JAPANESE FISHING BOATS ENGAGED IN SMUGGLING FROM OKINAWA TO MACAO AND HONG KONG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R008000730003-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: December 20, 2000
• Sequence Number: 3
• Publication Date: July 3, 1951
• Content Type: REPORT

Approved For Release 2001/ 06 : O -RDP8B2-00457R008OO0730003-4
CLASSIFICATION s HET/CO TxUL - U.S. OF1ICIALS OILY
CENTRAL TELLIGENCE AGENCY REPORT NO.
INFORMATION REPORT
"OUNTRY L .aoao/Chine/:fong Kong
SUBJECT Japanese Fistdag boats Engaged in
t Smuggling from Okinawa to 1Wacao and Hong tong
PLACE 25XJA
ACQUIRED
2
CD NO.
DATE DIM, 3 July 1951
DATE OFu y.. SUPPLEMENT TO
INFO. REPORT NO.
25X1X
ivlw~ ' U _ _
NSR 3 DI
STR BUT(ON
r~ x FBI I~~ Ohid Isv x
'c`` c; r r,,,
h:vist Of 3 k;
t Review Dm0 ^
1. In late Tway 1951 five vessels from the Ryukyu
a. Because of the high prices for flour in the Ryukyu Islands, some people
from Taiwan together with some Ryukyu natives began smuggling shell
oases to Hong Kong for sale, loading flour and other commodities for the
return voyage.
2. The background of this incident is as follows;
b. After their entry into the Korean war, the Chinese Communists badly
needed shell cases, for which they were willing to pay high prices.
The Chin Lung and To Sheng (4 ) Companies, Hong bong,
established f.in.anaaa connections with the vessels from the Ryukyu
islands whereby they obtained a monopoly of the trade, reselling the
oases to the Chinese Cominunnists.
a. The Chinese Communists, learning the origin of the shell cases, wished
to exploit this channel for getting information about the American
forces in the Ryukyu Islands. Working -through the Chin Lung and Te
Sheng Companies, they provided money for the number cf vessels to be
increased to ten. Beginning in .aroh, the Chinese Communists put
controls on the price of shell oases. with the result that the Ryukyu
vessels lost money heavily. `thereupon the Communists entered into
negotiations whereby they would suprly capital for the purchase of
flour and other commodities in song &ong, in return for which the
vessels were to bring gasoline, tar and American military supplies to
.1acao and thence to CantLa. They were also to transport Communist
agents disguised as merchants to the Ryucyus.
CLASSIFICATION S^ T/coNTRUL - U.S. O1 FI CI ALS O r LY
ARO AL RECORD
PIS SE RETURN TO
AGE~~Y ARCkIIVES B,LD h-l~.
Release 2Q.01/03/06 : CLA-RDIR8200450lMhQ ,
0 -
 NET/CMITROL - U.S. OFFICIALS ONLY 25X1A
CENTRAL INTELLIGENCE AGE'S CY
do Since March 1951 a large number of Chinese Communists have been i.nf"il_
trated into the Byukyuse In 2 ay, d::siring to send even larger numbers,
the Chinese Communists detained five vessels which were waiting outside
f+:aoao for clearance and took them to Canton: The vessels had been hold
up near iv a sac because they were fully loaded with gasoline and tar,, 'Ilia
Chinese Communists plan to replace the Ryukyu craws with their own xneu~
30 Two vessels from the 4ukyuslslands, not oou_aeoted with the Chin Lung Company,
viewed the seizure of the other five vessels with dismay, fearing that the
inci4ent would bring the trade from the hyukyus to the attention of the
Ainer1cin consulate general in iiong 1~ong0
4. On 31 May 1951 four Japanese fishing boats arrived outside Maoaao territorial
waters and applied to the i:jaoao Marine Police for entry.. Entry was refused
because they had no shiiping documents w The officers on the boats then got
in touch with a Japanese named EGUQil to the manager of the i orracer Japanese
war-time South China Fisheries m?onopoly Company2 now called the San Qiien
Chu Ship Hui She ~~ ~ / L )q of 13 hain Tung; Shang Street, Naeao,,
5.. The vessels contained 500 drums of Diesel oile 73,600 rubber tires and 700
piculs of used shell casings. The oil was in green drums, and may have been
American Navy materiel which had been given to the Chinese Nationalists; it
was sold by EGUCPI to the Yu Using Company at the low price of
ilK 4700 par drum. After 280 drums of oil had been delivered in Chinese waters,
the Chinese Communist Customs gunboats disooveerod the fishing vessels and
compelled them to proceed to Ch"ienshan, .There four Formosans were detained..3
6.. On 2 June 1951 1-10 hsien'i, in the naauo of the Chinese Chamber of Cola rerce,
wrote a letter to the Chinese Communist Customs requesting release of the
vessels and the persons detained.
7m On 30 Lay, 19 Japanese went to &:aaoao aboard the SS TA IAI.5 They had lit4le
luggage and were dressed likes fishermen., The Japanese told sailors on the
TA LAI that they had obtained permission from. the authorities in Tokyo to
make this trip, 6
25X1 A 1.. Ccarunent, or previous references to 1 GUcFii ?, see 25X1 A
25X1A
25X1A 2. Comment. This was called the Japanese Sea rroduats Company in
25X1A
25X1A 3- Gounent, There seems to be no reason. to doubt that these
vessels are the, sar,ie as those reported in paragraphs 1 and 2 above,. The
discrepancies in the accounts given by the two sources can be taken, as
evidence that the information was independently obtained? The details
25X1X furnished by the informant may be more accurate in reference to
the events of 31 a v, Previous re orta of this trade may be found in
25X1A
25X1A 4.
Approved For Release 2001/03/O6 IA ROP82-00457RaO8000730003-4
See paragraph
25X1A b. C?rarent. SS Th LAI plies bataruen bong Kong and lacao? See
25X1A
25X1A c? Comment. They were presumably referring to their trip to
'long Kong, rather than to the jaunt to Laoao.
CONTR01 .- 1l. S. OFFIC1:_,LS ONLY
Approved For Release 2001/03/06 CIA-RDP82-00457R008000730003-4