COMMUNISTS CONTINUE TO SEIZE SHIPS; CMSNC SHIP DEFECTS IN SINGAPORE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600290669-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 20, 2011
• Sequence Number: 669
• Publication Date: March 22, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/20 :CIA-RDP80-00809A000600290669-8
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
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DATE
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LANGUAGE
F.rnnnmir - Rhi ?ir_9a
Daily newspapers
Hong Kong
23 - 2; Jan 1950
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DATE OF
INFORMATION
DATE DIST. ,~.? tdar 1950
SUPPLEMENT TO
P.EPORT NO.
COMMUNISTS CONTIIiUE TO SEIZE SHIPS;
CFLSNC SHIP DEFECTS IN SINGAPORE
NEED IARGE SHIPS FOR HAINAN INVASION -- Kung-shang Jih-pao, 25 Jan 50
Macao, 24 January -- The Communist Ailitary Forces in Kwangtung Province
have stepped up the seizure of shape in the Chu Chiang area in preparation for
the invasion of Hainan. Heretofore they have been seizing ships sad river
boats of all typo: and :ize:; but having realized that the au~aiier boats are
unsuitable for crossing the channel to Hainan, they are now lco'tiag only for
ships having a loading capacity in excess of 1C0 tons. They are, however,
having difficulty in securing ships with complete crews; consequently, the
drafting of seamen sad engineering personnel fror, other shape continues. On
the other head, the shipping companies of the Chu Chiang area, having dis-
covered that the military are not interested in small vessels, are gradually
resuming busir.LSe.
The Hong Kong office of the China bkrchante Steam Navigation Company re-
ported that on 24 January 1950 the crew of the 7,000-ton steamship Hai-heuan,
in Singapore, pledged their allegiance to the Chinese Communists and raised
the Communist flag. The ship is now waiting to be taken over by ?ohe People's
government.
Hong Koag -- The Taikoo Shipping Company (Butterfield sad Swire) recently
received from London a telegram stating that effective at 1200 hours, 26 Janu-
ary 1950, a war-risk insurance on all ships operating on the China coast would
be canceled, and thereafter ao more such insurance will be issued.
ARMY AIR
Sanitized Copy Approved for Release 2011/09/20 :CIA-RDP80-00809A000600290669-8
CLASSIFICATION CONFIDEI'TIAL CONFIDE"~TIAI
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO EIROAUCASTS CD NO.
 Sanitized Copy Approved for Release 2011/09/20: CIA-RDP80-00809A000600290669-8
i
CON~~C~~l~~l.
Aa soon ae this development became known, ship ownerF. brokers, and char-
terers took a serious view of the matter, believing it would prove to have a
siaiater effect on all China consta7 nht_rptti It _c,,yd prcb::bly _~o _nip
owners and officers more fearful of the risks involved in running the Nation-
alist naval blockade, and would thus result in stagnation just at a time when
the resumption of shipping was on the upsurge.
Consequently, the Taikoo Shipping Company and s number of other large
shipping companies, including Moller and Company, held a conference on the prob-
lem, the outcome of which was the dispatch to Londen of a telegram requesting
reversal of the decision concerning the termination of war-risk insurance. It
xae cc.ns!dered that London's action might have been based on a misunderstanding
of the actual conditions is China voters, where, apart from Shang-hai, there
xae really very lltti.e risk. It vas also conjectured that the action r?~ay have
been taken independently by the Taikoo Company's London office and not by the
British Association of rMarine~] Insurance Companies, since up to 22 January
1950, the Hong Kong offices of other British insurance -ompanies have received
no communications concerning this matter from their London officr_s.
The action may not have much influence on shipping of other nationalities
or on shipping which is insured in companies other thar. the Ta1Y,oo Company
Nevertheless, if and when the Taikoo action goes into effect, it is bound to
have a psychological effect, and probably will cause a rise in insurance rates.
I1O FORMAL WAT~i, RAIL SERVICE BEFORE MARCH -- Hein-sheng Wan-pao, 23 Jan 50
Hong Kong -- Although many people no doubt expected rapid resumption of
rail ~.nd voter traffic betweer. Hong Kong and Kuang-chou to follow the 3ritisL
decision to recognize the Chinese People's government, it iF not likely that
normal operations can be resumed before the end of February. The main reason
for this is that the Communist; goverment as yet has made no substantive de-
cisione is the matter, aid diplomatic relations still nre not on a proper basis.
Other reasons are the Nationalist naval blocPsde with the danger of bombing,
prevalence of piracy, ~d the difficulty of giving effective protection to
British shipping in the mouth of the Chu Chiang.
When the Taikoo Shipping Company (Butterfield and Svire) suspended ser-
vice to Kusag-chou in October 194y, they began temporary service to Macao in
its stead. Now they have prepared three large river steamers, and are procuring
landing hulks from Australia, with a view to maintaining regular service oa the
Hong Kong -- Kuang-chou and Hong Kong -- Macao runs.
Sanitized Copy Approved for Release 2011/09/20: CIA-RDP80-00809A000600290669-8