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Document Creation Date: 
December 22, 2016
Document Release Date: 
September 20, 2011
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Publication Date: 
March 22, 1950
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PDF icon CIA-RDP80-00809A000600290669-8.pdf97.66 KB
Sanitized Copy Approved for Release 2011/09/20 :CIA-RDP80-00809A000600290669-8 COUNTRY SUBJECT HOW PUBLISHED WHERE PUBLISHED DATE PUBLISHED LANGUAGE F.rnnnmir - Rhi ?ir_9a Daily newspapers Hong Kong 23 - 2; Jan 1950 nu we.nrt coauu urou?no. ?neen.. m .?nowu ovun er m .uns nm. ar.n do .uuu er urwun ?a u .. .. c.. a ?s n.u wn.u. m n?.uuuow o. rw. Hour -w er m w.n.n i. ?.. u..n ro .. u..unoun..umw .u ne nun. n u.. une.ucno. or m. rou a nowumo 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