Chartered Tanker Now En Route to Shanghai from Black Sea Ports Bringing a second cargo of Russi petroleum products for distribute onthe China market, the Norwegian tanker Svolder, a vessel of 3,772 net tons register, is en route at the present time from Black Sea ports to Shanghai, loaded with over a million gallons of Soviet kerosine, together with a small quantity of petrol and lubricating oils, it was revealed here on Dec. 11.
The dispatch of the Svolder to this city by the Soviet Naptha Trust is the latest step in the Communist Government's campaign to wrest control of the oil market in China from the foreign companies which have dominated the situation here for many years, The invasion, itself, was launched several months ago when the Russian trust engaged in ing Wha's installation on the spee River, below this city, the first shipment on the Soviet tanker Norvinn was disposed fof. While the Svolder flies the Norwegian flag, she is under charter to the Russian Oil Trust for the [present voyage and sailed from Baku' during November, According to reports from Russia, the Soviet government at the present time is making a strenuous effort to secure cash abroad in order to meet its obligations for imported machinery and supplies necessary' for the Five Year Plan camp ai Consequently, the export of Russian products, including petreleum, is being pushed _wherever possible, production costs _being ignored in the effort to find markets.
is this latter feature that makes petroleum products in this count and Inter sent a tanker here with a cargo of kerosine. As with the first vessel, the Svolder is believed to be consigned to the Kwang Wha Petroleum Ca., the largest Chinese oil distributors in the Far East and the only independent concern here with an installation and organization capable of tinning the kerosine for the interior trade and distributing it widely among retail merchants.
While negotiations were carried on between the Soviet Oil Trust and the Kwang Wha Company for a considerable period relative to the granting of monopoly rights in China for five years, it is understood that no agreement actually has been completed as yet, Consequently, it ix believed that this second cargo of Soviet Kerosine will be purchased outright by the Chinese company, same as with the first shipment, for which it is said the Trust ceived $169,000 gold. Two pre miinient Communist officials, Mr. D, Fromberg of the head office of Moscow, and Bolotoif, assistant to the manager Vladivostok, were recently visitors to Shanghai, " Here they conferred with various Chinese capitalists and the local officials of the Trust concerning the present cargo.
If the Kwang Wha company hand-Jes the shipment now en route here, arrival in Shanghai will displace in a similar quantity of Ameri-n_kerosine which that concern has en in the habit of purchasing from independent California Otherwise, the local market. expected to be affected, So far the Soviet invasion has not interfered amount shipped in has been absorbed ssily by the Chinese company's upcountry trade, through which 1,500, 000 gallons of Kerosine are disposed of monthly. The entire petroleum industry, however, is watching the situation closely as the tactics employed previously in other countries by the Soviet enterprise invariably} resulted eventually in a price and chaos in the market, If shi ments remain on the sonic basis as at the present time, the local i tion will not be affected adversely, it is declared, but past experience! has shown that wherever a Soviet government controlled concern secures a foothold, dumping tactics follow, The chief obstacle to the conclusion of a definite agreement for solo representation here is said to be the reluctance of the interested! Chinese industrialists to accept the guarantee of the Soviet controlled bank og to future regular shipments. Several groups of these capitalists: have been conferred with in the matter, in, addi Wha Company, to have insisted that an independent bank should enter the situation. is pointed out that an investment of over a million dollars would be required by any new group entering, the field. This amount is necessary to establish an installation and 01 ganization capable of handling and distributing such bulk cargoes throughout China, Should shipments suddenly cease after the creation of such an enterprise, the backers undoubtably would lose a large sum before a new source of supply could be. obtained. The Kwang Wha "Petroleum Company are equipped with the necessary installation and, organization, hence its ability to handle the present shipments. without disrupting the market, but with this company, too, some: hitch has occurred in completing a monopoly.
Tf the cargo now. being brought "to Shanghni-on the Svoldor is handled by this concern,: as tod expect Jocally, the vessel will unload at the: pel oF, industrialists point out, as foreign companies are obliged' to fix sales costs in relation to ex-Jpenses. Therefor it is found difficult to meet the Soviet prices.
That the production of oil is increasing in the Russian fields is Indicated in a statement. recently' made public by Professor 8 N. Prokopovich, who has been investigating Industrial "conditions throughout Soviet territories, During the first quarter of 1931, the professor states, Jan average of 1,029,000 tons of crude foil were obtained monthly with an. ner ease to 1,106,000 tons per month. during the' second quarter. In August a further advance to 1,251,- '000 tons was achieved, the statement details,
Text read from the printed page and cleaned; old type leaves the occasional error.