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DECLASSIFIED E.O. 11652, Sec. 3(E) and 5(D) or SECRET Dept. of State letter, Aug. 10. 1972 BY VLTHC NARS Date 7-21-75 Central Government troops, the Communists will take over. They further state that it is impossible for the Chinese troops to enter the Tsientsin, Peiping area until at least ten boats of appropriate size are given them to transport the troops to North China to replace the Marines. The Manchuria situation is quite disturbing to me, first, from the standpoint of its relationship regarding the Communists versus the Central Government; second, the Com- munists forces will be greatly entrenched by controlling Man- churia with all of its vast natural resources; third, the acquisition of Japanese arms; fourth, raw materials and semi finished products from Manchuria have a direct relationship to reparations and removals of industrial equipment from Japan. During pre-war and war periods an increasing percentage of Manchuria's exports went to Japan, and certain branches of Japan's industry were overdeveloped by consumption of these exports. In value the percentage of Manchuria's total exports going to Japan was 49%. Eight percent in 1937; 57.5% in 1938; and 62.4% in 1939. Leading exports to Japan included iron ore, pig iron, anthracite coal, some rolled steel. Excess Japanese heavy industry, such as blast and steel making furnaces, rolling mills, fabrication equipment, machine tools and small amounts of smelting and refining equipment for copper, zinc and lead, heretofore dependent on Manchurian resources, will be available for immediate removal from Japan. SECRET

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Document identity
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Page context
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    "ocrText": "DECLASSIFIED\nE.O. 11652, Sec. 3(E) and 5(D) or\nSECRET\nDept. of State letter, Aug. 10. 1972\nBY VLTHC NARS Date 7-21-75\nCentral Government troops, the Communists will take over.\nThey further state that it is impossible for the Chinese troops\nto enter the Tsientsin, Peiping area until at least ten boats\nof appropriate size are given them to transport the troops to\nNorth China to replace the Marines.\nThe Manchuria situation is quite disturbing to me,\nfirst, from the standpoint of its relationship regarding the\nCommunists versus the Central Government; second, the Com-\nmunists forces will be greatly entrenched by controlling Man-\nchuria with all of its vast natural resources; third, the\nacquisition of Japanese arms; fourth, raw materials and semi\nfinished products from Manchuria have a direct relationship\nto reparations and removals of industrial equipment from Japan.\nDuring pre-war and war periods an increasing percentage\nof Manchuria's exports went to Japan, and certain branches of\nJapan's industry were overdeveloped by consumption of these\nexports. In value the percentage of Manchuria's total exports\ngoing to Japan was 49%. Eight percent in 1937; 57.5% in 1938;\nand 62.4% in 1939.\nLeading exports to Japan included iron ore, pig iron,\nanthracite coal, some rolled steel. Excess Japanese heavy\nindustry, such as blast and steel making furnaces, rolling\nmills, fabrication equipment, machine tools and small amounts\nof smelting and refining equipment for copper, zinc and lead,\nheretofore dependent on Manchurian resources, will be available\nfor immediate removal from Japan.\nSECRET"
}