ADVANCES IN CHINESE FUEL INDUSTRIES IN 1950

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700120414-7
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 14, 2011
• Sequence Number: 414
• Publication Date: August 3, 1953
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7
CLASSIFICATION RESTRICTED S CENTRAL INTELLIGE CE IAGENCY oN
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
COUNTRY China
SUBJECT Economic - Fuel, coal, petroleum, electricity
HOW
PUBLISHED Book
WHERE
PUBLISHED Peiping
DATE
PUBLISHED Mar 1951
LANGUAGE
DATE DIST. &A 1 1953
SUPPLEMENT TO
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After the establishment of the Ministry of Fuel Industry, in October 1949,
a series of national conferences were held on coal, electricity, petroleum, etc.
These conferences passed a number of resolutions regarding the improvement of
technical skills, the increase of efficiency, the strengthening of the economic
computation system, the reduction of production costs, and the development of
high efficiency using existing equipment. During the past year, the coal, elec-
tricity, and petroleum industries have pursued these goals.
To meet the demands, for coal for transportation, industry, and civilian
uses, together with the demand for export, the First National Coal Conference,
under the principle of "consumption determining production," decided that the
production of 1950 should be increased 29 percent over that of 1949. Seventy
percent of the coal mines are owned and managed by the government. By the use
of the economic computation system, the cost of production has been greatly
reduced. For instance, production costs in the Northeast have been 10 percent
less than was originally planned. In September 1950, the price of coal at the
mines fell approximately 20 percent. Most important of all, many mines have
begun to extract more of the seam than previously, thus reducing the waste of
our natural resources and prolonging the life of the mines.
In May 1950, based upon the working experience and lessons acquired in
certain coal mines, the Coal Conference made two decisions of historical impor-
tance on the improvement of production methods and the problem of safety in the
coal mines. As a result of using these improved methods, the percentage of
extraction in thick layer mines has been increased from 30 percent to 65 - 85
percent. In Hao-kang, extraction reaches 93 percent, and production efficiency
has been'181 percent above the national average efficiency in the past. The
Huai-nan Coal Mine of Anhwei Province used to be less efficient than the mines
in the Northeast and North China, but a coal mining laborer, Mi Han-chang, created
a new record there by producing 34 tons of coal in 5 hours.
STATE
ARMY
DISTRIBUTION
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Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7
 Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7
The most dangerous enemy in a coal mine is explosion of gas. Following
the substitution of the longwall method of mining for the room-and-pillar method
and the use of the back-filling method, replacing the roof-caving method, accidents
become less frequent. For example, there were no accidents in Hao-kang and Tung-
sham for a period of 5 months. Although the mines which have improved their
production methods constitute only a small part of the total number of mines,
and although only ten coal fields, all of which are located in Hao-kang have
been fully mechanized, the movement to improve production has been spread widely
in all the mines of the nation, and the coal miners are happy and willing to
adopt new methods.
Electricity
Before the liberation there was a general shortage of electric rr le . At
the National Electrical Industry Conference held in February 1950, Ch'en Yu,
Minister of Fuel Industries, criticized the serious situation relent~.essly.
Ch'en has introduced the periodic inspection system, the system of responsible
and safe production, the method of divided management, and other progressive
measures as suggested'by the Soviet experts, thus enabling the country's elec-
trical industry to make a. big stride forward.
From January to August 1950, the electric power supplied by state-owned
power plants was increased 31 percent over the same period in 1949. The
electric power sold was 58 percent more than that sold during the same period
in 1949. The average utilization of generating equipment was increased from
22.7 percent in 1949 to 28.29 percent in 1950. The percentage of line damage
was reduced to 16.97 percent, 48.57 percent less than that of the previous year.
The ratio of coal consumption was reduced from 1.039 kilograms per unit for 1949
to 0.882 kilograms per unit for 1950, In short, in the past 10 months, over
110 million units of electric power and 300,000 tons of coal have been saved.
Owing to the gradual establishment of the periodic inspection system and
the strengthening of inspection work, the generating capacity of electrical
equipment in state-owned plants has been increased from 65 percent for last
year to 78.8 percent for this year. Shih?-thing-shan and Feng-shan electric
plants have been developed to an nprecedented capacity. The plant which
shows the best results in the movement to reduce coal consumption is the
Tang--shan Electric Plant; its achievement record is very close to that made
in USSR electric plants. From October 1949 to May 1950, a record of consuming
only 0.577 kilograms of coal for each unit of electricity generated has been
achieved, an accomplishment worthy of being praised.
At the National Hydroelectric Engineering Conference held in July 1950, it
was decided that the principal tasks for the hydroelectrical industry included
selective explorations, restoration of the foundations already laid, development
of high efficiency of the existing establishments, and the construction of small
hydroelectric plants wherever and whenever possible. Before the 1950 flood,
the Feng-shan Hydroelectric Plant in the Northeast had completed the urgent
task of building dikes. Thus, it passed through two floods without damage. In
China proper, surveys are being made; and many small new hydroelectric plants
have been completed earlier than schedule. This has facilitated irrigation work
in rural areas and indirectly increased agricultural production. This is a con-
crete example of the close relationship between industry and agri:ulture.
Petroleum Industry
At the National Petroleum Conference held in April 1950, Ch'en Yu, the
Minister of Fuel Industries, asked his audience to learn from the advanced
technical experience of the Soviet Union, to strengthen the idea of collectivism,
to oppose waste, and to get rid of the old colonial hat+,t of depending on
imperialists for the development of our petroleum industry.
Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7
 Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7
In pursuance of the official policy of "self-sufficiency and moving steadily
forward," China is concentrating on increasing domestic petroleum resources.
For instance, there are twice as many exploration teams in 1950 as in 1949.
The number of well-drilling teams has been increased by 50 percent. The Yu-men
oil field, after being resurveyed, has proved to be 13 percent larger than
previously estimated. Geologists in Shanghai and Szechwan have been mobilized
to work in the Northeast.
In 1950 dude oil production was 24 percent above the production in 1949.
The yield of gasoline from crude oil has reached 31.8 percent of the crude oil;
it is hoped that by the end of 1950, the percentage will reach 51 percent. The
economically low-value fuel oil has been reduced to 54 percent according to plan;
it is possible that by the end of 1950, it could be reduced to 21.8 percent.
The Yen-ch ang oil wells of North Shensi, in the old liberated area, were very
helpful during the war of defense. Well No 27 has already begun to yield a
large output. To prolong the life of the well, a slow pump is now being used.
Drillers of Well No 28 have been successful in reaching the oil layer.
STAT
~naersd S
Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000700120414-7