SINO-SOVIET BLOC IMPORTS OF METALLIC MERCURY FOR THE YEAR 1955

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-01203A000200270004-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 9, 2016
• Document Release Date: January 5, 1999
• Sequence Number: 4
• Publication Date: March 1, 1956
• Content Type: REPORT

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S INO-SOVI. T BLOC IMPORTS AID ATTFI~TED PROCUREI~1? NT OF M].TALLIC I~Th tCUkY 0?R.. 19-57(o
---?n t' 1955
(Metallic mercury was
placed on International List I in August 1954
(IL 1655)
mnorts fre7ra the Prep. World Atotaling at least
Ong PQ 0091 flasks ~increaae. the availability of mercury to the Sino-Soviet
Bloc by approximately 20 per cent,
20 When COC0M agreed to embargo mercury Italy was granted an exception
..
t
not to exceed 160 metric tons (41641 flasks), in order to fulfill its obligations
under existing trade agreements with Soviet. Bloc countries.
During bilateral
di-scussions between the U.S. and Italy, the Foreign Ministry assured the U.S.
that Italian shipments of mercury to-Soviet Bloc countries would in all
prokability be kept at a level appreciably below the quotas written into the
outstanding trade.agreements. However, Italy stressed that this commitment
was conditional on the absorption of the greater part of Italy's, production
by Western markets. In 1953 and 1954 the chief buyer of Italian mercury was
the U.S. In view of the decline of U.S. purchases in the latter part of 19.54
awl throughout 1.955, the Italians considered themselves absolved from their
commitment to keep exports to the Bloc to e. minimum and during 1955 exported
the full 160 tons established as a maximum by COCOM. The only other prior
commitment" granted by COCOM for mercury shipments to the Bloc was to the U.K.
for 32.2 metric tons, of which 27.5 (79
tons were shipped during 1955.
n
The-only Sizable increase in 1955 Bloc imports of mercury was made
by Poland. Reports indicate that shipments to Poland, both licensed and
unlicensed, increased approximately two-fold from 1954 to 1955, Since there
are more than'3,900 known industrial uses for mercury, many of which are highly
strategic, the reason for this increase is somewhat uncertain. (The metal
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is widely used in industrial and control instruments; in electrical ar-oaratus;
as a catalytic agent for chlorine and caustic production; as a detonator for
ex Dlosives; in electrical equipment such as vapor lamps, rectifiers, and
oscillators; switches and dry cell batteries for communications equipment;
mercury-vapor power plants; precision die casting; and in agriculture,
including insecticidQs, fungicides, and bactericides.) HtM_6vez's s increase
may be due to the recent developments in Polands chemical industry. The
17 February 1956 issue ofNThe Chemical Trade Journal and Chemical Eneinperin,&.
LondonO reported that three large brine electrolysis plants are being sunolied
to Poland by East Germany. The largest of these plants was said to have been
installed and should soon be in operation. The January 1956 issue of the
Polish 4Prz mP l Cherniczny"*', -published in Wareaw, also reported that the
~n -
U.S.S.R. was supplying Poland with an4 electrolysis plant.
Each of these plants require$a considerable amount of mercury for the initial
ins tallation.
Although the majority of the Satellite countries imported mercury
from the Free World during the years 1954 and 1955, there were i rrw imports
I -
from the Free World by the U.S,S,R.,.Md China during; this period. It is not
impoobable that these two countries currently have a sufficient quantity of
mercury for normal peacetime needs, in view of the reconstruction, the
organization and expansion of the industry in Communist China,
5. Italy, Spain, and the U.S.S.I.., in that order, produce approximately
two-thirds of the total world mercury output, estimated to be
nearly 200,000
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a y produced 54,11.77 flasks Spain, 43400 flasks
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Other important producers
are the U.S., Mexico, Yugoslavia, Japan, and China.
6. There have been no indications during 1955 that the Bloc has paid or_
has been willing to nay premium prices for this metal. In 1951- prices on
the New York market ranged from a low in January of $187 per flask to an a?11-
time peak of $329 per fl%sk in October, shortly after b placed on the
embargo list, a" remained. close to this level until April 1956, when b ce
gradually began to decline te--a- low of $280 in December 1955,
.'.~ The attached table is based on reports supported by documentary
evidence, ?n-the-spot investigation by U.S. personnel, or information
from other reliable sources. The clandestine nature of part of this trade
and the limited information available preclude the presentation of an accurate
total figure _ rcury- procuremmn from, W-estern c triesby-, the 'Soviet
--41-ere- . e TlT should be regarded, as en indication of the magnitude of such
transactions,
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(In,flasks of 34.5 kilograms)
Shipments* ft
8,673
Procurement efforts - interrupted
150
Procurement efforts - outcome undetermined
4,455
~Xx
Pt* Category 1 includes cases with respect to which there is evidence of a character
and degree of rpliability to confirzy the completion of a shipment to Soviet
Bloc destiintione. -,This figure also ncludes licensed shipments (COCOM
exceptions) fr im Ital.,,?-,and the U.1..
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