BANK OF CHINA REVEALS EXPORT LOAN PLANS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600260898-7
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 4, 2011
• Sequence Number: 898
• Publication Date: November 21, 1949
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/13 :CIA-RDP80-00809A000600260898-7
CLASSIFICATION RB:?CftICTLD ~ ~?~ ~'
~~.~~~~o~~~~~
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD N0.
COUNTRY Co~unist'China
SUBJECT Economic. -- Industry end cc~maexre
~iOW
WHERE
DATE
PUBLISHED 7 Oct 1949
LANGUAGE Chinese
DATE OF
INFORMP.TION 7949
DATE D1ST. ?od' f 11ov 1949
SUPPLE~AENT TO
'REPORT N0.
THIS IS UNEVALUATED INFORMATiQN
T.he Bank of Chine, in 3ha.-ig-hai, has recently bees very active in an
attempt to promoto foreign sou domestic crYa^*3x?ce. Action is being takon
chiefly in the fnl-m of various types of loans which, is ~?iev of the 1?raeent
blockade situation, are designed to ertene aid to cover a variety of condi-
tions. Loans are being ertended to the FL,reign Trado Company to aid its
nurchaaing program. and to p*ivate eapc+rt firma to aid in trane9hipmant
abroad from T?ien-cuing.
1. Fixed term, fixed amount. credits, and short term loans, deaigne,~, ro
hela pxivata merchants who are unable to ezprn?t cs? vho deal in eeaeoual pro-
ducts. Loans era made to the Trading Company, vhich yurchaeee the goods.
This procedure ie the equivalent of aiding the direct producers of such ar-
ticles ae tea, silk, wood oil, and bristles,
2. Ceah loans to be repaid in commodity equivalents, designed to aid
factcu?iee and firma to purchase rev materiels, inetalt equipment, pay wages,
etc. Bates of convaxsion when drawing or repaying loans will be the Bail?
posted rate of the Savings Depe~tment of the Bank of China in people's banY-
notee, Rr in goods proposed by the borrower and agreed upon by the a ak.
3. Lome far advances on orders for goods. The contract price will to
afueed upon by both aides and funds will be advanced in inetallmeate ae vari-
ous stages of the processing are completed.
4. Import and export exchange credits.
5. Packaging loans, designed to promote the export trade and increase
the intake of foreign exchange. Baportere mqy apply for these loans on
goods for vhich there ie a known market abroad or for vhich exporters have
telegc?aphed alt mail orders in hand.
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NIil T/D it IAII. N[IkODU[TION C( TXI] tlCPY lA tlAONIbIYLO.
The Beau of China called a meeting ~f repreeentatSvee o: azporting firms
v`Ay j voy ~viliuHY i~4y to iiiif CilnO ph`Liuiwue L: Gliueie-2i,u ?i Gu i:ub Imp i9?eilLati Oa oI
the abo7e projected program. About 20 representatives of such firma were pre-
geat, including straw hat, needlework, peppermint, feathers, and light-indue-
try products exp~ters.
STFTE
ARMY
Sanitized Copy Approved for Release 2011/09/13 :CIA-RDP80-00809A000600260898-7
 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000600260898-7
Mattora discuaeod wars present conditions confronting all exporter?,
market prices, far~oign prices, stocks on hand, transport conditions, saloe
markets, present plane, and matters ux?gontly requiring esttlemont. Besides
reporting on general conditions, the represantativoa x?aissd quoatione of
foreign oxchange prableme.
Tho esaietant mculager of the bank in replying stated: (1) Tho Beak of
China is the official foreign exchange agency. (2) To oncourage ezporte,
rho rates for foi?ei~ exchange are set freely by agreement between buyors
and sellers, but the situation now is uubalancsd because of spacial circum-
staneaa. He believed that Faith the roatmzptian of normal trad?, a mare logi-
cal exchange rats sill ba r~achsd. (3) 7n the matter of capital, the Beak
is anxious to help and ready to coztalder problems concerning bills of exchange,
guarantoo deposits, etc., and hopes those haviztg cone+..ructive suggostione to
males, would present them to the Bank.. (4) The problem of seasonal eaporte r~-
quired coneidoratlou. A pardon of the Bank?a funds road bean aarmaricad fad
use by the Foreign Trade Compazzv, for purchase of local products.
T,oan? taoul.@ be considered on deals involving real flow of capital, azad
not hoarding ae in the past, The Bank rasa in the process of devising meaattrse
to cope with the problems of distribution of farei~t exchange pormits. Ha
solicited t;na 'uppart of the orgaai2ation represented at the meeting in help-
ing rho Bank brie? about an increase cf axporta~
N~N ~ t:i. ~~ 1 1.:3
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r Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000600260898-7 r