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COUNTRY SUBJECT .t...111t1 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 U.S. Officials Only CONFIDENTIAL CENTRAL INTELLIGENCE AGENCY INFORMATION REPORT China Monthly Bulletin No. 15, Department of 7conomics and :Political Sciences, Aurora University. PLACE ACQUIRED (BY SOURCE) DATE ACQUIRED (BY SOURCE) DATE (OF INFO.) - SOURCE 25X1 THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE OF THE UNITED STATES. WITHIN THE MEANING OF TITLE IS, SECTIONS 713 AND 704, OF THE U.S. CODE, AS AMENDED, ITS TRANSMISSION OR REM LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS THIS IS UNEVALUATED INFORmAtION 25X1 REPORT NO, RESPON SI VE TO r.n wn. UHR MU. DAS NO. 001 NO. DATE DISTR. /D-'Feb NO. OF PAGES NO. OF ENCLS. SUPP. TO REPORT NO. DOCUMENTARY Available on loan from the CIA Library is a photostatic copy. of Monthly Bulletin No. 15, dated February 48, prepared by the Department bf Aconomics and Political Sciences, Aurora University, Shanghai. Chapter, titles are as follows: China's Foreign. Trade since the Victory. The First Year of Revival of the Chinese Cotton Industry. Three Large Iron. and Steel Works in. Shanghai. Analysis,. with Comments, Of the New Regulations Governing the Renting .of Houses (Concluded). . .Coal Mining and Coal Policy in China 1938-1948. The Chinese Cement Industry during the Year 1947. _ANNEX Methods for the Investigation and Collection of the Income Tax on Profit-seeking Enterprises in 1948. Table of the Starting Points and Rates of Taxation on. Incomes of Various Classes for 1948. Simplified Methods for the Investigation and Collection of the Busines.?04on ShipPing Enterprises .7 nd- itriar & ARRA COMM D TR I BUT I ON/alo STATE _XI U.S. Officials Only CONFIDENTIAI, NAVY _2A IORR?gv s for the use within the USA of the Intelligence components of the DepartmentS far 4m4 ated above. It is not to be transmitte.d_oye -ettiFCAlaiblatatalfilie4W.Okii4 ?diA6,4' I. los/ Iv on ARMY AIR FBI Approved For Release 2002/08/13 :CIA-RDP80-00926A006900040018-5 CONFIDENTIAL/US OFFICIALS ONLY -2- 751.3 IL/c 751.4 1L/c 751.5 1L/C. 751.215 iL/c 729.11 1L/c 633.68 81L 633.68 31L 633.68 41L 773.21 811. 773.21 311_ 729.11 81L 729.11 729.11 31L 729.11 193L 740.0, 581L 4/733.96 58IL 4/ri5.1 581i. 4/733.99 581L. 4/733.3 58IL 4/733.2 581L 4/733.95 581L 4/733.93 581L 4/733.91 5811. 4/733.92 581i. 4/745.2 581L 4/745.3 581L 855.2 ILic ,735.1 IL/c 1/735.1 41L. 1/735.1 2IL 1/735.1 311. 1/735.1 81i. 1/735.1 IlL 4/735.1 4IL 4/7b.1 2IL 4/73,50 g'L 4/735.1 il. 111,M. I IlL 1/734.13 83IL 734.13 33IL 4/734.13 48IL 4/748.2 I93L 4/748.2 581L 4/748.2 83IL 4/748.2 88IL 4/748.2 441L 4/748.2 431L 4/748.2 IL/c 4/748.2 231L 2/748.2 44IL 2/748.2 231L 748.2 3IL 748.2 8IL 711.21 IL/C CONFIDENTIAL/US OFFICIALS ONLY Approved For Release 2002/08/13 CIA-RDP80-00926A006900040018-5 25X1A 25X1A Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111111,5 ii isli V t- 14----Itt T-? , A-- * hi SHANGHAI :# ' - !eiUlterAu DE DOCUMENTATION- -- fr Cateivortag cHiricasit - ---.--=-6... 1 4.--,sfp_cuumaxouit NAN LU (DUSAIL) , TILL. 1/117g, Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006111111118-5 UNIVERS1TE L'AURORE No SHANGHAI .t. AtAgt]* FACULTE DE DROIT BUREAU DE DOCUMENTATION ficatomis cuiNomil ISCCTION DI SCIINCIIII PO02100111 IT ICOM011121811 210 CHUNOKIMO NAN LLI (0101/11.) TEL. 01711 MONTHLY BULLETIN ? E.S. de BREUVZHY Dean of the Department of iiconomics and Political Scionces Editor Advisory Board A. BONNICHON Dein of the Faculty of Law K. THORNTON Dean of the Department of Sociology A. SUNG CHIA-7j. Professor of Chinese Civil Law MICHAEL W.Y.LEE .Research Assistant. Bureau de Documentation JOHN T.S.CHEN Research Assistant. Bureau de Documentation SECOND YEAR - Mo.XV ? February 20th. 1948. Contents -DOCUMENT MOS. 83. China's Foreign Trade since the Victory. 84. The First Year of Revival of the Chinese Cotton Industry, 85. Three Large Iron and Steel Works in Shanghai. 86. Analysis, with Comments, of the New Regulations Governing the Renting of Houses. ?:concluded) 87. Coal Mining and Coal Policy in China 1938-1948. STUDY NO. XV. The Chinese Cement Industry during the Year 1947. ANNEX NOS. %LIZ. Methods for the Investigation and Colleotion of the Income Tax on Profit-seeking Enterprises in 1948. Table of the Starting Points and Rates of Taxation on Incomes of Various Classes for 1948. ILIV. Simplified Methods for the Investigation and Collection of the Businels Tax on Shipping Enterprises. SEE PAGE II & III For three important notes. 1. On the Commercial Accounting Law: Date of promulgation. 2. On the Rules governing the Application of the Business Tax Laws Revision of :.rt. 9 & 12. 3. On the Industrial Guild Laws Transitional measures. - L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 _ Approved For Release 2002/08/13 : CIA-RDP80-00926A0111,0018-5 II EDITOR'S NOTES 1. ON THE COMERCIAL ACCOUNTING LAW passed by the Legislative Yuan on the 22nd. of December 1947 (see Monthly Bulletin No.XIV - Jan1948. Annex XL) It should be.noted that this Law was promulgated by the Chinese National Government on the 7th. of January 1948 (tf. Weekly Review of Laws, Feb. 4th. 1948). 2. ON THE RULES GOVERNING THE APPLICATION OF THE BUSINESS TIC:: LAW promulgated by the Executive Yuan on the 4th. of August 1947 (see Monthly Bulletin No.X - August-September 1947. Annex )UXVI). A revision of Art. 9 & 12 was published by the Executive Yuan on the 17th. of February 1948 (cf. Shang Pao, Shanghai, Feb. 18th. 1948). The text of the revised articles reads: "Article 9. A business firm, subject to taxation whether based on the amount of its receipts or of its profits, shall, within five days from the end of every month, fill in a Report for Assessment of Tax, setting forth the amount of its business receipts or profits during the preceding month, and submit it to the competent collecting office which sheIl, according to the reported amount, fill in and iseue a Notification of the Tax Based on the Reported Amount, request- ing payment thereof. Also, within five days from the end of March, June, SepteMber and December of every year, it shall send its business account books as required by law to the competent collecting office for auditing. /f the auditing shows that the amount of tax already paid does not correspond with the amount payable for the three preceding months, then a Notification of Assessment Based on Auditing shall be filled in and issued requiring that the deficiency be made up. If a false return has been made with regard to the amount of business receipts or profits, punishment shall further be imposed according to the provision of Article 21 of this Lair". "Article 12. .The competent collecting office, immediately after receiving the taxpayers' Reports for Assessment of Tax as mentionedin the two preceding Articlas, shall send officials to investigate and assess the amount of tax to be paid, and fill in and issue a Notice of Investiga- tion and Assessment requesting payment". 3, ON THE iNDUSTBIAL GUILD LAW promulgated by the Chinese National Government on tie 27th. of October 1947 (see Monthly Bulletin No.XII. Nov.104". Annex XXXII). According to a despatch from Nanking dated Jan. 26th: 1948, published in Shang Pao (Shanghai), Jan. 27th, 1948, the Ministries of Finance and Economic Affairs have recently MONTHLY BULLETIN No. XV - February 1948 Editor's Notes ? .Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Jj Approved For Release 2002/08/13 : CIA-RDP80-00926A0069..jj8-5 jointly laid down transitional measures for facilitating the settlement of matters relating to industrial guilds' these will be effective until the promulgation of the Rules Governing the Application of the Industrial Guild Law. The essential points of these measures are as follows: 1. Important categories of industries, pending a new classification, shall all comply with the old one. 2. Industrial guilds already founded1 shall be governed by new laws only after the promulgation of the Rules Governing the Application of the Industrial Guild Law and the new Factory Law. ? 3. Both the organisation of new industrial guilds now in process and the standards for examining memberdo qualifications shall be governed by the new Industrial Guild Law the'. that of Oct. 27th. 1247). 4. On the day when a factory or industrial guild which complies with the provisions of the Industrial Guild law, joins an industrial association, it shall cease to belong to any chamber of commerce. 5. From the day of the founding of an association organised in conformity with the Industrial Guild low, all faotories and trade guilds whioh do not comply with the Industrial Guild Law, shall either join it or organise their own local commercial guild. 6. The title of a newly organised regional guild shall begin by the name of the place where its business office is boated. (2nd ) MONTHLY BULLETIN No. XV - February 1948 Iditoes Notes . 2.1pproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926 - A01,00185 1 IV The MONTHLY BULLETIN ib edited by The "BUREAU DE DOCUMENTATION" of the Department of Economics and Political Sciences, Aurora University (Shanghai). Part of the work of the "BUREAU DE DOCUMENTATION" is the systematic filing of all articles in the chief Chinese periodicals (monthly, weekly and daily) which deal With the economic and financial life of the Far East. References on any subject can be found immediately by means of a detailed card index.: The aim of the BULLETIN,which appears on the 20th. of each month, is to put at the disposal of foreigners the economic and financial points of view expressed in articles in the Chinese reviews. A certain number of these artioles are carefully chosen and reproduced each month in English, either in full translation or in the form of digests. ? Each article translated or summarized is published separately under the heading "DOCUMENT No...." so as to enaLle each reader to classify them according to his personal system: A classified index will appear at the end of each year. Where several articles on the same subject are written from widely divergent points of view the BULLETIN summarizes these points of view under the name "STUDY, No...." When it seems advisable the BULLETIN adds to these Documents and Studies the translation of relevant laws or administrative acts, which form "Annexes" to the Documents or Studies. The BULLETIN is being published to meet a definite need and any suggestions as to the best way of meeting that need will be welcomed. ? Though the selection, translation and summar- izing of the articles and other texts is done under '44ss authority of the Dean's Office of the Department of Economic. and Political Esiiences, the authors, whose names appear on each Document, Study and Annex, are alone responsible for the statements of fact or opinion expressed in them. ? As regards the REPRODUCTION of tranelations and digests published in the Bulletins 1. The Bureau of Dooumentation reserves to itself the right of permission for the reproduction of its DoCuments, Studies and Annexes, either in whole or in part, in journape or reviews published in the Far East. E. There is no restriction on the reproduction of articles from the Bulletin in other countries, but any editor making use of this privilege is requested to send to the Bureau of Document... tion a copy of the review or journal containing the reproduction, 3. Every reproduction should preceded or followed by the aoknowledgements "From the MONTHLY BULLETIN published by the Bureau of Documentation(Chinese Economics) of Aurora University, Shanghai", L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 -L-11 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069IP-5 !JS. OP CHINESE PERIODICALS - .---ZECELMED AT THE rBUREAU DE DOCUMENTATION/I -.. (February 20th. 1948i.?-."- QUARTERLY REVIEW Spinning, Weaving.& Dyeing quarterly (Fang Chili Yen Chi K'an) MONTHLY REVIE Banking Information Business. Management The Central Bank of China Monthly The Chekiang Economic Review C?-.emical World China Industrial Development The China Textile Review Democratic Times . The Farmers' Bank Monthly The rnancial. Review' Yie Industry Monthly Magazine The Juristic & Economic Review of Arora University Knowledge & Life . Hung Yih'Industrial & Commercial Bulletin The Kwargtung Provincial Bank Monthly The 1.,ih Hein Monthly Review Local Autonomy Modern Accounting Modern Postal Administration Modern Railways The Native Bank Monthly The National Journal of Commerce National Reconstruction The Oriental Review ? The Popular Science Review Popular Science Monthly The Reconstruction Review The Rural Affairs Monthly Acience 'Ule Scientific World Monthly Textile Reconstruction Monthly The Business World The New China Magazine Yin Hang T/ung Hein) Kung Shang Kuan Li) Chung Yang Yin Hang Yueh Pao) Chekiang Ching Chi) IHua Hsueh Shih Chieh) Hung Nwang Chien She) Ch'ien Wei Hung Yeh) Min Chu Shih Tai) Chung Hung Yueh Van) Ts'ai. Cheng Pling Lun) Hung Yeh Yueh Klan) Chen Tan Fe Lu Ching Chi Tea Chili) Chili Shih Yu Shenglie) Kung yih Rang Shang T'uni. AiA) Kwangtung Sheng Yin Hang ?Yueh Man) Lih Hsin Yueh Pao) Ti Bang Tzu Chili) Heien Tai Kual Chi) Haien Tai Yu Chong) Haien Tai Tlieh Lu) Ch'ien Yeh Yueh Pao) Shang Yeh Yueh Pio) Chung Kuo Chien She) Tung Pang Tea Chili) He Heueh Ta Chung) Ke Heueh Hue. Pao) Chien She P'ing Lun) Rung Ta'un Yueh Kim) ? He Hsueh) He Heueh Shih Chieh) Fang Chili Chien She DEMI-MONTHLY REVIEWS (Kung Shang'T'ien Ti) (Hein Chung Hwa) Y REVI The Bankers/ Weekly The Bu.finees & Indnstrial Information The Eoonomics Weekly The Economic Review The Financial Weekly Review Tex?le Weekly. Weekly Critics The Weekly Review of Laws Chih Yung .711 Pac - qhung Yang Jih Ta Yin Hang Chou Pao) Kung Shang Hain Wen) Ching Chi Choy Pab) Ching Chi Poing Lun) Chin Yung Chou Pao) rFaing Chih Chou Wan) Chou Lun) Ling Chou Van) Pao - Shang Pan - Shen Pao - Sin Wen Rung Pao L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 ? Approved For Release 2002/08/13 : CIA-RDP80-00926A006911111,-5 UNIVERSITE L'AURORE Shanghai- BUREAU DE DOCUMNTNkTION (Ebonomie Chinoise) 280 Chungking Nan Lu (Dubail) Telt 85761 Topic 1 China's Foreign Trade Document No. 83 since the Victory. Natures Digest. Authors Plea Shan. Number of pages: Periodical: The New China Magazine OWin Chung Hwa) Date of Issues Jan. 16th. 1948. . CHINA'S FOREIGN TRADE SINCE THE VICTORY The foreign trade of China since V-J Day may be divi- ded into two stages: free trade in 1946 and strict trade control in 1947. Despite their difference, these two stages share a common features o.1 the one hand, the import of foreign goods experienced a tremendous im- petus owing to extreme shortage of materials resulting from war dev:-..: tion, while on the other hand decreased production and soaring commodity prices formed a great hindrance to the export trade. ,We shall mainly consider foreign trade problems ane policy in 1947 but in order to have an adequate picture of them a few words should- first be said on foreign-trade during the year 1946. I - Foreign Trade in 1946. The total amount of imports in 1946 was ON. 1,501,200,000,000, while that of imports reached only 02$412,100,000,0V0 (the imports being 2.7 times as high as the exports) thus showing a triv6 Ca deficit of ON 1,099,000,000,000. These did not include smuggled goods and WARRA's On 399,200,000,000 relief supplies. Converted into U.S. cur- rincy the 1946 trade deficit was about US$ 382,000,000. It should be pointed out that 57% of the imported goods came from the USA; India taking the second plaoe with 8.75 % and U.K. the third with 4.9%. USA also led in exports, with about 38.7% of the total figure, followed by HonLong, 26.2% and then U.E. and USSR. The IMPORTS in 1946 came under 32 groups among Whioh seven aocounted for SO% of the total value: (1) Raw cotton, cotton yarn and cotton thread. CN, 336,900,000,000 22% of the total import. ? (2) Candles, soap, oils, fats, waxes, gums and resins. CN$ 174,000,000,000 12% of the total. 'or MONTHLY BULLETIN W. XV - February 1948 - Document 83 - Page 1 oar L___Appr-oved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A 8-5 0111,001 .1. (3) Miscellaneous metal manufactures. CPI 97,900,000,000 7% of the total (4) Paper, maps and books. ON$ 95,300,000,000 6% of the total ' (5) Machinery and tools. Cli# 76,300,000,000 5% of the total (6) Dyes, pigments, paints and varnishes. On 61,300,000,000 4% of the total (7) Sundry. Clif 79,500,000,000 5% of the total. The leading id:- .dual items were cotton, automobiles, gasoline, medicine and drugs, tobacco, newsprint, fuel oil and ohemdcals, The EXPORTS in 1946 came under 31 groups among which ten a000unted for 80% of the total value. (1) Animals and animal products. CN$ 87,800,000,000 21% of the total export. (2) Ogls, tallow and wax. Ca 71,400,000,000 17% Of the total (3) Textile fibres. 02# 39,600,000,000 9% of the total (4) Ores and Metals. CPI 23,200,000,000 6% of the total. (5) Hides, leather and skins, (furs). CP, 23,100,000,000 6% of the total (6) Medicinal substances and spices 02$ 16,600,000,000 4% of the total (7) Piece goods. ONO 16,200,000,000 4% of the total (8) Tea ON# 15,300,000,000 4% of the total (9) Yarn, thread and plrited and knitted goods. CH/ 13,400,000,400 4% of the total (10) Sundry ON# f11,500,000,000 5% of the total Among the individual items, the most important were wood oil, 011$ 67,998,000,000; bristles, CPI 67,004,000,000; raw silk, CMS 32,000,000,000; tea, CM# 15,-300,000,000; salt, CN$ 8,500,000,000; erosestitch work, 014 8,200,000,000; weasel skins, ON# 8,000,000,000s tin, 011$ 6,200,000,000; tungsten ore, CPI 6,900,000,000 and hair nets ON$ 5,700,000,000. The abnormal development of China's foreign trade as seen above can be partly explained by the erroneous policy pursued by her Government. At the end of the war, the Chinese Government Which hre US$ 900,000,000 at its disposal should have been able to revitalise thc national eoonomy by importing large quantities of machinery and by launch- ing an export drive. But the authorities carried out a wartime policy of dumping commodities, aiming at low prioes and especially at a low rate 'MONTHLY BULLETIN No. XV - February 1948 - Document 83 - Page 2 L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13: CIA-RDP80-00926A006111,018-5 cf foreign exchangc. an exchange rate of CN $ 2,020 to US# 1 was maintain,- ed from Larch to September 1946; and a rate of 3,340 tc 1 from Septer-ber 1946 tc February 1947. This was definitely favourable to importers who obtained foreign goods et a low exchange rate and sold them at exorbitant ericej. On the contrary export was being strangled, for after converting the foreign exchange into Chinese cerrency, the exporters inevitably suff:r- ed heavy losses. As has been said, the deficit in China's internatienal trade balance reacaed US# 362.,00C,000 in 1946. Meanwhile, overseas rt. tancee barely touched the US$ 31,000,000 level; and if we take into re:count the expenditure for overseas dip2cmatie services end foreign exchange for private uses it can be fairly estimated that China's deficit in intereetion- al payments for the year of 1946 was ober US # 500,000,000. It was in such circumstances that China's trade policy began to turn from the "laissez faire" attitude to strict control, from extreme lavishness to extreme thrift with the establishment of the Import and opert Con:sass:ten at the end cf 1946. II - Broad Lines of Foreign Trade In 1947. When the in pert quota system promulgated in the ? a- ',Jim of 1946, was enforced at the beginring of 1947, the foreign trade, ...gina came under strict control. This was scon followed by the premLl.r.- tion in February 1947, of the Economic Emergency Measures prohibiting blaqk market transactions in foreign exchange. Henceforth, all impoze name ender the control of the Import Control Commission while exports w submittd to the EXport EXtension Beexdi these two organizations bei17. latei reorganized and combined into ;he Import and EXport Control Cor sion. It was under such management that foreign trade began to show a marked decline. (Pub Chinas Import and Export Values During the Period from January to October 1947. lished by the Office of the Inspector General Month Imports of the Customs.) ( Units CM#1,000) :Exports Trade Deficits Ratio between Import & Export (airport = 1) January 150,625,438 48,476,330 102,150,099 3.11 (-)bruary 216,888,781 81,882,144 135,006,637 2.65 larch 430,060,012 144,985,432 286,064,580 2.97 April 520,461,737 210,922,464 309,539,273 2.47 May 521,392,762 415,131,864 106,260,898 1.26 June 532,461,420 266,708,150 265,753,270 2.00 July 721,638,348 236,961,257 484,677,091 3.05 August 938,510,954 478,098,595 460,412,359 1.96 Sept. 1,440,528,398 285,725,778 1,153,802,620 5.(e Oct. 1,746,766,278 530,040,429 1,216,725,849 3.60 Totals 7,219,324,128 2,699,931,452 4,519,392,676 As the period in question witnessed a oontinued depreciation of the Chinese currency, it is advisable to convert the fore- going data into U.S. currency in order to arrive at more comparable figu- res PPE. MONTHLY BULLETIN No. XV - FcalxuRry 1948 - Document 83 - Page 3 ? Approved For Release 2002/08/13-!-CIA-RDP80-00926A0069000400'18-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0011,0018-5 China's Import and Export -Values in US dollars Jan - Oot. 1947 (Unit t LA.1$ 1.) Month Imports Exports Trade Deficit January 44,696,692 14,384,572 30,312,020 February 43,008,045 16,237,229 26,771,816 Maroh. 35,251,199 11,884,456 23,366,733 April 42,622,248 17,289,314 25,372,934 May 42,738,565 34,028,359 8,710,206 June 43,645,863 21,862,067 21,783,796 July 59,152,695 19,432,714 39,728,981 August 23,978,955 12,215,419 11,763,536 September 25,678,991 6,838,409 18,840,582 October 32,210,370 9,773,945 22,436,435 Mote s The following rates Januarys Februarys March-Julys August-Novi have been taken as a basis s- CN$ 3,360 to US#1. Average of 3,350 to 1 and 12,000 to 1. 12,000 to 1. Average of rates as announced by the Foreign EXohange Stabilisation Board. From the two tables above, it can be seen that exd its in Jan-Oct. 1947 were at CH.2,699,900,000,000, whereas the oerresponii.47, imports were at CN I 7,219,300,000,000, making a trade deficit of 011$4,L19, 400,000,000. If converted into US ourrency, import values during the 9a- riod from January to October amounted to approximately US$393,0001000 and export values for the same period about US$164,500,000, allowing a deficit of about 138$228,500,000. Now during the corresponding period (Jan-Oct.) in 14404 the imports reached 138$490,000,000 and exports US$ 78,000,000, with a den* cit of 138$412,000,000, so that the combined import and export in Jan-Oct. 1947 (U811557,500,000) was reduced by US$10,500,000 if compared with 1946 (US$ 568,000,000)1 export being inoreased by U8$85,000,009 and import res duoed by 97,000,000 with the trade deficit dropping by US$186,5006000. On an average, import was only half as muoh in 1947 as c for the porresponding months. in 1946s (Unit s US$ 1 ) 1946 1947 April 46,000,000 42,000,000 May 44,000,000 42,000,000 June 68,000,000 43,000,000 July 59,000,000 August .111,000,000 59,000,000 23,000,000 8eptekber 73,000,000 25,000,000 October 68,000,000 32,000,000 It should be noted that the above statistics aro far from showing the overall picture of Ohinais trade oonditionss as they do not include smuggling, both of imports and exports. MONTHLY BULLBTIN NO. XV - February 1948 - Deoument 83 - Page 4 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006910,-5 It1 - The imports in 1947 comprise two partes imports under the quota system, and imported goods paid with fereign =ohm.* not provided by the Government. to October 1947 Items Cotton Fuel Oil Gasoline The following table shows the imports from January (Unit: CN$ 1,000,000) Value Items Value 1,555,970 Sulphur black 94,763 323,753 New gunny bags 86,702 302,812 Chemicals n.o.p.f. 83,167 Tobacco 233,051 Prime movers 80,004 Rice 185,494 Medicine & Drugs 70,647 Machinery n.o.p.f. 185,494 Wooden planks 67,036 Kerosene oil 178,494 Caustic soda 65,883 Looms 174,061 Lubricants 66,64:6 Rubber 162,289 Automobiles 64,619 Wheat flour 144,585 RR sleepers 60,903 Iyestuffs 139,374 Tires & inner tubes 63,139 Printing paper 125,256 Round softwood 68.937 Wool 1220.87 Steel bare for reinforced conorete 67.012 L000motives 107,273 Rails 66,896 Truoks 105627 It may be seen from the above data that in 1967 as in 1946, cotton, gasoline, fuel oil, tobacco and rice continued to be t.0 largest import items. This was due to the enforcement of the import gees ta system, which was based on the import figures of 1946. The total import quota for 1947, announoed in quartir.. amounted to US$ 293,550,000. The following table indioatee the breakdowir" of the figures, .Items Gasoline, fuel, oil, kerosene oil Cotton Rice, wheat, and wheat flour Tobacoo 4' temp and gunny bags `.-Coal and aoke Metals Chemicals Paler (including pulp) Timber Wool and woollen thread Artificial indigo, eulphiden & dyvatuffe India-rubber, gutta-peroha and manufac- tures thereof Lubricants, oils, fats & waxes Machine belting, starch and other mate- rials Ammonium Sulphate and other fertilizers Artifioial silk (raw materials) Medicine and drugs Value (Units US$ 1,000) 49,170 80,000 41,000 26,000 6,000 2,000 13,000 9,000 16,960 7,830 .7,400 9,100 6,100 6,860 1,066 4,000 2,260 1,800 TOTAL p84.526 MONTHLY BULLETIN No. XV February 1948 - Document '83 Page 5 ' LApproved For Releate 2002/08/13 :CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00691111,8-5 ? Cotton, liquid fuala,r-t-obac-co, rice and foodstuffs represented 67% of the whole import quota, or US$ 196,170v-00hcreal other 14 itewe of?t-Annt,.141.1._xaw materials received_ only 33%. It must be pointed out here that import quotas assign- ed for the different periods of 1947, rapidly diminished: first quarter, US$ 99,000,000; second quarter, US$ 72,000,000; third quarter, US$67,000,C0C and the fourth, US$ 53,000,000. ,The quotas for the first three quarters of 1947 (Jan- uary - October), aggregated US$240,000,000, whereas the total import umounte? to U8$390,000,000, making a differeo.:J of US#150,000,000. Of this latter - figure, it is estimated that U8#70,00G,000 worth of goods were imported in January s.nd April by means of foreign exchange from private sources. Im)xts outside the scope of the quota comprised the following oategories:- 1 1) Productive Implements ) No limit was laid ,Th.. on the import of productive implements and application might be submittec it rny tine. It was however very hard tc secure permits for items of a ( foyer US$10,000. Loom:, prime movers and other machines were among most important productive implements. These machines delivered in 1S,.7, in fact ordered in 1946, zo that strictly, speaking-they should not hn-i_ c7 listed among the figures for 1947. ? ? 1 2) Daily Necessities ): Articles under this c-.1:::- gorr inolliaed woollen textiles and other miscellaneous items. 2) 3) Articles imported under the Baiter System : Especially to be mehtioned are railroad sleepers, lo- comotives and rails, mostly originating in Japan. These occupied a very large part of the US$150,000,000 worth of goods imported outside the scope of quota. ? It is probable that a part of the artioles listed in Schedule II of the Provisional Measures governing the Import and Export Tra- des, was also paid with foreign exchange not provided by the Government. The import of goods against foreign exchange from pri- (Ito sources was prohibited :after August 16th 1947, and at the sane time registration of such goods started. According to the Import and Export Control Commission, goods thus registered amounted to a value of US$41,000,000 1) EDITOR'S NOTES: cf. Schedule I of the Revised Provisional Measurea governing the Import and Export Trades, promulgated by the EXeoutive Yuan on the 17th of November 1946. 1) c.f. Schedule M.A. of the Revised Provisional Measures governing the Import and Export Trades. 2) These are listed in Schedule I. MONTHLY BULLETIN No. XV - YebruarY 1948 - Document 83 - Page 6 , L_ Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 ? Approved For Release 2002/08/13 : CIA-RDP80-00926A00691,-5 11 ' , of which industrial equipments in Schedule I represented 11644+240,000; industrial raw materials in Schedule 1.1..-418536-,.5.60_,P00,Euld daily ne- esi i ties in'11EIS2_160,3100. We must point out the unsoundness of the import quota system carried on by the Government. The whole volioy was dicta- ted either by the necessity of cutting down disbursements in foreign am. change or by the desire of assuring revenue for the Treasury. Generally speaking, the quota was based on the import figures of 1946, with only a rise by 100% in the import of gaaoline and liquid fuels, and some slight increases in foodstuffs and coal. But the major part of theee latter items were destined for military uses. Half of the imported cotton, also, was under Government control. The quota accorded to tobacco may be said to have aimed at maintaining the Government's revenue from cus- toms duties and taxation on cigarettes. The fact that only 33% of the total was appropria- ted to 14 items of industrial raw materials and equipment, is eloquent evidence of neglect on the part of the authorities regarding the fate of home industries. The quota provided not more that 30% of the raw mater- ials required by the rubber Industry, 14% for the woollen textile indus- try, 10% for the paper industry and 5% for the match industry, so that an average only 20% of the required raw materials were supplied. Jo priority was granted to industrial equipment such as looms and other machines, which were nevertheless indispensable to laying down a squid foundation for the industrial production of this country. It may be mentioned that one of the results of the Government control of the import trade was the elimination of me- dium and small import merchants, since they were not eligible for reoei- 7ing allocations in import quota. All import transactions were there- fore oonoentrated on the hands of large firms many of which were opera- ted by foreigners. Por instance 90% of the tobacco import quota and of the gasoline quota was accorded to foreign firms. This tends to a monde, polisation of the import trade. We should remember, also the nefarious reper- ousaions on commodity prices caused by the rapid diminution of import quota q for the various quarters and the prohibition in August of import against foreign exchange from private sources. In the price rush in September and October 1947, chemicals which are important industrial raw materials,, seared twice as fast as any other goods and were respon- sible for the rise in many finished manufactures, textile products and metals. IV - Export Trade and Policy in 1947. The value of' the various exports from China eUring the months of Jermary-03t:.ber.19-.7 was as follows : Items . Wood oil Bristles Pigs Tea seed oil Wicellaneoue cotton piece goods Salt Fine cloth Cotton cloth Sugar Poultry Unit : Exported from China CN$ 1,000,000 Exported from Shanghai 419,663 172,404 256,977 72,088 187,667 ---. 160,148 12.700 80,505 6,100 71,566 4 62,481 62,066 54,121 54,121 53,,;,:6 45 98,091 8 MONTHLY BULLETIN No. XV - Lisbruary 1948 - Document 83 - Page 7 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00690111,8-5 Items --Mcported from III! 11190 111!Ipsf !, , --(.0cust.inued.) ----_,Exported from **.sehabgbai-- Silk piece goods (mixtures) 46,913 - 96,809 Shelled groundnuts 39,988 13,572 Green Tea 36,548 25,586 Tin ingots' and slabs 36,319 836 Fresh eggs 33,818 21,610,- Tungsten ore 30,722 26,224 Antimony 27,773 14,688 Medicinal substances 25,534 6,431 Fresh fish 21,666 141 White raw silk, steam filature 19,662 17,521 Nankeen 19,102 18,329 Converted into US currency, the value of the month- ly export of some of the main items from January to July was as follows: d Items Jan. Feb. March. Unit s US$ 1,000 April May June July Wood oil 3,518 4,635 3;273 4,230 9,696 6,200 4,01. Tiristles 2,996 4,012 1,969 2,005 7,039 3,903 3,29 ( .iece goods 754 1,624 1,044 1,490 2,473 1,877 1,173 Silk -759 3,372 444 441 4,253 241 199 TUngsten and antimony 1,497 4247 863 781 742 617 ;-,95 Tea 251 3,038 381 498 1,062 823 167 ? Oils and waxes (including wood oil), were the big- gest export-item, making up 24% of the total export. Animals and animal products followed, and piece, goods occupied the third place. The exportation of WOOD OIL in 1947 showed enor- mous progress over the preceding year. In 1946, the export volume was merely wow tons as againat a prewar annual average of 70,000 tone. But in the months from January to November 194?, 'it was already 61,000, and as a probable 4,000 tuns more were exported in December, the total export of wood oil in 1947 almost reached the prewar level. Thin improvement was mainly due to the fact that the price demanded by the Chinese produ- cers having been lowered, Americans found it cheap to use Chinese wood (lil and imported 50,000 tons from China in 1947, which wss equivalent to -,W6 of her annual consumptiob. On an average, one pound of wood oil was worth US$0,25,-so that China's income from sale of wood oil amounted to US$. 33,000,000 in 1947. Two thirds of this figure were controlled by the Government while the other third represented smuggling through Hongkon.';. / The management of wood oil is tending to beco.1, --. - monopoly. The China Vegetable Oil Corporation and the Central Trust aav. become two of the biggest dealers. For instance, during the months Mz.y- October 1947, of a total of 9000 tons of wood oil exported from Shanc17-i, 2,078 short ton:a-were sold by the China Vegetable Oil Corporation; 2,000 short tons by - T.- Sit-',-Co.,1 800 long tons by the Central Trust; 917 short tons by Ku Keng Ghl_Co., 1 63-: short tone by Shang Li Co., ; 530 short t:ns by Ho I Co., s 300 short tons by Nn Chung Co., 1 144 short tc.r.s by I_Sheng Co? 1 44 short tons by...EU Chiang Co., ; and. 2,000 tons by six c,thor firms. gsigjaut owing to their low production oost, "ecu- pied the second rank in export items. According to the US Department of Commerce, China's export of bristles in the second quarter of 1947 was around 2,000,000 pounds with a value of about US$ 7,596,000. The US Consul General at ChUngiipg did not however receive any export applica- MONTHLY BULLETIN No. XV - February' 1948 - _Document 83 - Page 8 LApproved For Release 2002/08/16 : CIA*-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611118-5 applications in the first half of 1947, and only a small quantity was exported from Tsingtao. -"Th.--.explanation is that half of-the brist2e1 were smuggled_listeLliengkong, and. imported--thenee. According to the 8Sechwan Animal Products Compnny, the annual output of bristles for 1947 was about 7,000,000 pounde, a little below the prewar level. About 4,000,000 pounds could be expert- ed. The transactions on INTESTINES were very meagre, al- th:ugh this also used to be an important animal product for export in prewar days. As a matter of Plot, since V-3-Tlay, the high price of in- testines at home, has paralysed any attempt to export large quantities. It has been reported that in the month qf October 19 els were?available for export. But this, figure wa y insignificatAt :3 against a prewur annual export of 10,000 ba els (approximate wort;: U8410,000,000). The export of TEXTILE FABRICS struck a new nott. in 1947. The volume of their transactions was -equivalent to between i/4 . and 1/3 of that of wood oil. Before the Nar, Chinese cotton yarns and cloths were sold only in the South Seas. But einoo V-J Day., the Textile Industries, Inc. has been making exertions to export huge _ ities of cotton good, in exchange for Indian and American raw oott . ? It has been rather disquieting for China, however, to see the recon: dusping of made piece goods in the South Seas and also to f..1 onoe more the fierce oompetition of the Japanese textile industry in _.'the same region. ? Brom January to November 1947, 3,965 bales of RAN SILK were exporteds 1,600 bales to USSR in payment, for a debt, 1,200 to U6A and 1,000 to India. All these exports were made by the Centrrl Trust which had firet-madJuiturehaa.ea._from silk producers in the country. The export of Tar, ANTIMONY and TUNGSTEN diminished each month. From a monthly export of US#1,490,000 at the beginning of the year, it dropped to US$390,000 in July which was lee, than 1/3 of the early volume. The National Resources Commission purchased these minerals for export. But as the price it offered was too low, the major part of the export was 'done by smuggling through South China. 1 The export of TEh in 1947 ) outstripped that of 1946, but still lagged far behind the prewar volume. luring the months from January to August 1947, altogether 96,402 quintals, i.e. 21,000,000 pounds of tea were exported, as against 69,000 quintals in the who1,2 v(3r of 1946 and a prewar annual average of 484,000 quintals. It should pointed out that the dxport of tea in 190 and 1947 inoluded both old and new tea, since the actual tea output 1) in these two years was only 28,000 quintals end 50,000 quintale. 3.) EDITOR'S NOTEs For other details conoerning the production and export of tea in 1947, see Monthly Bulletin No. XI. (Oct. 1947). Document he. 65. -'Chinese Tea Trade And Foreign Akobang. Regula- tions". pp. 1,2 and 6. MONTHLY BULLETIN No. XV - February 1918 - Doounent 83 - Page 9. LApproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0 06111r18- 5 Beftee the war, China used to hold a privileged reeftien in the werld tea eeeest. But tteetion has coppletely chanet,:. et ' present she pr:duc_s aneeetly eeeuf3,000 pounds of black tea, which is negligible in the face of a hue.: Annual world consumption of 800,WO,J00 pounds of black tee, Vti of which are being sepplied by Java, Indie, Ceylon and East Africa. China hae alet lost her monopoly in the green tea market in the Middle East and Fcrth Africa where she has only been able to sell approximately 4,000,000 pounds in 1947 as aminet the pre- war annual average of 20,00(,000 pound. In prewar days, 20,000,000 pounds of tea bricks werc seld to Russia annually. This figure hsvever dr:pped to a mte 300000 pounds in 1947. In uneearising the eboVe,.it mhy he said that on the whale the exp:et trade in 1947 shewed some progress over the prece iie year; and in some itees steed :Al especially) it even approeche the prewar level. It shoule be obeerved however that in 1947 as in the Government's ftraicn exehange policy lontinued to mar the nereal development ;.,f the exere.t cusiness. The Beverament maintained a low rate of exohange and demanded that all foreign exchange secured fr.a. exports be surreelered to the General Banks this made it impossible tor private firma %r txpert without sustaining eonsiderable ices. ' export of home products became profitable only when the oxchanee let.; was high. For instance, when the Government reVised the exchange r t: to CB412,000 to USi)1 in Abrunry 1947, exports started to move an riech- ed a peak in May. However, after the skyrocketing of commodity prices in the months of April and May, the official and blaok market exchen-e rates fell apart again ; the difference being 60% in April and 10ee';io May. Later, it jumped to 20(% and 30y% in June and July, so that ex- ports continued to deeline in June, July, August and September. Octo- ber showed the influence exerted by the introduction of the open market exchange rate. Yet as commodity prices began to rise and the new rate remained unohanged, the official nd bleak market rates again began to fall apart and another decline in export was experienced. The month of December, brought the hardest trial. For example, wood oil, Obi Rune) was priced at CA.12,40G,000 per barrel in China whereas the quotation in New York was only U80.21 per pound which was lower than the domestic price. Bristles were quoted at CN423,0CC,000 per Tan ') in China and U8e1.80 per pound in New York. The cost of 50 kg. of tea was C1143;0e0, 00e in China, but the some quantity of tea could be sold at U84.- in New 'York, which ocnverted into 0Ne according to the "open market" ex- change rate, was only 1/5 hieher than the home price. Undee such eircumetences, exporters ootild make pr-fits only through smugeline end other fraudulent or irregular means. 8 me merohente smueeled Goode out of the oeurtry through South China, ani sold the foreien exchange they obtained on the black eerket. Other ex- porters, heving sold their goods pretended that their agencies abroad had not yet sold them, thus delaying the surrender of their foreign ex- change until a new revision of the exchange rate. Others still, ree:rt- ed the price at only 1/2. of the actual selling price, so that only 112 of the foreign exchange secured from their export was to be eurrenier_' while the other 1/2 could be sold.on the black market. 1) EDITORIS'NOTEI 1 Tan = 60.478 kg. or 133.3 lbs. MONTHLY BULLETIN No. XV ? February 1548 - Document 83 - Page 1C, Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006 8-5 . In order to counter sucA fraudulent Manoeuvres on the part of exporters; the Central Bank of China declared its resolution strictly to enforce the old order that all export goods must be sold within three months after application for their export or else the goods would be purchased and then sold at low prices by the authorities. Mean- while, the Import and Skport Ccntrol Commission demanded that all appll* cants for export should first rtoTor-t-41e_ u.glatiana--64-misttirtlitirireri -- willing to sell their products abroad. IT the reported prices were found to be too low, the goods would be purchased by the Government at those prices. Needless to say, these measures helped to bring more Of the foreign exchange from exports under the control of the Government; but they could not but adversely affect the export trade. It may be added that a State monopoly of the export trade seems to be on the way. Before AUgust 1947, the Central Trust has already purchased wood oil, bristles, raw silk.and tea from the producers. Though this practice has temporarily been disoontinued, ? there is all likelihood that the Government is now considering an over.- all plan on purchases for export, in order to augment its income in the much-needed foreign exchange. ' V. International Payments in 1947. Let us finally r..iiew the trade haleness and other items in the international payments of China during the year 1947. As the imports and exports from Jan. to Oct. 1947 amounted to U84395,000,000 and US4 164,500,000, their totals for the whole year may be estimated at about U84478,000,000 and U84200,000,000 respectively, showing a trade deficit of approximately U84 278,m0,000. Of the total import figure of US.) 478,000,000, the Government paid US*, 293,00O,006 (quota for the 4 quarters) plus about U84 57,000,000 (a part of the imports outside the scope of quota under Schedules I and III-A) while the remaining US4 128,000,000 steed for the value of bartered goods and imports against foreign exchange from private sources. The import figure stated above does not, however, 17 include UNRRA supplies Which amounted to 0243,000,000,000,000 or U84 270,0u0,000 in the period Jan-Oct. 1947. Besides trade balances, other items of internetional payments in 1947 deserving our attention, may be stated belows (1) 11 On thl DEBIT side s Foreign exchange spent by the Government for purchase of eupplioc and oversose diplomatic) services $ Payment of foreign debtss Private uses, e.g. students s On the CREDIT nide (1) Remittances from overseas Chinese i U84 100,000,000, U84 5,000,000. U84 5,000,000. ? U84 10,000,000 MONTHLY BULLETIN No. XV -.February 1948 - Dooument 83 - Page 11. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061.018-5 The figure fur _remittances is only an estimate. On aocount of the revision of the official foreign exchange rate in February 1947, remittances from overleae Chinese augtented greatly in Desch and April, and the Bank of China received U845.610,000 during the monthe January-July. Similar increases were witnessed after a new revi- sion of the exchange rate in AuGust. But it may be presumed that the Bank of China could hardly have received more than U8410,W),000 in 1947. Foreign exchange spent by foreigners in China is not taken into account"sinos for the most part it escaped the control of the Chinese Government. For instance foreign erbassies and consulates usually sold their foreign exchange in the black market. In view of the above, China's international payments for 1947, under the control of the Government, may be summarised as followes '(Units USv1,01,000) DIT CREDIT Import 478 Government imports and diplomatic services 100 Debt payments - b Private uses 5 Imports under the barter system or paid with fo- reign exchange from priva- te sources 128 xport 200 Overseas remittances 10 Balance 250 Total 31E = 114 may now figure out the amount of foreign exchange still at the disposal of the Chinese Government at the end of 1947. As has been said, on V-J Day, the Chinese Government had at its disposal U841 900,000,000. Its disbursements Gino? then have been as followes August 2.045 - March 1946 March 1946 - February 15, 1947 February 16,1947-December 31,1947 U8464,200,000 U81,4288,000,000 U84 250,000,000 Total ...U84602,200,C00 It may therefore be estimated that the Chinese Government-held only about U80'300,000,000 at the end of 1947. . SO M11011 for international payments under the Govern- mentos control. As for smuggling and clandestine remittances from overseas Chinese, only a rough esz.imato can be made. Smuggled imports during the year 1947 totalled about U84 90,000,000 whioh was equivalent to SO% of the legal import figure for the same year (U84 478,000,000). Smuggled exports in 1947 came near to U84140,000,000 or 70% of the legal .export volume (U84 200,00O,000); 1/5 of the wood oil and 1/9 of the bristles exported from China being smuggled goods. Remittances from MONTH= 3144FTIF So. IV - February 1048 Document 83 - Page 12, LApproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061,018-5 - oversead Ohinasa 'soaping Government controli approximated to U81; 140,000,000 for the Whole year 01-1947. The balance *as therefo- re favourable for China, ea is shown in the fo1lesia2-4ab10 (Unit I U84 10.614900) DZBZT-NADU Smuggled igports 90 Snuggled exports 140 Balance 170 Clsndeetine overseas remittances 120 Total 260 . Total 260 Amtax BULLITLX No. X9 ...February 1948 ? Document 85 Psitte 13. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 4::: Approved For Release 2002/08/13 : CIA-RDP80-00926A0011/0018-5 4.146044... 044.610.40eliaigrior UNIVERSITS L'AURORE -.8hc.nghai- - BUREAU LE DOCUTATION (Economic Chinoise) 280 Chungking Nan Lu (Bubeil) Tel ,r 761 ------- Topics Author: Periodic,A; Date of issues The First Year of Revival Dooument Woo 84 of the Chinese Cotton Mature' Tr%nsle!.tion Industry . slightly abridvd Hu Ohing-lieng Number of pngess 12 The Textile Neetly (Fane, Chill Chou ;Van) Jc.n. 17th. 1943. THE FIRST YEAR ul REVIVAL OF THE cilb(bii COTTON INUUSTRY (4 record of result'S obt-T:ined under the monagement of the Improvement Bureau. of the Ministry of Agrioulture nnd Forestry) Introduction. Thu production of cotton in Chino reached a peak of 17,000,000 shih tan I) in 1936. After 1937, most of the cotton growing areas having fallen into the hands of the Japanese, the production dropped considerably, awounting only to 5,000,000 shih tan in 1945. Thus, during the night years of war, the production of cotton decreased by 44,1000..-0 shill tan, equivalent to the total produotion of four prewar years. According to the eetimate of the Chinese Cotton mill Association, the total area using American seed in thie country was 4,700,000 shill mows 2) With a total output of 1040,0u0 shill tan of raw cotton in 1922; about 11,0u0,000 shill mow and 3,780,000 ehih tan in 1930; 16,900,000 shill mow and 5,710,000 shill tan in 1933 and 25,490,0o0 shill mow and 8,890,000 shill tan in 1935. It than represented about 52% of the nation's cotton crop, and in sue' provinces as Hopeh, Hupeh, shantunb, Shensi, Shansi and Hunan, it oocupied an area three times that of the native cotton. Now,however the situation has changed completely owing to the Sino-Japanese oonfliot. During the war of resistance, though there was some inorease in the production of American cotton in various provinces of Free China, this was by no means considerable on account of the 1) One shill tan = DO. kg. or 110.23 lbe. 2) One ohih - 6 64 ,-r:c 1; 1.1G476 acre. AOETHLY 3ULLT,TIN No.XV February 1948 ? Dooument 84 - Page 1 LL Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006 18-5 II A limited cotton areae-coma.erned. In therefialds...lieanerey hands the decrease was general. In consectuanoe the proportion between native and american cotton producei in this country has now been completely altered. This situation cannot but react unfavourably on our cotton industry which suffers fr.= both the insufficiency of. raw material and its poor quality. Since all the enezy cotton mills hare been taker over, it is estimated tlu.t China requires yearly auout 11,000,000 shih tan of cotton for its 4,500,000 epindles. This, however, doss not include the amount needed for hand spinning and wadding..3efore 1937, the Chinese mills throughtout the ccuntry spiened eainly lu count cotton yarn, and during the war of resistance, all the milia located in Free China were spinning counts below 20. Now 80% of the mills have been spinning 80-. count% whicn is better suis4d Ao internal needs as well as to the requireee...ts of the oouth oea Islands' market. In consequence Lost of our raw cotton is no longer suitable and.our post-war cotton productien is not in a position to meet the cemand either quantitatively of quelitative]y. In "Outlines for the Revival of the Chinese Cotton Industry", written by the preset author, a five-year plan was drawn up the first three years-of which should form a reoovery stare to restore a produotion of 17,000,060 tan, the figure of 1935. The remaining, two years should be a period of further increase, aiming at 80,000,000 shih now and a total output of 25,0...0,000 shih tan. Dr. T.V.Soong asked the author to eomplete this five year prograLiee within three years. AZ the situation of the country was still uncertain and time was needed for the arrival of american cotton seed, the concentration of technieal staff and the purchasd of equipment, 1946 was sonsicered as a year of preparation only, during whioh the projected increase of the nation's cotton area to 30,000, 000 shih mow and of production to 7,0o0,000 shih tan was achieved. 1947 was.the first year set for the revival properly so-called with a proposed increese of cotton area up to 41,190,000 shih mow and of production of raw cotton up to 12,600,000 shih tan. Before entering on a new yeaes, work it is good to review briefly the efforts already made and see what has been achieved -anu what remains to be done. Il.- Seed Selection. 1: acquisition of american Seeds. with the axception of the native teed Cieh Teel, in Hunan, the eseas distributed by the Cotton improveaent Bureau of the iiinistry of agriculture end Forestry are mostly of american type, derived from tin. followinr a) UNRRA supplied 64,052 bags of cotton scede or 52,276.26 ',hi," tan. ? b) 49,519.81 shib tan of Dolfee and aten.ville-e?:eds were collected from various 1;eis country. e) A furt-eee emnent oi ileA-Js and Stoneville oame from Shensi and Ozechuan where they had been extensively grown during the war. MONTHLY BULLETIN No .XV - February 1948 - Doeument 84 - Page 2 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00W8-5 Let ns note thct it wes-by no a.eens an easy matter to obtain the various Rinds Of cotton eted .from UNRRA this year. UNRRA woe originally requeited to supply 6,000 tons of latlfos and Stoneville seeds, the most suitable for cultivation in the Yangtse River and Yellow River reFions: ao, verified by the Central Agrioultural ?experimental inettlte and the former Central Cotton Improveme.vt institute as well as from past experiende. At first, UNARi. agreed only to one theusand toes of Delfoe and atonsville seeds Wtlile the U.B. Agriculture De?artment promised to issue an expert .,Ldence for 1,b0, tons. At this juncture, the present writer arote an article in English stressing the urgent need of China ane sent It to UNRRA &ea to Mr. Oven L. :.:aween the Agricultural Attache Of the U.. Labassy, with a request. for further negotiutions with the U.6. Agrisultural Lepertment. Again, Man,. was asked for 3,oeu tons of iimbessadorl, Delta Pine- land', 'Coker' and 'Imp.,riel esed'. The imperial end Ambassador seeds, selectee types fr..mi the Stoneville ,species, are most suitable for the Yellow Aiver region, while the Coker has very -strong resistel:ce: to winu and rain and is .tl'erefore better mated to 21aoes along the coast of Alangsu and Cheki,ang and else ?to plocee like bzechnan where th-re is an abundant rainfall. The grade 4, Coker 100 is very similar to tl'e aetive 'Aran and can be grown in places in Hupeiwbere the native IXWand:Teel is used. The Lelta kinland can be used in districts such as Shanghai, Hanttung one Jukao usually'devoteJ to netive 'Bei. Taal. These negotiations finally met oit'n success, and yam& supplied altogether 5,202 tons of cotton seed whish arrived in April 1947 in Shanghai, whence aftz.r the necessLry arrangemente and examination, they were sent to various places 1). 2. Ileanwhile the activity of this Buroau has been mainly directed along the three following lines: a) To persuade farmers in such regions as Hopah, Hupeh, Shantung and Hunan, Whinre American cotton seed has greatly degenerated, to utilize new soed. b) To p4omoto-Mbe use of American seed in distriets planted Moetly with native cotton:- for instance xi-Intling, Tsaittsang, Cbiating,kaoshan,. Aanhui, Pangheien and Chluansha in idanastig Hofei, Huaiyuan, Huaining in Anhwei, Heiaosben, Juyao, Chanhai In Chekiang. C) To open new cotton fields in oistricts such as Hasebow, (Alangsu)ehengchfiu (Honan) and funy..n, (Alangsu), where tile soil is sulteble for cotton cultivation. However, owing to the hosti/itiee, this work did not meet with complete SUCC.A8. 1) Ic speaking of UURBA-consignments it must be added that this organiection supplied also considerable quantities of fertilizers which were distributed to cotton farmers, moitly by the membrs of this Bureau with proper instruction on how to utilizo them. 4 . - U.ONTHLY BUILDTIP No.XV - February 1946 - Dooum,:nt 04 - Pegs 3 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111,8-5 To iaporti.nt rem..rks should he meth, in respect of the promotion work. The first ponoerna the iwportunce of teohniehl guidcybes our f:.raere have little knowledge of the pryer needed by th'e cotton frow ?weric;:o coeds during its growing periou L'.8 well durin horveetie. tiae. To meet this need', the 5urceLu eotablishey in Netrious cotton produoing distrL3ts some 33 guad..:::ce stLtions where teohlicl advice w-s constantly ' The sece;Al is the difficulty of keeping the ?cotton seed from degenerz-tin. dith this zim in view, the Burenu in 0,ccord,,:nce with the re:;u1,1tions governing the oontrol of cotton seeds ,at stimult.ted by the ,anistry of Aericulture end Forestry, nazin erased oottor eleed control distriote where pure seeds -tre kept to be used for the next orop. ' The tottl cotton .:rer thus coveted during the promotion w,.:s 4,178,837 'grow (ace Appendix I). 'In Shensi, ti:v oOtton farmers used thcir own 6.toneville cottoa seed. In 6sechuen, this Bureau supplied about 1,066 tan of Dolfos ootton and the rest was aostly the farmers' own Delfos do.531 as well as Deltes (24-42) and (4410) distributed through the flamers' Bank of Chita during the 7ar. In general the conditions of the improved cotton Crops this year have been excellent. According to reports from various districts, the averane yield of Amerisan cotton wae more than that of native cotton. Ip other words, suppoeing that sash now gave a surplus of 10 yhin 1) of rawvotton, there wae Ln increase of 417,883 shih ten and as the price of one tan is now *bout six million dollars, this aeans an additional income of 4260.729,806. Am:fording to the latest revised estimates, the . nation's total cotton area in 1947 was 380531,000 mow, which shows an increase of 9,210,600 mow. Though this 01.11 lags far behind what was hoped for, the quantity harveatee by area unit has Omen a definite increase. The nation's total production was 10,738,000 tan of raw cotton which is 1,760,000 tan less than the plamed amount of 12,b0u,Ovv tans but the yield from American ootton attained 7,266,060 tan whioh is 200,600 more-than the expected amount. . III.* Prevention of Harmful Inseot Peete. Among the 160 kinde of cotton pest inseets alreed? diseovered in this country only 10 are espeoially harmful, namely 3) the 'Ti.laohul (A3rotis upsilon Sett. or Az.ratis Sp.), 'Y&-ohlungl (Aphis goseypti Glov.), 'Hunglling-oh'ungt (Peohtinophore goseypiella Saund.), 'Chin-Ken-chuan( (Earias capres viridis elk.), Wien-lingo.. sh'ung? (Heliotie obsolete War.), 1Yeh-tqao-oh'ung' (Chlorite biguttula Shiraki), 'Hung-ohl-tzu. (Tetranyohus telerius L.), 'Menge ehung-heiangl (Lygue luoorum Heyei-Durvar or Adelphoearis sqturalie 1,0), 'Chuan-yeh-eh'ungi (Sylepta derogate Fhb.), 'Ohao-ohliao- oh'ungi (Boarnin Sp.). XDITU108 N0TA6: 1) One thin es 0.50 Kg. er 1.10e lb.. 2) The evemes are not in the original. --------- .4.40 litiWXHAN eebruary 1948 e -lieeument 84 - Pate 4 LApp.roved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061,018-5 In an effort to reduce the losees-sustained,by cotton farmers, thie_Buram.u. ordered large quantities of insecticiac * including 10,000 chin of 10*ZDT, 5,000-chin-of aluniniuM arsenic compound, 14,000 chin of "Bolter...-0.owder, 970 powder sprayers, 200 powder spray tubes, and five tons of merouMy compound from factories here; and 40,000 pounds of DDT, 60,000 lbs of "aluminium arsenic compound", 10,000 pounds of 666 powder, 100,000 lbs. of sulphur powder, five tone of mercury compound and 600 powder sprayers from abroad. The inpect peat prevention work carried out by this Bureau in 1947 covered a total cotton area of 1,629,946.7 ebih mows province ores Covered by thq proviqoq Area Covered by pq prevention Work Prevention Work (Shih Mow) (Shih Mow) &angels_ 179,653.0 Szephuan 108,209.0 Anhwei 22,529.0 tiangai 1,132.0 phekiang 4,206.0 Hunan 8,998.0 Hopeh 197,907.6 Homan 715,839.0 Hupeh 90,864.0 Shensi 296,128.0 Liaoning 4,481.0 IV.- Cotton Loans Granted Jointly with the Farmers' Bonk. Rural finanoe has been very much depressed since the end of the war-and this is especially true for the cotton districts. In order to alleviate the diffioultiee of the cotton farmers, the Farmers' Bank undertook the granting of cotton loans with the Bureau's guarantee for their repayment. These loans ooneisted of the followings ? 1. Production Loans. Production loans amounting to 116.000 million On were distributed in the provinose of Kiangsu, Ohekiang, Anhwei, Szeohuan, Hupeh, Hunan, Kiangei, Shensi. (Menai, Henan, Hopei. shantung, and Liaoning. 2. Cotton Processing Loans. AA the poet-war cotton farmers have little equipment for the cleaning and baling of cotton, the Bureau introduced the cotton processing roan. A total amount of 10.600 million CM dollafe was distributed for this,purposes Szechwan CH$ 600,000,000 Henan C111) 1,600,000,000 Hupeh 1,600,000,000 Shantung 700,000,000 Hunan 600,000,000 Hopei 900,000,000 Kiangsu 1,500,000,000 Shensi 1,900,000,000 'Kiangei 200,000,000 Shansi 400,000.000 Anhwei 400,000,000 Chekiang 200000,000 MONTHLY BULLETIN No.XV - February 1948 - Document 84 - Page 6 Approved For Release 2002/08/13 : GIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611118-5 3. Insecticide. As already,,BuZ'dered-d s_ -^nag_f.r abroad in order to fight insect pets. - w are distributed ? freely to the cotton,farmers. Ac the cotton area is very wide and the demand for insecticide very large, the 8ureau1distributed_ special loans in the following provinces: Hcpeh CA 0 63O,Ou,U00 Hupeh CM, 200,000,000 Horan 500,000,000 Liaoning 6,903,000,000 Shensi 300,000,000 Anhwei 400,000,000 Kienceu 630,000,000 4. Well-digging Leans, Deepite repeated negutiations, the Farmers' Bank refused to consider granting leans for well-digging on a general basis for 194'1. In *larch, however, a $3,500,000 well digging loan was granted to the cotton farmers of Changan, Shensi. The Farmer 31 Bank also promised to grant 71531,000,000 as loan to Changan, $13,000,000 to Heionyang, 422,000,000 to Hsingp,ing, and $35,000, to Tinting, making a total of O0a,000,060. 5. Cotton Ginning andIdarketing. The help given to farmers between sowing and harvesting only accomplishes half of the work. It remains to secure properly a series of further operations such as ginning, baling and marketing. .actually if there is no proper pontrol of the cotton ginning, the cotton seeds cannot be kept pure. again if the problem of collecting and marketing cotton is not reaspnably settled, the legitimate interest' or profit of the cotton farmers cannot be assured. Since the war of resistance, the ginning equipment iX most places i's out of order. The gine which remain are mostly 16" diameter machines, and their working efficiency is very low. Moreover, as the gins arewidely distributed, it is very difficult to control the quality of cotton seeds. The Bureau decided therefore to establish in the cotton districts, as many ginning factories as possible, operated by% mechanicC or man power. In the 18 regions where the use of American seeds has been introdueed every grower is required to send his cotton to the ginninq factories. Each factory is equipped with a "cotton distribution boy.;, baling machinery and motor engine. The ginning machines were manufactured in Shanghais while engines were purchased and sent to various places for use. By now, the installation of gins has been completed. (See Appendix II). On account of financial difficulties, the Bureau is not in a position to establish ginning enterprises on a large scale and it has made arrangements with priVate ginning factories in varioMO localities, mostly in Kiangsu and Mlikiang, to do the ginning work. The writer of this article was sent to America to conduct negotiations with UNRRA for the supply of 20 units of saw-gins. In spring of 1946, 15 units arrived and were handed over to the management of the Farmers' Bank by the Ministry of Agriculture and Forestry. goreover, in 1946, the Hein Shen Cotton Mill purchased two units or seta of saw-gins of "automatic current type", which were later installed in dusth and Nanhua. Other sets were bought by the China Vegetable Oils Corporation and the China Cotton and 'Hemp Comp-Ly respectively. MONTHLY BULIATIN No.XV - February 1946 - Document 84 - Page 6 L- Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061.018-5 Concrete plans have_eaready-neen drawn up ..ter the collection and markLting of cotton. In order to preserve the seeds and to supply proper raw material- to the various cotton mills, those intending to collect cotton must first obtain a permit from the Bureau and sign a contilact. In 1947, most of,the collection was done by the China Textile Development Inc., except for the vatious beim; in Chekiang where it was done by the Chekiang Department of Joint Production and Marketing of Cotton, Tor Tlaitstang where the Hein Shen Cotton Bill collected, and for Shanghai and Paoehan Where it was done by the China Cotton r.nd Hemp Ca. The price of the American cotton collected, was about 20-34 higher than that of the native cotton. ? V.- Cotton Inspection. The inspection of cotton aims at improving the quality and broadening its market. Before the war, considerable success had been achieved by such inspection. Unfortunately the work had to stop ,owing to the Sine-Japanese hostilities. Since the inauguration of the Bureau efforts have been renewed on this line. It is estimated that the personnel required for such technical work would number about 150. With the exception of the heads of important departments, who are experts invited by the Bureau, most of the ' staff members were found among the senior and middle technical schools in Shanghai. Thirty one came from universities and forty from agricultural high schools where special training was given between August 15 and Oct. 15. 1947. Five inspection offices were established in Xiangsu, Chekiang, Hupeh. Ronan and shensi. Inspection stations were also created in various important ootten producing distriote. Their mein duty is to prevent adulteration of the raw cotton by the mixing of water or impurities with itp to enforce proper grading in order to stabilize the value of the pradubt and foster international trade; to determine specifications or standards for the quality of the cotton produced and to improve the technique of inspection. VI.- Experiment and Research. Experiment and research, fundamental prereqpieitee for the reform and improvement of the cotton business, have been carried out by the Bureau this year as follows:- 1. Research on Chemical Fertilizer's' 2. Study of machineryTor the cultivation of cotton,- In opeperation with the FaraTool Section of the China Agriculture Institute, the Bureau hae set aside 60 mow of cotton fields to be cultivated with modern machinery. The atm of such experiments is to compare the cost and yield with that of fields where only human and animal labour are employed. 3. Prosarcb and jr,',:periment in the breeding, crossing and ,raising of the various kinds of seed as well as in the testing of. different insentioidea. The above are the more important works oarrie4 out by the Bureau in 1947. It has also undertaken investigations of cotton production, training of experts, and study of the economics of the MONTHLY BULLETIN No.XV - February 1948 - Document 84 - Page 7 Api3roved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611111,8-5 7'1 cotton industry. In reviewing the activities of this year, the following points should be especially stressed,- Though the Bureau is ?till very new, its complete structure has been successfully organised and its work carried out according to our original plans and schedule. Through its efforts the cotton area has been extended by 4,178,837 mow, and an inoreaSS of 41,782.7 tan of raw oottcn obtained. This meane an income Cr C2I42,500,000 million and a parallel reduction of 'foreign imports The campaign against insect pests has been repaid with remarkable success and the cotton farmers have been convinoed of the advantages of using American seeds. Cooperation for cotton ginning with the cotton dealers and factories concerned has resulted in the raising of cotton prices, to the benefit of the cotton farmers. lUrthormore, ginning factories have been established in various places in China. There are still two points, however, that lust be settled if the revival of the cotton industry is to be sattefaetorily developed. The first is the lack of funds, the second, the oivil war that has been devastating the country day after day. Work could not be carried out in important cotton producing &striate as the northern Yangtze and Yellow River Regions. We have also had to withdraw our staff from many places in Hopeh, Southern Shansi, Henan, Shantung, and Hupeb. Appendix ; Introduction of American Cotton directed by .the Cotton Improvement Bureau of the Ministry of Agriculture and Forestry (1947) province Wand Area Planted CotlgaSeed Hain in mow Hopeh Peiping 113,129.5 Stoneville T'ungheien,Taheing, Ant,zu, Imagism. Tientsin 80,060.0 Stoneville 'Stoneville WutteingoKenlyang, T'eansheien. Paoting 48,400.0 TleingyuanoWanstu, ,IingheingoTiogheismo Shitchiachwang.67,000.0 Stoneville Huoluodhingtingo YuanezeoLeohlengo TOTAL 308,689.5 Shantung N.Shantung 6.122.0 Stoneville Ilhoh'eng,Chlans. tieing' T'elhoo Weiheieno Ch'angle, Anoh'isso Ituo S.Shantung 50,261.0 Stoneville TosaohaienoTiaitaef Trioe Rot's). TOTAL 55,383.0 I. MONTHLY BULLETIN No.XV - February 1948 = Document 84 a- Page 8 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006901,-5 Introduction of Amerioan--Ootten--diz'ected by the Cotton-- Improvement Bureau of the Ministry of AgutauLtural?and Forestry (1947) (Cont'd) ZERILL2Sti 10g2-191 Shansi S. Shansi Shensi Chingwei Canal Changan TOTAL ROlian TOTAL Tali Nanoheng X. Ronan S. Ronan W. Ronan O. Honan ( Liaoning Kleageu Nanking Shanghai Hsuohow 4Ax9a PlaUIES1 in mow 50,000.0 850,000.0 670'000.0 750,000.0 300,000.0 2,570,000.0 36,692.0 11,234.0 58,690.0 224,361.0 330,977.0 4,000.6 33,941.6 65,111.4 13,603.75 Nant'ung.Jukao 04,482.5 Hal chow TOTAL Cholldiang &Chekiang . W NEINTHLY BULLETIN No.YV - February 1948 Document Si - Page 9 97,060.0 304,199.25 26,396.2 'cotton Seed Stoneville Stoneville Stoneville Stoneville Stoneville Stoneville Stoneville Stoneville Stoneville & EMbaseador Stoneville Delfos and Coker Delfoe,Cokor and D.P.L. ' Trice & Stoneville Delfos & D.P.L. Stoneville k Sapire . Hal en Anyih, Isze,Yuhsiang, Chiehhsien,Yungtsi, Linfon,Yunchteng. ? Chingyang,Sanyuan, Kao1ing,F4pling. Changan,Lint'une, Heionyang,Bningp'ing, Ngehsien,Chouchih, Ch'unheien,Liheien, Ch'ienho. Tali,Ch'aoi, P'iugmin, Heyang,Hanch'eng, P'uch'eng, Weinan, Huahsien, Huayin, Tlungkuan. Nancheng, Ch'engku, Yangheien,Pacchleng, Mienhaien,Heihsiang. Lanfeng,Shangch'iu, Minch'uan,Ymheiang. YUnan, Ch'u5kehan, Nanyang,Ngeheion. Wenhsiang, Lingpao, Shenheien. KWangwu,Chenghsien, Loyang,Kungheien, Fanshui, Yenshih, Chiangp'u,Chiangning, Tanyang,Chenohiang, Chintleo, Chuyung. Shanghai, Plutung, Paoehan, T'ait'ecng, Chiating, Chuneshou, Chiangyin. Hsuohow, Fenghsien, Pteiheien,Shaohsien, Tangshan, Suchlien. Nant'ung, Haimen, Jukao, Tungt'ai. Kuanyun, Lienyun,Tung. hal, Shuyang. Delfoe & Hsiaoshan,Chenhai, Coker Juyao, T'zuch'i. LApproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061111,8-5 s? Introduction of.Amerioan Cotton directed by the Cotton Improvement Bureau Of the Ministry of Agriculture and . Forestry (1947) (Contid) rrOvinog Paden', area Planted Cotton Seed in mow Used Anhwei TOTAL Kiangei Huaitung Hofei lUyang Hupeh Buiheien- "Taaoyang TUenmi n TO X 'ieschuan 20,87.0 Delfoe 9 74.2 ,154.0 63,71.1.2 2,240.0 46,938.0 29,800.0 Heia 4an 36,946.0 ngeba 83,673.0 Taiwan Pinhu W.8zechuan ..GRAXIA TOTAL 197,357.0 105,417.0 160,000.0 567.3 4,178,837.45 Delfoe & Coker Stoneville Helen Huaining, Tungliu, Kneitzu,HeuaLohleng, Chingheien, Tangt'u, Wangchlang,Tralhu. Hofei, Shouheien, Huaiyuan. FUyang, T'aiho, Yungehang. Delfoe Kiukiang, Yunghs::u, Piengtee. Delfoe Suiheien, Delft's TUeramen, Hanch3uan. Delfoe Heianyang,Heierh Tzuchung, Coker & Chiengling,. , Delfos Sungtzu,Chihehi.ang, .Chingmen. Dolton Delfoe Dolton Liheien, inheiang, Linli, Hanehou. Shehung, Yent'ing, T'ungch'uan,dianyang, Suining, Lemac,Hanpu, hung, Chintlang, Te- yang, Chiangyu,P'engft ming, Chungohiang, Piengehli, Fengohieh, Yunyang, Ch,uheien, Kaangen, Pachung, Nanohiang, Chi enyang, Tizuyang, Kwanuuan, Ihua, rfaitung, Chiai. MONTHLY BULLETIN No.XV - February 1948 - Document 84 - Page 10 ( LApProved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006111,18-5 Appendix II Ginning Factories (Ban power or Motor Operated) establishsd by the Cotton Improvement Bureau of the Ministry of Agriculture and Ferestry(1947) provincq Regions: Location 311 Hupeh T'iension Heient'aochleng in Mienyang 20 1 1 25 Suiheien- Mienchtang in 20 1 1 25 Teaoyang Suihsien Heiangfan .? shuangkuchenl in Heiangfan 20 1 1 25 Chingeba Chiangklou in 20 1 1 - Chihchlang Cliingeha Shataokuan in 20 1 1 25 Sungtsu . Hogan E.Honan Railway Station, Shangchliu 8 1 a 8 C.Honan Kuyungcheng in 12 1 1 12 KMangsu C.Honan Loyang 0 1 0 (24) Chekiang E.Chekiang Chenhal 12 1 1 12 E.Chekiang Heiaoehan /2 1 1. 12 =anon Rant 'ung- Rant 'ung 20 1 1 30 Jukao Bant'ung- Tungt'ai 8 1 1 0 Jukao Banking Chiangp'u 8 1 1 8 Banking Shaolingwei, Nanking 4 1 a 8 c Ropeh T'ungheien 20 1 1 36 Langfang 20 1 a 35 Peiping 4 1 1 6 Teingyuan 20 1 1 ao Blangsu Tanyang Hand-oper- ated gins Htiohow * Anhwei Hofel ? Hupeh Sbaehih * Mitloezu * Shataokuan . ? Heheien suihsien . ? ? Tsaoyang ? MONTHLY BULLETIN No.XV - February 1948 - Document 84 - Page 11 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900!TT78? Approved For Release 2002/08/13 : CIA-RDP80-00926A006u40018-5 Appendix 114 Ginneries Specially set up in XiangeU & Chekiang Regions Location of GinnerY PojggeatAd ' Shanghai Tech tang, Shanghai Ginnery specially set hp. Elangwan, Shanghai m Yanghsing. Paoshan * Neingchiang village m in Nanohiang YUehptu village in n Paoshan Sintun village in ? Nanohiang HsituVou in Penghsien ? , :T.Chskiang Hsinpsnymin in Juyao Ba.1 Specially set up GinLel.y. Tungshant'ou in Timuch'i No.2 T'ienyanghuang in M. Mo.3 * Chenhai ' Jungohia in N.Chenhai NO.4 a Nanhung, Chenhai No.b is Tsangwant'ang,Nanhung No.6 0 in Chenhai Haineighan Island Ba.7 ? ( En4 ) MONTHLY BUILMTIN No.XV - lebruary 1948 - Document 84 - Page 12 Li_ Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611.18-5 UNIYERSITE LA -4Shaughai- BUREKU DE DOCUKENTaTION (Economie Cninoise) Topic! Author: Periodioals Date of Issues 280 Chungking gin Im (Lybail) Tel 8576]. Three Large Iron and Steel Works in Shanghai Yao Hsing-chih Chin Yung Jih Pao Dec. 22nd.1947, THRKE-.-LARGE IRON AMD STEEL- WORKS IN SHANGHAI URORE Documint No.: 86 Natures Digest Number of pages: 8 Remarks: The original title las "Iron and Steel Metallurgy in Shanghai". In recent yeaY1, growing demands for iron and51-.0,1 goods on the market of Shanghai ha7e, contributed to a fair develop- ment of its local iron and steel metallurgical industry. Among the 21 iron and steel works now operating in the city, three of the largest, which it is our purpose to introduce here, deserve special attentions the Shanghai Iron and Steel Arg.,00.,Ltd., the Asiatic Steel Oo.,Ltd., and the Ta Hein Steel Factory, I.- The Shanghai Iron & Steel Mfg.,Co.,ftd. ? Before discussing the equipment and productive Vivacity of the various plants of this Company, it may be interesting to know how and when it was formed. At the end of the war the Chinese Government took over noMerime plants from the Japaneee and among them 3 iron and steel factories and 1 smaller workshop, which it offered for sale. Tenders were invited, but no one wanted to buy them. Later the Central Trust of China induced industrial and commercial circles to organise a Company by the name of The Shanghai Iron & Steel Ofg.rCo.,Ltd., which was to purchage the above factories and workshop. The capital. of the Company was 2,500 millioa ON:ions:re, of which 1/3 was to be contributed by the Cedtral Trust and the remainder by iron and steel dealers and manufactures. The Company was formally founded in December 1946, with it. head office in Chung Shih Building, Room Nos. 15-16; at Mo.14 Museum Read. Its three factories were amalgamated to form . ltotories Noe. 1 and 2, located at Changhuapin,--Woosung and Huanglosics Road, Hongkew, As both their premises and machinery were in wretched condition, it was only in December 1947, after 5 months of repairs that. resumption of work was made possible. Recently the Company has annexed the Heil Hein Factory at Choutu, which it has converted into laCtory No.3 and set to work. The email workshop mentioned above, which is situated at Lanchow Road, has been transformed into a transportation station. ? MONTHLY, BULLETIN No.XV February 1948 - Document 85 - Peer: 1 Approved For Release 2002/08/13 : CIA-RDP8,07,09AMEE24120,,, Approved For Release 2002/08/13 : CIA-RDP80-00926A006911,8-5 Adietmtivaly-the Company Consists of 3 departments,_Xor-general affairs, finance and business. Each factory is headed by Direator under whom there are sections for engineering and for gener:11 affairs. An Engineers' Office, presided over by a Chief Engineer, takes charge of cnsiJoering planning and technical improvement. Equipment and Produativa Capacity. ? 1, Factory No.l. Mictory No.1 is a plant devoted solely to the work of manufacturing various kinds of iron and steel and casting iron and steel goods. The equipment for the iron smelting which have been removed to this plant from Hsitu, Pootung, are one 20-ton modern furnace, 4 horizontal hot air furnaces, 1 gas washing tower and 2 electric motor driven blowers. The construction of skip hoists for charging with raw materials as Well as shops for iron casting and hoisting rooms will be completed about July 1948. The raw material used is iron ore, but scrap iron sheets easy to collect in the city itself, may also be utilised. The monthly output of iron can reach 500 to 600 tons. The main equipment for stool manufacturing consists of one 15-ton Martin furnace with 5 gas producers. The steel coating shop has 2 cranes of 10 and 30 tons capacity suspended from beams. Scrap iron and steel are used as raw materials, and as huge quantities are available on the local market, there can be no problem regarding _their supply. The monthly production of carbon steel, tool steel, alloy steel, etc., reaches between COO and 1,000 tons. The quality of the goods is said to be quite up to normal standard and they are 4100 very eeonomical. The foundation of another Martin furnace has already been built and the work of construction will be finished Upon - the arrival of fire bricks. It is hoped that the produotion may then be doubled. 1 The furnaces for the iron and steel metallurgy have been put into service, after careful planning. The oast iron produced from the iron smelting furnaces while still hot, is passed over to the steel furnace. This oo-ordinated operation eaves fuel and increases production. - In an effort to reduce losses from the casting of large steel ingots by 10 to 20%, it is planned to install some additional rolling, mills for stcc.1 ingots and steel heating ovens. so that all cast steel ingots while still hot, may immediately be kept in hot ovens. /n order to bring future output up to standard, a testing department has been established with all necessary instruments and chemicals for testing purposes. 2. Faotory.80.2. This factory Undertakes the titork of rolling various steel produots. It has the most up-to-data equipment in China, namely one 13mtriple series preliminary rolling mill, six 11" double series intermediate rolling mills and eight 11" double series finishing mills, driven respectively Vy 300, 600 and 800 H.P. motors. ft* MONTHLY 'BULLETIN No.XV - February 1948 Document 85 - Page 2 1_2 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0 0611,8- 5 The intermediate and finishing_mille are of Belgiaa typa,--employd-ng tha-oarrtialuoue--_-etai-Loa_mathod of rolling. Automatia devioos are provided for the feeding in of the oteel ingote and the discharge to the steel heating furnaces. Brom the steel heating furnace to the preliminary rolling Adlls, a belt oonveyor is eagiloYea. The wire rod produced ie reeled by two winding maobines By working day and night, the present equipment can produce more than 1,000 tons of steel wire rod monthly. It is estimated that output could be increased 3 times, if some more preliminary rolling mills were installed. 3. Factory No.3 Factory No.3 is a steel works and steel rolling will as well as an iron founky. It covers a very large area of approximately 500 mows I/ which is almost equal to the sum of the area of the other two factories. The chief equipment of the factory are as follows: Steel Works; 10-ton Martin etcel furnaces Gas producers . 2Q-ton electric crane , Bitter Apar furnace Limestone furnace Pulverizers 2 4 1 1 X 2 Steel Rolling tills: 20" preliminthlr rolling mill 1 15" finishing mill 4 12" steel wire drawing machines 6 Hot cutting machine 1 Steel heating furnace 1 Wire winding machines 2 Iron Foundry: 15-ton iron blast furnace 1 10-ton iron blast furnaoe 1 Repair Shop: 1-ton cupola 1 1/2-ton cupola 1 .161 lathe I. 81 lathe 1 6' lathes 4 - 20' planes 2 1" drills 2 1) MITORIS NOTE 1 mow Is 6.7448 area or 0.166 Aare. MONTHLY BULLETIN To XV Fibruary.1946 - Document.. Page L. Approved For Release 2002/08/13 : CIA-RDP80-00926A0069_00040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111F5 1--- 1 4. Transportation stations This station possesses 1 large hydraulic baling press with ammiliary-cqulpnent. The work consists in sorting the various kinds of scrap iron purchased and in packing scrap iron that rusts easily. Communications are very convenient at this station so that the cost of transportation of materials is greatly reduced. The Asiatic Steel Co.,Ltd. .The faotory of the present Asiatic Steel Co. ,Ltd. was the former Japanese -Asiatic Steel Factory at Hochien Road, Yangtzepoo, which after V-J Day was taken over by the Ministry of Economic Affairs. Preferential right of purchase for this factory was granted by the Bkeoutive Asan to the Hua Hain Bleotro- metallurgical Co., which had the credit of greatly contributing to the development of the steel industry in this country during the War. The Asiatic Steel Co. ,Ltd. was founded in Nov. 1946, with its head office at Room No.606, Kiso Hua Building, Peking Road. As its plant and equipment had been damaged, repair work had to be done before work couldbe begun. In addition to the original equipment, the Company has lately spent over C2410,000 million on the installation of new rolling mills. ' The Main work of the Company is steel casting and the manufacture Of machines for casting. The largest steel castings can be as heavy as 4 tons while iron castings may reach as much as 7 tons each. Nails especially are produced in large- quantities. The whole plant consists ofs 1) steel casting shop, 2) iron meting ch0P. 3) metal works, 4) nail shop, 5) steel wire shop, 6) bolt shop, 7) wire drawing shop, 8) tube drawing shop, 9) rivet shop, 10) machine shop. 11) metallic gauge shop, 12) plane ebbp and 13) steel rolling shop. The above Units are all in operation. The productive equipment is as followss 1) Smelting equipments Steels One 3-ton and, one 2-ton eleotrio furnaciep ? two crucibles ? Iron one 28-ton iron smelting furnace. 2) Mechanical Equipments Wire drawing machines 10/ Nail manufacturing machines 60 Wooden bolt machines 76 Maohine bolt machines 29 Steel wire 'machines 25 Machines spring aluminium wire for garden use 6 Iron gauze looms 10 Shoe nail machines 5 Nail machines 49 Galvanized iron wire machine 1 Tube drawing machine 1 Plane rolling machine 1 Corrugated iron sheet machine 1 Driving engines and o..Aler auxiliaries 92 MCNEELY BULLETIN No.XV February 1948 ? Document 85 - Page 4.1 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069W8-5 -- 4, ? Working at full 09tio.o.yas-04.7.-.64uis15.sgt mould jthou Drawh wire 500 tong Nails 8,000 barrels Steel castings A00 tons Steel ingots 400 P Bolts ? 50,000 grosses Steel wire cables 300 tons Cast iron 100 ? Iron wire and steel wire gauze 10,000 metres Barbed wire 150 tone Machine bolts and spikes 100 * Galvanized iron wire 400 * Drawn tubes , 30,000 feet Galvanized iron sheets 100 tons Corrugated iron sheets 15,000 sheditS On account of shortage of raw materials, however, the above standard cannot be reached. So far,. monthly production has only been as follows: Drawn wire 150 tons Neils 2,000 barre/s Steel castings 100 tons Steel ingots 100 0 -Cast iron 50 Bolts 20,000 gross Various manufacturing worki undertaken for other factories. When the installation of steel rolling mills has been completed, the factory Will be able also to preclude round steel, angle iron4;-140.41:4; steel, and steel sire rode. At present. the Company has 426 eMplayses and workmen, showing an increase of 161 persons When compared with the personnel at the time of the taking-over. If produotion can be carried out at full capacity, the Company will have to employ more than 1.000 Workmen. III.- Ta Hein Steel Factory. The Ta Hain Steel Factory at No.730 laanWen was founded in 1934. Its main equipment is:- 1-ton eleotrio furnaces- 2 1-ton Bessemer converter 1 52" cupola 1 36" cupola 1 28" cupola 1 The factory mainly produces oast iron, mot steel and steel ingots. Its maximum production of steel and osrbOn steel is 1,200 tons per 3:months, marketed in Shanghai and the Elangnu and Chekiang provinces. The maximum quarterly output of steely iron is 300 tons. MONTHLY BULLETIN No.XV .? February 1948 - Document 85 - Paget 5 LApOroved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00690 In order ta do justice to the Ta Hein Steel Factory, it seems necessary to recall the great role played by it before and during the War. After its establishment in 1944, the factory imported an arc furnace for the manufacture of pure steel, and rapidly gained an excellent reputation for making chassis. About that time, the British-owned Shanghai Omnibus Company which planned to build double-decked buses, ordered 40 chassis from Japanese manufacturers. When the first Japanese-made chassis arrived in Shanghai and was assembled for a test service, carrying 40 passengers, however, the rear shaft broke during the drive. This failure etbaraseed the Bus.Co., which had already announeod to the public the forthooming introduction of new double-docked buses. With a view to remedying the eitutation, the Company requested the Ta Hein Steel Factory to design and manufacture the required chassis parts. The factory studied the structure and dimensions of the transmission parts of the chassis, made them from alloy steel and finally completed a solid chassis which could smoothly carry BO passengers without the. slightest risk of breaking the rear shaft. As a result, the Bue,Co. immediately cancelled its contract with the Japanese manufacturers and signed one with the T. Hein. Following this event, the factory became famous all over China. To make sure of the quality of its steel, the Ta Hain sent its products to the Britieb Shipping Society for examination. After a strict test, the Society issued a testimonial certifying the excellent quality of the steel produced, declaring that the Ta Hein was the only steel factory in the Par Beet able to - manufacture such good steel. It is said that though there were several hundred steel factories in Japan, up to that time the British Shipping Society had issued testimonials only to two of them. Prom then on, the China Steel Vehicle Company which ueed to build freight wagons for the Ministry of Railways, began to purchase chassis parte from the Ta Hein. The Shanghai-Ranking Railway Adminietristion,. the Old Dockyard, the New Dockyard, the Eiangnan Dockyard, Butterfield & Swire and Jardines soon followed suit one after another, entrusting to the Ta Hein the work of manufacturing various machine parts for marine use. , later, the Ta Hain Factory also designed express trains by using special cast iron, carbon steel,, alloy steel, eta., and made it possible for a train to reaca Nanking from Shanghai within 24 hours-z_7nd 25 minutes. After the outbreak of the War the factory was first moved to Pachlishan, Hankew, and then further westward to Chungking. During the hostilities, it rendered considerable service to the coantry, and was able to export-architectural steel, light rails and other materials. After the War, despite tremendous difficulties in taking over its old plants and in transporting its equipment back te Shanghai, i fL:Qtcay has -already Succeeded in resuming work. It is hoped that it will in due time 1.,:cover its former inportanoe in the local iron and steel industry. MONTHLY BULLETIN Neal/ - February 1948 - Document 85 ? Page 6 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061,18-5 ...0MIZNDLX Thanks to the recent development of the iron and steel lndUstry in shanghai, many Chinese are nomLeb.1.44-Use home products inctead of depending on foreign supplies. A list oV-4.sec and steel goods from Chinese factories in Shanghai which can replace 4'11=4444 goods, is given below for purposes of references- Wire Rod Bamboo, Steel ban ifffes. and roun4 !steel. of ecuare. souares round & round hexagonal,. octagonal , section quality S.A.E.10 B.A.B.10 8.A.2.10 8.A.2,10 81,4E02 10-1030 10-1030 20-1090 20-1030 554260 Uses ? MS11 & Architect Arohlt., Arohit., Architect., arohiteo- machines, machines, maohines, ture . shiply ship- ship- building building building Efficiency Same Same 1* & 2* Thiokness Below 40, (As corn- square & above Pi round & pared with round same as imported same as imported pOlygonal Of less goods) imported ' than 20 diameter, same as imported Monthly 1,500 2.400 output (Ton) Monthly 2,000 1,500 to require- 2,500 ment (Ton) quota- 4,500 4,000 tion(Units $10,000) 100 II????? 5,000 loo 50 5.000 5,000 Goode Wire rod Bamboo Round,square, IrOn ,Iat and which can steel, flat,hexago- plates round replace square & nal & oota- spring foreigp round 3/8H gonal steel steel goods , to lm rods below 2" ' Market in 70% 70% 60% 60% 60% Shanghai Market in 30% 30% 40 20% 20 other regions MONTSNY BULLETIN No. XV - February 1948 - Document 22 . Page 7 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A001111,018-5 'Magill -"Is" Channel /Lan_ HIM SEAM quality Usee Efficienoy (as corn- pared with imported goods) S.A.M.10 25 Architect., machines, chip - build,' Below 3' x 1/2 same 8.A.E.10 8.A.E.10 26 25 Arobitect.,Arohlteot.. machines, machines, ship- chip- build . build. Below 3" Below 3" x?1/2 x 1/2 came came 6.e.S.10 25 Windows 316.320, 521,522, 511,501, 581,same 8.A.Z.20 25 Pipes and bales Mo.18 & 20, 40.x 3" - SA inferior to imported Monthly 100 30 30 120 80 Output tTons) Monthly re- quirement . ????? - - - 200 500 (Ton) quotation 5,000 5,000 5,000 8,000 9.000 (Units 410,000) Goods Triangle Triangle Triangle Steel Hoops which can replace irons, beans & irone, I irons, I beams & beams & window frames foreign channels' channels channels goods below 4" below 40 below 411 Market in so% 80% 50% 90% 90% SbanShal Market in other regions 40% 40% 10% ( Sad ) MONTHLY BULLETIN No. XV February 1948 - Dooument 85 Page 8 ApProved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 4 IJNIVERSITE L'AU -$hanghai- BUREAU DE DOCUMENTATION (Economie Chinoise) Topics Authors Periodical; Date of Issue: 280 Chungking Nan Lu (Dubai') Tel 8576l Analysis .with Comments, of the New Regulations Governing the Renting of Hcuses (concluded) Prof.Sung Chia-huai The Juristic and Economic Review of AurcrP University (Chen Tan Fa Lu Chiu Chi Tea Chih) in course of publication. 11, Approved For Release 2002/08/13 : CIA-RDP80-00926A001111 ? R 0 R 0018-5 Document No., 86 Nature, Translation Number of pages, 7 Remarks, Bee Document No.76 in the Monthly Bulletin No.XIV. ANALYSIS WITH COMMENTS OP THE NEW REGULATIONS GOVERNING THE RENTING OP HOUSES (concluded) VII.- Cancelling of Leases.Art.9,11,14 & 15. According to Art. 450, 0 1 & 2 of the .Civil Law, the relationship established by a lease of fixed term ceases at the expiration of that term, while the two parties to a lease of indefinite term can at any time cancel the contract provided no custom exists on this point, in favour of the tenant. The liberty of the lessor to cancel a lease of indefinite term was restricted, however by the promulgation in 1943 cif the Regulations on the Leasing of Houses in Wartime, i) ard he could no longer do so save in one of the cases laid down in Art. 7 of those Regulations. In the case of a fixed term lease, if one month before the term expired-the tenant gave notice to the lessor of his intention to renew the contract, the lessor could not refuse. Since the abrogation of these 1943 Regulations the reasons for which a lessor may take back hip house are laid down in Article 100 of. the Land Law; but as the Judicial Yuan has declared that this article is inapplicable to fixed term leases (see Interprets-. tions Nos. 3489 & 5600, as quoted above) tenants who have made such contracts have now no protection. Art. 9 of the New Regulations is almost identical with Art.100 of the Land Law, but establishes a distinction between fixed- term leases with a term of less than two years and those with a longer term. For the future, therfore, the mere expiration of the term of the lease does not neeeesarily end the relationship. 1) NOTE The tenant could always terminate the lease, on the conditions laid down in the Civil Law. MaNTHLY BULLETIN No. XV - February 1948 - Document 86 ? Page 1 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0 ,5 06111,18 Since the purpose of these Regulations is to sett:.s disputes between.landlords and tenants during the present housing crisis, and given that this article li,ats strictly the various reasons for cancellation of which the lessor might avail himself, is seems that he can no longer base such a cancellation on one Of the causes laid down in the Civil Law unless ft appears also in the Regulations. This may ba deduced from the terms used in the text of the Regulations: - "cannot cancel the lease except in one of the following cases". But in the eirsumstances mentioned in Art. 447,1 2 of the Civil Law, that is; when 1...s. tenant, unknown to the lessor or against his will, has removed objects which come under the. lessor's rights of retention, it seems that the lessor can still use the power of cancellation given him by the Civil Law, even in the places and during the periods of application of the Regulations on leasins. For the reasons for which the lessor may terminate the lease we must examine carefully the restrictions laid down in Art. 9, 0 1 of the Regulations' 2-)s- 1) "If the lessee puts the premises to illegal use;.. This is identical with the provision of Art.100, No.4. of the Lard Law. 21 "If, for reasons for which he in responsible, to lessee owes an amount of rent equal to the amount of the cash seenrisy given plus at least two menthe' rents,. This resembles the provision of the Land.Law, Art.100, Mo.3, except that the words "For reasons for which he is responsible" do not theres.-ocsur. Since the Civil Law has already laid down (As't.230) that a debtor is not behindhand if the payment due has not been made for reasons outside his control, it follows that the contract of lease cannot be cancelled because of nso payment of rent unless this is the fault of the tenant. It must be noted, however, that the rent is a money debt and for money debts there can be no question of impossibility of execution, therefore even ? where the tenant has no money to pay the debt, there is always delay of execution. Consegnently unless the tenant has just reason to refuse payment of the rent he is always responefble for the reason of its nen payment. Neither the Regis]. A. ons nor the Land Law has made clear whether the lessor, in cancelling the lease according to this provision, should observe or not the formalities of summons laid down in Art. 440 of the Civil Law 4); but according to Interpretation No.3489 of the Judicial Yuan, such a summons is indispensable and the lease can only be eancelled if the tenant has failed t2 pay the rent within the term fixed in this summons from the lessor '7). NOTES: 1) The tenant, on the other hand, can always, in order to terminate the lease, invoke the previsions of the Civil Law, notably Art. 424, 430, 435, II, 436. ' 2) Art. 440 of the Civil Laws- ,:ahen the tenant is in arresss with the payment oflahe rent, the lessor may fix a suitable t.srm and summons him to pay within that term. If the tenant fails to pay within the term the lessor may cancel the lesson. . 3) Interprststion ro.3489 of the Judicial Yuan:- 03. A lessor who resume possession of his house because of nen-payment of the rent: as provided by Art.100, No.3 of the Land Law, must according to the provisions of Art. 440, 6 1 of the Civil Law, fix a suitable term and summons the tenant in arrests to pay within that term. The contract of lease can only be cancelled if the tenant has failed to pay within the term". MONTHLY BULLETIN No. XV - February 1943 - Document 86 - Pas 2 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A001.0018-5 3) "If the lessee has intentionally-or-through negligence damaged the lessors house and fails to make repairs or to pay adequate compensation". This provision is again similar to that of Art. 100, No.6 .of the Land Law, It is true that the Land Law speaks of "the house" and its "dependences" while the Regulations only mention the house; but it is obvious that the dependences are also included. Consequently the present provision may be applied whether the damage is done to the house or to its depend-paces. /f either has been damaged by the fault of some person other than the tenant, the latter is still bound to make reparation according to the provisions of Art. 443 of the Civil Law 11. :If the tenant does not make reparation, therefore, Ihs lessor may cancel the lease. 4) "if the lessee contravenes the provisions of 8 1 ' of Art. 6" of the Regulatiens; that is to say, if the tenant has sublet the whole house to another, or if having sublet part of the house in spite of an interdictory clause in the lease, he has obtained neither the written consent of the lessor nor his signature to the contract of subletting, then the lessor may cancel the lease and resume possession of the house. The Regulation does not, however, define the situation of the subtenant once the relation between lessor and lessee is terminated. If the whole house has been sublct, since this is forbidden both by the Civil Law and by the present Regulations the subtenant has no right to protection. If only part of the house has been sublet, it is possible that the subtenant was in ignorance of the prohibitive clause in the lease, and the provisions Of Art. 7 1 1 of the Regulation would seem to be applioable by analogy; that is, the subtenant would have a preferential right to lease the part he had held as subtenant. 5) "If proof is furnished that the lessor is taking back his house for his awn use, in accordance with the provisions of Art.11". Art. 11 of-the Regulations reads as follows, "If after a lease of indefinite term has been in force for two years, the lessor for adequate reasons has to take back the house for his own use, he shall furnish definite proofs of his need, and further give the lessee three months, notice of the canoellation of the lease". This is why with,a fixed-term lease, whatever the length of the term, (twenty years is the maximum according tp the Civil Law) it is impossible for the lessor to take back the house for his awn .use so long as the term of the lease has not ended. Alth a lease of indefinite term, before the house can be taken back for Forsonal use, two years must have elapsed; but these two years are oounted from the conclusion of the lease, not from the coming into force of the Regulations. In any case, if the house is to be taken back for personal use, the following condi- tions must be fulfilled- just oauee, certain proofs, warning given three months in advance. Personal use aovera not merely use as a dwelling, but also the personal conducting of a business,-as is stated in InterpretatApn No.2954 and in Interpretation No.3489 of the Judicial 'Nan 4, NOTES: 1) "If by reason Of facts for which the responsibility falls either on those who live with the tenant, or on third parties whom he has allowed to use the thing leased or to enjoy its fruits, the object leased is damaged or destroyed,,the tenant is bound to make good the loss". 2) Interpretation 2954 of the Judicial Yuan: "The terms' taking back of the house for personal Liss: used in Art.11, of the Regulations on the Leasing of Houses in Wartime include also the taking back of leased house in order personally to conduct a business?. Interpretation No.3489:- 02nd. The taking back of a leased house in order to use it for one's own business le included in the taking back the house as a personal dwelling in Art.100.NO.1 of the .and Law." likeiTHLY- BULLETIN No. XV - February 1948 - Document 86 Page L__\_ Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 18-5 1 Art. 15 of the Regulation should bennotect_in fuli this questions- "If anyone Who has taken beak a bons for his own use, keeps it vacant for three months or again leases it within one .year, the original lessee shall have the right to olaim the continuation of his leases he may further ask for compensation for .damage or injury". On this point two oases must be distinguished1 a) If the lessor has left the house un000upied during three months, the original tenant may demand the continuation of his lease and at the same time olatm damages in the form of interestf or he may claim damages without requiring that the lease be continued. b) If within a year the house is relet by the lessor to a third person, the original tenant can claim damages but cannot demand the continuation of his lease; for if he were allowed to continue his lease the new tenant would suffer unforeseen loss. Again, since the Regulations only say he may *claim" the continuation of his lease, the original tenant's right of tenancy is not ipso facto reconstituted but depends on the consent of the lessor to a new leases though if he refuses this the original tenant can certainly bring an action agsUnst him. 6) If the term agreed on for the lease has expired* ? *This provision ehall not apply to a fixed term lease of less than two years or to one containing a special agreement'. The Chinese expression * a lessee of less than two years 0 appears to include a lease of two years. It is only When-the term of the lease exceeds two years that the oontraot can be dancelled on its expiration. As an example of a special agreement may be quoted the clause by which the tenant reserves the right to renew.the lease an its expiration. This provision tends to protect tenants holding short term leases ( in Shanghai, leases are often for six months only ) and for this reason it should have the force of an order. Therefore if the term of the - lease is lees than two years, even if it has been laid down in the contract that the tenant is to move out at expiration ofthe lease, any reason to the contrary notwithstanding, the lessor cannot use Such a stipulation as basis for taking back the house. Even in leases with a term o..7 over two years-, the expiration of the term is not in itself sufficient to end the oontractp the lessor skint declare his intention to oanoel the lease and unions this declaration has been made before the expiration of thp lease the contract is considered to continue for an indefinite term i). NOTEs Art. 451. Civil Laws *If after the expiration of the lease the tenant continues to use the thing leased or to enjoy its fruits, and the lessor does not immediately express his will to the contrary, the lease is considered ae prolonged for indefinite term". NONTKLY BULLETIN No. XV - Pebruiry 1948 - Document 86 - Page 4 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061111118-5 7) "If -the-losseer-tas cloned up the house and has ceased to, use it-for more than six menthe, "Me-purpose-of a house ,ie to be u ed. If therefore the tenant has not used the house for six months clearly he does n.:4 need it and it is quite normal that the lessor hould be permitted to cancel the contract. But the question wh ther the tenant is using the house or not must be answered accprding to circumstances. The fact that the house remains closed only ionstitutes a "presumption" of its disuse and cannot always cause\the cancelling of the lease. For example a house used for storing epode, even though it remains closed for six months is in eontinuous use. On the contrary, even though a house is not closed down if according to the facts it may be judged that the tenant no longer uses itregularly, the contract can also be oancelleds thus when-the tenant has moved, leaving some small goods in the house, or giving into a friend's charge, in certain cases it may be said that the tenant no longer uses it. 8) "When the house has to be rebuilS, and the lessee has been notified three months in advance, and furthermore a building license ha been secured". We may add here the text of Art. 14 of the Regula ions, "If after beinte rebuilt a house is still to be leased out the original lessee shall have a preferential right to rent it". If the rebuilt house is to be used by the lestor in person or is soldlto a third party the tenant cannot exercise his right of preference4, Even when the tenant holds a right of preference for the levee, he clauses of the new lease must always be decided by mutual agre,ment between the two parties. But if the lessor proposes inacoeptahl4 conditions with the object of inducing the tenant to give up his righ to preference, it appears that the tenant may bring an e ention befor the courts. k 1 9) "When the leasee violates the restrictions laid down in the lase", Restrictions laid down in the lease must b. taken to mean specigl clauses inserted in the lease and.tending to limit the tenant's manner of usage. This does not mean that a violation of any restriction whatever contained in the lease can constitute a reason for cancelling the lease. For some time it has become customary in some places - Shanghai, for example, to use contracts of lease entirely printed in advance, containing severe (restrictions on the method of using the house, so that the leasit,negligence on the part of C the tenant may be construed as a violation of the restrictions of the. lease. It must be emphasised here that cancellation clen only be admitted if the restrictions contained in the lease are judged reasonable in the given circumstances and if the cancellation of the lease is an equitable sanction-against the violation of these -restrictions. ? The nine facts thus far enumerated are the oauses of cancellation of the lease by the lessor. But 4rt.9 of the Regulations in no way prevents the contract of lease to be accompanied by a eancellation clause nor does it -1 away with the effeots recognised by the Civil Law on the fulfilment of the cancellation clause 1). 1) NOTEs Interpretation No.3489 of the Judicial Yuans 64. The provistOS of Art.100 of the Civil Law - corresponding to Art.9 of the Regulations on the Leasing of Houses - has not the effect of for- bidding that the contract of lease should contain a oandellation clause, nor does it'waive the effects of implementing the oaneella.. tion clause, as laid down in the Civil Law. If an agreement has been made between-a lessor, A. and a tenant,B. that if a third part,- C. should need the house leased, the contract shall automatically terminate, it must be concluded that the lease is accompanied by a cancellation clause and that as soon as the-condition is fulfilled, A can take back the house?. MONTHLY -BULLETIN Mo. XV - February 1948 - Document 86 - Page 5 L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 f--- Approved For Release 2002/08/13 : CIA-RDP80-00926A00611,18-5 V/II,- Rent Revision.Art.10. Art.10 of the Regulations deals with the revision of rents. This question had already been dealt with in Art.442 of the Civil Law, as follows s "When the object leased is a house either party may ask of the court an increase or decrease in the rent because of fluctuations in the value; but this provision does not apply to fixed term leases". The provision of the Civil Law applies, therefore, only to leases Of indefinite term. Since the promulgation of the Complementary Rules on Civil Procedure during the Period of Demdblisation, appeal may be made to its 12th Article, to demand the revaluation of all debts, including rents from fixed term leases. But the conditions required by.Art.12 of the Rules on Civil Procedure are extremely strict (circumstances which could not be foreseen at the time of the contract, manifest leek of equivalence in the commutative contract, etc.) Art.10 of the Regulations for the leasing of houses has therefore been drawn up to enlarge the scope of rent revision. By this article any obvious change in the local economac situation is enough to allow the parties interested to ask for an increase or decrease of the rent; moreover such a modification is possible not only for leases of indeterminate term but also for fixed term leases down to a limit of cry?, year. IX.- Deposit of Rent refused by the lessor.Art.12. Art.12 deals with the deposit of rent. Where a creditor refuses to accept payment, the debtor, to free himself, can deposit the sum he owes with the Bureau of Consignation. The rules governing this matter are to be found in the Civil Law, Art.326 ff. and in the Law on Deposits promulgated on Jan. 7, 1937. According to Art.12 of the Now Regulations, if the lessee, without legitimate reason, refuses to accept the rent, it is no longer necessary to make use of the Bureau of Consignation; the tenant can deposit the money in a bank or at the post office. On the other hand, Art.12 contains no detailed rules on the procedure of depositing, on Which reference must therefore still be made to he provisions of the Civil Law and of the Law og Deposits. X.- Misoellaneous.Art.16,17,18,19 and 20. Art.16 lays-down that competent governments, according to the provisions of Art.94 and 95_ of the Land Law, must build lic.usee for the inhabitants of their districts and encourage the residents to build for themselves. Strictly speaking, this article has nothing to do with the present Regulations which, as their title shows, deal vith the letting of houses and not at all with their building. Nevertheless, it is obvious that the disputes about leases are caused principally by the housing shortage and will vanish as soon as there are enough houoln. Art. 94 of the Land Law, which deals with the building of houses by public authorities, runs as followes- "In towns, the administration should build a certain nuMber of spare houses to be let to private MONTHLY BULLBTIN No.XV - February 1948 - Document.86 - Pada 6 L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111,5 4 individuals as personal dwelling". "The rent of the houses menticned in the preceding paragraph shallnot exceed the interest, at 0% per year, on the value of the land and building". ...Art.95 of the Land Law, on the building of houses by-the residents themselves, says, "In order to remedy the present housing shortage, the municipal or district authority may, with authorisation from the Ekecutive Yuan, reduce or suppress the rland taxes and improvement taxes on new houses and fix the length of thio reduction or exemption". The total or partial exemption from land tax and improvement tax, laid down in Art.95, is fairly easy to realise, since it needs only a decision by the competent authority and an authorisation from the brecutive Yuan. The building of spare houses seems harder of realisation given the present financial difficultie& of the public authorities. Art.17 again has nothing to do with letting houses and is only of interest to the personnel of the public authorities. Art.18 indicates which authority can inflict ? penal.ties for the breaking of these Regulations. Such penalties are to bek pronounced by the courto -Ind are of a civil character. Art.19 and 20 of the Regulations give the right of recourke to the oourts to a tenant expelled without reason and the owner of a house illegally occupied by another. Both articles simply lay dow# the principle of recourse to the courts, giving no deta_led rules. \It therefore appears that the common procedure should be followed'i of bringing an action in court; these two rules have little practical utility. \ Art.21 recognises the right of provinCial and munioipal authorities to draw up complementary measures, adapted to local needs; these measures are to be approved by the Executive Yuan and may nivE contravene the provisions of these Regulations which, since the have been passed by the Legislative Yuan, have the force of Law. Art.22 is concerned with the length of time in which these Regul*tions are to apply; which will come to an end three years from their date of promulgation, December lst..1940. ( End ) MONTHLY BULLETIN No.XV - February 1948 - Document 86 - Page 7 Approved For Release 20b2/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A 001.018-5 U N J V E .R 6 I M Topics Author; Brochure: Published bys L ' ',U WE - Shanghai- BUREAl., DE ),CCU,-.:ERTaTiON (Eccnorle Cbinoise) ----- -- 280 Chungking Ebn Lu (Dubail) Tel t85761 Coal mining and Coal Policy in China 1038-1948. (Part I) Li 4ng-ho Ten Years cf China mconovins (Shih i,ien Lai Chih Chung Muo Chi,pg Chi The Chrhe Book Co.,Ltd. January 1948. Doeument No.; 87 .Natures Digest- NuMber of pages: 13 Remarks: Original is "The Coal ki EnSerprises in t"?. last Ten years?. COAL MaNING iD CUAL POLICY IN CH1EA 1138-1948 (Part I) Tho article of whilh a full digest ie here gin is one .cf the twenty studies gathered by LY.. Van Hei-hung under C7,3 title "Ten Years of China's Elonomics". The first volume of ti work has recently been published. The subject seems of special interest at the moment, since the problem of the production ami distribution of Goal is oboupying the responsible authorities and lesi.:ing to fled research in order to maintain existing industries and develop new ones. The original -article is ,:livided into seven chapters whose essential points and statistics have here been regrouped under three principal headings. This issue will contain a short summary, followed by the first part, "The Development of Coal Mining in Eree China during the dar and its Aesults". The remaining two parts,. "Coal Janes in the Liber6.ted ariae", and "Coal Demand and bupply ahd Future Prospects", will appear in the muroh Bulletin. Certain lines of information, insuffiCiently brought Out in this article may be supplemented by re-reading Documents and Studies already published in the 1.enthly Bulletin, especially those on coal in the provinces of Hunan, Eiangsi, Kwangtung, Shensi and Shansi, to which reference will be made in the course of the stuey. The 1.74itor. ? ? . ? MOITTIDff PUiJT.. No..XV - February 148 Dccument No.87"-.Page 1 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 : Approved For Release 2002/08/13 : CIA-RDP80-00926A006W018-5 / China ranks fourth 9moi6the natione ae regav,0 o..1 reserve?, coming afti,r the United Stat, Soviet Russia and Canada. Before the war, astiutes ;lade by the GeoloOcal Survey of China put the total reserves cf china 't 266,311,000,000 metric: tone but kora re- nt investigations rcash the figures of 444,611, 000,060 ate it s_ms that this is more accurate. _Cool heaerves in 'U., Various Provinces (Unit: 1,0(0,6ue m.t.) Porthiltoullrldifiaal go.glsaiaftl S.4...kur - kgrva Ottlatta ? Liaoning 1,836 1/ 3,110 Kirin" 1,143 1 .1,694 Heilungkieng 1,017 1) " 4 Antung 7-- 795 Sungkie,ng --- 440 Hokieng --- 3,326 Hsingan . 1,126 liaopeh 249 ,Nenkieng ;--- 16 fatal for N.E. 3,906 10,650 Jehel OA 1,763 :Chahar 504 504 Suiyuan 476 476 Ninghsia 457 457 liansu 1,056 Chin(hai .1,056 824 824 Sinkiang 31,980 31,980 Shensi 71,95o 71,960 shansi 127,127 _296,600 HoPah 3,065 4,36O Hone a 7,764 8,034 , Snintung 1,639 2,126 :hiantssu 217 217 ...schwei W:: 760 ,,.:Uhe...iailg 100 - lUti ',Hupeh 354 354 , -rHilnan ? 1,293 1,293 ,:.!hlangsi 700 700 ISmaehuan 3,833 3,833 'Sikang 531 531 :.: 11.*Achow 2,518 2,519 : Yunnan' 2,310 2,310 Kwangei 1,157 1,157 .iWaagtung 333 333 4Ukien 153 163 %Taiwan - 444 Gh..ol) TOUL 265,311 444,511 1). RDITORIS NtriX: figrr:- correspond to the old-Chinese .Provirc,e es tey exi5.d .fore the Milkd,.,c incident. MUNTHLY BULLI;Tig No,XV 4 Pebruary 1948 Docua..;nt 87 Yage'2 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006111,8-5 . , Before?the-Zukd-en Inoident of Septetber 18th.1931, the yearly production of coal in Chima(Manohuria included) reached 30,000,000 metric tone. After that it remained at about 20,000,000, ? the more productive mines being located in the provinces north of the Yellow River. in order to promote the development of industries in Central and Southern 'China and to increase the resources for national defence special measures were taken either to open new coal mines or improve those already existing. Now mines wore opened by the National Resources Commissien at Yuhsien in Henan, and Kaoklang, P'inghsiang and Tienho in Klangeili the Reconstruction Commission opened coal mines at Huainan in Anhwei and reorganized those at Chianghsing in Chekiang; and the former Ministry of Industries helped private interests to open the Tachung coal mine at Hsuchow in Kiangsu and to develop the Pfolo mine at Lop'ing in Kiangsi, the Yekuo mine at Ch'uchiang in Kwangtung and the Yuanbua and Iihua mines at Tayeh in Hupeh. Meanwhile two important companies, the Chungfu in Henan and the Kailan in Hopeh, were reorganized so that Chinese and foreign interests wore better balanced. Further action was taken to help the various coal companies that were experiencing difficulties and to provide better coal distribution throughout the country as Northern China had a surplus and the regions along the Yangtze River a deficit in production as compared with demand. With this in view the former Ministry of Industry established a Commission for Adjusting the Finances of the Coal Trade and a general conference was summoned in 1936 to disouss and draw plans to solve the problems concerning coal production, marketing and consumption. But owing to the outbreak of hostilities, the project could not be carried out. New measures had to be taken to cope with the situation created by the Japanese invasion. The Ministry of Economic Affairs was established in 1938 and together with the Third Department of the Military Council, the National Resources Commission, the Reconstruction Commission and the National Economic Council, had to face the many problems of resisting enemy oppression. During all these years special care was devoted to the coal mines of Szechuan, Hunan, Klangei, Kwangei, Yunnan, Kweichow, Shensi and Keneu. ? Such afforte wore crowned with success as already in 1942 coal production in Free China amounted to 6,000,000 meltrie tons which Was enough for industrial, military and civilian requirements. In 1944 a War Production Bureau was inaugurated in order to carry out a systematic promotion of'coal production in the free provinces. When Japan eirrendered, the Government without abandoning the wertern regions had to turn specially to the newly liberated provinces in order to relieve the pressing coal famine in such big cities as Shanghai, Hankow, Tientsin, Tsingtao, Peiping, Mukden, Canton and Taipeh. Unfortunately, new difficulties arose with the communist disturbance; mines just restored were plundered and communications disturbed. The Ministry of Economic affairs and -'the National Resources Commission did their beet to help the old nines in spite of the campaign against the repels and to malutain the coal supply by disoovering new fields sne inereaeira the capacity of those already existing in Geatral and Southern China, AS a whole their policy has met with real sucoesst In 1946 the total coal production reached 18,000,000 m. tons and it was over 19,000,000 in 1947. MONTHLY BULLETIN No.XV - February 1948 - Document 87 Page 3 L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061111111,18-5 I Coal Production by Provioces Before,During and stfter t1e dar (Unit; 1 metric ton) in? 194?. 1147 North stera Liaoning --- -... 1,800,000 2,160,0Z4) Zarin --. ...4 ... 219,000 Heilungki6ng .01tung Sungkiang - - - Holit:ng --- , Heingan Liaopeh 882,000 600,60., Wenkian -.... ??????? l 'WO . 0.10 Total for .c.l. 12,606,0G6 2;582,000 2,979,000 Jehol ..- ..... 1,500,000 1,699,000 Chahar 247,093 --- 30,000 18000.0 Suiyuan 72,59Z --- 73,000 80,4%10 Ninghsia .1!,,00.i 74,000 150,060 159,5C-6 lansu . 10,00 100,0.'0 286,000 240,0' Chinghei ...... .-- 50,0:.:0 50,4 Sinkiang 10..?0:..) ...... 200,000 176,4?.. Shensi 200,316 506,946 650,0.'0 640,0%-: 8hansi. 2,866,487 060,000 600,060 Hopeh 7,575,591 ... 4,650,000 5,540,0,6 Holum 2,26;3,600 698,900 1,000,000 720,6..6 Shantung 3,988,157 ... 837,060 300,60 4iangeu 667,230 ... 450,00U 624,0L6 .;nhwei 1,010014 20,60u 706,000 871,0.0 242,472 2,000 10,000 99,60y Hupeh 563,642 37,006 160,060 306,400 Hunan 919,006 1f1q2.000 600,000 699,600 tiangsi 346,869 200,000 140,000 219,600 Eizechuan 663,988 2,860,000 1,860,000 1,748,400 Sikang 30,000 30,000 30,000 kOmichow- 80,000 303,060 800,000 199,206 Yunnan 123,647 242,460 180,000 000,0t.0 JiWangei ' 10L,000 93,000 60,000 132,06%, Lwangtung 361,252 70,000 40,000 YUkien 60,000 30,000 30,0o0 10,600 Taiwan --. ..-- 1,000,000 1,190,060 GR.ND TuThD 34,g5005f 6,313,617 18,408,000 19,487,400 I... The -2..eve1opment of Coal lining in 'Wee China" during the -tar and its Resulte. It is iatereeting to review the development of Goal mining in 2ree China dur1n6 the war, not only to appreciate the work achieved, but also in connection with plans for the better utilization of the country's coal resources in the future. T ^. id01:THLY BUDDLT.f.N No./V - .eebruary 1948 Document 87 - Page 4 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00690011,5 4 Let us examine first the polity adopted during war time and then the results obtain,-__ in each province. The numerous meyeures taken by the Ministry of Soonomic Affairs during the wLr to promote the development of coal mines in uiree China,' had a triple aim in view: bo inOrsase productiesle to control merketing and to supply the smelting and refining works Of the interior with coke of goo a quality. In order to increase coal produotion in the West, the procedure for obtaining a license of exploitation was very nuoh eimplified as well as that for obtaining leans to remove and repair the mueh needed machinery or even to buy it in foreign couitricss moreover all peocle engaged in ooal mining either workers or technicians were temporarily exempted from pilitary service. Already in 1938 a Axel Control Office was set up in Hankow to regulate the demand and supply, secure speedy transportation, prevent adulteration and limit prices and profits. After the fall of the Wuhan cities, the office wee removed to Szechuan where it was chiefly concerned with coke problems. In 1943, a l?ranch of the lesel Control Off:;ce was put specially in charge of supplying the railrose'e in .:Nangtung, Hunan and ,wangsi, and in 1944, another Branch was created to supply the new industries in Honan and Shensi. Then the. Bureau of War Production. was set up and the former offioe remained only conoerned with coke production. Anally the Ore -Smelting Aeseareh Laboratory wee created. Its chief function was to experiment with the varioub bituminoue coals in ?vier to find the most suitable ones for coking and to establish goad coke factories Promising results were obtained . with the Permian coal of Szeohuan and espeoially good coke was obtained from the coal of the Tgienfu, Chiangho, Ana Huaan mines so that the production of iron could be increased. 1. 8zeohuen. The results obtained in this province are clearly shown by the following figuress Seechuan Coal Production during the War. 1938 1,400.000 . 1942 2,005,000 1939 2,350,0W 1943 2,900,000 1940 2,190,000 1944 2,700,000 1941 2,800,0W 1945 2,300,000 - Among the various mines listed below the.Weiyuan, Shihyen, Huachtang, Yita, Chtenehuen, Tatung, Hun, Chengtu, Huuyin and Chumicoul companies were newly opened or reoganised. Part of the machinery removed from the Chungfu Coal Pine (Honun) was handed over to the fields Of Tolenfu and Chiayang while better equipment and means of transportation were given to the old mince at Sentelai- sheng, Paoyuan, Chlangho, Tunglin and Shihlin. vv MONTHLY BULLETIN bio.XV lebruary 1948 - Document C7 Page 5 LApprOved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061,18-5 Zcoept -for the-4;12110,4in whieh - prod'..toes anthrasite n11 the?woals are bituminous. The w4XiM20 daily output is given thus; gegl_giaggagx Weiyuan Coal ' 1) ao. Huachlang o Yita o Chienchuan 2) Tatung , o- Huaan 3) Chengtu o Huayin o Chuantei 04) Tfienfu o4) Chiayang 294) Santsfaisheng o seuirks; MaximmeLD4121 600 tone 260 " 10C 4 12. 0 60 0 10Z, 0 50 N. 100 b 10u 0 1,500Hsinakwe " 600 0 30c " 09440Alm_Ps? Paoyuan ? Chiangho ? Tanglin o Shihlin o Hopiu 6; Chisngpsi 6 Changpara o Yungku o Chuebiang o - 0 /Uinta o Chfichoang o 44atl4117 Autatt 300 tone 10u 20::: 11 250 10i) S. 80 ci 200 60 b0 100 60 11 Si) o . Privately owned. 1) Jointly ownea by the MHO and the salt atiministration. U 01 * private interests. " i.linistry of Aconondo affairs and private interests. 41 . Cowblned to form, the flienfu Coal minicg Co. 6 Publioly owned. 6 The szeohuan aning Co. Jointly owned by the ARC and Provincial uovernment. Produotion of Prinoipal Aides in bseohUan. Jan.-au:le 1947. (in met.tens) Tlienfu 308,924.40 Obukiang 17,800.Pu Weiyuan 424,154.00 Huayin 24.715.$15 Shihlin 43,6c1.00 Hoping 13,951.00 Yitn 18,714.99. Hoehuan 10,385.00 Tunglin 17,004.72 Yungku 2,600.i..0 2. The llkai Ci4L1 Yield under the management of the 1120 end the Sikmng Provincial iioverrumont, furnished soal to the fo.gper, lead and zinc wining enterprises of szeshuan &flidikeng for refining purposee. ? 8ikang Coal Rroduetion during the jar. 1638 20,000 1942 30000 1939 30,001., 1943 30000 1940 52000 1944 20,000 1941 30,000 1946 30.000 _1S.-_ WATHLY ZULIBT14 Neal? February 1948 Doeument 87 4 Page 6 ./ ? Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 :0 CIA-RDP80-00926A0069 111,-5 3. Yunnhn, During the war several-new nines were opened! the Hsuanming ?oral mine to furnish coke, the Hsiangyun to OUpp31 the projected Yunnan-;3urna railway, the Ipinglung for the requirements of the salt wurks of western Yunuah ind the iron and steel Works of the Province. Yunnan Coil Production during the Mar. 1938 150,00C 1042 242,450 1939 220,000 1943 250,000 1940 2.2, O.' 1944 260,000 1941 30.1:,00u 1945 250,000 The lietienel ilesources Commission after having invested funos in the ,aihIsliang c..a1 Jane bough all the reMuining private shares ano reort,eilized the Company to deliver soul to the industries of hlmmin6, to tlie Yuiw:an-Incechina railway and to the projectod Hsupuu-..unthin ileanwhila the giaoke Aline wee readjusted for the benefit of tin refinery works. Coal 41.nia.g_Co. AR20:;:tr0 :1.1R11.X . ?AIWA Aingliang noo m.tons Hsuanming 50 0 h Ipinglang 150 " giaoke 86 " pwncrlus NRO fest Yunnan iinterpriso Bureau of the Prov.0ovt. NRO, Prov.Govt.& Bank of China. All these JAnes produoe bituminous coal. Production of Principal anes in Yunnan Jan.-June 1947.(in met.tone) Niaoke(Tin Co.) 4. Aweiehow. 23,807.04 9,132.00 Ipinglang 22.767.87 0reat efforts were made during the war in nis province, known to be poor in coal, to increase its production ehiefly with a View to the opening of the ...weichow-A*ungei railway. K:leihow Coal Produotion during the jar. 1938 100,000 1042 303,000 1.939 200,01/4.0 1943 . 310,000 1940 270,0TS 1944 250,0Z-0 1941 30U,UvO 1945 192,..0 ? ? s? y ?????? ifOliTHLY BULLETIN No.X7 - February 1948 - Document 07 - Page 7 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611018-5 Among-the ocw1y-sogerked-mineir-suak-aa...Chutung. Linturo, Tuyun and kentung, the last, located in the TIlingtzu district, has been the most important and nes able to furnish eigfe to the bteel 7:actory of Toluk'ou near Chungking. ? sag dining Co., Aweiohow Ocal laning Co. (Chutung & Lintung mines) Bantling Coal Minink: Co. 4faximumDaiXAP2E64.2 Output BO m.t. ASU0 NRC & i,rivate interests. NRC dc Arsenal. Luring the first half of 1947 the iiantung Coal wine produced 26,23u.tu met.tona. These mines produce bituminous coal. 5c Kwangsi. Before the-war, the rank of China had 000perated with the 4wangai provincial government to open the Heshan Coal ;An? in the Chlienkiarg district. Its semi-anthracite, mixed with Hunan soal was utilized by the Hunan-iiwangai Railway, In 1944, the Anistry of Economic idfairs supplied loans to this enterprise for developing means of-transportation and increasing coal output. The other important mine is that of Hainan (Bituminous) which was mush developed by the Plingkwei ;aining Tiureau to supply electric plants and tin refineries. Xwangsi Coal Production during the :tar. 1938 1OCI,Cut.) ro.t. 1942 93,000 1939 160,k..yu * 1243 100,0y0 194U 60,0wO 1944 200,000 1941 60,000 " 1945 10,000 g2RLAAning Co. Hashan Alaligal_PEALlx Ansrelit. krOmsa_im.- Salka imm1242 300 mit., Bank if China 16,737.20 & Prov.Govt. Heaven . 80 NBC & Prev. 9,977.70 Govt. 6, Hunan 1). When the war broke out, the province of Hunan had several coal mines in good condition some which, as Shihmenk'ou ip Illing, .alianyint'an in Chligang and Yunhu in Haiangt'an belonged to the provincial gavernment while the Yiohang, Yangmaisban and 1) ELITOH.6 KOTIL For eopplementavy detail "anemia in Huron" by Hsiang Hsieh in Zonthly lulletin ?o.II (november 1946)Losument $0.13, pp.1-2, and "Bituanous Coal rainee along the Oantan-Bankor Itailwayu by Cb 2 Hsiao-hing in ._onthly lullstin Do.X11(noveMber 1947) Locument No.41. ..... OEITHiY B174.LETIN No.XY Approved-For Release 2002/08/13.: CIA-RDP80-00926A006900040018-5 4 Zbbruary 1948 - Dooumant ST - Page C Approved For Release 2002/08/13 : CIA-RDP80-00926A00111,0018-5 Tzuhein minis were privately owned and run by-law,South Hunon Coal wining iluresu and the Chunghslang, Haiangiciabg and Tianchihah in the Hsiangtian tastriot. In order to supply the inuustries or rieutern Huncn, the Vetional Aesouroes Comdssion arganized the Chienchli Coal wining Co. with the. machinery emoved from the Yuenhua ..ine of Tayeh in Hupeh, t.nd also the Chilling Coal :lining Bureau, given oharge of the newly opened Yichiachii-lo coal field in iincjing for the requireaew.s of the Hunan-Kwangsi raiNay; the latter was the only source of cozil for the sr' ane the railroad after the fall of Ch.ngshs nnd k.engyang in 1944. The Yunghsing enthr;,cite mine v.a,=s alga opened by the NRC. Hunan Coal i'roduction during the Jar. 1936 .540,0LW m.t. 1942 1,102,000 1939 1943 1,150,000 1340 1,016,373 1944 550,000 1041 1,100,000 1945 150,000 gPal..A14#1"16. Co. i4Lximum Laili Coal 4ping:Co. Outuut south Hunen Coal inirg Bureau Yunghsing Chilling wiling bttuminous coal. 500 m.t. 70 300 250 Au. the Ch'iynng Yunhu Chienchii Hslangkiang Uhunghsiang :lax/ wpm.Lnily .QMS.RYt 150 50 50 150 60 aines referred to, except Yunghsing, yield After the war, a reorgnisation was mtioe of the various compardes in the Hsiangtlan district. A part of the former Cbungheiang ont-rpriee wae joined to a part of the fonmer Yunhu to form the Huhsiang Company Under the joint control of the ORO and the Provincial L.overnment. The other part of the Chungheiang was amalgamated with the T'anchiashan to constitute the new Chunghsieng Coal kilning Co. depending directly -2n the Uational trovernMent. The Hsianglaang mine is wanaged by the ..FAC together with private capitalists, rS a whole the Hsiangt'an mines have been well supplied with new vachinery and co:Istitute the main sources of supply for the Hupeh-Hunan-Aiangsi Production of Principal i.iinee in Hunan. Jan.-June 1947. (in met.tons) South Hunan Coal Aining Hsiangkiang Ch'iyang Chunghsiang 63,505.95 Yunghsing 10,599.00 Houheiang 2,482.03 o) 50,052.05 Chiencbil 6,700.00 2(1,129.00 Hotsu 18,742.00 11,354.25 Huiming 10,082.00 10,735.t..O0 Yungshao 11,234.48 0 pri1 ay and June only, wO'liTHLY 2UwidaiA Hn.XV -7 Yebruary 1048 - Document 87 .- Page 3 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006911,8-5 7. ciangsi, At the beginning of the wg.r, the Anyuan ooal field at P'ingheiang was readjusted by th-: NW and the ciangsi 'Provincial Government, Later, the mcohinee of this mine together with those of the i:Aoklang Coal ,line were removed to Hunan Province by the NRC for strateGio and ()communication purposes. The Ttienho Coal Aloe in Gouth aiangei was opened in the very curly period Gt the war but plane for its GevelOpment were hindered by hostilities. The Plao Coal iaine, main source of fuel for be eaetorn section of the Chekiang-Alangsi Railway, was repeatedly assisted finanoi.11y by the Bureau for the .djustment of InGustry end dining. &angst Coal Production during the War. 1938 1:039 1840 1941 400,000 300,000 20,000 220,0v0 1942 1943 1:044 1945 200,000 160,000 120,000 10.,,000 Coal sainiog Co. Natlire oLCoal Aaximum_Dally 9-11.9011.11.4.2 Output . Kaokfang Coal hin4no Bureau at P'ingheiang Bituminous 60 NRC P/inghsiang Coal wining Readjust ? 260 PRO & Prow. Govt. Bureau T'ienho Coal N 100 Alining Bureau lito1e Coal ' 200 Priv. 41ning Bureau rienho Coal Aining Office Loping wine ;iiangnan Coal "'dining Co. . Prod5otion of Prinol,ya1 dines in Xianimi. Jan,-June 1947.(in riot:Ono) 13,263.90 m.t. 11,890.85 Coal aning Bureau of Reetern Xiangei A'enkou dine,Cheki- ang-Elangei Rlway wining Co. 10,091.40 6,001.71 g0WTRLY 3014;ATIN No.XV Yebruary 1948 u. Document 87 - Page 10 I_ Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061,18-5 8. ,imahgtung. The Eukuo Coal .inIng Co. of Chluohlang, a private enterpriae, had to cloee on account ef the war, Meanwhile the Rational Aesourees Coiadesion and the ?wangtung Provinaial 13 Government cooperated to run t:Ie coal mine of Patsuling in Juyuan Kwangtung Coal Produetion during the War. 1938 380,00j 1942 T0,000 1939 30uoi:Ju 1943 101.40.J0 19461 50,000 1944 100,0ki0 1941 500)00 1945 100,0o0 The .Pukuo Coul mine ha, ?roduced 3,252 m.t. during the first semester of 1947. e. Honan. The Yinghao Coal was opened by the Lunghal Railway Adminietration for its own requirements and the Lungmen ,nthracite Aine dy the hon0i Provincial wovernment to supply coal to the city of Loyang. In the last period of the Nar, they, as 'well as the Aingheng_Coal mine, were Lt one time oodupied by the enemy. - Hunan Coal Production during the 4ar. 1938 400,00u 1942 698,000 1939 400,000 1943 704000 1940 4300)00 1944 300,000 1941 460,000 1945 50,000 Coal miqing_Po. Ihtlas of.9.20. AaXimum DailZ lowntahL2 Qutout Lungmen Anthracite _ 100 Prov. Govt. minsheng Bituminous. 300 Priv. Yinghao il 60 National Fuyu Seri-bituminous 100 Priv. 1) EDITOR'S :WTE: Por further details, see 1:ionth1y Bulletin Mo.XII (November 1947) Document No.71 "Bituminous Coal dines along the Canton-Hankow Railway, by Chu Hsiao-hing. AONTHLY BULD.daiN NO.XV - February 1948 - Document ati - Page 11 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 ? Approved For Release 2002/08/13 : CIA-RDP80-00926A001,018-5 de have ooen, in revkavinomiltions.,i4 4zechuan, thet part of the.mach.J.uary_frola_tha_famous mines of the Ghpagfu Coapany had been removed behind the fighting lines shortly after the beginnine of the Sino-Japanese war. .:fter the Japanese retreat thea& mines ward for a time in the hands of the Communistst in 1946 they were returned to their owncra but development remained very difficult es the Ti:e-ch'ing Rcilway was disrupted by oivil warfare. Production of Principal Lines in Ronan Jan.-June in met.tona) ginsheng Chunzfu Yuhsier; 87,894.00 76,683,15 10. Shensi. 1) Yinghco 16,297.10 Awn 9,055.00 Then the Peiping-Hankow itilroad was out, the Lunghai i;cilway -duinistration, together wit'n the 6hen8i 2rovinciil Governm,nt, opened new co31 mines in T'unekuan and repaired the branch line from Hsienyeng to 1.1ungkuan in order to fahilitate the transportation of coil. Industry having developed rapidly in Shensi Province aince t'ne war'brokc out, ooal wes needed urgently in Sian and P%oehi, where many new factori,.a had been established. The ..iinistry of Sconomic Zfaire helped the Hein Sheng Company of Paishui, the Reinheing Company of P'roh'eng and the Yung Heikx Company or Lunghsien to increase their output of ceal uno to improve thea weans of transportation. The rail section from Honan to Shensi, the iino4Lung Line, was repaired and the ginistry.of Sconomic .ffeira requested the .ginistry of Co,launications to conssot a light railway from 1Up!ing to Paishui for transporting ooal. The machinery of the Ainsheng Coal ane was removed from Honan into Shensi, and given to the new ooal nine at Linyiu and the Lin ieeng gining Company was formed. at the same time, coal mines were opened in Hanchung to meet the local needs in the southern part of the province. ' Shensi Coal PrcM.:ction during the War. 1955 240,000 1942 506,009 1939 320,000 1943 600,000 1940 419,000 .1944 - 650,000 1941 500,000 1945 600,000 1) EDITOR'S :OTE: an article on "Present Conditions of Industries in Honan" published in the gative Bank Zonthly of January 1948 contains different figures for the coal mines in Florian. They are given below for referencec pine pietrict tionth1y PrjAinal /.122ELIO _Production ae99-41.- Ohungfu Chiaotso 75,000 tons 15,000 tone Liuhokou ,olyang 65,vvu. 0 Both are ?caw. Haingchi T'angying 9,000 0 by the Communist', Tungfeng Yuhsien 11,500 4,500 Lungmen Loya-33 20,000 7,000 Lineheng Shenhsien 15,000 8,600 Ch'iukou Heinen 1,500 YwTh'ing hienchih 3,000 Ji0gTHLY BULLETIN No. XV - lebruary 1948 - Document 87 Page 12 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0011,18-5 Apal_pnIng...Co. .144ximum LailY _ --,Shlarshis - YrONotton Jan.- kpaAmetion 2312.1.2-12.42 T'ungkuen 1) 600 m.t. Iunghai Rsy.& Prov.Govt. Zsinsheng 100 Private 18,547.00 m.t. Heinhsing 80 Lunghsien 1.51ne of Yunghsing Cd. 50 Priv.& Bank 17,451.00 of China Lipfeng 50 Private. Pingyso Line of Shensi Enterpr.Co. 80 Prov.0ovt. All *he mines referred to produce bituminous coal. 11. Aansu. Only a few email eoal mines at Akansheng existed with a prueuetion scarcely sufficient for the use of Lenohow City. The NBC first opened the coal mine of Yungteng and then the Lansu Coal Lining Bureau was Gstablidhed to oOntrol the mines of Akencheng and Yungteng in order to supply mare coal to the developing industry in the provincial oapital. Kansu Coal Production during the der. 3.938 90,000 1942 100,000 1939 90,000, 1943 100,000 1940 98,245 . 1944 110,000 1941 100,000 1945 200,000 Coal_pinins. Co. Notureo.Qpa1 aximum Dailx OsnersUS ;ionsu Coal Bituminous 80 m.t. NRC & Prov.Govt, Lining nureau ? Plingehlung Coal U 40 " Priv. Lining Bureau ( To be ooncluded) L) 1641110RIS AOTA: For a detailed account of this enterprise, see *tenthly Bulletin No.IX (June-July 1947) Study No,IX "The . tatinekuart Coal an in Shensi". gONTHLY BUILSTIN NO4XV Februrry 1948 - Dooument 87 Page 13 --Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006111118-5 UNIVERSITE L'.AURORIC -Shanhai- BUREAU LE DOCUMENT-TION (Economie Chinoiee) 280_Chungking Nan Lu (Dubaii) Te1:85761 The Chinese Cement Industry STUDY 10.1 15 during the year 1947. Number of pagesS 9 Articles and reports digested and combined in this Study: "Future of China's cement industry" by Huang Ta-fling, Ta Kung Pao, October 8, 1946. "Cement industry in Taiwan", Shang Pao October 19.1946. "Cement industry of to-day in North China" by Hei Chang- hsu, Ta Kung Pao, January 16,1947. "The China Portland Cement Co. ,Ltd.", Economics Weekly, March 27,1947. "General conditions of the cement industry in North China" by Hsu Ching-sheng, Shang Pao, April 18,1947. -"The Cement Factory of Kaohsiung" by EUyang Chlung, Chin Yung Jih Pao, May 4,1947. "The Saichuen Cement Works in Canton" by Liang Feng, Shen Pao, May 4,1947. "Production of Gypsum in haiangtan", Ta Kung Pao, July 1, 1947. "Production and marketing of Yingchleng gypsum", by T'aing Pai-ch'ang, Chin Yung Jih Pao, August 24,1947. "Gypsum discovered at Fengchieh, Szechuan", Chin Yung Jih Pao, Sept. 26,1947. "Chinese cement guilds plead restriction of Jap cement production", Chung Yang Jih Pao, November 9, 1947. "The manufacture of sulphuric acid and cement in Nanking" by Szu-Cheng, Ching Yung Jih Pao, November 21, 1947. "Cement industry in North China and Mk. Lu Chung-bmien" by Hou Ying, New China Magazine, December 1, 1947. "China's cement industry of to-day", Shang Pao, December 15, 1947. "Taiwan to promote production of cement and fertilisers", Shang Pao, December 21, 1947. "Cement output fn Taiwan", Sin Wen Pao, December 29,1947. "The Chinhsi Factory of the North China cement Company" by Ke Fu-hei, Popular Science Monthly, Jandary 1948. - "Marketing collaboration between the Chi Hein and North China Cement Companies", Chin Yung Jih Pao, February 2, 1948. "Cement guild, suggest readjustment of commodity tax", Shen Pao, Febrriary 5, 1948.. 7 THE CHINESE CEMENT INDUSTRY DURING THE YEAR. 1947 I.- General C:nditione. In reviewing the history of the Chinese Cement Industry, Mk. Chi Ch'ung-wei showed, in his article in the Ta Kung MONTHLY BULLETIN No.IV - February 1948 - Study No= - Page 1 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 11 Pao ? of Dec. 10th.1946 that the Chinese production in 1936 (5.76 million barrels of 176 kg.) not only exceeded the demand for home consumption (5 million barrels) but was beginning to develop a market for exports, especially in the Malay States and the East Indies. As far as quality was concsrLed, "The degree of fineness, the character and time of setting and the intensity of resistance to expansion of the, various brands of Chinese cement not only satisfied the general requirements but were most of them superior to the . British make". After the war, however, all the hopes which had been entertained for a speedy recovery of the former state of affairs and even for development were "very soon shattered by all sorts of difficulties and hard blows", Mr. Chi Ch'ung-wei lists what he considers the most important reasons for the depression of the year 19463 1. High cost of production as compared with selling prioes; 2. Shrinkage of the marketing areas owing both to disrupted communications and to civil warfare; 3. Dumping of foreign cement; 4. Insufficiency and high price of working capital; 5. Decrease in productive efficiency of workmen. The 'same factors can be stressed in considering the conditions of the Chinese Cement Industry in 1947, except for the third, "Lumping of foreign cement". In this respect, the situation had already improved during the first six months of 1947 when the Government stopped providing foreign exchange for cement from abroad. Since then, import licences have been temporarily withdrawn. Moreover, instructions directed towards the utilization of Chinese products in all government construction projects have been issued by the Executive Yuan. As a result of these measures only cement of Chinese make is being used in the oonstruction of highways, in the New Harbour of T'angku and in other similar works. A few figures wA.1 be enough to give a clear view of the problem of the disparity between cost of production and selling price. For example: a ton of gypsum o.o.d. at Hankow was only CN#700,000 in September but C142,920,000 by the endof November, an increase of 300%. Diesel oil climbed from 0141,411,000 per ton to 0143,500,000 during the same period, an increase of 150X. The upward adjustment of the tariff for electric power ran from C141,4510 48 per KWH in September to CM$3,885.CM in Octdber. Wages also Increase according to the cost of living index which was 34,400 in September and 53,100 in December. On the other hind, a bag of cement of 50 kilogrammes was sold at CN$150,000 at the end of September and CN$240,000 towards the last days of November.' In short the cost of cement production increased by four times while the selling price only went up by 60%. 1) EDITOR'S, NOTE; See Monthly Bulletin No.V (February 1947).Documeat No.32 "The Struggle of the Chinese Cement Industry" by Chi Chlung-wei. a.MONTHLY BULLETIN No.XV - February 1948 - Study No.IV - Page 2 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611F0018-5 The difficultis of marketing are only too obvious in the face of the ceaseless in1lation and of the warfare affecting more and more areas. This had reacted heavily on the cement industry during the past year. The government has had to suspend all the construction projects which could temporarily be done without. According to estimates of the National Federation of Cement Guilds, the stocks of cement accumulated up to August 31, 1947, in the cement factories then operating, amounted to 6,258,000 bags or 312,900 metric tons, Meanwhile the Cement sold in Klangsu,Chekiang, Anhwbi, Shanghai and Nanking amounted to 400,000 bags in July and 300,000 bags in August, but even thougti it bad far exceeded the monthly consumption of 60,00C.barrels 1) or 10,200 metric tons in the early part of 1947, this was of little help. Moreover transportation capacity is being reduced" on account of military commandeering. Frequent increase in freight charges adds heavily to the already excessive cost of production and the innumerable taxes imposed upon the cement industry help to aggravate the blocking up of the market. The commodity tax on cement gives a good illustration. Its assessment varies considerably according to different districts and cement guilds are constantly requesting the authorities to impose uniform measures and even to readjust the present official rate (15%) becausd of the precarious situation of the industry. II.- Procuring of Raw Materials With Special Reference to Gypsum. The main raw materials for making cement are' lime- stone, clay, gypsum and fuel. The first two are obtainable almost everywhere without any difficulties. Coal is extremely insufficient especially in South and East China where many cement factories are built. Unless the political situation is improved, the fuel problem will continue to grow. The supply of gypsum is rather difficult as we shall see below. Packing materials such as paper bags and gunny bags are also lacking on account of the insufficient supply of foreign exchange. A total of US$800,000 had to be allocated for gunny bags for the first nine months of 1947. Import quotas for paper bags are given in principle but neglected in practice. As everyone knows gypsum, in a proportion of about 3%, is necessary to control the setting time of cement. The annual production. in China before the War was 83,700 metric tons, mainly distributed to the manufeoturevs of fertilizers (60%), cement works' (38%) and beancurd makers (2%). The present demand for the cement works throughout China is only about 3 to 4 thousand tons per month but this would be tripled if all the cement factories resumed normal production. Gypsum is found mainly in Hupeh and Hunan where Yingch'eng and Hsiangtlan are particularly famous. Limited quantities are also produced in Honan and Shansi. The gyitsum in 'Taiwan is completely disregarded on account of its inferior quality 1) One barrel = 170 kilogrammes. ft=111. MONTHLY BULLETIN No.XV - February 1948 - Study No.XV - Page 3 Approved For Release 2002/08/13: CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00611018-5 and synthetics are being used instead. Other regions producting gypsum include the Ch'ientiang districts in Chekiang and Tfaiping, Yaan and Teingplu in Szechuan. According to the local Shang Pao (Sept.26,1947), a new mine has been discovered at Kungpeichliao near Fengchieh in eastern Szechuan. Prelirinary survey by the Department of Reconstruction of the Szechuan ProNincial Government estimated the reserves at 2,000,000 tons, but further survey made by the Yung Li Chemical Works disclosed that the mineral hes probably a depth of 60 metres so that it should be at least 4 million tons. Actually the cement works in China receive their main supply of gypsum from two regions, Yinch'eng and Hsiangtlan, on which the following information is available: 1. Gypsum from Yingch'eng. It is famous throughout this country for its purity and its high setting power which appears to be the best known to the Chinese cement manufacturers. Gypsum mining is now a semi-public enterprise jointly operated by prilrate interests and the Hupeh Provincial Government. Extraction of gypsum is mainly done by excavating the quarries which numbered 30 before the War. Only 8 remain in operation to-day, with a total capaoity of 10,000 tons monthly. Restricted by marketing facilities the production ha* dropped until the monthly sale is around 5,000 tons. A contract was made between the miners and the National Federation of Cement Guilds in July 1947, for the supply of 3,000 tone of gypsum to the cement works: but it lasted only two months as the price level went up much higher or other commodities than for gypsum. Since the end of the war Yingchleng gypsum has been distributed in the following manner: Cement manufacturing: Shanghai Canton Tientsin Fertiliser manufactures in Kiangeu, Chekiang, AnhweA,Hiangsi,7Ukien and KWangtung: At present the Yingchleng Gypsum Company has branch offices in Tientsin, Canton and Shanghai and is planning to produce refined gypsum for exportation. 2. Gypsum from Hsiangtlan. This is also very popular with the cement works especially those in Hunan. Regular supplies are going to the Cement Works in Shaoyang and the Hwa Hsin's plant in Chtengch'i. The productive oapacity is about 4,000 tons monthly but actual production has averaged only 2,500 tons since June 1946. III.- Principal Chinese Cement Factories. Toward the end of 1947, the National Federation of Cement Guilds stated that the total production of cement factories MONTHLY BULLETIN No.XV - February 1948 - Study No.XV - Page 4 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 018-5 throughout China_amaquted,te..J6A010 tons per month. Cement Works Productive Capacity, Actual Prodyotion per Month (Tone) ' Per Month (Tens) Taiwan Cement Co. 54,000 13,500 Chi Hsin Cement Cc.25,000 16,290 China Portland Cement CA. 22,50C 1 2,000 Shanghai Cement Co. 8,300 4,900 Hwa Hein Cement Co. 33,900 3,900 Saichuen Cement Works 6,600 3,600 Szechuan Cement Co. 4,500 2,100 . Tienhsiang Cement Co. 1,800 1,500 Chia Hwa Cement Co. 830 750 Shun Chang Cement Co. 1,250 660 Chien Ya Cement Co. 840 600 KWeichow Cement Co. 300 ? 210 Forth China Cement Co. 1)33,000 Liaoning Cement Co. 33,000 28,000 Northwest Industrial Development Co. 6,000 suspended EAneu Cement Co. 360 Chi Cheng Cement Co. 300 Elangnan Cement Co. 22.500 249,980 War 1. North China. One cannot help thinking that the situation of oement in North China looks rather gloomy. The cement plant of the Northwest Industrial Development Company in Taiyuan, Shansi, is producing only restricted quantities for military conk:Action within its province. Owing to the heavy destruction in Manchuria the production in the Northeastern cement factories is almost nil, and supply has to depend upon North China where two of the largest cement companies in China, the Chi Hein Cement Co., and the North China Cement Co. are being troubled by under-consumption. . The Chi Hein Cement Co. in Tlangshan, Hopeh, is a private conoern and one of the oldest in this industry in China. Fuel as well as other raw materials being available from nearby district:), the Chi Hein is in a better position than the North China Cement Company on which more will be sald below. During the first year after reconversion (1946) the Chi Hein produced 124,276 tons from which 44,599 had been sold. In 1947 the monthly production was limited to 1) EDITOR'S NOTE: According to Chin Yung Jih Pao, (February 2,1948) only the plant in Chinhsi susp'ended operation while the one in Liuliho is still producing 13,000-15,000 tons monthly. - MONTHLY BULLETIN No.XV - February 1948 - Study No.XV ? Page 6 Approved For Release 2002108113._:_CIA7RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111118-5 r- 16,290 tons as the selling returns on the market were not big ancuel to cover the normal costs. The -products are mainly sold to Shanghai, Tsingtao, Amoy, Swatow, and to the districts along the railways in North China. quick hardening and anti-oorrosive cement le also produced by the Chi Hein Cement Co. and is mainly used in the construction of the new Harbour of T'angku. The equipment comprises the followings 5 rock crushers 8 coal pulverizers 14 rock grinders 10 clinker crushe-: 6 revolving kilns 15 boilers 3 turbine generators 190 motors 2 packing machines 1 fully equipped machinery work-shop, The North China Cement Company, under the National Resources Commission, has two plants: one in Liuliho in Hopeh and one in Chinhei in Liaoning. Both of them were taken over from the Japanese after V-J Day. The production of the two plants combined could reach at least 30,000 tons monthly but following the suspension of the coal supply from FUhsin and Peipliao the Chinhsi plant has stopped work, The Liuliho plant is still operating and maintains a monthly output of between 13-15 thousand tons. The installations of these two plants are composed Liuliho Plant Chinhsi Plant 1) 2 rock crushers, 2 dual gyratory crushers 2 clinker crushers 4 revolving kilns 2 turbine generators 3 crushers 3 drying machines 3 pulverizers 2 air separators 2 rotary kilns 2 clinker crushers 1 600 KVA generator 1) NOM Further details on the Chinhsi Plant are given in an article reoently published by the Popular Science Monthly Jan. 19481 "The Chinhei Cement Factory under the North China Cement Company" by Ke A CompaMison of the cement (*Great Wall Brand") made by the North China Cement Co. with the German specifications. German Specification' lost wall Anemias 4,900-mesh per sq.cri. Setting time First setting Final setting Soundness Steam exposure "Ray's" test Tensile strength after 7 days 1 part cement: A parts sand " 28 days (by weight) Compressive ? 7 days Strength 1:3 28 days 11 Other data: ? Dry process is in'use on account of humidity in Chinhei. Fuel supplied by Peipliao, FUhein and Fushun. Limestone quarried in Yangchiachangtse, 20'11 from Chinhei. Maximum 25% Shortest 60 minutes Maximum 10 hours Absence of creak Maximum 10 cm. At least 18 kg, per At least 25 kg. per At least 180 kg. per At least 275 kg. per, 6% 77 minutes 2.3 hours surface Absence of orack3 surfsee eny of 45 31 360 410 .11.111111 MONTHLY BULLETIN No.XV - February 1948 - Study No.XV Page C L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006911,18-5 , Both of thess-Rlante---tuil.0 large stfaska of products, those in the Chinhsi plant are blocked by dtemnptiee of communications in the Northeast and those in the liuliho plant by competition with the Chi Hein Cement Company. The main markets for the Iduliho products are the Public Works Departments of the Peiping and Tientsin Municipal Governments and the cities in Northwest China. competition has been reduced by an agreement between the Chi Hein and the North China through which both agreed to supply the market at the ratio 5:1 (80% from Chi Hein and 20% from North China). This agreement was later improved and it was decided that the ratio should be variable according to prevailing conditions ae follows* When monthly sales are lessthan 5,000 tones 4,1 11 0 5,000.10,000 tons, 3s1 over 10,000 tons:- 2,1 ? 2. Kiangeu. There are six cement factories in the province of Kiangsu. The Kiangnan Cement Works Which used to produce 22.500 tons monthly are now closed down peming installation of new machinery. Among the five remaining in operation only two are worth mentioning. The Shanghai Cement Company, located at Lunghwa, Shanghai, is equipped with-1 rock crusher, 2 clinker crushers, 2 revolving kilns and 1 coal pulverizer. Maximum production is about 180,000-200,000 bags monthly, consuming about 1 million KVH per month. Owing to power restrictions, the aotual output is 70,000 MUM monthly. The China Portland Cement Company. at Inngt'an near Nanking, produces Portland cement and special cement. It has 2 turbine generators, 4 rook crushers, 4.olinker crushers, 2 coal pulverizers, 4 kilns, 2 mixirachines, 4 drying machines, 3 packing machines and a, fully equipped MT. The present output is 12,000 tons monthly which is one third df its pre-war standard. 3. Taiwan. The Taiwan Cement Company, taken over from the Japanese has three plants located in Kaohsiung, Ssuao and Chutung, The machines i the first two,plants are rather worn out and reparations are still under way in Chutung. Production facilities are generally better in Kaohsiung as limestone and clay are found near the plant, while the two other plants are handicapped by inconvenienoe in transportation especially during the rainy season. In 1947 from January to the end of NoveMber the three plants produesd altogether 162,257 metric tons. Kuohsiung 117,831 Szuao 33,898 Chutung 10,528 162,257 During the same period 179,871 tons were molds SQ% to government enterprises and 20% to private fir. so of the tote& . was destined to offioial works in China proper. Meanwhile we learn from the local Shang Pao (Dec. 21,1947) that the normal demand in Taiwan alone reaches 25,000 "tons per month. MONTHLY BULLETIN No.XV - February 1948 - Study No.:EV - Page V L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006 018-5 In addition to it matP7ertl-tu'ltiln'of rasv-eei,ent,t_. the Aaoheiung plant manufactures alsp lime, cement teams, cement bricics, cement tiles eeffent-!coated paper bags and cement sleepers for railways. It has a full-s-t&ZL _of 1,174 members and the following . equipment: .8) Air compressors p Tlrying machines 7 Rec..: crushers 3 Packing machines with large size 3 Revolving kilns- pulverizers and compression haamers 6 Clinker crushers Actually a sum of -USO 2 million has been collected for the purchape of new equipment from USA. UP to the present moment 3,170 metric tons of such supplies have already arrived. The assembly is expected to be completed by June 1948 after which p monthly 5C,000 metric ton production will be available to meet the looal market and demands in the South 8eas. The profits will be used in the reconstruction of the plant in Chutung; buX the result of this project is to a large extent dependent upon the supply of paper. .bags and fuel. Of the former, the monthly requirement for the three plants combined is approximately 300,0CC bags which cannot be entirely supplied by local manufaoturers. A requisition has been filed with the authorities in order that foreign exchange obtained from the sale of cement to the South Seas may be allocated to the Company for the purchase of good paper from abroad. The ration of coal given by the local authorities is always insufficient and work has often been interrupted for lack of fuel. Actual coal consumption is 7,000 tons monthly but when production increases 17,000 tons will be required 1). 4. Central and Southwest China. The merger of the Hwa Chung and the Kunming Cement Companies has given birth to the Hwa Hein Cement Company which during the War was supplying cement to the districts in Central and Southwestern China. Besides the twc plants in Ch'ench'i (Hunan) and Kunyang (Yunnan), a new one le being erected in Tayeh where new machines from Aterica will be i. stalled with a productive capacity of 6,000 barrels daily. When the new plant is in Operation, the production capacity of the Hwa Helm Co. will be greater than the local demand but it aims etleo at marketing ite products to the eitiee along the lower Yangtze. Coal and gypsum will be within reach from the Yuan Hwa and Hwa Li Coal Mining Companies at Tayeh, and the Yingch'eng Uypsum Co. Production in the plants in Hunan and Yunnan had reached some 4,000 tons g month towards the end of 1947. 1) MOTE: According to the Central Yews Agency 1000 tons of eement are being shipped to Manila from Kaohsiung, Taiwan. Mr. Hsu Chung-chten, general manager of the Taiwan Cement Co., stated that the present output of the Taiwan Cement Co. is 20,000 tons monthly which will be increased to 40,000 by October, 1948. The products are Rhiefly destined for local consumption. However, when_there is surplus available it will be marketed first to the South Seas Islands in order to provide foreign exchange for the Goverrment, and next to FUkien and Kwangtung. Cement is being sold to Manila at U5#20 per ton c.o.d. Kaohsiung. (Shen Pao, lab. 18.1E48) -- MONTHLY BULLPTIN No.R1 - February 1948 - Study No.XY- - Page 8 L. Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926Me0 18-5 i !III, ? !I r VilOr-e-eigg.....a.a.:31'"6&AP14'..AZAW3-'141/..A.1.81.1414h40,1,11a0 Hunan, where the production is supervised by:Tereign experts. The cement works were erected only very recently and the output is insufficient to supply the large demand. With adequate increase of equipment the factory will be capcble of a daily production of 13,300 lbs. At present the Shaoyang Cement Factory has one upright kiln, one mixer, one clinker crusher, one rook crusher, one 15 KVA pqwer generator, one 25 HP steam engine and two winnowing machines Ai. 5. South China. The Saichwan Cement Works in Canton olosrated by the EMangtung Provincial Govt. is the only factory of this kind in operation in South China. The tensile strength of the cement produced by this factory reaches 640480 degrees. The machines in this factory were installed before the war by the F.L. Smidth Company, a Danish concern. Two out of the three kilns were removed by the Japanese during their occupation and only one remains operating with ,a daily output of 1,200 barrels or 204 metric tons daily. - In concluding this brief study we may mention the fears so often expressed lately by the Chinese cement works on the subject of future competition from Japanese cement. They say very truly that the war has done little harm to the Japanese combat industry. According to a report made by the China Mission in Japan there are still 57 cement factories with an approximate production of 6,100,000 tons per year. This is considered as at tremendous menace and restrictions have been requested again and-again in order to avoid future dumping on the Chinese market. It is noted further that the present consumption in Japan being about 3,200,000 tons yearly, a 2,900,000 tons surplua would be free for disposal in foreign land. According to a recent report published by the local Shen Pao (Jan. 17.1948) some 14,000 bags of Japanese products were shipped to Hongkong where Chinese products are Already in Sufficient supply. The cement guilds have called the attention of the'Cuetome to this fact in order to prohibit the smuggling of such materials into the Chinese territories. ( End ) 1) NOTE' A few details, from other sources, on the Ssechuan Cement Works and the Kweichow Cement Co. are presented- below for reference. Szechuan Cement Works (Chungking)s-' A rotary kiln P.1. Smidth (Danish) installed in 193?,, A small research laboratory - The wet process is used - Theoretioally it can produce 150 tons of Portland cement per 24 hours; - but the . kiln was damaged during the war, the refractory material is poor and actually the factory can only work 15 days a month. Warehousing facilities are also very limited _ld part of the stook is being spoiled by exposure. - Coal comes from Nanchuan (120 km), limestone from Mao Erh Hsia (60 km), clay on the spot; gypsum comes from Chichlang (100 km). HWeichow Cement Co. (Kweiyang)s- Chinese vertical kilns - crushing apparatus is also Chinese - Cement rather poor 0 MONTHLY BULLS= No.XV - February 1946 - Study No.X9 Page 9 I:Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 :CIA-RDP80-00926A006911,0 - UNI V ER SITE L'AU -Shan.;hai- BUREAU DE DOCU'4ENTATI0N (Economie Chinoise) ------- 280 Chungking Nan Lu (Dubail) Tel 85761 ------- Methods for the Investigation and Collection of the Income Tux on Profit-seeking Enterprises in the Thirty-seventh Year of the Chinese Republic (1948); Promulgated by the EXecutive Yuan on the 2nd: of February 19481 Published in Sin Wen Pao(Shangbai), Feb. 3rd. 1948. ROBB Annex Mo.: XIII Annexes concerned:Mos. I & II NUMber of Pages: 15 Remarks: Translated by our Legal Department. METHODS FOR THE INVESTIGATION AND COLLECTION OF THE INCOME TAX ON PROFIT-SEEKING ENTERPRISES IN THE THIRTY-SEVENTH YEAR OF THE CHINESE REPUBLIC( 1948) Article 1. The investigation and collection of the Income Tax on profit-seeking enterprises in the thirty-seventh year of the Chinese Republic (1948), besides being governed by the provisions of the Income Tax Law 1), shall also be carried out in accordance with these Methods. Article 2. The competent collecting office shall first, at the beginning of the year, provisionally assess the amount of the tax and order the taxpayers to make payment thereof, later when the amount of tax payable has been investigated and assessed a000rding to the tax law, a notification shall be issued regarding the amount of tux still to be paid, or if any sum has been paid in excess, a refund shall be made. 1) EDITOR'S NOTE: The Income Tax Law was promulgated on April 16th. 1946 and the Rules Governing its Enforcement on July 3rd. 1946. For their translation, see Monthly Bulletin No.1 (October 1946). Annexes I & II. MONTRIY 111.1LI7TTr I - February 1948 - Annex No.XLII - Page 1 Approved For Release 2002/08/13: CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111111P0 Article 3. The amount of tax to be paid provisionally, shall be assessed in conformity with the following regulations: 1) Jr. accordae7.e with the number of times both annual Revenues and Income Taxes on Profit-seeking Enterprises as estimated for the thirty-seventh year of the Chinese Republic (1948) have increased as compared with those for the thirty-sixth year(1947) and also in accordance with the number of times the commodity prices general index number for the thirty-sixth year (1947) has inoreased as compared with That for tee thirty-fifth year (1946), the amount of tax to be paid provisionally by ..ech taxpayer shall be fixed at six times the total amount at which the Income and the (Excess) Profit Taxes on his profit-seeking enterprises were assessed andpayable by him in the thirty-sixth year (1947). 2) If a profit-seeking enterprise was newly established zring the thirty-sixth year of the Chinese Republic(1947) or if althcugh founded before the end of the thirty-fifth year(1946) it has not yet paid the tax, the amount to be paid shall provisionally be assessed on twelve point six per cent of the actual amount of capital which it declared for registration. If the amount of the tax to be provisionally paid as mentioned above, is to be assessed according to Paragraph 1 but on an operating p3riofecomprising less than the whole of the thirty-fift'e year of the Chinese Republic (194C), or if it is to be assessed according to Paragraph 2 and the operating period was mdre or less than the whole of the thirty-sixth year(1947), it shall be oalculated for the actual operating period in proportion to an entire year. Article 4. The competent collecting office shall, within one month after the fifteenth of February, fill in and issue to the taxpayer a notification of payment, setting forth the assessed amount of tax provisionally to be paid by him and asking him to make payment within thirty days after receipt of the notification. Article 5. When the competent colleoting office has received returns on the amount of their (taxable) income I-) from taxpayersothe following profit-seeking enterpr'.ses shall immediately be subject to an auditing of accounts: 1) Companies. 2) Public enterprises operated by any grade. of government. 3) Principal stores and branch stores whose business offices are situated in different places, whose capital and management are not separate and whose tax is payable by the principal store. 1) EDITOR'S EIOTE: The Chinese characters "So Te" are translated by "(taxable) income" as they refer to "the amount of net profit after deducting from the total receipts in a fiscal year all actual expenditure, bad debts, depreciation, wastage of stock on hand, taxes and dues" as stipulated in the Income Tax Law, . Paragraph l. MONTHLY BULLETIN No.XV - February 1948 - Annex No.XIII - Page 2 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Mir Approved For Release 2002/08/13 : CIA-RDP80-00926A00690 4) Those which have been liquidated because of merger,diesolution, transfer or suspension of business. 6) Al]. those which, though not being within the scope of any of the four preceding Items, possess complete sets of account books and have been deeigLated by the competent collecting office. Article 6, The amount of (taxable) income of profit-seeking enterprises which are not provided for in the Items of the preceding Artiole, may be investigated according to the standard system of tax assessment. Article 7. . For profit-seeking enterprises the amount of whose (taxable) incomes is to be investigated according to the standard system of tax assessment, various standard rates for assessing the tax shall be prepared as stipulated in Article 5 in compliance with the data obtained through the auditing of the accounts of these firms. If the number of the above firms does not amount the percentage provided for in Item 2 of Art.8 as a basis for assessing the standard rates of taxation, the deficiency shall be up by including in the investigation those firms which have comparatively complete account books, bills and-certificates. Article 8. The methods for preparing standard rates shall be LI: followst 1) As preparation, a detailed classification of businesses shall be made, and within each business "manufacture" shall be distinguished from "trade" and "wholesale" from "retail". Furthermore, the competent collec ing office, taking into consideration local conditions and actual requirements, shall classify the amount o: capital and operations - (or amount of income) - into large, medium and small grades. 2) The rate of turnover of capital, rate of gross profit on sales, ratio of expenses to sales, ratio of gross profit to capital, ratio offsmanaeato capital, ratio of income to oapital, ratio of expenses to income, rate of net profit on sales and ratio of net profit to capital shall be computed for each type or kind of business or for each grade. 3) The unit of calculation 1) shall not be less than five per cent of the total number of firm engaged in each type of business, where the calculation is made for each kind or grade of businesa, the unit shall not be less than five per cent of that particular kind or grade. 1) i.e. the nuMber of firms acoording to Whole data standard rate:: for assessing the tax are to be prepared (see Art. 7 - 2 above). MONTHLY BULLETIN No.XV - February 1948 - Annex No.XLII Page 3 Apprve'd.For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 - Approved For Release 2002/08/13 : CIA-RDP80-00926A00691101-5 ,Artiole 9. Where a business keeps no acoount books, 1 te of net profit and the various other rates may be oomputed ding to the rates assessed in the preceding year, taking into oon dera- tion the actual business conditions and the Pluctuations in commodity prices in the thirty-sixth year of the Chinese Republic (1947). If no rate was assessed in the preceding year, then the ? various rates may be determined according to actual business conditions in the thirty-sixth year (1947) of busineasee of similar type. Article 10. Where the (taxable) income of a profit-seeklng enterprise is to be investigated according to the standard system of tax assessment, its reported amount shall be approved if it reaches the standards provided in Article 8 or 90 if the reported (taxable) income does not reach this standard, its amount shall be computed according to the standard rates for that type of businee3 and in conformity with the following provisions no further auditieg ofmccounts shall be made. 1) If the (taxable) income of a trading or manufacturing business is higber when computed on the amount of sales than when computed on the amount of capital, its amount shall be assessed according to the rate of net profit on sales; if the (taxable) income is higher when computed on the amount of capital Shan when computed on the amount of sales, then its amount shall be assessed according to the ratio of net profit to capital. 2) The amount of (taxable) income of a firm for the, supply of labour or credit shall be assessed according to the ratio of net profit to capital. 3) If the amount of sales is not definitely known, it may be assessed according to the rate of turnover of capital' if the amount cif income of a firm for the supply of labour or credit is not definitely known, it shall be assessed according to the ratio of expenses to income. Article 11. If the law prescribes that the amount of (taxable) income be forthwith determined, the computation shall be based on the maximum aWount according to the standard rates as prescribed in Art. 8 and 9. Article 12. After assessing the amount of tax payable, the competent collecting office shall issue a notification of payment to the taxpayer, vetting forth the amount in excess of the tax provisionally paid and requiring him to make payment within ten days. If any sum paid in excess is to be refunded, a form for the refund shall be filled in and sent, together with the amount of tag to be refunded and an interest thereon for the period between the day of payment of the provisical amount of the tax and the day preceding that of the arrival of the refund form, calculated aocording MONTHLY BULLETIN No.XV - February 1948 - Annex No.XLII Page 4 ,___Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00690.1! Mr. ? to the rate of interest granted by the Central Bank to Modern and Native Banks on their guarantee reserve funds for deposits. If the amount of tax payable is equivalent to the amount of the provisional tax, this shall also be notified. Article 13. If any taxpayer fails to psy the tax within the prescribed time limit,, the competent oolleoting office shall submit the case to the court which shall infliot penalties according to the provisions of the Income Tax Law. The penalties mentioned above shall be carried out by the court within seven days after receiving the case. Article 14. promulgation. -- These Methods shall oome into force on the day of (End ) MONTHLY BULLETIN No.XV - February 1948 Annex No.XLXI - Page 5 LApproved For Release 2002/08/13: CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 - UNIVER s/TP dpt Shanghai- BUREAU DE DOCUMENTATION (Economia Chinoise) 280 Ban Lu(rubail) Te1185761 ------- Table of the Starting Points and Rates of Taxation on Incomes of Various Classes for the Thirty-eeventh Year of the Chinese Republic (1948). Promulgated by the Executive Yuen on the 12th of February 19481 Published in Sin Wen Pao(Shanghai), Feb. 13th. 1948. Annex No.: ELM ???.. Annexes concerned: Noe.' & II 4). Nutber of pages: 4 Remarks: Translated by our Legal Department. . TABLE OF THE STARTING POINTS AND RATES OF TAXATION ON INCOMES OF VARIOUS CLASSES FOR A THE THIRTY-SEVENTH YEAR OF THE CHINESE REPUBLIC (1948) I.- Claes I Section A. Tax on income from the operation of Companies 2). a. Starting points w",taxations annual income which amounts to ten per cent of the .ess. Int of capital assessed for taxation. b. Tax rates: 1) 4% on any inoome from 10% up but lees than 15% of the amount of capital for tax assessment. 2) 7X on any income from 15% up but less than 20% of the amount of oapital for tax assessment. 3) 10% on any income from 20% up but less than 30% of the amount of capital for tax assessment. 4) 13% on any inooma from 30% up but less than 40% of the amount of capital for tax assessment. _5) 17% on any income from 4( up but less than 60% of the amount of capital for tax assessment. EDITOR'S NOTES, 1) i.e. Monthly Bulletin No.I (Oct.1946). Annexes I & II. "Income Tax Law" promulgated by the National Government on the 16th of April of 1946, and "Rules governing the Enforcement of the Income Tax Law" promulgated by the EXeoutive Yuan on the 3rd. of July 1946. 2) i.e. Stock Company Limited, Joint Stook Company Limited or other limited companies (of. Income Tax Law. Art.2.-Clase 1.A.) MONTHLY BULLETIN No.XV - ,Yebruary 1148 Annex NO.XLIII - Page% L_Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A006911111F5 6) 21% on any income from 60% up but less than 90% Of the amount of capital for tax assessment. 7) 25% on any income from 90% up but less than_130% of the amount of capital for tax aasessment. 8) 307 on any income from 130% up but less than 200% of the amount of capital for tax assessment, 9) 35% on any income from 200% up but lees than 300% of the amount of capital for tax assessment. 10) 4,0% on any income equivalent to or exceeding 300% of the amount of capital for tax assesement. On incomes from public utility companies and industrial, mining or transportation enterprises, the amount of tax payable at the rates given above shall be reduced by ten per. cent. II.- Class I Section B. of any Tax on the business income/Profit-seeking enterpr:sd under partnership, individual proprietorship or any other form of organisation. a. Starting point of taxation: annual income amounting to fifty million dollars. b. Tax rates: 1) 4% on any income from $50,000,000 up but less than $100,000,000. 2) 7% on any income from $100,000,000 up but less than $200,000,000. 3) 10% on any income from 4200,000,000 up but less than $400,000, DOO. 4) 13% on any income from $400,000,000 up but less than $800,000, 000. 5) 17% on any income from $800,000,000 up but less than $1,600,000, 000. 6) 21% on any income from $1,600,000,000 up but less than $3,500. 000,000. 7) 25% on 4ny income from $3,500,000,000 up but less than $8,000, 000,000. 8) 30% on any income from $8,000,000,000 up but less than 180,000, 000,000. 9) 35% on any income from $20,000,000,000 up but lees than 00,000, 000,000. 10) 40% on any income equivalent to or exceeding $50,000,000,060. Ci incomes of public utility companies and industrial, mining or transportation enterprises, the amount of tax payable at the rates given above shall be reduced by ten per cent. III,- Clabll II-Seotion A. Tax on income from profsapional :n artistic sia-vices. Starting point of taxation: annual income amounting to twenty- four million dollars. b. Tax rates three per cent. MONTHLY BULLETIN No.XV - February 1948 - Annex - Page 2 L?pproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069111W0 IV-----C.lassil_Section B. Tax on income from any fixed salary or wage. a. Starting point of taxation: monthly income amounting to two million dollars. b. Tax rates!: 1) 1% on any inome amounting or exceeding 412,000,000. 2) An additional 2% on any part of the income in excess of 410,000,000 up to 420,000,000. 3) An additional 3% on any part of the income in excess of 420,000,CCO up to 440,000,000. 4) An additional 4% on any part of the income in excess of 440,000,000 up tc 360;000,000. 5) An additf.onal 5% on any part of the income in excess of $60,000,000. be five per cert. V.- Class III. The rate of taxation on income from interest shall VI.- Class IV. Tax on income from lease of property. a, starting point of taxation: annual income amounting to twenty million dollars. b. Tax rates four per cent. VII,- Class V. Tax on income from temporary sources. a. Starti.i:g point c,f taxaticns income amounting to ten million dollars. b. Tax-rata: 3ix per cent. VIII.- General Income Tax. a. Starting point of taxation: fil.ind.?Q0 -!.n1],rs b. Deductions grunted: ir?-;:sms exceeding three I) An amount of fifteen m11.ion dollars shall be deducted for each member dependent on the 3.amily for suoport. 2) An elnount of five millior dollars shall be deducted for each person being educated. MONTHLY BULLET.Lli No.XV - Feb:uary 1948 - Annex To.KLIII ? Page 3 L Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926 A01,018-5 c, Tax rateei, 5% cn any part of the income in 000,000,000. 7% on any part of the 0.,00G:000,000, 10% on any part of the income $2,000,000,000. 13% on any part of the income to 44,000,000,000, 17% on any part Cf the .xic,ome to 410,000,000,000. 22% on any part of the income up to 00,000,000,000, 285 on any part of the income up to ;390,000,000,000, 35% on any part of the income up to 4300,000,000,000. 42% on any part of the income up to 4500,000,000,000. E0% on any part of the income excess of $300,000,000 up to to excess of 41,000,000,000 up excess of 42,000,000.000 up excess of $4,000,000,000 up excess of 410,000,000,000 excess of 030,000,000,000 excess of 490,000,000.000 excess of 4300,000,000,000 excess of 4500,000,000,000. Income in excess of 4500,000,000 up ? in in in in in in In ( End ) MONTHLY Tard_6_ - Pebruii.ry 1948 - Annex MroaLIII Page 4 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0061111, UNIVERSITE L'AU -Shanghai- BUREAU DE DOCUMENTATION (Economie Chinoise) 280 Chungking Nan Lu (Dubail) Te1:85761 Simplified Methods for the Investigation and Collection of the Businesu Tax on Shipping Enterprises. Laid down by the Bureau of Taxation with the Concurrence of the National Shipping Federation (date of promulgation unknown); Published in the Lih Hein Monthly Dec. 15th. 1947. .R 0 R Annex 1?,1 XLIV Annexes conoernalit Nos. XXII & XXIII 4) 1.41.1bor of pages: 5 Remarks: See p.3 for an important Appendix: "Supplementary Provisions...6 SIMPLIFIED METHODS FOR THE INVESTIGATION AND COLLECTION OF THE BUSINESS TAX ON SHIPPING ENTERPRISES 1. In order to raise efficiency and to eradicate malpraotioes in the levy, all shipping enterprrses shall be subject to the special business tax 1) whose investigation and collection shel., be simplified according to these Methods, sin?e most shipping businesses are international or interprovincial combunioations with great numbers of branch or sub-branoh organs add all adopt a centralised system with respect to their management and accounting. 2. If there exists in any province or municipality shipping enterprises which are neither international nor interprovincial and as a consequence of the simplified levy of the special business tax thereon, the s.rdinary business tax is'deoreased, the amount shall be estimated by the Central Government and Lade good by means of the special business tax. /) EDITOR'S NOTE: See Monthly Bulletin No.LX (June-July 1947). Annexes XXII and XXIII. Pine Special Business Tax Lawspromulgated by the Chinese National Government on the let, of May 1947, and *Rules governing the Application of the Special Business Tax L. M promulgated by the EXecutive Yuan on the 11th. of June 1947, MONTHLY BULLETIN No.XV - February 1948 - Annex No.XLIV - Page. L_IApproved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00111111,018-5 // 1 , ? 3. Shipping enterprises shall repor on and pay the special business tax to the local competent collecting office through their principal institution - including general company, general administration, or head office, 40. the 'head office of a company' as mentioned in the Company Law 4) or the 'principal store' as mentioned in the Commercial Registration Law, 2). No further payment shall be made by any branch or sub-branch organ . including branch and sub-branch companies, branch administrations, branch offices, branch divisions or places of business, i.e. the 'branch office of a company as mentioned in the Company Law or the 'branch store' as mentioned in the Commercial Registration Law. 4. The competent collecting office shall investigate and assess the special business tax on shipping enterprises according to the provisions of the Bureau of Direct Taxation of the Shanghai Municipality, regarding the standard assessment of the-income ta.x on profit-seeking (enterprises) 3), and (also) according to the following methods: a).The competent collecting office shall, with the conourrence of the local shipping guild, investigate the aggregate amount of the business receipts and net tonnage of the steamers of three to five shipping companies chosen at random, and avera6e the business receipt per ton: this shall be taken as the standard rate of business receipt per ton for the various shipping companies. The formula of computation shall be as follows: Standard business receipt per net ton ? Cagate amount of business receipts of X no. of qhipping Co. regate amount of net tonnage of X no. of Shipping Co. ?11, fm ??? EDITOR'S NOTES: 1) The company Law was promulgated by the Chinese Nation41 Government on the 12th. of April 1946. 2) The Commercial Registration Law was promulgated by the Chi4ese National Government on the 28th. of June 1937, and its Applicaiion Rules promulgated by the Ainistry of Boonondo Affairs on the 13th. of hay 1938. For a new Draft of the Commercial Registration Law, see Monthly Bulletin No.XIII. (December 1947). Annex XX1VI. 3) See Explanation & Practical Example, for the Standard Assessment of the Inoome & (Excess) Profit Taxes, issued by the Shanghai Office of the Bureau of Direct Taxation and published in the Lih Hain #onthly, August 16th. 1947. I\ ? MONTHLY BULLETIN No.XV - February 1948 - Annex No.XL111 - Page 2 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A00...PF-5 Ii ii I ko,i b) The total business receipts of each shipping company ahall. be computed according to the total net tannage oi the steamers of that particular shipping company at the standard rate of business receipt per ton. The formula of computation shall be as followss Total Business receipts of a Company = Standard rate of business receipt per net ton multiplied by Total net tonnage of the steamers of that particular Company. c) The amount of tax to be paid by a shipping corpr-zy shall be computed on the number of actual working days of the 1 various steamers. The formula of computation shall be as folloast The amount of tax to be paid by a Company = (1) Total business receipts, multiplied by (2) No,of days in taxable period - No. of non-sailing days -41i-17. of days in taxable period multiplied by (3) Tax rate b. The number of working days shall be computed on the time of actual sailing and of anchoring for loading or discharging cargoes. If a non-working period caused by repairs or aocidents. at sea, is less than three days, it shall still be counted; if it exceeds three days, then deduction shall be made a000rding to the number of days. Each company shall be responsible for filling in and submitting a report regarding its actual working days. 6. The shipping guild shall assist the tax collecting office in settling any problems arising from the computation or technique of the business tax on shipping enterprises. 1) EDITOR'S NOTE: See Appendix on p,4 for an important change in the calculation of the amount of tax payable. EDNTHLY BULLETIN No.XV - February 1948 - Annex No.XLIV - Page 3 Approved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 1111,8-5 APPE1MIX SUPPLEMATTARY PROVISIONS GOVERNING TU LEVY OF THE '-:-CCIAL Busirms nix ON SHIPPING :!AfhliPRISES Laid down by the Minidtry of Finance and published in Ta Kung Tao (Shanghai) February 13th. 194?, 1. All shipping companies which have teen registered for sailing international ix interprovincial lines, shall, according to th... tonnage of their ships and the amount of their receipts from operation, report for and pay the special business tax. 2. It is approved thnt starting from the day, of the renewal of thi levy on transportation business - the first of October of the thirty-sixth year of the Chinese Republic (1947) - the special business tax en enterorises be paid c:;11ectively b!, iie general office of each corTaiiy, But the report and payment m.1,T. be :cede before the time limit )et in Articles 7 and 11 of th,, Rules governing the Application of the (Special Business) Tax failing whicll the general office of the company shall be hi3,1 responsible for the delay in the reuort or the payment. 3. The local competent collecting offices shall audit the busines books and certificates of the general office Cf each shipping company in their localities and figure out the standard average amount of business receipts per ton for three months - the to'al business receipts for three months of all the shippipg companies divided by the total tonnage of their shipping - this shall b:t taken as basis for assessing he tax for each quarter. No.further quarterly auditing of accounts shall be made. But if there has - been any increase or decrease in the prices of tickets or freights charged by the business, the standard average amount of business receipts per tcm shall be re-assessed in proportion to that increase or decrease. 4. The number of working days for any shipping company shall be counted as ninety dayn for each quarter no reduction is made in this for non-sailing days. The formula for computing the tax shall be as followsi The amount of tax to be paid by a Company a (1) The utandard ave.:age business receipts per ton in three mont'cs, multiplied by (2) .The total monnagc f Lb-, ? ,t that Company, multiplied by (3) Tax rata. __- MONTHLY BULLETIN No.XV - February 1948 - Annex No.XLIV - Page 4 LAI3proved For Release 2002/08/13 : CIA-RDP80-00926A006900040018-5 Approved For Release 2002/08/13 : CIA-RDP80-00926A0069 ? If there has been calf increase or decrease in the tonnage of the steamers of a shipping company On account of a change 'in the navigation lines or for any other reason, it shall immediately be reported to the local competent oolleoting office and an adjustment shall be made in the assessment of the tax for the following quarter. 5. Whenever it is necessary for purposes of control in levying the special business tax on shipping enterprises, the looal competent collecting office shall at any time again investigate sample cases chosen at random from the relevant books and certificates of the branch or eub-brttnch business units. They may also at any time write to the authorities concerned requesting them to investigate and verify the working conditions. (End) ....... wviem MONTHLY BULL8TIN - February 1948 - Annex KoALIF L3proved For Release 2002/08/13 : CIA-.RDP80-00926A006900040018-5 Page 5