CHINESE COMMUNIST PURCHASING PROCEDURES, HONG KONG

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R008800520005-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: June 11, 2003
• Sequence Number: 5
• Publication Date: October 23, 1951
• Content Type: REPORT

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CLASS1F1COON
Approved For Release 63/08/ 4
CENVIRAL INTEL!. IGENCE AGENCY
iNFORMATION REPORT'
SUBJECT -Chinose Coutmunist in Pr 0 C4: eaarasfb
Haag Kong
PLACE
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1. There are in Hong Kong office representatives of three p?jor Chinese
ComanmiSt pUr ch4ising organs :1 The North China Import Company.; 17,,a;-3t
China Inloyart Company and South- China Import. Company. These representaamo
reside periaanently in Hong Kong .but have not Set up form.al commercial
organizations of their own They work through established: co;mercial
firm and import-export companies; covering each transaction. with
separate contracts. There is one contract between the designated
comercial firm and the seller of the product and another between the
designated firm and the ChineSo Communist organization nil/eh is the
ultimate buyer. A Coranunist representative handles payment in foreign
exchange as arranged in the contract.
The materials handled may include any supplies which are short and
.necessary in China. They are not. limited to :-,tilitary items?
?Apart from. the resident representatives of import comp,7,--Ini.,3 there are
sawral-.purchasing agents who are occasioxIally sent by Chineso. military
regions to Hong Kong; but those do .not stay long; traveling back and
frwei between Hong Kong and. the mainland. Their purchasea are c?bleilY
military -Supplies specifically. required t their own troops; er,g,
gasoline.; automobile spare- parts; tire ? radio suppliet;3 ote? The,
volnpe of these 'purchases is not great. Again; the method. of pavehase
is to utilize established cormorcial firms as agents ,..rith the Ca:mast
representative making. payaent in forolp. exchange ?
.In pAdition to these tai- types of official purchasing reprosentativess,
nuricirau,s private. firms in Hong Kong maintain -direct or indirect contacts
with purchasing organs inside China. Their procedure in to out
that -.0o4lediti%es are urgently needed by the. Chinese Communists and to
quote a price through their head o.Cfices or associate -.time on the
land. They than apply for -import clearances on items; :.7or which they
_provide. foreign exchange; and ship the c.omoditios into China 17,There
-their agents transfer them to the D'Yvenartent ? Certain firms in Hong Kong .
. CLASSIFICATION
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STATE -(4 NikW XMRS
ARMY AIR ?
CONFIDENTIAL
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48800520005-7
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OUITRAL ITITELLIGUICE AMICY
sgmetirrkes make Fjpacific quotations directly o (ZIT. Ccmilunist
organs without the step of utilizing an agent within China
Al.t.hough these mports a.rE.-3 paid for in foreign exchango thit
foreign exchange ffinst be converted Wi thin China ?.k...n to ?ea/3lly
exportable ce,AzIodities in order to avoid an 'unfavorable b