniz
of a substantial margin of error, the figure for domestic heating a~ssibility
lighting is. rounded off to 650,000 metric tons.
a 300-day operation per year casein .
S-E-C-R-E-T
1&012 100.00
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
S-E-C-R-E-T
2.. t ra .
a. a 8,pa se' 06CUgation.
In the yews immediately prior to the entry of the US
into wax in the Pacific, the. most reliable evidence. of the amounts of
liquid fuel consumed in the areas of Ztorbh, Central, and South China
under Japanese occupation consists of import statistics from el'apanese
statistical sources. Just what proportion of those Imports were
ticketed for Japanese military ' and governnientel consumption,, hansever,
As not kraowA.
In 3.938 Nee Table A.7, total PO& imports into China
reached. ?500,000 metric tons. This figure allows for the various losses
before consumption. In 1939, the last prewar year for which am firm,
data are available, the amount of POL imported fell below 400,000
metric tons. If the rate of decrease is assumed to have been constant
for 1940 and 1941, In the absence of -any other data, Imports may have.
fallen a n low as 200, 000 metric tons.
Although, the. evidence is not absolutely clear, regatire-
mants in China may have fallen to extrema l.y low levels in the next 3
years . According to evidence collected 'c'ram responsible Japanese
offie.ialn interrogated after World tzar ll, the forward areas in China,
received 36,000 metric tans of POL in 1942, 30,000'metric tons in 1943,
and' 10,000 fhetric tons in 1944. ~jo POT,. requirements in Japanese-
oe upied China and Manchuria are shown in Table 11.
Table 11
Total Requirements for POL in al'apenese-Qccupied China and Manchuria
1941-44
Year
Manchuria
'Total
1941,
200,000
126
,232
326
232
.1942
36,000
j
139,057
,
_
175,057
1943
30, 000
50,959
80
959
3.944
10,000
71,108
.'
8i, 108
-21.-
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
b. Nationalist China.
In those areas under Chinese Nationalist control
during World War II, consumption of POL fell off to practically nothing.
The information. on fuel allocation given in Table 120
was collected from official Chinese sources during the war and represents
the fuel, allocation schedule of the Chinese Nationalist forces. It was
in effect at the time of the completion of the Burma Road, when the,
Nationalists, fighting alongside the Chinese Communists, had taken the
offensive against " the Japanese . It is significant, however, that very
few of the major rail-consuming centers were in Chinese hands at- that
time . This schedule, it should be noted, includes military needs. It
should be especially noticed that when military and governmental
organization allotments 4euu* subtracted from the total, little was '1994
to be distributed to Chinese civilian consumers. Total civilian con-
sumption in Nationalist China, according to this information, reached
only about 6, 300 metric tons in 1945. 32
c. Total .
If the ' foregoing evidence and estimates are accepted,
the civilian and?military.requirements of Japanese-occupied Manchuria,
. apanese-occupied Spina, and Nationalist China ranged from 136,000 to
1}00t 000 metric tons.
That this range of Consumption requirements is within
reason may be illustrated by analogy with cutbacks imposed by the
Japanese in their home islands. Civilian consumption of petroleum
products in Japan was cut back by 78 percent between 191+0 and 1944.''34/
If it is assumed that the Japanese cut back civilian consumption, by
at least this same amount in the areas under their control, then
civilian regairementa in China and Manchuria would have totaled about
?198,000 metric tons.' (900,000 X 78 percent equals 702,000, or
198,000 metric tone available to civil consun Tao. 'This figure, it
will. be Noticed, fails within the, range of 136,000 to 1+00)000 metric-
tons -- a. range, incidentally, which includes military requirements of
the Japanese and Chinese on the mainland.
By two different methods, then, it has been shown that
civilian POL consumption in China and Manchuria during World liar II
may have been about 200, 000 metric tons.
Table 12 -follows on p.23.
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 Approved For Release 2007/10/23: CIA-RDP79-01093A000200020019-5
Table "UP
l.'. slit r Org niv i?t fii
).'C"c.::.7jp .9r1 a14.'odn Adrr1 i8' rit1cn
4u tiona . Groups
and ~~mrswr,!.azl.
LL a t ituter, q Including an-ka )
Pr .vats Individuals and Others
T(:Aal al
0=2011:10'
'ef,P blea lli.ljacl,
gtvi long pere"t Kop r to ' ? as Pct Metric Tort
3512 -2.) .ha 338 3066
A tl`q ~~5. 86 105 62:8
1~ 457
98 t. 3t
46
80 30 ' 1, , 5 04 6 ~'5 8 is, 64
1.-00 42 0,18 5::83
62 2.3" 303 8
0.> C
3'4 29 13
u~3 100,00
23,915 00.:OO
.6"
'00:00
8265 ,10
S) e. 2 1.
179 A6 ~
0"44-
6.,$ ~.0