893.24/987

The Consul at Rangoon (Brady) to the Secretary of State

No. 379

Sir: I have the honor to report that supplies for the Chinese Government carried by the Burma Railways from Rangoon to Lashio [Page 693] from the time of the opening of the Yunnan-Burma highway (Burma Road) in February 1939 to October 28, 1940, amounted in weight to 96,808 long tons, exclusive of 2,669 motor trucks, which were also forwarded by rail.

All of the supplies and all of the trucks were shipped by the Southwest Transportation Company, the Chinese concern in general control of Government shipments over the Burma Road. The figures are exact, and they cover all Chinese Government traffic from Rangoon to Lashio, except occasional shipments made by road, some in new trucks en route to China, and a few rail shipments made by other Chinese Government agencies.

The total of 96,808 tons of supplies included 24,911 tons of arms and ammunition, and 5,385 tons of explosives. Other items were 23,715 tons of gasoline, 1,203 tons of motor-vehicle and airplane parts, 2,056 tons of machinery, and 39,538 tons of miscellaneous materials.

That China has obtained only very limited quantities of war materials from overseas countries in recent months is indicated by the traffic figures, which show shipments of only 831 tons of explosives and 552 tons of arms and ammunition since April 1, 1940. Most of these explosives and more than a third of the other war supplies were shipped in the month of April.

Practically all materials and supplies for the aircraft factory of the Central Aircraft Manufacturing Company at Loiwing, China, have been shipped from Rangoon by river, but relatively little other freight destined for China has gone by that route.

Payments to the Burma Railways for the Chinese Government traffic provided by the Southwest Transportation Company in the period stated amounted to Rupees 4,053,889, or approximately $1,236,436 at the average rate of exchange for that period.

Respectfully yours,

Austin C. Brady