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PIERCE M A NT A G E M E T Engineering Consultants and Mine Managers Anthracite - COAL - Bituminous Soranton Electric Building Scranton, Pemsylvania December 18, 1946 Mr. Edwin A. Locke, Jr. The White House Washington, D. C. Dear Ed: I have looked over the information you furnished me, which was an analysis by the State Department of China's current coal situa- tion. Much of this data we carmot check as we are not being currently advised of production and consumption records. In general, the conclusions seem to be woll-founded, but ve would liko to make sone obscivations with respect to thema (1) We agree that the opening of the mines of the Shantung Peninsula should have high priority because this coal can be shipped from the Port of Chingwantao and can talce care of the constal cities, and it is a good coal that moots the favor of Shanghai Power Company and other public utilities. (2) The greatest opportunity for incroasing production exists at the Fuhsin Mine where, if they provide then with open cut equipment such as we recommended in our report, thoy could easily step up the open pit work an additional 5,000 tons por day in a relatively short time. (3) Fushun, in addition to its need of oporating supplies, no doubt needs capital equipment from all our information, although we did not visit this plant. (4) Peípiao is a typical example of a tine suffering from need of and power and current operating supplies. Hore the rine is not hard to get in operation providing they have some little help. (5) Kailan is the most important producer. Its mines are physically in good shape and this is a problen only of giving then adequate operating supplies to enable this production to be stepped up to about 16,000 tons per day. (6) Your Table 4 does not show the production fron the

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    "ocrText": "PIERCE\nM A NT A G E M E T\nEngineering Consultants and Mine Managers\nAnthracite - COAL - Bituminous\nSoranton Electric Building\nScranton, Pemsylvania\nDecember 18, 1946\nMr. Edwin A. Locke, Jr.\nThe White House\nWashington, D. C.\nDear Ed:\nI have looked over the information you furnished me, which\nwas an analysis by the State Department of China's current coal situa-\ntion. Much of this data we carmot check as we are not being currently\nadvised of production and consumption records.\nIn general, the conclusions seem to be woll-founded, but ve\nwould liko to make sone obscivations with respect to thema\n(1) We agree that the opening of the mines of the Shantung\nPeninsula should have high priority because this coal can be shipped\nfrom the Port of Chingwantao and can talce care of the constal cities,\nand it is a good coal that moots the favor of Shanghai Power Company and\nother public utilities.\n(2) The greatest opportunity for incroasing production\nexists at the Fuhsin Mine where, if they provide then with open cut\nequipment such as we recommended in our report, thoy could easily step\nup the open pit work an additional 5,000 tons por day in a relatively\nshort time.\n(3) Fushun, in addition to its need of oporating supplies,\nno doubt needs capital equipment from all our information, although we\ndid not visit this plant.\n(4) Peípiao is a typical example of a tine suffering from\nneed of and power and current operating supplies. Hore the rine\nis not hard to get in operation providing they have some little help.\n(5) Kailan is the most important producer. Its mines are\nphysically in good shape and this is a problen only of giving then\nadequate operating supplies to enable this production to be stepped up\nto about 16,000 tons per day.\n(6) Your Table 4 does not show the production fron the"
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