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TOP SECRENT all of the daily production for shipment to Chinhuangtao (and Shanghai) and Tientsin. This mine which is currently producing 15,000 tons per day, is frequently in jeopardy from Communist operations. Its loss under present conditions would be disastrous. Most of the coal mines in China are operated by the National Resources Commission which has had a survey made by foreign consultants and prepared a program of rehabili- tation. A loan of $1,500,000 US has been obtained and also considerable quantities of equipment and materials through UNRRA, not much of it yet installed. The mines which are receiving first attention are Yilo near Loyang and Chungfu in Honan Province, Hwantung mines in Kiangsu, Hsiangtan mines in Hunan, Pinghsiang mines in Kiangsi, and those in northern Taiwan, but rehabilitation is going slowly and will require some time to complete. The privately owned Hwainan mines in Anhwei are reported to have uncovered additional deposits and to have plans for expansion as previously mentioned. Other mines proposed for rehabilitation and development are in the politically unsettled North and not available for rehabilitation. The importance under the circumstances of protecting and holding the Kailan Mines is indicated. Electric Power-There are some 1,350,000 kilowatts of electric power installed in China, with about 900,000 kilowatts actually available, much of it war damaged and de- teriorated or obsolete. Since the war, a considerable number of packaged power units, 2,000 kilowatts and smaller, have been obtained through UNRRA, primarily with a view to revival of industry. The principal plants or systems are located in Shanghai, Tientsin- Peiping area, Tsingtao, Canton, Nanking, Hankow, Taiwan, and Manchuria, though the last have largely become unavailable by reason of Communist operations. With the ex- ception of the Shanghai Power Company, Hankow Water Works and Electric Power Company, Nanking Electric Company, and two plants in Tientsin, they are all public owned, and operated by the National Resources Commission, which has prepared a pro- gram of rehabilitation and expansion of the North Hopei, Tsingtao, Shanghai, Canton and Taiwan systems. While rehabilitation of plants is undoubtedly needed, any expansion proposed should be carefully coordinated with anticipated industrial expansion and addi- tional power requirements. In Shanghai there is a serious power shortage, and an exist- ing connected load of some 60,000 kilowatts, not in operation and awaiting only the availability of additional power, and this deficit will grow to 100,000 kilowatts or more in the four years required to install additional capacity. A project has been prepared by the Shanghai Power Company to construct a new efficient base load plant to serve, on a wholesale basis, all the power companies in the adjacent area. From an investment stand- point, domestic or foreign, this is a needed and worthy project, provided a franchise be granted and suitable assurances given with respect to servicing and amortization of loans. Taiwan offers many advantages to industrial expansion, a strategic shipping location, appreciable natural resources, adequate transportation, a literate and industrious popula- tion and low cost hydro-electric power, and some expansion of power facilities may be indicated, particularly if the fertilizer and other industries are greatly expanded. There is, however, a considerable installed capacity not now available because of damaged 43 RECORDS SERVICE" 40P SECRET

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Page context
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    "ocrText": "TOP SECRENT\nall of the daily production for shipment to Chinhuangtao (and Shanghai) and Tientsin.\nThis mine which is currently producing 15,000 tons per day, is frequently in jeopardy\nfrom Communist operations. Its loss under present conditions would be disastrous.\nMost of the coal mines in China are operated by the National Resources Commission\nwhich has had a survey made by foreign consultants and prepared a program of rehabili-\ntation. A loan of $1,500,000 US has been obtained and also considerable quantities of\nequipment and materials through UNRRA, not much of it yet installed. The mines which\nare receiving first attention are Yilo near Loyang and Chungfu in Honan Province,\nHwantung mines in Kiangsu, Hsiangtan mines in Hunan, Pinghsiang mines in Kiangsi,\nand those in northern Taiwan, but rehabilitation is going slowly and will require some\ntime to complete. The privately owned Hwainan mines in Anhwei are reported to have\nuncovered additional deposits and to have plans for expansion as previously mentioned.\nOther mines proposed for rehabilitation and development are in the politically unsettled\nNorth and not available for rehabilitation. The importance under the circumstances of\nprotecting and holding the Kailan Mines is indicated.\nElectric Power-There are some 1,350,000 kilowatts of electric power installed in\nChina, with about 900,000 kilowatts actually available, much of it war damaged and de-\nteriorated or obsolete. Since the war, a considerable number of packaged power units,\n2,000 kilowatts and smaller, have been obtained through UNRRA, primarily with a view\nto revival of industry. The principal plants or systems are located in Shanghai, Tientsin-\nPeiping area, Tsingtao, Canton, Nanking, Hankow, Taiwan, and Manchuria, though the\nlast have largely become unavailable by reason of Communist operations. With the ex-\nception of the Shanghai Power Company, Hankow Water Works and Electric Power\nCompany, Nanking Electric Company, and two plants in Tientsin, they are all public\nowned, and operated by the National Resources Commission, which has prepared a pro-\ngram of rehabilitation and expansion of the North Hopei, Tsingtao, Shanghai, Canton and\nTaiwan systems. While rehabilitation of plants is undoubtedly needed, any expansion\nproposed should be carefully coordinated with anticipated industrial expansion and addi-\ntional power requirements. In Shanghai there is a serious power shortage, and an exist-\ning connected load of some 60,000 kilowatts, not in operation and awaiting only the\navailability of additional power, and this deficit will grow to 100,000 kilowatts or more in\nthe four years required to install additional capacity. A project has been prepared by the\nShanghai Power Company to construct a new efficient base load plant to serve, on\na\nwholesale basis, all the power companies in the adjacent area. From an investment stand-\npoint, domestic or foreign, this is a needed and worthy project, provided a franchise\nbe\ngranted and suitable assurances given with respect to servicing and amortization of loans.\nTaiwan offers many advantages to industrial expansion, a strategic shipping location,\nappreciable natural resources, adequate transportation, a literate and industrious popula-\ntion and low cost hydro-electric power, and some expansion of power facilities may be\nindicated, particularly if the fertilizer and other industries are greatly expanded. There\nis, however, a considerable installed capacity not now available because of damaged\n43\nRECORDS\nSERVICE\"\n40P SECRET"
}