Evening star., 1949-08-21
Nationalist Collapse
Makes Big Business
OF South China Piracy

HONG KONG, Aug. 20 (CDN :.
Piracy has become one Of South
china's biggest and most profit
able business operations.
With the collapse of Nationalist
Government authority local pi-
rates have seized control OF in
dividual little kingdoms" along
the rivers and coast Of South
China. They are alternately hi
jacking ships and collecting tolls"
estimated at the equivalent OF
several MILAN American dollars
per month.
In a rare combination OF busi-
ness and politics these local sea
lords" sometimes cooperate with
Communist guerrilla leaders and
then when profitable. switch sides
overnight to fight with remaining
Nationalist units.
These pirates like their brother
bandits may become one OF the
toughest problems for the Chinese
Communist to solve in attempting
to estab blish a stable new regime.
- Payments Are Large.
Payments to pirates" has be-
come a large and regular item on
the balance sheets Of local ship
ping and insurance companies.
In an effort to protect themselves,
F.; ships plying in and out Of Hong
Kong are now sailing with sand
bagged bridges and anything
from bren guns to old muzzle-
loading cannon mounted fore and
aft. As the pirates become bolder.
greater number Of ships are
being attacked on inland water
ways.
Some time ago the Chinese
American Joint Commission on
Rural Reconstruction attempted
to ship 1900 bales of cotton yarn
to the interior of Kwangsi Prov
ince to finance q program or rural
development. But they ran head
on into a "crisis" in local pirate
shipping company relations and
had to devise a new method for
financing their rural reconstruc-
ton work.
For months the pirates had
maintained "a collection sta
tions" on the West River between
Canton and Wuchow in Kwangsi
Province-a distance of roughly
$50 miles. Any ship that wanted
to travel safely of the river had
to stop at each of these stations
and pay toll" The cost was
usually shared by the shipping
firms and the insurance COM
.panies.
New Gang Takes Over.
Now a new pirate gang has
crowded in and established two
new toll stations" making total
Of 26., The shippers thought thia
was too much and decided to
fight it out. They hired guards
with rifles to man their ships.
Heavy guns, including muzzle-
loading canon with markings
indicating they were manufac-
tured in 1886 by the German arm
ament firm of Krupp and Co.,
were installed on the decks.
After a few minor battles the
pirates indicated they. would like
to talk it all over. Shippers and
.pirates agreed on = truce and |
called a three-day conference to
negotiate new terms.
Just as the two sides were on
the verge of making a settle
ment. news arrived that the West |
River was flooding its banks. That
meant docks would be under water
and warehouses flooded with river |
traffic forced to a standstill. The
shipping companies promptly call
ed off the conference. There would
be plenty Of time to make a new
settlement when the river again
was navigable.
/ Heritage OF Disorder.
. The incident suggests the thin
line that separates business from
piracy in this part Of China.
T. As happened with the decay of
the classic Chinese dynasty, the
Nationalist collapse has left a
heritage of disorder.
Disgruntled soldiers and petty
iofficials have Joined daring local
chieftains in seeking the easiest
way OF making a quick fortune.
In the process most legitimate
business Is being squeezed to the