SHANGHAI INDUSTRY SEEKS NEW BASES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600300387-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 7, 2011
• Sequence Number: 387
• Publication Date: April 21, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300387-9
CLASSIFICATION CONFIDEI j EN l l
CENTRAL INTELLIGENCE AGE~N~C1R'r~ fl N4EPOR
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CO NO.
COUNTRY China
SUBJECT Economic (Editorial)
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Shanghai
DATE
PUBLISHED 3 Aug 1949
LANGUAGE
TWIN YOCUNIIT WHTAnt IVOUI*nOH \TCCn.. INV. ...OgL omm
Or TOr YHRHD rrlnr WITHIN THr ^nWIB Or UROH1rr ACT HO
Y. t. c.. it 1H0 it. Al M...- In ruunnwll 00 THt rrnUnOr
or m counHn a A.T ^?HnH To ?H VI4uTMOIIITHO nrroH U rw
Hnnm BT LAW. I
DATE OF
INFORMATION 1949
DATE DIST. 0 Apr 1950
Shanghai industry is now in dire straits, but is in the process of a
change worthy of the people's attention. For example, cotton mills have
already received goods from North and Northeast China and supplies are con-
stantly increasing. Min-feng and other paper plants are shipping cigarette
paper to North China. Recently, prices have risen in Peiping and Tientsin,
which brings them to about the same level as the Shanghai market, so that trade
between the two areas has increased in both directions.
Many Shanghai businessmen have been scanning the northern areas and con-
tracting for shipment of goods. The United Association of Manufacturers is
planning an exposition in Peiping, Tientsin, and Mukden. Liberated areas and
North and Northeast China districts are sending grain, fuels, and agricultural
raw material, as aid to Shanghai: soybeans, grains, and rice from Northeast
China; a hulled rice, wheat, yellow soybeans, and tobacco from North Anhwei;
seeds from Wu-hu; food oils from North Kiangsu; cotton from Hankow in Hopeh;
and coal from the mines of East China and Huai-nan.
There is a strong interdependence between Shanghai and the liberated areas.
Plants formerly dependent on foreign raw materials or markets now aim at the
domestic market. The Agricultural Machinery Company plans to shift production
from Diesel engines to engines using vegetable oil. Ways are being devised to
make medicines, chemicals, electrical equipment, etc. The American imperialist
blockade gives our domestic industries a chance to do research and expand. All,
industry is moving toward cooperation, and away from the blind production and
competition of former times.
In the Shanghai iron, steel, and machinery industries, the most essential
imports in the past have been silicon steel sheets, fire-resistant materials
(magnesium tile and chrome tile), and Diesel oil. Since the liberation, the
China Agricultural. Machinery Company has made arrangements to convert their
furnaces from Diesel oil to coal. The Shanghai Iron and Steel Company is al-
ready using marble as a substitute for magnesium tile and chrome tile, and it
is no less effective. The Northeast and Shanghai industries have begun research
on silicon steel and plate steel, etc.
- 1 -
CONFIDENTIAL
DISTRI6UTI0N
I I
Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300387-9
 Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300387-9
CONFIDE TIAL
At An-Shan, steel plate is in production, but not up to standards. After
continued study, it will probably be possible to raise the quality of the pro-
duct. At present, there is no great need for these materials in Shanghai heavy
industry, and the supply now in stock will serve present demands adequately.
In the chemical industries it is said that really indispensable imported
materials are not at all scarce; the only thing which cannot be produced domesti-
cally is rubber. Synthetic rubber is already in experimental production in North-
east China. In addition to the ample supply stored at Shanghai, old rubber tires
can be reclaimed. To relieve the comparatively severe gasoline crisis, the chemi-
cal industries are preparing to push the alcohol industry of the Southeast to
greater production in 1949.
Since the North Kiang-su farming families need fertilizer, they raise pigs;
since they must feed the pis, they consequently are eager for the establishment
of the alcohol industry. i.e. alcohol from potatoes; residue of potatoes feeds
i
s
f
tili
p
g
;
er
zer from pigs
As far as drugs are concerned, a number of drug- imported from the West
were originally made abroad from Chinese raw materials, then shipped back
is China. In the future, drugs of this tyre can be made in China and there
is no special problem outside of initial difficulties arising from produc-
tion costs or cecnniques. Fur otaer items, such as soap, suustitute'products
have already been found within the framework of domestic production.
Shanghai is capable of manufacturing its own wool and cotton spinning and
weaving machinery; the only thing lacking is raw cotton. This commerce will
ultimately turn to the Northwest, North, and Central China cotton-producing areas,
and to the supply of foreign cotton recently imported at Hong Kong. According to
eutimates in Shanghai, private yarn plants have a little over one month's supply,
while China Textiles industry has about 2 months' supply lefi,. Among the other
industries. most of which lean heavily upon agricultural side-industries, fewer
and fever are dependent on foreign goods.
Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300387-9