(SANITIZED)SHANGHAI GENERAL INSTRUMENT FACTORY: HISTORY, ORGANIZATION, PERSONNEL, PRODUCTION AND LAYOUT(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A026800580001-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 10
• Document Creation Date: December 27, 2016
• Document Release Date: November 15, 2013
• Sequence Number: 1
• Publication Date: May 8, 1958
• Content Type: REPORT

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INFORMATION REPORT INFORMATION REPORT
CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning of the Espionage Laws, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law.
CJ TRY China
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REPORT
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SUBJECT Shanghai General Instrument Factory: DATE DISTR. F May 1958
History, Organization,, Personnel,
Production, and Layout NO. PAGES
DATE OF
INFO.
PLACE &
DATE ACQ.
REFERENCES
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SOURCE EVALUATIONS ARE DEFINITIVE. APPRAISAL OF CONTENT IS TENTATIVE.
History
10 The General Instrument Factory (Tsung Ho I Chli Chiang) (4844/0678/
0308/0892/1681), Shanghai_. was established by the 50X1-HUM
Whitney Trading Company The chief organizers were unuu xuan-chen OUX1-HUM
(0719/0337/2823), chief manager of the Whitney firm, and LIU Chiun-kivai
(0491/ /1816), also known as LIU Fel (0491/7378), second manager of
the Whitney firm, who became manager of the new factory. The factory
had great difficulty getting engineers and other workers, because, as
a private company, it could not hire persons employed in state factories;
it started with a staff of only 25 persons. 50X1-HUM
2.
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during the three-anti five-anti movements, although 50X1-HUM
the factory, since it was just organized., was not affected directly,
the Whitney trading Company was investigated and former Whitney em-
ployees of the factory were recalled to the older firm to take part
in the proceedings. CHOU, LIU, and another member of the factory were
forced to confess to illegal activities, and the Whitney company was
fined over ten billion yuan (old currency) They were 50X1-HUM
given a year to pay the fine, and this necessitated stepping up the
factory's activities in order to raisethe money.
managers had invested about 50 million old
they put in 130 million old yuan, and
vested 25 million more.
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factory; 50X1-HUM
they have in- 50X1-HUM
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the factory was semi-nationalized, an arrangen50X1-HUM
whereby the stockholders were to receive dividends not exceeding 4.5
percent for seven years, after 1.1tich the factory would become totally
nationalized. Before the nationalization measures went into effect,
key personnel of the factory were sent away for several months'
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(Note: Washington distribution Indicated by "X"; Field distribution by "#".)
INFORMATION REPORT INFORMATION REPORT
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schooling to prepare .them ideologically for the nationalization.
Director LIU was required to attend a different school, especially
for capitalists, a group of three or four Communists
came to the factory., ostensibly to increase productionl they talked
to the foremen and pointed out the need for nationalization. The
manager was required to apply "voluntarily" for nationalization.
Many other plants, some of which were not on the list for nationali-
zation, were also requited to apply "voluntatile-so that some could
be rejected and acceptance could be made to appear d prvilege.- The ??
government set three requirements for nationalisationg . the plant
had to be making -a profit, it had to be important to the state, and
it had to be in need of modernisation. About two months after the
manager applied for nationalisation, it Was granted. The only im.
mediate effect on the internal organisation was the establishment of
the office of party secretary in the factory, which then had a Staff.
of about 45 or 5eig
After nationalisation, the plant was placed under the Administra
of Technieal Production (un g Yeh kik& Li thu) (15602814/4619/-
i444) ofthe thanghai goverment* because it was a ?local half..,
nationalised factory" instead of a "central" factory which We
have been placed directly under Ehinistey in Peiping;
repeesentatives of the newly established technical bueeau fap .
Measuring instement donsteuction Of the Piest Ministry of Machine
industry in Peiping visited ?hanghai to inveatigate the passibiitty.
Of incorpoeatifig the factoey with the thanghaiteientific and 144:::
dustrial instrument besearch institute* whibh we*thbn beintol4h40
They discussed the ni8V6 with the efigineering,staff-ot_the factdt601-
cohbuered in it: dila' tung=fu (otijii63&46)* party dar@bif# of '
the factory* Who feared that his iffiportance-wouid be diffiinishedi
opposed the mirth it was also 'opposed by the thafighai goverment*
which wafited to keep the factory Uhaer it6 jatigdibtibh; official
reasofi givefi by Mg afi&the gs'eerfiffiefit OdS that the factory was the
sole producer ifi ehifia of gOffi6 iteaL ibki l it were idaded adgil the'
Fddeall6A Willa 86 affiphasised at the bip6fibre 8f proaUeti6R;
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The ffiatter was takefi 2E6. th6 tate Piafifiifig ebr 1:Sei60, Where,
Li F?-Oh'un rided that bib factory Should hot be piabda
under the iiistitute The Technical hdreail, however, asked the taatbr#
engineers to assist informally in organizing the institute, which the'Y
did. LI Fu-chlun made a personal visit to Shanghai and.
reversed his decision, placing the factOrinstitUte.,
factory had been criticized because it had too many engineers in pro-
portion to its workers and production; LI's move was designed to bring
the engineering staff of the factory into the institute, which was
more interested in individual research capabilities than in factory
production. most of the engineers and the factory director:
had been givenposts in the institute. .While they still hold their, ?
positions in the factory also, they visit it only .occasionally to
supervise production and perform their research and development work
,
at the institute.
Organization
6. The organization of the factory included :a
directorate with subordinate offices (shin) (1358) and department0,,
(kto)'(1.430), Personnelansferred to the Shanghai Sci.Phtificaiiilia01,'J'.
trial Instrument Research'institue are shown in the positions they *ita4A
continue,to occupy at the factory, There are, in addition titc"the-pftligiOn;tt
nel listed below, between 100 and 200 students scattered throug11#0.;,.:'
departments who are assigned to the factory for training. The 0441*
zational arrangement is the following:
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(Party
Secretary
Directorate
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-i Sales and
Procurement
Department
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Projects
Department
-I Personnel
Department
Design
Chief
Engineer
Engineer
Office
Accounting
Department
_lAdministrative
, Department
Production 1
Department
Electric
Bulb
Workshop
Optics
Workshop
_I Regulator
Workshop
Oven
Workshop
?I.Pyrometer
Workshop
1 Fitters and
Lathe Operators
Workshop
Assembling 1
Workshop
4 Inspection Office
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.a. Thedirectorate consists of the director, LIU WUn-kivai,who is also con-
currently chief-of the Optical- Devices Office of the Shanghai Scientific
and Industrial Instrument R6'Search Institute; and two vice-directors; :CHOU
Hung-fu, and WANG Ku-min (3769/0657/3046),
both Communist Party-members with no technical training. CHOU is con-
currently party .secretary, in which capacity he is in charge of all party
activities in the plant. 50X1-HUM
b.
C.
The plant has a few classified documents, such as reports on personnel
matters, the annual production, plan, and price lists. These are kept in
the office of Vice-Director WANG Ku-min but are not locked up. The higest
classification, stamped on the documents, is "Confidential" (chi mi) (289)--/
,1378); there are no documents with the classification "Secret" (mi) (1378)
ar'"Top Secret" (Chi mi) (2817/1378).
The position of chief engineer is held by PAI Chin-yuan (4101/6855/0337),
who has occupied the post since the factory was es-50X1-HUM
tablished, and who is concurrently chief of the Thermotechnical Office
of the Shanghai Scientific and Industrial Research Institute. Under him
is the Engineering Office (Kung Chfeng Shih Shih) (1562/4453/1597/1358).
It includes four engineers, who also staff the subsidiary Laboratory
(Shih Yen Shih) (6107/7526/1358). This office studies foreign instru-
ments, makes copies and improvements in them, and is responsible for new
developments. Little work has been done here, however, since the transfer
of the engineers to the Shanghai Scientific and Industrial Instrument
search Institute. Another subsidiary office is the Design Office (She 50X1-HUM
Chi Shih) (6080/6060/1358), headed by LIU Hsiao-szu (0491/1321/1835),
a graduate of Tiling Chi (0681/3444)
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University, Shanghai, a specialist in the mechanical
aspects of instrument construction. There are about 35 employees
of this office, all engineer technicians (chi-shu-yuan) (2111/
5890/0765), persons with engineering degrees not yet designated
full engineers by a classification commission. The four engineers
who run the Engineering Office are:
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(1) CHAO Yuan (6392/0337), an optics specialist, 50X1-HUM
who was graduated from Peiping University and is 50X1-HUM
concurrently a professor at Chekiang University and an engineer '
in the Optical Devices Office of the Instrument Research
Institute.
(2) WANG T'ung-chang (3769/0681/7022), graduated from 50X1-HUM
Ch'ing Hua University, Peiping, responsible for
work on the electric oven, who is concurrently head of the
Special Material Research Office of the Instrument Research
Institute.
YANG Hou-ching (2799/0624/2417),
from Nanhai University in Tientsin
for general electrical engineering problems.
graduated
responsible
SHANG Shu-ch'i (4141/2885/3217),
from the University of Wisconsin
specialist, who is also concurrently head of
Regulation Office of the Instrument Research
graduated
an electronics
the Automatic
Institute.
7. Under the directorate and its related offices are various departments:
a. The Plans Department (Chi Hua Kso) (6o6o/0487/443o) is headed
by HSIUNG Tsung-ch'ing (3574/1350/0615), a soldier,
also factory secretary of the Communist Youth Party.
I There are ten other employees. This
department works closely with the Production Department, in which ?
its employees work concurrently.
b. The Sales and Procurement Department has seven or eight employees
and is headed by SHIH Ch'un-shu (2457/2504/2885).
c. The Personnel Department is headed by T'AO Shang-yueh (7118/1424/
2588) and has about eight additional employees; all are members
of the Communist Party. Two or three members of th:s department.
are designated as Communist cadre for the factory, but they are, -7
not organized as a special unit because the faatory is not large.
enough to warrant it. The cadre is responsible for the political
loyalty of members of the factory. they worked
through cross-examination and encouragement to Informers, but -
these methods caused such wide-sp;eL,d resentment that they. are.h4
longer carried on openly, although confidential investigatVoti85.',!?,
are still performed. The functions of the Personnel Department::
include supervision of the student apprentices assigned to the--
factory.
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d. The Accounting Department handles bookkeeping and finances . It
has five employees besides its chief, YU Hua-Jen (0060/0553/
e. The Production Department. (Shsng Chtan V.o) (3932/3934/4430).'islakt,,.0'.,r
headed by YUAN Hua-chluan, (591.3/5478/1557),
Tnere are ten other employees,. who work con-
currently in the Plans Department. Administratively this depart,
,
ment is directly under the director, but for technical problems
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- it is under:,the Chief Engineer. ,. -i-%
.,..
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,te 4
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8. Under the Productien Department are various offices and workshops
(ch'e chien) (6508/7035):
a. The Inspection Office tests final products to determine whether
they are of good enough quality to be marketed. According to a
decree of the Administration of Technical Production of the
Shanghai government, chiefs of inspection offices in all factories
should be at the same level as the plant director in order to
prevent the latter from releasing poor products to the market.
The factory has riot complied with this decree, however; the
chief of the Inspection Office is an engineer-technician, CHANG
Shu-chi (1728/2885/1015). There are five other employees. The
testing equipment is all either locally made or of standard type,
such as German-made Oscilloscopes, American-made vacuum tube
voltmeter, various small meters, spectrum analyzer, and various
items of Zeiss optical test equipment. The Insp(Iction Office is
subordinate to the Production Department but is also responsible
to the Chief Engineer.
b. The Assembling...Workshop assembles parts Made in other workshops
into final products and also handles electroplating, painting,
and varnishing. It is broken down into smaller sections for
each of the finished products made by the factory. The chief
is an engineer-technician, PAN Chia-te (3382/1367/1795); there
are about 40 employees, of whom three or four are skilled workers.
c. The Fitters and Lathe Operators Workshop has About 60 employees,'
including three master fitters and three master lathe operators.
Until mid-1957 it was headed by CHANG Ching-hsun (1728/2417/1559),
a master lathe operator; he became deputy when a new shier, an
engineer, took over
d. The Pyrometer Workshop is headed by a technician, Till Hsi-k'uei
(4047/6932/7608), and has 20 other employees.
e. The Oven Workshop is headed by a skilled worker, WANG Chi-shan
(3769/1015/0810), and has five employees.
f. The Regulator Workshop is headed by an engineer-technician, WANG
Chin-i (3769/0037/0001). There are 15 employees, mostly technicians,
who are capable workers but lack adequate training and experience,.
g. The Optics Workshop is headed by a master grinder, FEI Pang-chih
(6316/6721/3112); there' are about 30 other employees.
h. The Electric Bulb Workshop is headed by SHIH Yuan-ying (2457/
0337/5391), a master glassblower and practical engbVeer, without
an engineering degree. There is one journeyman and about 20
:apprentices. This section has no glassblowing machines, although
t,was planning to make small bulbs by machine.
Labor Union
The labor union in the factory is very weak, although all personnel
except the director belong to it; the reason is that the engineers,
rather than the workers, are responsible for the operation of the
plant,
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10.
Physical Installation
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the. factory moved from Yen Hai Lu (2518/
3189/6424) No. 196 to an address in the 1900s on Yen An Hsi Lu
(1693/1344/6007/6424) in the Fa Hua Chen (3127/5478/6966) section
of Shanghai. It is on a corner and consists of three buildings:
a one-story building, approximately square, covering about 500
square meters; a three-Eitory rectangular building covering about
3000 square meters; and a small shed. Only the one-story building
was there before the factory acquired the property; it was formerly
a repair factory for textile machines. A wall oh the north side Of,
the property separates it from the Wen Shin (2429/1102) Fountain Pe'
Factory. Between the three-story building and the street are a few-i
small buildings which do not belong to the factory and are used as
private dwellings. The factory is trying to acquire these buildinp
in order to tear them down.
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Production and Technical Developments
11. Products issued by the factory include the following:
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a. The first product of the factory was thermocouples. Production
started and was &Out 2000 a year
it was About 10,000. About half the thermocc.41,8
produced are elements without meters,, for replacement Of bur**
out elements; about half are complete units. More could be 04,4.
duced if there were greater demand.
(1) The models used are thermocouples manufactured by the -140
firm Camili Bauer from HartMann-Braun patents; theSe:Were
obtained through the Whitney. Trading Company Two types are
produced. .The first has element wires. of alumel, a hiCk(el.
alloy, and chrome', a chrome alloy, made in lengths Of one
half meter to two meters. The shortest sell at 180,Yuad;.:the
longest at 250 yuan, for element and meter. The secOn4;,type-
has wires of platinum and platinum rhodium; it is used for
measuring temperatures up to 1600 degrees Centigrade. The
largest of thA type is one meter long and sells for 500 .
yuan; 20 centimeter items, chiefly for laboratory purposes,,
sell for over 250 yuan. Cost of production is about half.
the sale price. "
?
(2) The.eleMent wire is obtained from the upsR through.tha,
National Import-Export Corporation.tHThe:protectiye'tOessArP
made of stainless steel, purchased in sheet form and:400::
Contracted to local sheet metal working4iholie.to be
and 'welded into tubes the sheetscamefrofiHthel
WOE; before that the factory was using old stock from the
United States. The insulating stoppers (lead-in plugS)a,re
ceramic, purchased in a finished form from an earthenware
factory in T'angshan (N 39-38, E 118,a1),. Hope:h.
(3) Millivolt meters, using agate, Which is Plentiful In China,
for bearings,' are madeat the factory.
b. The second item to go into production
magnifying glasses.
,
was lenses for
0. The third product was plane glass disks,
optical instruments for measuring the flatness of a surface. .
this was still the only factory in China producing
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these instruments. The instruments can measure within a ten
thousandth of a millimeter accuracy. They are made in diameters
of 40, 60, 80, 100, 120, 150, possibly 180, and 200 millimeter's.
Initially they were sold at a loss; the smallest
were sold for 50 or 60 yuan, the largest for over 200 yuan. The
labor cost is one man-day per unit. about three of the
largest were sold each month and between 200 and 300 of the
smallest. The large glasses are difficult to make, but the
factory can make as many of the small ones as it can sell.
(1)
Optical glass is not needed; normal hard glass is u-v)d.
Initially, the plant purchased thick window glass.
it began to use a hard glass like pyrex,
made at the Nanking Glass Factory. It was first tested
but was not in full production
since orders have to be placed four to six months in ad-
vance.
(2) The machinery for making the glasses is made at the plant.
It purchases small 3.5 HP motors locally and procures mountings
of cast iron from small two- or three-man foundries, of which'
there are several in Shanghai. The finest grain ferric oxide,
which is very difficult to obtain, is used for polishing.
The ferric oxide is probably of Japanese origin; it is ob-
tained through a state-run procurement agency in Shanghai,
the Wu Chin Kong Szu (0063/6855/0361/0674).
The
fourth product of the plant, which went into production
was an electric oven for determining carbon content
of metals and other materials, the ovens were improved
by the addition of glow bars for better temperature control.
Each oven is equipped with two or three glow bars covered with a
metal housing with thermo-insulating material.
sold to the Wu Chin Kong Szu state procurement agency for over
3000 yuan each. They cost about half this amount to produce, but
since factories are permitted to make only 15 percent profit,
the declared cost of manufacture is higher than the actual cost.
Labor costs are about 80 percent of the total because of the
brick-laying, and masonry work involved and theligh percentage of
defective ovens. Two-thirds of the ovens made are rejected as
defective; about 50 salable ovens are produced a month.
(1) It took about three years
bars, which are about 350 millimeters
use is in ovens. They sell for about
glow bars were formerly available but
they came
via the USSR.
(2)
(3)
to develop the glow
long. Their chief
35 yuan. Imported
were very expensive:
some East Germans, who were technical
advisors at the Po Shan (0590/1472) Factory in Shantung,
came to the factory to investigate the development of these
glow bars.
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a delegation from Peiping came to Shanghai
to investigate the im ovement or enlargement of electric
switching installations, small electric motors, and glow
bars. This was the first indication the factory received.
of Chinese official notice, although it had been trying
for three years to interest the government in glow bars.
e. the factory began producing larger chamber ovens copied':
rom the Soviet KO type, for which the original design had come -
from Germany. These ovens were being manufactured at the rate of,
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about 30 a month they sell or:about 5000 yuan.
also, the factory began producing ovens of the Soviet
G-30 and G-50 types, at the rate of about. 10.a.month, which
sold for 10,000 yuan. These were not of'good qualityl
thejaCtorydeveloped an
electronic temperature regulator for both the ){0and G type oven;
it was of Chinese .design but was made to'-lookexternally like the
Soviet type ERM-47. ...the factory
started working on a six-kilowatt hi-frequency4nduction heating-
surface annealing oven. 1$41kwas colepleted:..
for the factory's own use; production foa.Wwie.pOt achieved
This is the onlyfactOryjri:Ohina making
this type of oven. All parts are obtained ifl *Oghai, except.
radio tubes,. which come from the Peiping'Re: 'eTi206 Factory.
the factory began producing optical.14rOmeters; these
are made at the rate of about 400 a month'a*Oell for about
450 yuan, the plant began producing radiation pyrometers,
which are made at the rate of about -400 ael*Wand sell for about
pyrometer, modeled on a Soviet type; iladOpt the rate of
400 ruin. it also bege,4.P01:04;Pg another optical
about 400 a mOnth and sells for about
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the factory started production of a4)0laroscope to test
internal tensions of glass. About 10.of4hose were being sold
a month at about 1000 yuaneaph,-.: Also the
plant began making metaMargical microscopes; fcrinspect on of
metals. About 50 a month, at 6000 yuan each,. were belngsold
A polarization microscope WaS.ale0 introduced
about 15 a.month were produced'and sold for 1
yuan each. A larger polaroscope went, into production
after it had earned enough money from pyrometers, the
factory employed a glassblower and began producing lamps, in-
cluding lamps for optical pyrometers and low-pressure mercuili,_
vapor lamps for use with.the plane glass:measUring instruments.
it began producing lamps for radiatioh.pYrometers and .
sodium lamps. This is the only factO*ry in China producing
sodium lamps; according to the Academy of Sciences, they are
equal in quality to those made in East Germar4;.'
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14. Enclosure A is a sketch of the layout of the factory.
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Enclosure A
PHYSICAL PLANT, GENERAL INSTRUMENT FACTORY
SHANGHAI
wall
leiictr
plati
and
paint shop
3-story building
First Floor
private
dwellings
Yen An Hsi Lu
Admin.
and
account-
ing
Depts.
well -Entrance
1
1-story building
'fit-
ters oven
and - work-
3412111.!
stores
sho
lators----I
workshop
50X1
3-Story Building
Second Floor
Optics Regu,-
Work- lator
shop Work-
shop
stair
well
nspec -
tion
Office
tele-
phones
-T-I-A-L
NOFORN
115-67
--
Bulb
Work-
shop
Pyrometer
Workshop
Declassified in Part - Sanitized Copy Approved for Release 2013/11/15: CIA-RDP80T00246A026800580001-1