DAIREN'S INDUSTRIAL INPUTS, PRODUCTION, AND STATUS OF FACTORIES/ANTI-FRICTION BEARINGS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00047R000400310001-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 23, 2016
• Document Release Date: April 19, 2013
• Sequence Number: 1
• Publication Date: May 13, 1954
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
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COUNTRY
SUBJECT
PLACE
ACQUIRED
CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
DATE
ACQUIRED BY
DATE OF INFO
Chins
rrirolr� �
DATE DISTR. /3 Hay 1954
Dairenps Industrial Inputs, Froduction0. NO. OF PAGES 4
.and Status of FactoriesAnti-Friotion
Bearings
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE MEANING OF 77777 IS, SECTIONS 799
AND 794, Of THE U.S. COO!, AS AMENDED. ITS TRANSMISSION OR SEYE.
LOTION Of ITS CONTENTS 10 OR RECEIPT ST AN UNAUTOIDRIZED PERSON IS
PROHIBITED BY LAW. THE REPRODUCTION Of THIS 'DOM IS PROHIBITS�.
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
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THIS IS UNEVALUATED INFORMATION
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50
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I. 19510 the inputs of industrial material arriviug from the USSR for Dairen
were limited to *Achim.' *Nimble of precise work and to special kinds of steel
anA other msta1a0 Every effmrt was made to subititute 0hinrlas materials for
Soviet0 lOwever, inearly 1952 it A44 not oleo,
to 'mat extent the above polioy
COULD DO uspAemented0 a WAS not clear becauss in l951r;]Maohine Factory
No 17 still received some materials from the USSR which d been ordered in
1950 and had not been delivered on time* At any rats it was considered the,
Analan should provide construotion iron and sheets (steel No ,3 by Soviet 50X1
standards)* Nevertheless at that time Anshan could not produce lighter
sizes of L, I, U, and T shaped rods and sheets* Steel of better ousli was
supposed to come from a. oruoible steel plant in Dairen, but
most of it really cane from the USSR. Ferrc-alloys� copper, op
and alumAnum also were provided by the USSR. Electric motors came from
Mhkden and Shanghai* Steel oables and insulated, wires arrived from Mukden.
&mover, the USSR furnished paint pigments, maohine oile0 and lubricants.
In addition, all metal pieces of precise sizes and of special content cams
from the USSR0 as well as all new maohinery, particularly for metal working..
As of 19500 Dairen furnished the USSR the following productse soda ash0
soda oarbonate0 and caustic soda from the soda plant electric bu1bs3 and
edible oils, such ss bean, peanut0 and sesame oils (these were sent in
drums and bottles). The USSR no longer plaoed orders for machinery, storage
tanks for aviation gasp and cranes. The above information does not include
the needs of Soviet Army units stationed in and near Dairen and the require
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manta of Soviet nationals. The latter were supplied through "Spetstorg�"
a trading organisation available only to the Soviets.
In 1951 and 1952 all production plans for factories in Dairen were issued
framilnkden. Exoeptions to this were orders placed by the Soviet Army,
but theta, orders were not extensive. Dairen faotoriea attempted to effect
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CLASSIFICATION CONFIDENTIAL
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DISTRIBUTION
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
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Changes in the production plans handed down from Mixkden� which would be
more convenient for the factories to fulfill� However, they had small
succeas in effecting changes in late 1951, when the 50X1
production plans were issued for 1952 by the authorities in Mukden, the
Chinese authorities in that city were not yet in full control of the
industry of Northeastern China. This was even more tru as regards the
Industrial Administrations of the Chinese for North and Central China.
As a result, the Chinese seemed incapable of placing sensible orders for
such a factorn es Machine Factory No 17 in Dairen. The orders were
unsuitable in regard both to items and quantity* Perhaps later it became
more efficient, but for 1952 this procedure caused many difficulties at
NO 17 and its general output had to be reduced. The above data indicates
then the situation as of early 1952* It shows a significant change in
Soviet economic policy in Dairen, s compared to previous years, when
practically all material supplies came from the USSR and most of the
Dairen production was destined for the USSR* The exception to this had
been the products needed for rehabilitation and development of local
factories and for use by the Soviet Army stationed on the Reantung
Peninsula.
50X1 40 The main idea, behind the Soviet dismantling and appropriation
of machinery in Dairen was to reduce the industrial war potential of Northern
China and the EWantung Leased Territory* A concomitant factor was that the
USSR obtained additional maohineey0 The latter factor at times predominated,
as when railroad rails were removed to the USSR0 Therefore, the Soviets first
demolished metal working plants in the Dairen area, and the largest plants
suffered the mo*** nectrie power plants in thooe faotoriee were removed,
inoluding the heanioat and newcot maehinery, whio4 also included presumably
all eleotrio metere* Some plants, ceeh 46 the new ehipebuilding yard at
Pearl about five km west of Baehigeura, wee practically demolished,
as well as a new teel plant in Chin Chou, which Was 50 km north of Dairen
along the main railroad line, Smaller and older maohinee were stolen by
50X1 Chinese mobs() most other factories which did not work metals
were not effected by Soviet removals and even were protected against looting�
Such installations included flour mills and vegetable oil mills* Many smeller
Chinese factories were not effected, even those which did metal work. The large
Onoda cement plant was not destroyed This plant was about five Ica southwest
of Stu Shui Tze station, which is the point where the railroad line for Port
Arthur and the main railroad line to the north divide, An airfield is located
close to the station, Large plants such as the soda faotery, the chemical
factory, and the mineral oil refining plant had been looted and were out of
50X1 0010/11illaiellay a 19480 exactly how the destruction of these
plants was carried out, but machines capable of precision and 50X1
electric motors were taken by the Soviets, everything easy to move was
looted by the Chinese, and general destruction was caused by nature, as the
plants were not protected and often remained without reefs* The recovery of
industry in Dairen was far from 100%0 Some plants were put out of commission
permanently. The process of industrial recovery was started by the Department
of Economy of the Soviet Civil Administration, whiah formed certain types of
industrial activity into "trusts" or "oompanies1�, These activities were
entrusted to Soviet engineers temporarily relieved from army duties0 These
aotivities included DALENERGO, Kwantung Riba (a fishing company) Dal Dock,
Dairen Port and perhaps other installations* These trusts became a focal
point for collecting plants and available machinery. They were empowered
to move even shop buildings if necessary. By this method, at least a part
of the metal working industry in Dairen VAS rehabilitated in 1946-470 As
victory of the Chinese Communists became more apparent, Soviet authorities
CONFIDENTIAL
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
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began to stimulate the Chinese to begin to rehabilitate other plants net
included in the Soviet trusts. As a result the following plants were
partially repaireds Machine Factories No 18, 19 and 20? and the chemical
plant. Among the larger factories rehabilitated and operated up to 1951
by the Soviet trusts weres the railroad shops, the soda plant, plate
glass plant, the electric bulb plant, Machine Factory No 179 Dal Dock,
the mineral o;1 refining plant, and three or more vegetable oil factories,
as well as a cement plant and an electric motor plant. Rehabilitation was
effected mostly by utilizing local resources. Available machinery was 50X1
removed, collected, and assembled, at first under the supervision of
Soviet engineers and local Russian engineers and later under the supervision
of Chinese engineers. The latter included men who were local residents and
also those who came from Tientsin and Shanghai, Initially, existing machinery
was repaired* Later machines began to arrive from the USSR and the first
deliveries of this type were electric motors* the
t:rceui :ftae of plant and production facilities rehabilitated, but
in
50X1 he general industrial capacity in Dairen 1952 was much less
of the capaoity under the Japanese. 50X1
50X1 50 In regard to the shortage of skilled labor, 50X1
there was na 5ui shortage in Dairen, considering the volume of industrial
activity there in 1952* There was much more difficulty to find good engineers
and technicians, particularly Chinese* The Chinese authorities in general
wished to avoid utilising Russian emigres on their staffs, but were unable
to do so completely* However, they did remove them froze administrative
positions and kept them only as teehnival advisors. 50X1
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e.
In regard to the labor training proteame,
as early as 1947 Nestume sitztory No 27 had a school
of this type, which instructed 40 to 50 ahinseo yeungeters of both sexes.
The course lasted from four to six months and later was enlarged to handle
200 men and women. The pupils spent part of their time in classrooms,
part on training work benehem, and part in actually workingin the shops*
They were paid according to the lowest grads of skill� In No 17 there were
tour main specialties taught foundry, electric welding, turning, and fitting�
Also there were courses for electric work and hot pressing and a few other
speoialtiea. After the pupils completed their course they were examined*
Several Soviet offioials were present at these examinations, usually one 50X1
or two Soviet Army engineers of the Soviet Civil Administration* The
graduates received the rank of second or third grad, workmen (according
to the Soviet scale where the seventh grads is the highest).
ri-illthe propaganda course in politics, was obligatory. There was a more
this training programwas very elementary but the "politgramatal that
advanced industrial school in connection with No 17 which was organized
in about 1950 for workers of the third and fourth grads and higher. gee 50X1
Sehoole for higher technical
education were also organized in Dairen Ind were considered to be of
un.rsity level. Some of the Chinese foremen were sent there0
the program �t these schools except that "politgramata
e Russian language were obligatory. The ourrioulum followed that of
the Soviet "Rabfak" (Raboohi Fakultetafforkerso Faculty)? a rather incomplete
system of industrial university education used in. the USSR in the early 1920s.
7. In regard to any new plant construction, since 1945,
except for the relocation of some plants and the erecting of some shop buildings.
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1
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stocks of materials in Dairen factories in
early 1952 were very small in comparison to the period of 1949-50.
However, stooks of completed but not delivered products at Factory
NO 17, for example, were large, up to half of the year's program*
The reason for this accumulation was that representatives of the
consumers did not arrive on time to accept the production* The
reason for this, was that the Chinese Communistso state
management -f industry and trade was not yet properly organized*
In regard to anti-friction bearings, ball bearings were produced
in Wafangtien near Dairen, just on the border of the Kwantung Leased
Territory* The factory whi bearings was,
built during World War II* there was another factory
turning Out the same produo on an Goa ad somewhere in. Manohuria,
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Machine Factory No 17 used only ball bearings
which came from the USSR in its production* At one time No 17 received
from the USSR a large amount of ball bearings whidh had been made in
used looal
bearings
in 1951, , one of the engineers of No 17 was sent to Wafangtien
to plasm an order for bearings for bridge cranes* The factory there refused
the order as it already had more orders than it could fill* Machine
Factory No 17 produced roller bearings for the minelsipc�wagons which it
manufactured* The bearings were of poor quality bat adequate for use at
iew speeds*
Once
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/11/04: CIA-RDP82-00047R000400310001-1