Sunday, September 2, 1951

Seoul to Taegu via special Diesel-powered car (Korean National Railroad) for Taegu. Made actual count from both sides of train of both railroad and military highway of battle-damaged military equipment. This area was surveyed for a distance of approximately 135 miles over an 8-hour period.

Monday, September 8, 1951

Taegu to Pusan via plane. Conferred with Allen Loren, economic counselor, United States Embassy, regarding Pacific Island scrap contract; also, had further meeting with Kim Suk Kwan, Ministry of Transportation.

Tuesday, September 4, 1951

Further discussions with Allen Loren and Ambassador Muccio.

Wednesday, September 5, 1951

The mission returned to Tokyo to make survey of scrap situation in Japan and study the data collected in Korea.

The non-scrap-productive areas not accessible by any means other than plane, areas north of the thirty-eighth parallel, and areas of known guerrilla activities were effectively covered by Maj. Kenneth Hunt of General Headquarters, who accompanied the mission throughout Korea. Major Hunt and pilot in small single-engine aircraft followed a definite pattern in their inspection at altitudes of from 200 to 300 feet and reported findings which the mission feels were reasonably accurate.

The detail of all scrap viewed by the mission with reference to quantity and general physical conditions is amply covered under another section of this report.

IV. ESTIMATE OF SCRAP IN KOREA

A. Republic of Korea railroad scrap: Freight and passenger cars, locomotives buildings, machinery and bridges are estimated to yield a maximum of 60,000 metric tons of iron and steel scrap. Due consideration has been given to salvage items such as reusable trucks under shot-up and burnt-out bodies, machinery and structural material from buildings which can be readily reused. Some cars and locomotives have already moved to Japan for rebuilding. Eighty percent of this scrap material is located in the Seoul-Inchon-Susaeck area.

B. United States Army Scrap: Most of the Army scrap is located along the main supply route between Taegu and Seoul, which was the most active section in the push-back to the thirty-eighth parallel. Southwest Korea was bypassed; so, very little Army scrap is located there.

An Army salvage yard is in operation at Masan, and since April 15, 1950, 6,500 carloads of materials and equipment have passed through from the front areas. All of this material was reshipped to Japan for repairs and rebuilding. Outbound shipments during June and July were 36,000 and 25,000 tons, respectively. A high percentage of their shipments is made up of clothing items, although we understand that material shipped back as metal scrap amounted to 18,000 tons since operations started.

We estimate that Army scrap would amount to approximately 20,000 tons, the majority of which would be tanks and truck bodies. We have lost a heavy tonnage which has passed through Korean collectors' yards, and this is still going on today. A check of these yards shows United States material running from 10 to 50 percent. Tanks and trucks along the road are completely stripped down until nothing remains but the chassis or the hull.

This scrap is located at widely scattered points along the main roads north of the Taigue-Taijon area to the thirty-eighth parallel.

C. Korean dealer scrap: Dealer stocks are estimated at 60,000 tons in accumulations from 50 to 4,000 tons in many yards and back lots throughout the country. These accumulations include Republic of Korea and United States Army scrap, such as wheels, axles, trucks, etc., plus a high percentage of rusted-out galvanized sheets in loose bundles and other miscellaneous light scrap. Structural steel from wrecked buildings is remarkable for its absence.

D. Industrial and marine scrap: A clean-up of the harbors at Pusan and Inchon would yield about 8,000 tons of scrap. Structural scrap from burned-out industrial buildings, the majority of which are in the Inchon-Seoul district, would probably result in about 10,000 tons of scrap. The scrap estimate from industrial buildings is low because most of the steel will be salvaged. The total for this division is 20,000 tons.

E. Rubble scrap from destroyed living quarters is nothing but a tangled mass of burned thin sheets, originally the sides and roofs, plus a small amount of piping. Very little of this class material has been collected, and it is extremely hard to estimate the amounts involved. In our judgment, not less than 10,000 tons are involved.

Adequate facilities for the preparation of scrap are not presently available in Korea. It will be necessary to import all such equipment, either from Japan or the United States. Japan can supply trucks, cranes, cutting torches, and gas in cylinders. They cannot supply magnets or shears. Shears could possibly be built in Japan provided plans and specifications are furnished by United States builders.

Preparation is now being done by torch only, using gas shipped in cylinders from Japan. There is one small oxygen plant at Pusan operated by Army engineers that supplies the Republic of Korea with 50 to 60 cylinders per day for repair work. A 300-cylinder-per-day plant is contemplated at Yongdong-Po, to be in operation in about 60 days.

Collector scrap is broken down only to a size that can be carried on the backs of men with A frames or on small one-horse wagons. Smaller pieces are packed in rice-straw bags or tied together with rice-straw rope or wire.

There are no baling presses. The Koreans have no conception of how scrap should be segregated and prepared for American open-hearth furnaces. The Pacific Island Scrap Corp., as a condition of their contract, agreed to furnish the following equipment:

20-ton steam-locomotive crane. 10-15-ton truck cranes.

Alligator shear___

Cutting torches--.

1

3

1

400

After completion of the contract this equipment becomes the property of the Republic of Korea. We understand all commercial United States equipment landed in Korea is subject to confiscation by the Korean Government and becomes a consideration as an item of cost in the preparation of the Republic of Korea scrap.

VI. SHIPMENTS OF KOREAN SCRAP TO JAPAN

Official Government records obtained from the Korean Government by United Nations Civil Assistance Command (Korea) (exhibit A) reveals that during the period November 9, 1950 to August 24, 1951, a total of 21,045 metric tons of privately owned ferrous scrap was exported to Japan by Korean Shipping Corp., which is Korean Government-owned. Since August 24, 1951, up to September 4, 1951, there is about 7,000 metric tons now loading or in transit to Japan, according to information supplied by Alfred L. Melchter, United Nations Civil Assistance Command, 8201, Eighth Army. This 28,000 tons is moved in small lots ranging from 70 tons to 2,360 tons through the ports of Pusan-Masan and Inchon.

Evidence of this movement was seen during our visit at Inchon on August 31, 1951. A small boat with a carrying capacity of about 200 tons was being loaded by men with A frames, from a collection yard containing approximately 1,000 tons. It was assumed this cargo was to be reloaded to a larger ship, which was then anchored in the stream about 1 mile offshore, from which coal was being discharged to barges.

It is impossible to check or even estimate the total tonnage of ferrous scrap that has moved from Korea to Japan. There are many small craft plying between these two countries that can load at beaches during low tide by human pack train from privately collected stockpiles. From our observation, we are convinced that considerably more than 28,000 tons has been exported.

EXHIBIT A.-Korea Shipping Corp., Pusan, Korea, iron scrap export to Japan since 1950

1 Total, 21,045 metric tons.

NOTE. This report is complete up to and including Aug. 24, 1951. From this date up to Sept. 4 there is about 7,000 metric tons now loading or in transit to Japan.

VII. TRANSPORTATION

A. PORTS AND PORT FACILITIES

A briefing on Republic of Korea ports by the Army Port Command in Pusan indicated that only four ports could be considered for the loading of any scrap purchased by the United States Government. These ports are listed below. Three were visited; the fourth (Yosu) was surveyed by small plane.

1. Pusan. The principal port in Korea for the movement of military supplies. It is currently handling 650,000 metric tons per month. Estimated port capacity has not been reached, but a further increase in tonnage will be possible when equipment shortages and internal distribution problems are overcome. The harbor is well protected and affords ample deep-water anchorages. There are three cargo piers ranging from 383 feet to 475 feet in width, which will berth 19 Victory ships, three quayways for LSTS, and an additional pier which has been reserved for rail-water passenger-transfer. All piers are solid fill-in down the center with stone facing. Each has adequate rail spurs. Five additional Victory ships can be worked in the stream.

Scrap has been and is scheduled to be loaded by barge in this port. For instance, Korean shippers have loaded several ships for Japan, the Lipsett Co. has outloaded 7,500 long tons for the United States and the Pacific Island Scrap Co. is planning to lift approximately 8,000 long tons. This method of loading, however, is time-consuming and expensive and is used only when piers are not available. In this connection, it is pointed out that in Pusan the loading of scrap at piers, which are in a congested area, is dependent upon the volume of military and civil-assistance cargo that must be handled through the port. In the past the Army has not permitted commercial interests to outload scrap over the piers and has even directed that Army-generated and battlefied scrap be transshipped to Japan via the port of Masan; some 40 miles from Pusan. Since there appears to be little likelihood of any appreciable decrease in inbound cargo, any scrap loading would have to effected in the stream during the forseeable future.

2. Masan-An Army port with Quartermaster and Ordnance salvage units to make limited repairs on equipment returned from battle areas, or to process such equipment for shipment to Japan whenever major overhaul or us of component parts is economically feasible. In addition, brass shell cases, metal containers, and fiber shell cases are shipped to the United States and Army-generated scrap to Kobe, Japan. The port has two solid-fill-in piers capable of berthIng a total of two Victory and one C-1 type ships. Each pier has a rail spur down the center connecting with a single-track railroad that joins up with the Pusan to Seoul main line at Samnangjin. There is also a quayway for LST's and barges, and five deep-draft anchorages where ships may be loaded. The port is currently handling about 110,000 metric tons per month with a relatively small increase in Army personnel and equipment. The mision considers this an excellent port to out load any Republic of Korea scrap that may be purchased by the United States Government, and believes that such shipments could be loaded dockside if properly coordinated with the Army. The port area is not congested, and a convenient location for accumulating and/or preparing scrap for shipment could be found without difficulty.

3. Yosu-Not under Army Control. Port is used primarily for unloading Civil Relief in Korea (CRIK) supplies, which consist mostly of grain, coal, lumber, and fertilizer. It has a protected harbor, unlimited anchorage for deep-draft vessels, and would be ideally suited for barge operations were sufficient barges available. Port facilities, otherwise, are good and include six deep-water berths (Victory ships), and a long quayway for LST's and barges. However, ships must be lightened to 21-foot draft to berth because of silt accumulations. Berths have adequate rail spurs, and a fair single-track railroad connects Yosu with the Pusan to Seoul main line at Taejon. The use of this port, however, is not recommended for the loading of United States-purchased scrap because (a) there would be little likelihood of Army supervision, (b) the port is within guerrillainfested territory, (c) ships would have to be topped off at other ports or barges would have to be obtained for loading in the stream, and (d) the diversion of rail equipment to carry scrap a considerable distance off the main line would naturally reduce the over-all availability of railroad cars.

4. Inchon-An Army-operated port used for the discharge of military supplies. It has a wide outer harbor with ample anchorage for deep-water vessels

and a tide range of 31 feet. The inner harbor has considerable bulkheaded shoreline but its use is restricted to barge and landing craft operations. Excessive tidə changes, however, sometimes leave craft high and dry for approximately 15 hours a day. There is also a tidal basin with a capacity for eight Maru type vessels, or seven LST's, but it is now used only for lighterage as the locks have not been completely restored. In any event, it is believed that the width of the locks will preclude the passage of Liberty ships into the basin. With present lighterage the average tonnage handled will approximate 8,000 metric tons per day. The port has adequate rail trackage and a single track access to Seoul. In addition, a single track, narrow gage line crosses the Seoul to Pusan main line and connects with Suwon. Although a major portion of available scrap is in the Inchon-Seoul area, the mission does not recommend the use of this port for the shipment of Government-purchased scrap. Some relatively small shipments have been made by Korean dealers but it is considered inadvisable and expensive to tie up a large ship over the period that would be required to load a full cargo. It is deemed much better to ship scrap by rail, after proper preparation in the area, to Masan where dock facilities are available.

B. RAIL FACILITIES

The railroad system in Korea is operated by the Korean National Railroad under the supervision of the United States Army, which schedules movements and allocates space. The condition of its tracks and roadbeds is good considering that there has been little maintenance effected since 1945. While much equip ment has been damaged or wrecked, a considerable number of units have been restored, or shipped in by the Army and the system is meeting present requirements. However, further extension of the fighting front might well result in a greater demand for rolling stock.

The only double-track line runs northwest from Pusan through Taegu, Kumchon, Taejon, Chochiwon, and Suwon to Seoul and carries the bulk of military traffic. It has been estimated that this line can handle 2,000 cars a day if they are promptly unloaded. Other important lines are: (1) A single-track line from Pusan north to Yongchon, thence northwest to Wonju via Andong, Yongju, Tanyang, and Chechon. Originally, this line continued to Seoul but war damage has made this section inoperative. It has extensions to Pohangdong and Mukpo on the east coast, and is linked to the Pusan to Seoul double-track line by connections running from Taegu to Yongchon, and Kumchon to Andong. (2) A singletrack line connecting Chinju and Masan (near Pusan) with the double-track Pusan to Seoul line at Samnangjin. (3) A single-track line from the port of Yosu on the southern coast to Kunsan on the west coast via Chonju and Iri and thence to Chonan on the Pusan to Seoul double-track line. (4) A single-track line running from the port of Mokpo north through Iri to Taejon on the Pusan to Seoul double-track line. (5) From Seoul there are single-track lines west to Inchon, north to Susack and Munsan, north to Uijongbu, and northeast to Chunchon.

In connection with the above it is pointed out that all large accumulations of scrap are in cities with rail connections. Rail rates for shipping scrap are (1) under military contract with the Korean National Railroad, 660 Wan ($0.11) per kilometer per car and (2) the commercial rate of 855 Wan ($0.1425) per 100 kilometers per ton.

C. HIGHWAY FACILITIES

Highways in Korea generally follow the rail lines and are comparable to the poorest country roads in the United States. They are usually a lane and a half wide with a very poor surface. The exception is the highway from Seoul to Inchon, which is hard-surfaced, wide, and in good condition.

1. Korea

D. STEVEDORING RATES FOR LOADING SCRAP

(a) Army contracts with commercial stevedoring companies in Masan' but does not require miscellaneous labor or equipment. Rates charged are: At dock, 900 wan or $0.15 per metric ton; in stream, 1,980 wan or $0.33 per metric ton.

(b) Commercial rates at Pusan are: At dock, 4,000 wan or $0.67 per metric ton; in stream 11,000 to 12,000 wan or $2 per metric ton (includes lighterage).

1 No scrap has been loaded by the Army in Pusan. However, it is believed that similar rates would apply.