IMPACT OF FLOOD CONDITIONS ON CERTAIN SECTORS OF COMMUNIST CHINA'S ECONOMY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200010064-5
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 15
• Document Creation Date: December 12, 2016
• Document Release Date: March 15, 2001
• Sequence Number: 64
• Publication Date: September 20, 1954
• Content Type: REPORT

Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
Office of the Chief, Economic Research
Office of Research and Rays
Current Stae -rt r
NSA Declassification/Release Instructions on File
BRANCH s
ANALYSTS s
SUBJECT : Impact of Flood Conditions on Certain Sectors of C st its
Raoncs
moist China has suffered over the past several weeks from X37 wide-
spread flood conditions, the Ic-
effect of which may prove a serious Nandi-
to her economic pro6 'ea . Unusually heavy as d continuous
in record flood crests in the Zangtse and . ai
20 September 195
with flood conditions also
from Tibet in the West to the Sungari, Liao and Yalu
t. The extent of the damage in the Yangta. area is believed
to be cam w able to that which o
serious flood year in
in 1931, heretofore considered the most
since 1951 in the Huai Ho, basin have apparently limited the
in that area to about 1 of the 1931 daeeags. Any further
projects erected
of the flood
ted
breaks could, however, result in a rapid extension of the flooded area.
The detailed effects of these flood conditions on the so
econocW, in so far as they can be estimated at this time, are
Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
 Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
sue, it appears that the restoration of
cilitiss will be fairly rapid, and that, in spite of boa,
areas, China's
to to cope with rehabilitati efforts.
On the other hand:, much of the flood control work of the past several gars will
require ext ensivse reconstruct ion, diverting labor,
the capital investment pro
tuds that will Jeopardize
satisfy
and local agent
and exasunications
also and equipment from
damage to crops is believed to be of a ma 4-
ility to meet her
in the afflicted
. Uthough the mobilization of Maly rut
pe with the imeediate problems steed by the floods revs
same measure of dyhamism. in " st China e s organizat:
bilities, the leaders of the regime face a more exacting test in coping with the
set .back to their economic prograis which is expected to result from the famine cone
ditions? the increased austerity which
y 4Mc*-( 1h6dllj
inability to finance imports needed to
wA~n~+rPO TI
~i ~~
in urban areas, and the
greet.
As a result of flood conditions prevailing along the I
railway connections between
south China have been tewetpa:
ted in the vicinity of these rivers.
The Comm mist travel agency in Hong Kong announced that on 8 k
rail link between North and South China had been cut, with the washing out of a
rail sections near Pe . jJ Previous to this date reports indicated that as
Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
 Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
early as 1 July service on the Hankow-Canton 'Lune had been into
in the vicinity of Chuchom. ad
by
to have been returned to
service only to be interrupted a second time an 31 July. J During this period
where extensive efforts were being mWe
erve the operating status of the
lam. 25X1D1a
25X1 D1 a
& NSA Apparently the serviceability of the Shaa ai-
25X1a
sin P'vi-Vou line,
stoppage of nortkk-soutl~ traffic
25X1 D1 a & NSA 25X1 a
shed out on 8 gust, resulted in complete
it
is believed that the line was operable for the greater part of August, since it
& NSA 25X1 a
was apparently less ffected by flood conditions than the alternate nor# h-s th
connection. ,/ . Hence, as of 2 September it is believed that ali railroads were
operable, but that operations were probably limited because of weakened roadbeds.
It is p n -' impossible to estimate t
done to the railroads by the
flood or to measure the limitations which have been placed an traffic over these
on over the C aarton ue2 -Shansi Lim
Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
 Approved For Release 2001/08/27 : CIA-RDP61SO0527A000200010064-5
T-~-P S