CHINA: THE CEMENT INDUSTRY IN 1972

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01098A000100100001-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 23
• Document Creation Date: November 16, 2016
• Document Release Date: February 7, 2000
• Sequence Number: 1
• Publication Date: June 1, 1973
• Content Type: REPORT

Approved For Release 2000/05/15: CIA-RDP79TO1098A000100100001-4
Confidential
China: The Cement Industry in 1972
Confidential
ER RP 73-10
June 1973
Copy No. f .2
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 Approved For Release 2000/05/15: CIA-RDP79TO1098A000100100001-4
WARNING
This document contains information affecting the national
defense of the United States, within the meaning of Title
18, sections 793 and 794, of the US Code, as amended.
Its transmission or revelation of its contents to or re-
ceipt by an unauthorized person is prohibited by law.
Classified by 015319
Exempt from general
declassification schedule of E.G. 11652
exemption category 5B(1),(2).(3)
Automatically declassified on
Date Impossible to Determines
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 Approved For Releas?S9Q'd1RbEY 'I DP79T01098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
25X1A
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
Note: Comments and queries regarding this publica-
tion are welcomed. They may be directed to ~ 25X1A
of the Office of Economic Research, code
143, Extension 7107.
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China: Modern Cement Plants and Production
1972
Thousand Metric Tons
Region and Number of Number of
Estimated
Estimated
Province Modern Plants Rotary Kilns
Output
Capacity
Total
56
125
15,5001
17,750
Northeast
11
19
....
3,040
Heilungkiang
2
3
....
640
Kirin
2
3
425
500
Liaoning
7
13
....
1,900
North
8
24
....
2,740
Honan
2
3
....
450
Hopeh
2
9
....
700
Inner Mongolian
Autonomous Region
1
2
....
300
Peking and
Tientsin
????
????
""
Shansi
2
6
750
Shantung
1
4
430
540
East
9
22
2,490
2,950
Anhwei
1
3
360
450
Chekiang
3
4
540
600
Kiangsu
3
8
960
1,200
Shanghai
2
7
630
700
Central
9
14
....
2,150
Hunan
2
3
....
450
Hupeh
5
9
1,450
Kiangsi
2
2
....
250
South
7
16
1,690
2,120
Fukien
2
3
280
350
Kwangsi Chuang
1
3
350
450
Kwangtung
4
10
1,060
1,320
Southwest
9
21
....
3,200
Kweichow
3
7
....
900
Szechuan
4
10
....
1,700
Tibet
?...
""
".'
Yunnan
2
4
480
600
Northwest
3
9
1,345
1,550
Kansu
1
4
400
500
Ningsia
...
....
""
Shensi
1
3
810
900
Sinkiang
1
2
135
150
Tsinghai
....
""
....
1. The total output figure does not represent the total of the partial output figures below it; instead it
was derived from other sources. This output represents utilization rate of about 90% of midyear capa-
city, which is comparable with that of most other countries.
2
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China: Modern Cement Plant Capacity,
Output, and Utilization Rate
Yearend
Capacity
Output
Utilization Ratel
(Percent)
1965
14.10
10.50
1966
14.25
11.60
81.8
1967
14.40
9.90
69.1
1968
14.60
10.20
70.3
1969
15.50
11.90
79.1
1970
16.00
12.90
81.9
1971
16.70
14.50
88.7
1972
17.75
15.50
90.0
1. Output as a percent of midyear capacity. Midyear capacity is the average of
the capacity at the beginning and the end of the calendar year.
million tons in 1972, indicating a utilization rate
of 90% of capacity (see Table 3). This utilizaition
rate is comparable with that of other countries.]
Plans for expansion at existing plants should add
at least 750,000 tons per year of new capacity by
the end of 1973, which would raise total capacity
to about 18.5 million tons and output to about
16.5 million tons.
3. The modern sector operated well below capa-
city during the economic retrenchment of the early
1960s, and production was disrupted during the
Cultural Revolution (1966-69). Since 1969 a step-up
in production has taken up this slack; output has
increased almost twice as fast as capacity.
future growth in output must come from additions
to plant capacity. Recent construction activity
has required a 7%-10% annual increase in output of
high-quality cement, and new uses for cement have
been developing. With a scarce timber resource
base, cement is increasingly replacing lumber for
1. For example, the average for 1954-68 for Brazil
was 87%, varying from 79% to 94%.
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use as railroad ties, pit props for mines,
towers for electric transmission lines, and in a
small but thriving cement boat industry (a 3,000-
ton wire-mesh reinforced concrete coastal cargo
ship was launched 9 April 1973).
The Small Plant Sector
4. In the past few years, Chinese public state-
ments on the cement industry have stressed the
importance of the small plant sector. These state-
ments indicate that the "over 2,400" small cement
plants produced almost one-half of total national
production in 1972. Since 1965 the average annual
increase in output from these small plants has
been four times that of the modern sector -- 23%
for small plants, compared with nearly 6% for large
plants.
5. The small plant program was a Leap Forward
project, which fell into disuse during the early
1960s when many of the plants were abandoned. The
output of the small plants, revived during the
Cultural Revolution, has grown at an average annual
rate of 31% since 1969. By the end of 1971, China
had 1,800 small plants, and an additional 600 were
built in 1972. An increase in efficiency is indi-
cated by the estimate of average output per plant
in 1972 of 5,960 tons (see Table 4), compared with
the 1971 average of 5,400 tons. Concurrent with
the growth of the number of plants and the increase
in output per plant, the grade of output has im-
proved to more usable levels. The average grade
of cement2 produced in small plants, which was 150
in 1960, has been raised to about 400. Although
not sufficiently strong for major loadbearing
structures (grade 500 or better is needed for
bridges, buildings, etc.), this cement is good
enough for rural hydrology projects, sidewalks,
and surfacing of floors in buildings and tunnels.
6. The growth of the small plant sector, which
frees the modern sector from pressure to supply
cement for rural use, allows larger amounts of
high-quality cement produced in modern rotary kilns
to be supplied for military and industrial con-
struction. The Chinese claim that 70% to 80% of
the output of small plants goes to the agricultural
sector.
2. The grade is a quality measurement. Grade 400,
when made into concrete, will withstand a pressure
of 400 kilograms per square centimeter.
4
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China: Small Cement Plants and Production
1972
Thousand Metric Tons
Region and
Number of
Estimated
Average
Province
Small Plants
Output
Output
Total
2,4001
14,3002
5.96
Northeast
2663
????
????
Heilungkiang
473
...?
Kirin
117
434
3,71
Liaoning
102
....
North
704
????
????
Honan
100
...?
????
Hopeh
129
Inner Mongolian
Autonomous Region
40
Peking and
Tientsin
N.A.
.???
Shansi
225
....
????
Shantung
210
1,000
4.76
East
250
2,830
11.32
Anhwei
77
720
9.35
Chekiang
80
1,150
14.38
Kiangsu
93
960
10.32
Shanghai
N.A.
3
...?
Central
Hunan
138
23
....
....
Hupeh
93
....
....
Kiangsi
127
....
....
South
321
3,245
10.11
Fukien
59
410
6.95
Kwangsi Chuang
112
250
2.23
Kwangtung
150
2,585
17.23
Southwest
863
?.??
....
Kweichow
N.A.
.???
Szechuan
N.A.
.
Tibet
23
Yunnan
84
206
2.45
Northwest
4913
Kansu
77
120
1.56
Ningsia
243
...
Shensi
3074
382
1.24
Sinkiang
80
135
1.69
Tsinghai
33
1. The Chinese press claimed more than 2,400 small cement plants. Of the 2,400 small plants,
2,256 are accounted for in this table.
2. The total output figure does not represent the total of the partial output figures below it;
instead, it was derived from other sources.
3. Representing minimum figures derived from adding all individual plants mentioned in the open
press. No aggregate figure was given.
4. In Shensi Province, 107 plants are run at br above the county level and 200 others are run
by communes. The commune plants appear to be very small and thereby distort the average output
downward.
5
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Regional Distribution of Cement Production
7. The geographic distribution of modern cement
plant capacity has altered strikingly during the
last two decades. In 1949 the modern cement capacity
was concentrated in the northeast and along the
coast, with little or nothing in interior provinces.
New plants have been built in the regions that were
cement deficit. Production in the interior regions
has now been adjusted so that the proportion of
modern cement capacity approximates the proportion
of population except in the north region. The north
region, however,.is compensated for this deficit by
a disproportionate number of small plants (see
Table 5). As an example of the magnitude of this
China: The Cement Industry -- Regional Statistics
1972
Region
Total Number of
Small Plants
Total Capacity of
Modern Plants
Population)
Land Area
Total
100.0
100.0
100.0
100.0
Northeast
11.1
17.1
8.6
12.6
North
29.3
15.4
26.4
11.6
East
10.42
16.6
17.2
3.8
Central
5.8
12.1
13.3
5.9
South
13.42
11.9
11.2
6.0
Southwest
3.6
18.0
17.0
25.2
Northwest
20.5
8.7
6.3
34.9
Unlocated
6.03
""
1. Population is based on 1957 estimates.
2. The small plants in these areas appear to have higher than average yearly outputs, compensating in
part for the lower percentage figures.
3. Most of the unlocated plants are probably in the central and southwest regions.
change, the industrial northeast, which had 42% of
modern capacity in 1952, has seen its share fall
to 35% in 1957, 28% in 1965, and 17% currently.
Although changes of this size are not expected for
the future, development will continue for the
areas that now have to bear high freight charges
for cement. In Tibet, which has no modern plants,
the price of cement can be as high as five times the
ceiling price in the vicinity of a modern plant -- the
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difference being due to motor vehicle transport
charges.
8. The majority of small plants are in areas
that have little modern capacity, such as the
underdeveloped northwest.3 While a greater num-
ber of small plants are distributed in the cement-
poor regions, considerable variation exists among
plants in levels of output. The 491 small plants
in the northwest have a yearly output averaging
between 1,200 and 1,700 tons, whereas the 250 plants
in the eastern region average more than 11,000 tons.
These figures indicate that the most efficient
plants in the small plant sector are concentrated
in the eastern and southern regions. The east,
with 10% of the small plants, produced 20% of the
small plant output in 1972, whereas the northwest,
with 20% of China's small plants, produced only 6%
of the output.
3. Because capacity figures are not available for
small plants, the number of plants is used as a
less accurate -- but available -- substitute.
7
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Confidential
Confidential
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 Approved For Release -B' /fig/iV iT1hbla79T01098A0001001000.01-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see.Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
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CONFIDENTIAL
 Approved For Relea4 F/b T0W%hDP79T01098A000100.100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
China: Cement Production
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
Approved For Release 2000/05/15: CIA-RDP79T01098A000100100001-4
CONFIDENTIAL
 Approved For Releas6~ W( DP79T01098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
Approved For Release 2000/05/15: CIA-RDP79TO1098A000100100001-4
CONFIDENTIAL
 Approved For Release( ' l DP79T01098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
China: Cement Production
Million Metric Tons
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3 ~
3
3
1967
13.2
9.9
.
4
3
1968
13.6
10.2
.
4
6
1969
18.3
11.9
.
1970
20.8
12.9
7.9
7
9
1971
24.2
14.5
.
3
14
1972
29.8
15.5
.
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
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CONFIDENTIAL
 Approved For Releasg' 1( 1 . &1 DP79TO1098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
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CONFIDENTIAL
 Approved For ReleasCf9RVd)1$Nl DP79T01098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
1971
24.2
14.5
9.7
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
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CONFIDENTIAL
 Approved For Releas? kVbVWR14kDP79T01098A000100100001-4
CHINA: THE CEMENT INDUSTRY IN 1972
1. In 1972 the People's Republic of China (PRC)
produced almost 30 million metric tons of cement,
compared with 14 million tons in 1965 (see Table 1).
China: Cement Production
Total
Modern Plants
Small Plants
1965
13.9
10.5
3.4
1966
15.3
11.6
3.7
1967
13.2
9.9
3.3
1968
13.6
10.2
3.4
1969
18.3
11.9
6.4
1970
20.8
12.9
7.9
7
1971
24.2
14.5
9.
1972
29.8
15.5
14.3
Although significant growth has occurred in the
modern sector, the advance in output from the small
plant sector has been phenomenonal. As a share of
total cement production, the small plants contribut-
ed 24% in 1965 and 48% in 1972. Cement from these
plants, although of roughcast quality, is suitable
for numerous building projects in rural areas. As
a result, the central government can channel most
of the output of modern plants into the advanced
sectors of the economy.
The Modern Sector
2. The modern sector of the Chinese cement
industry consists of 56 known plants with a total
of 125 rotary kilns (see Table 2). Two new kilns
are currently under construction, one in Fukien and
one in Kiangsi. The modern sector produced 15.5
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CONFIDENTIAL
 Approved F86&8fq& R~0P6Q55jPPtwEj-4jP p;g9jq.9P&000100100001-4
DISSEM: 22 Jun 73 NO ELITE 25X1A
SERIES NUMBER
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15
DATE OF DOCUMENT
June 1973
NUMBER OF COPIES
80
NUMBER IN RC
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21 Jun 73
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3
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4
Ch/D/C
5
C/CH
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D /C
22 Jun 73
7-8
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25X1A
10
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11
Ch D.A
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D Ch D t A .T
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13
ChDN
Ch/ S
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D/DCS
22, 23
OTR/SIWA
24
25
D/CRS
"
STATSPEC
26
RS/ISG/SAIO
27
D/OBGI
28
D/OCI
29
D/OSR
3Q 31
25X1A
32
D/IAS
33
D/NPIC
34
IAS/Industrial Div.
95XIA
Rm.. 16,
35
CRS 1H18 H q.
25X1A
3637
CIEP
38
25 1 A
21 Jun 73
95X1A
39
'f
40, 41
OCI
7-3
42 -44
/ER
jif
45,46
SA/ER
47,48
OCI
?
49.50
SA/ER
I
51
`/
FORM
y.5 2353 Approved For Release 2000/05/15: CIA-RDP79TO1098A000100100001-411 "
Analyst! i L n
Pr 'ect 21. 725
 O(
DATE
NO
S)
RECIPIENT
SENT
RETURNED
52
Key
22 Jun 73
53
Key Bldg.
it
STATSPEC
54-64
Filed in St/P/C
If
65
Archives file STATSPEC
If
66-80
Records Center
6-4
7-3
7-3
25X1A
25X1A
25X1A
3,6om
A roved For Release 2000/05/15: CIA-RDP79T01098A000100100001-4
Approved For Release 2000/05/15: CIA-RDP79TO1098A000100100001-4
 Approved For Release P79T01098A000100100001-4
17 JUL 1973
MEMORANDUM FOR: CRS/ADD Release.
SUBJECT: Release of ER RP 73117, China: The
Cement Industry in 1972, June 1973,
Confidential, to Foreign Governments
1. It is requested that the attached copy of subject report be
forwarded as follows:
#51 Washington, D. C.
2. All OER responsibilities as defined in the DDI memorandum
of 13 August 1952, "Procedures for Dissemination of Finished
Intelligence to Foreign Governments, " as applicable to this report
have been fulfilled.
25X1A
Chief, St/P/C. /OER
ACTION GO`iP ETED.
the ~:isse!r?nation requested by
this memorandum has bean completed:
13y:
Date; -7'/
Approved For Release 2e
FIORE -1 P79
1-4
25X1 C
 SECRET
When Ei11~ d I
RECOR OF REVIEW OF OER PUBLICATIONS FOR SECURITY/SANITIZATION APPROVAL
SUBJECT
o2 ~. ~d 7 a1
/e), 7 3
- /O Q
SECURITY REVIEW
a;
b
TIZING I STRUCTIONS
ITEM
DATE
INITIALS
R OVE
25X1A
UNEDITED DRAFT
EDITED DRAFT
DELETE
RELEASABLE TO
25X1 C
SUBSTITUTE
25X1 C
REMARKS
!~ ~
.~...~.. Coal rG ,,I F-04J T,,}L
A
FORM 2358 OBSOLETE' REVIOUS~ v~ ~ `v~vwv -___, SECR~Y ? GROUP I
4 70 E D I T I O N S Excluded from outonratic
downgrading and declassification
 _Approved For Release 2000/05/15 : i RDP79TO1098A000100100001-4
I GENERAL INSTRUCTIONS
I,:S/Pi,G, Room 2L 40, xY45,' (reel) or xO51 1 (black).
SF:TION I ? PI.AI,LICATION TITLE AND CONTENT
Rating forms will be completed for Each finished intelligence publication prepared by the DD/I and DDS&T, This is a
machine-supported system and inforwition must be gathered in a formatted fa