NORTHEAST RESTORES GOLD MINES; STEPS UP STEEL PRODUCTION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600280336-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 27, 2011
• Sequence Number: 336
• Publication Date: January 20, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/28: CIA-RDP80-00809A000600280336-8
CLASSIFICATION CONFIDENTIALCUNf IDEt1IA
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OF. RADIO BROADCASTS CD NO.
COUNTRY Communist China
SUBJECT Economic - Mining, metallurgy
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Shen-yang
DATE
PUBLISHED L7 Sep -.4 Oct 1949
LANGUAGE
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Tung-psi Jih-pan.
PATE OF
INFORMATION 1949
DATE DIST. oiO Jan 1950
NO. OF PAGES
SUPPLEMENT TO
REPORT NO.
NORTHEAST DES PORES GOLD MINES;
STEPS UP STI2L PRODUCTION
1948 GOLD PRODUCTION 50,240 OUNCES -- Tung-pei JiLi-pao, 17 Sep 49
Rapid progress is being made in restoring the gold mines of the Northeast under
'the supervision of the Gold-Mining Bureau of the Northeast Executive Committee. Tb^
total output of gold in 1948 reached more than 50,240 ounces. By the end of 19k8,
branch offices of this bureau, whi,:h was organized in 1947 to control and c '.rate
gold mining, ha(- increased t, the following: four provincial bureaus in Sungkiang,
Heilangkiarg, Kirin, and Jehol, two first-class branch bureaus, six second-class
branch bureaus, three agencies, 87 mines and mining-control officer.
The gold-producing area of the Northeast extends from Hei-ho in the north to
Yen-chi in the Southeast. It follows t.Le valleys of -;he Hei-lung Chiang, the Sung-
hua Chiang, the Mu-tan Chiang, anrl. the Tu-men Chiang. These valleys contain rich
deposits.
The first large-scale exploitation ?-,s undertaken by the Japanese. During their
occupation, the B.i-lung Chiang and Sung-hua Chiang basins were open to exploitation
by Japanese operators. They employed about 30,000 farmers and laborers and opened
over 270 mines. Fiom 1932 to 1943, these mines produced more than 528,000 ounces of
gold.
According to a survey made oy the Manchurian govechment? anu a Russian geologist,
the gold reserves of the Northeast are ectimat,.i to be about ' , milli -r ounces. This
would permit an annual production of 128,000 -arces ('she largest amount ever produced
in one year) for the -Lt 500 yea:.c.
50X1-HUM
When the Soviet Army ent^.red the Northeast in 1945, the Japanese did their best
to destroy the mines and equipmert.
After its establishment, the Gold-Mining Snreau delimited the mining areas and
prohibited wildcat private operation. Ton omoi.a both production and restoration simulta-
neously, the bureau aaopted a temporary plan of operating the mines on a profit-shar-
ing basis. According to this plan, the bureau opens the mines, furnishes equipment,
and initial expenses of such operations. The workers are asked to furnish their own
LSTA7E NAW
ARMY AIR
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CLASS IF]O'ATION CONFIDENTIAL
__GONFIpFNTIP.I? _r T
naRa i r DISTRIBUTION 4 -L~~
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hand tools and labor. After taxes are deducted, the bureau takes 20 percent of the
output; the workers, 80 percent. This cooperative plan has proved very successful
and many workers are now seeking to join the enterprise. In addition, the bureau
assists the workers in obtaining necessary goods through a cooperative purchasing
system.
The system of labor contractors employed by the Japanese is being replaced by
the organization of labor unions. Night schools, training classes, hnepitals, and
cultural recreation agencies are being organized. Opium dens, brothels, and gam-
bling dens are being closed. Thrift and diligence in labor are encouraged. ThAse
programs have not only improved the living standard of the workers, but have tended
to encourage workers to assume family responsibilities. During 1948, there were
70 weddings and 30 betrothals at one of the mining centers. All these factors
have helped to stabilize production.
For the future development of the Northeast gold mines, it is necessary that the
profit-sharing plan be abolished, and the methods of tax collection and gold purchase
be improved. Efforts must be made to mechanize the various operations to reduce
existing inefficiency. Plans for promoting enthusiasm for the work on the part of
the laborers must be adopted to ensure a steady increase in production.
Other problems to be worked out are: (1) opening of new mines; (2) more
comprehensive planning, stricter cost accounting including the use of domestically
produced equipment instead of the enormoi,sly expen.ive foreign-produced equipment;
careful selection, and adequate metntenance of equipment; and (3) better organi-
zation and coordination of control.
FU-SHUN STEEL-CASTINGS SHOP SURPASSES GOAL -- Tung-pei Jih-pao, 23 Sep 49
The steel-castings unit of the Fu-shun Mining Bureau's Machine and Electrical
Plant has surpassed the year's goal t, 30 percent in 6 months. The production
emountad to 62= tons. During the competitive months of May and tune, the production
reached 3.78 tons which exceeded the previous monthly production by 71 percent. In
June, the average individual production reached 904 kilograms, setting a new recc:d.
Moreover, during these months there was a marked saving in materials. Originally,
old railroad rails and junk steel were melted to make castings. Later the source of
rails was cut of so that it was necessary to substitute metal from worn-out touts
and iron shavings from the lathes. Thirty-six tons of the latter were salvaged and
u..ed from February to June. In addition, 1,500 kilograms of No 8 and No 24 wire,
ordinarily used for turning molds, were savers by finding discarded wire in the ,j"nk
pile. The 4uality of the prods^t was about 90 percent of the optimum.
One serious lack in the operations was proper inspection. Faulty molds were act
discovered until the product was completed. During ??'e competitive period, old
molds were used instead of new ones in order to economize; but this results in
pitted surfaces and poor quality. It has been derided to set up standards and estab-
lish an inspection service for the second half of the year. Production frcm July
to December his beer set at 860 tons, vh_lc the standard of quality has been set at
80 percent perfect castings, 15 percent slightly pitted, and 5 percent rejects.
'TYPHOON DAMAGES TA-LIEN STEEL MILT, -- Tung-psi Jih-pao, 4 Oct 49
or 20' July 1949, the Ta-lieu Steel Mill was damaged by a typhoon but recovered
sulficiLitly to surpass its production quotas for they month of August. (The pro-
duction Period for this mill is from the 26th of one month tc the 25th of the next.)
Power lines were broken and electric motors drenched with water, but most of the
damage was quickly repaired.
CONFnDENT!AL
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The sceei-refining punt compeas_cei'ior .Luse L::we Ly Liriug La -=c iur?aa::c:s
day instead of the customary two and succeeded in exceeding its quota by one per-
cent. During the same period, production increased in tre forging, rolling, smelt-
ing, and copper-refining plants. The Ta-lien Steel Mill Use has ie al-plating,
wood-screw manufacturing, riveting, tempering, drill-manufacturing, stove materials,
and hydraulic plants.
CONFIDENTIAL
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