When you step onto Qingfan Village on Xiju Island, Matsu, you are greeted by a tranquil fishing village. But few know that this was once the most mysterious spy base of the Cold War, an invisible battlefield not found on ordinary maps. The “Western Enterprises,” a front for the US Central Intelligence Agency (CIA), operated here, turning this remote island into a resource-rich “Little Hong Kong.” US dollars circulated, foreign cigarettes filled the air, and trained guerrilla units launched night raids. This article takes you deep into the forgotten Cold War history of Western Enterprises Matsu from 1951 to 1954, planning a deep journey combining history and travel.
📂 Classified Files (Table of Contents)
Chapter 1: The True Face of Western Enterprises – CIA’s Perfect Disguise
Western Enterprises Matsu, missing from history textbooks, was actually one of the most important US intelligence organizations in the Far East during the Cold War, a “white glove” unit set up to bypass international treaties.
🕵️ Agency Profile: Western Enterprises, Inc.
| Official Name | Western Enterprises, Inc. (WEI) |
|---|---|
| Registration | Registered in Pittsburgh, PA, USA in 1951 as a shipping and trading company. |
| True Identity | A cover unit under the Office of Policy Coordination (OPC) of the CIA. |
| Structure | Taiwan HQ: Zhongshan N. Road, Taipei (near Grand Hotel) Matsu Base: Qingfan Harbor, Xiju Island |
| Key Figures |
Philip T. Montgomery: First Station Chief in Matsu. Chiang Ching-kuo: Main Taiwan coordinator (then Deputy Secretary-General of the National Security Council). Madame Chiang Kai-shek: Known as the “Nanny of Western Enterprises,” assisting US affairs in Taiwan. |
Secret Operations in Matsu
In March 1951, Western Enterprises officially stationed in Xiju. This was not an ordinary office but an operational command center. At its peak, 17-18 American personnel were stationed on the island, including intelligence officers like Michael D. Coe, Campbell R. James, and Frank Holober. Dressed in civilian clothes, they appeared as merchants but were actually responsible for training guerrillas, providing advanced US weaponry, and planning raids and intelligence gathering along the coast of mainland China.
🎯 Tourist Spot: Shan Hai Yi Jia (CIA Site)
The “Shan Hai Yi Jia” (Mountain and Sea House) located halfway up the hill in Qingfan Village was formerly the “Headquarters of the Maritime Peace Preservation Column” and the office of Western Enterprises.
- Historical Feature: It housed the only modern flush toilet on the island at the time, symbolizing the entry of American lifestyle. It was the most luxurious building on the island.
- Current Status: Now renovated into a modern B&B and restaurant, it retains parts of its historical layout and is Xiju’s most iconic historical building.
- Visit Highlight: Sit in the restaurant overlooking Qingfan Harbor and imagine US agents and guerrilla commanders strategizing here, watching boats loaded with munitions come and go.
🎒 Travel with History: NaSaDen Flower & Bird Suitcase
Visiting Xiju requires taking inter-island ferries, so suitcase flexibility is crucial. This NaSaDen Collaboration Suitcase features elegant patterns reminiscent of Matsu’s ecology. Its sturdy body protects your gear during island hopping, and 360-degree silent wheels allow you to move elegantly on Qingfan Village’s slopes, packing memories of Cold War history home.
Check Suitcase DealChapter 2: The Golden Age of “Little Hong Kong”
The now-quiet Qingfan Village was a sleepless city in the 1950s, more prosperous than Taipei at the time, earning the legendary title “Little Hong Kong.” It was a hub of material exchange, full of opportunities and adventure.
| Surface Prosperity | Truth Behind |
|---|---|
| Foreign Goods | Foreign cigarettes (Black Cat, Gold Flake), Coca-Cola, Japanese MSG, and nylon stockings—luxuries rare even in Taiwan—were common here. |
| Currency Pot | US Dollars, HK Dollars, NT Dollars, and even silver Yuan circulated simultaneously. Xiju was like an independent international financial center. |
| Underground Economy | Prosperity came from war. Guerrillas intercepted merchant ships between Hong Kong and Fuzhou, confiscating goods to resell on the island or ship to Taiwan for profit. |
🎯 Deep Experience: Qingfan History Trail
Recommended Route: Qingfan Harbor → Zhongzheng Gate → Shan Hai Yi Jia → Observation Deck.
- Zhongzheng Gate: Built by the Donghai Troops in 1950, it is a key landmark. The changing slogans on the wall witness the shifting political eras.
- Qingfan Harbor: Stand at the harbor and imagine the bustling scene of merchant ships flying various flags, US agents in plain clothes, and guerrillas with Thompson submachine guns.
Chapter 3: Legend of the Donghai Guerrilla Troops
Before the regular army stationed in Matsu, the defense was led by a mysterious unit—the “Donghai Troops” (officially the Fujian Provincial Maritime Security First Column). They were not a traditional army but a well-trained, well-equipped maritime guerrilla force.
⚔️ Donghai Troops Analysis
- Commander: Wang Diao-xun (from Bureau of Investigation and Statistics). Headquarters at Qingfan Harbor.
- Strength: 5 detachments, boat flotilla, artillery unit, and youth corps, totaling thousands.
- Equipment: With full support from Western Enterprises Matsu, they had advanced US Thompson submachine guns, recoilless rifles, various US surplus gear, and advanced communication equipment.
- Naval Power: Dozens of motorized junks and patrol boats (including an iron-hulled ship), equipped with machine guns for maritime raids.
- Mission: Guerrilla tactics, intelligence gathering, sea raids, demolition, decoding, and psychological warfare.
🕵️ Classified Mission: Your Cold War Agent Code
If you returned to Xiju in 1951, what role would you play in Western Enterprises?
Chapter 4: International “Piracy” Disputes
Against the Cold War backdrop, Donghai Troops’ actions blurred the line between regular warfare and piracy. To cut off supplies to mainland China, they frequently intercepted merchant ships, most notably the “Tuapse” and “Helikon” incidents.
⚔️ The Helikon Incident
In the 1950s, Donghai Troops intercepted the 1200-ton British freighter “Helikon.” Western Enterprises sent a translator named Frank Holober to negotiate on board, intending to extract intelligence.
However, the translator accidentally revealed the involvement of Western Enterprises due to his language and behavior. When the British captain was released back to Hong Kong, he angrily revealed to the media that “Americans” were involved in the interception in Matsu!
This news ignited international controversy, exposing the CIA’s covert operations and embarrassing the US. The Hong Kong government even banned Western Enterprises personnel from entering Hong Kong for vacation. This incident became a microcosm of Cold War international maneuvering.
Chapter 5: The Missing Five Years (1949-1954)
If you look at official Taiwan Ministry of Defense records, you’ll be surprised to find: The history of Matsu from 1949 to 1954 is almost blank.
- Reason: This period involved highly classified CIA operations and irregular guerrilla warfare. To avoid international political disputes, records were deliberately concealed or destroyed.
- Ending: The Korean War ended in 1953, and US policy shifted. In 1954, Western Enterprises Matsu completed its mission and withdrew. The Donghai Troops were disbanded; some joined the regular army (Anti-Communist Salvation Army), while others settled in Matsu, becoming ancestors of today’s residents.
This “missing history” is perfect material for history detective tourism in Xiju today. Visitors can find clues by searching for ruins and talking to elders.
Chapter 6: The Era of the MAAG
After Western Enterprises left, the Military Assistance Advisory Group (MAAG) took over. Stationed at Tieban (now Renai Village) in Nangan, they brought American style and culture to the Matsu defense zone until their withdrawal in 1977.
Reston Court
Brigadier General Reston donated basketball equipment on Gaodeng Island, establishing the famous “Reston Court” and promoting basketball in Matsu.
Culture & Education
Major Cunningham promoted baseball; Colonel Taylor even taught English at Matsu High School, initiating early international education.
Today, the “Iron Fort / MAAG Footprints Park” in Nangan preserves the barracks, clubs, and wall murals of US maps, witnessing this history of Taiwan-US cooperation.
🌞 History Exploration Essential: LISHAN UV Sunscreen Spray
Searching for historical ruins in Xiju or visiting MAAG footprints in Nangan requires long hours outdoors. This LISHAN Sunscreen Spray has SPF50+ protection, fine mist that doesn’t ruin makeup, keeping you elegant and comfortable while exploring history under the sun.
Check PriceChapter 7: The Mystery of the Blue Swan Crash
On October 1, 1958, an amphibious aircraft named “Blue Swan” disappeared after taking off from Nangan. All aboard, including Lienchiang County Magistrate Wang Xu and four MAAG soldiers, perished. The incident was sensitive, with suspicions of hijacking and defection, burdening families for years.
It wasn’t until 2014, when Beigan fishermen trawled up a propeller identified as belonging to the Blue Swan, that it was confirmed as a crash accident, clearing the names of the deceased. This history is now part of Matsu’s aviation history tour.
Chapter 8: Deep Travel Itinerary – Cold War Secret History
Want to experience this secret history? Here is a 3-day themed itinerary to take you through these once-classified locations.
🗓️ 3 Days 2 Nights: Cold War Detective Tour
-
Day 1 (Nangan): MAAG Footprints
Arrive Nangan → Visit “MAAG Footprints Park” → Beihai Tunnel (Military Engineering Miracle) → Dinner with Matsu Old Wine cuisine → Stay in Nangan. -
Day 2 (Xiju): Return to Little Hong Kong
Ferry to Xiju → Qingfan Harbor → Zhongzheng Gate (Donghai Landmark) → Shan Hai Yi Jia Lunch & Tour (CIA Site) → Walk Qingfan Old Street → Stay in Xiju (Quiet Fishing Village Experience). -
Day 3 (Deep Explore): History Unveiled
Search for Donghai Troops barracks ruins → Visit Caipuao Stronghold → Buy Xiju souvenirs → Ferry back to Nangan → Return home.
Conclusion: From Secrets to Tourism
The era of “Western Enterprises” and the CIA in Matsu has transformed from a deliberately forgotten secret into a unique cultural tourism resource. This is not just a trip, but a journey through time.
When you stand in Qingfan Village, looking at the “Shan Hai Yi Jia” sign and feeling the sea breeze, remember this was once the frontline of the Cold War, where legends of US dollars, agents, and guerrillas were written. This history waits for every curious explorer to unveil.
Read More: Explore Matsu
Matsu Islands Travel Guide
Comprehensive guide to war history and cultural heritage.
Qinbi Village Accommodation Guide
Visit the historical settlement in Beigan.
Ghost Stories of Matsu
Explore the supernatural legends of the battlefield.
[External] National Taiwan Library: Cold War Matsu
In-depth academic resources on historical background (Chinese PDF).
[External] Matsu Cultural Affairs: Donghai Troops
Official introduction to guerrilla history and spots.