A SOURCE PAPER ON AGRICULTURAL COOPERATIVES COLLECTIVES IN COMMUNIST CHINA

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP78-02771R000300180002-5
Release Decision: 
RIPPUB
Original Classification: 
K
Document Page Count: 
27
Document Creation Date: 
November 11, 2016
Document Release Date: 
July 30, 1998
Sequence Number: 
2
Case Number: 
Publication Date: 
October 1, 1957
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP78-02771R000300180002-5.pdf2.09 MB
Body: 
Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 A SOURCE PAPER ON AGRICULTURAL COOPERATIVES- COLLECTIVES IN COMMUNIST CHINA no 'ca-sr a C3AEL Or m L s i sn L . ~a. ~ a y~ a. MM% lniacin 7U.. xr ^f-YtEW OATEe AMU. 2tu 9m ds DATT Tf- JEt-1 r_ 05636 14 October 1957 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 A SOURCE PAPER ON AGRICULTURAL COOPERATIVES- COLLECTIVES IN COMMUNIST CHINA Contents FOREWORD I. Agrarian Program II. Problems Resulting from the A ;i arian Program A. Failure of Government to Carry Out Promises and Regulations 1. MAO Promises Private Ownership 2. Vice Chairman LIU's Views 3. Organizational Regulations Stress Voluntary Principle B. Coercion Used to Implement. Agrarian Program 1. Foreign Observers Report Force Used 2. Chinese Communist Offi.cta s Admit Use of Force 3. Chinese Communist Newspapers and Radio Admit Coercion C; Effects of Forced Collectivization on Peasants 1, Peasant Morale Low and Di ,=content Widespread 2. Living Standards Low 3. Elimination of Work Incentive k. Education Denied to Children of Peasants 5. Peasant Grievances A1;ainst Cooperatives 6. Large Scale Desertions tram Cooperatives and Migration to Cities D. Economic Progress Threatened 1. Inept Planning and Mism.magement Producing Economic Chaos a. Dislocated Agricultural Program b. Unrealistic Producton Norms c, Promised Farm Machinery and Fertilizers Unavailable d. Failures in Cooperatives (1) Abuses (2) Conflicts and Contradictions 2. Dangers of Inflation 9 13 13 15 17 17 17 17 18 19 19 23 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 A SOURCE PAPER ON AGRICULTURAL COOPERATIVES- COLLECTIVES IN COMMUNIST CHINA The Chinese Communist regime maintains that the development of China into an industrialized state can best be achieved through implementation of its agrarian program. This, it claims, can only be done if agriculture prospers because the raw materials on which industry depends must be :'urnished by the peasants. The regime promised the peasants that they would be landowners in their own name, and that the products sold on the markets would benefit them by raising their standard of living. It also claimed that wages paid to workers would enable them to live comfortably, and that industrial goods produced would be within the reach of all. China thus would be self-sufficient and ultimately produce all commodities necessary for the well being and comfort of its citizens. The attached documentation shows, however, that forced collectivi- ,zation of the agrarian population of Red China has not produced the utopia promised to the nation. The agrarian program has resulted in discontent and growing restlessness on the part of the popula- tion. The regime has blatantly disregarded its promises to the people whose needs it has proven unable to anticipate. Farmers are not interested in cultivating their crops for a regime which is bleeding them white. Available evidence indicates that they are malingering in their tasks, deserting their harvests and view the future without hope. Prices are rising, food is becoming scarce, industrialization is hampered and unemployment is wide-spread. Crime is increasing, desertions from the agricul- tural producers' cooperatives (APC's are numerous and armed re- volts are prevalent. Consequently this program, unworkable in a country predominantly agrarian, cannot serve as a model for other nations anxious to increase their agricultural potential. Chairman MAO Tse-tung, in side-stepping the Red hierarchy by forcing acceleration of collectivization, may have made a monu- mental mistake which might trigger a movement that could ultimately sweep him from control and possibly restore China to the Free World. The agrarian situation in China, as revealed in the at- tached documentation, bears careful scrutiny during the coming months. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 A SOURCE PAPER ON AGRICULTURAL COOPERATIVES- COLLECTIVES IN COMMUNIST CHINA I. Agrarian Program Totalitarian countries have long recognized the necessity of rigid control over their peasants, e-specially when they constitute the majority of the nation. Communist China is no exception. The Central Committee of the Chinese Communist Party issued on 15 December 1951, the first draft decision on mutual-aid and cooperation in agricultural production. This measure was designed not only to control peasants politically but also to enforce govern- ment regulations concerning the collection of taxes, the percentage of farm products to be sold by the government at stipulated rates, the share to be retained by the peasant, the kinds and quantities of crops to be grown, and the sum to be paid for labor performed. When this draft decision was issued, there were already approxi- mately 300 agricultural producers' cooperatives (APL's) in Communist China. On 16 December 1953, when the number of APC's had grown to 14,000, the Party Central Committee issued its decision regulations which stated that, between the winter of 1953 and the autumn of 1954, the cooperatives should be increased to 35,800. Statistically, the number reached 100,000. The Central Committee, at its October 1954 meeting, decided to increase the cooperatives to 600,000, Of the 670,000 actually formed, 20,000 were eliminated iLn June 1955 because they were not functioning properly. These ccoooperat.ives, mainly in the northern provinces, were composed of 16,900,000 households. In the spring of 1955 the Central Committee urged the forma- tion of one million cooperatives. However, MAO Tse-tung, in a speech on 31 July 1955, not only complained about the slow forma- tion of these cooperatives, but ordered that they should be speeded up rapidly, with a 1960 deadline for the collectivization of all peasants, and a 1962 deadline for transforming all agri- cultural enterprises into state--operated farms. Consequently, by December :1955 the membership in the APL's reached 1,900,000. In January .1.950, this time-table was changed in a draft program of agricultural development submitted by the Politburo of the Central Committee for 1956-1957, ordering the completion of socialization of Chinese farming by the end of 1958. The regime claimed in December :i95E0 that 96 per cent of all farm households had been enrolled in cooperatives, and that fully four-fifths of the cooperative farmers were in the collectives. Six stages were announced by the government in the regimenta- tion of the rural population. Five stages have more or less been completed while the sixth stage is to be developed slowly, because it depends on mechanization. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 The first stage was the confiscation of the land of large land- owners and wealthy farmers and its distribution to land-poor peasants. The second stage was the formation of mutual-aid teams. In this stage, neighboring families pooled their labor, animals and implements for particular tasks during certain seasons, but the peasant remained an individual agent. The third stage was the formation of an APC. Land and farm prop- erty were pooled and the individual peasant was paid a share of the produce based on labor performed and the value of the capital contri- bution invested. In the fourth stage, also an were collectively owned and each in accordance with the amount of The fifth stage is collectivization, number of APC's. Land and equipment are and the members are paid wages according expended. APC formation, the land and property member was paid wages exclusively work performed. or the combination of a owned entirely by the state to the amount of labor In the sixth stage, which necessarily will be delayed for a number of years, the government is to undertake certain technical reforms in the collectives. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 II. Problems Resulting from the Agrarian Program A. Failure of Government to Carry Out Promises and Regulations The Chinese Communist Goverr.:ment, in the development of its agrarian program, assured the farmer that he is free to join or reject the state-sponsored organizations. If he joins voluntarily, his right of private ownership of land and equipment will not be abrogated. These principles are clearly stated in the following promises, decisions and regulations made by the leaders of Red China. 1. MAO Promises Private Owrership MAO Tse-tung, in his work On Cooperatives published in 1943, said: With a transformation of the individual form of pro- duction to a collective form of production, it would still be impossible to increase labor productivity. Thus it is imperative that we develop cooperative labor organizations on the basis of private economy, that is, the private ovirership of property by individual producers will not be destrroyed. Only by so doing we greatly increase labor productivity in agriculture.... This kind of transformation .. is a revolution in method of production. 2. Vice Chairman LIU's Views Addressing the First National Conference of Representatives of Cooperative Workers, Vice-Chairman LIU Shao-ch'i said: It would be a leftist deviation if we operate the cooperatives like state-owned stores. On the other hand, it would be a rightist deviation if we manage cooperatives like private stores. We should deviate neither to the left nor to the right; we should oper- ate the cooperatives in the strictly correct way. This is a basic principle governing the operation of all cooperatives. We must not deviate from this principle. If we do, our cooperatives would not look like real cooperatives. 3. Organizational Regulations Stress Voluntary Principle The People's Practical Economic, Dictionary- Cooperatives in China (published in Shanghai, 1953), defines the principles governing the organization of cooperatives as follows: p [qtass line must be followed in the admission of new members into cooperatives. Only working people (i.e., workers, peasant::., and individual producers) should be admitted into cooperatives.... The voluntary principle should be followed in the organization of cooperatives.... Compulsory member- ship and commandism are strongly rejected in the organization of any cooperative. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 CPYRGHT The mass line must be followed. A cooperative must be organized according to democratic procedures.... The policy that cooperatives should serve the interests of their members must be followed faithfully at all times. The profit-seeking motive of the capitalists must be rejected by all cooperative members. Those who try to make profits in the name of the cooperative must be expelled. Agricultural producers' cooperatives are an advanced phase of collective production. They can be organized only when there is machinery. When small peasant holdings still prevail in the countryside, it is really impossible to urge farmers to organize into agricultural producers' cooperatives. In the first place, the peasant masses would not respond to such a call. In the second place, state industry is still not in a posi- tion to provide the peasants with sufficient modern agricultural implements. Without large-scale invest- ment by the state, agricultural producers' cooperatives cannot be organized, and will not operate successfully even if they are organized. Thus at the present time, China's agricultural production problem is not how to organize agricultural producers' cooperatives, but how to use the supply and marketing cooperatives as a means to stimulating production. Mutual aid-teams also operate with the help of supply and marketing cooper- atives.... No compulsion should be used to promoting such mutual-aid teams; farmers must be allowed to parti- cipate in such teams voluntarily. These promises, however, were quickly forgotten and completely abandoned in the head-long rush of forcing the farmer into the collectives and stripping from him not. only the ownership of his farm, but also of his implements, his livestock, grain, seeds and fruit trees Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 B. Coercion Used to Implement Agrarian Program The following documentation indicts the Red leaders for deliberately violating their promises and forcing collectivization on the peasants. 1. Foreign Observers Report Force Used Five independent accounts from different sources charge the People's Republic of China with using force to compel its farmers to join the APC?s. a. Chaudhry Rahmatullah, a prominent Pakistani labor leader who headed a Pakistani Trade Union Delegation to Com- myp,($na, wrote in The Comment (Karachi, 21 July 1956) Throughout my trip, i did riot see any concre e ex- amples of development, progress or advancement to benefit the peasants who make up 85 percent of China's 500,000,000 population.... During my long Journeys in China I did not. witness any proof of modernization nor did I see the tractors, tubewells and other modern agricultural implements. The situa- tion in villages is much less pleasant than in the cities. There is no doubt that some land reform of a drastic nature has taken place; the Communists have uprooted all the landlords, who, according to them, were strangling the poor peasants. However, the size of holdings in the villages is so small that it is very difficult for a family to make ends meet. Besides they have to pay the taxes and their quotaswto the Government and thus the Communist Government has replaced the exacting landlord. Peas- ant discontent in different parts of China is increas- ing.... The peasants who once were promised land with all sorts of rights and-who were the backbone of the revolution on the basis of these promises are now being deprived of these lands which are distributed to them. The Communist Party workers are ordered to lead the peasants towards collectivization. The slogan of "land to tillers'' has vanished and is never mentioned, and according to the orders of the Central Committee of the Communist Party, the land has come back to the State again. While industry flourishes in the great developmental schemes, the farmer is left to feed the hungry nation with little help from his Government, with no effects at modernization and the constant yellings of the Communist Party bureau- crats in his ear. b. The Hindustan Time}_ (4 January 1957) commented on a r b1-FRC mittedo the Indian Co-operative Union as follows: On China, the report states that on "official Com- munist evidence" only "pro for'na results" have been obtained. Peasants have been and are being made to Join co-operatives through force, the threat of force or irresistible administrative pressure exer- cised through discriminatory taxes and other measures. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 CPYRPHTThe Asian ,Analyst February 1957) cites the following. It is now fairly clear that in spite of the official call for "voluntary" formation of agricultural pro- ducers' cooperatives and collectives, direct and in- direct coercion has usually played a major part in the movement and provoked fierce and prolonged popu- lar resistance. Thus a Party Congress report about Changchih special district in Shansi province---one of the "early-liberated" areas where "land reform" was complete by 1947--reveals that for two years afterwards a bitter internal struggle raged, reviving again during the Korean war: Taoist secret organiza- tions were feverishly active. In 1953 "some excesses" of the Party in organizing "mutual aid teams" aroused the peasants and "one county almost erupted in revolu- tion." In the spring of 1955 "counter-revolutionaries" again stirred up resistance to the monopolized purchase of foodstuffs by the State and to collectivization (Peoples Daily, 26 September). Out of 610,000 house- holds In the district, 2,759 "elements" have been "handed over to the collectives for labor under surveil- lance," and 2,387 are "either serving prison sentences or laboring outside" the district (probably in "reform through labor camps"). And this took place in one of the most "reliable" old Communist areas in the country. ul aln, w o was in Shanghai six months before and after the Communist take-over of the mainland and who revisited the new regime in 1955, made the following accusa- tion against the Chinese Communist government in The New RI I-1113 May 1957): The Communist regime is busily engaged in taking away from the Chinese peasant the "Good Earth" which it had given to him. The change is now virtually accomplished, and the collective system has already almost replaced the private ownership concept which was an article of faith in early revolutionary plan- ning I was in Peking in October 1955, when President MAO announced his collectivization plan in a report to the party, intimating that the first stage of land socialization was to be completed within six months, and attacking with an unaccustomed vio- lence those who might be inclined to resist or slow down his design.... Voluntary adherence by the peas- ants to the agricultural production cooperatives which preceded collectivization... existed more in fancy than in fact. No sooner had MAO made his declaration, however, than the regime unleashed a violent campaign of propaganda and persuasion (a word which seems to have a special meaning in China). Collective pressure on individuals was intensified, and within eight days .., even millions of peasants, had "spontaneously" given their support to the coopera- tives.,,, I have visited several agricultural coopera- tives, mainly in Hopei, an established agricultural region, Manchuria, the pilot province and Kansu, the Far West of the New China... it was clear from visits to the villages that a virtually irresistible pres- RlIrP TAMP nanAecorilj being @.4@124@4 on onco for-mipt Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 CPYRGHT The state determines what each farmer shall plant, fixes land taxes in advance, and decides, often in a quite arbitrary manner, what purchases to make in each village after the harvest. Sooner or later the individualist peasant, having lost all liberty, will have no alternative but to take the "road to socialism"... e. C. M. Chang in his article, "Communist China, Fact and Myth 14 published in The New Leade.r (24+ September 1956) had th YR concerning the c,ol7.ectives< The collectivization deLve has been both expensive and bloody. But no obstacle, however formidable, can stop the Communist planners. Indeed, the very magnitude of the obstacles means that the pace must be accelerated, and har,;her and still harsher methods will be employed. The Soviet experience is considered relevant to the Chinese situation. Collectivization is, in Communist thinking, the prerequisite for social- ist transformation,. And, in the present world situa- tion, China must complete the process of socialist transformation in a hurry. 2. Chinese Communist Official. Admit Use of Force The Minister of Agriculture, LIAO Lu-yen, in an address on 25 July 1955 to the National Congress on agricultural policies, disclosed the following- Of course, in the victorious advance of the coopera- tive farming campaign, ;rho-tcomings still exist. In some localities, mi;take'es of compulsion and vio- lation of the policy of voluntariness and mutual bene- fit have occurred. Such shortcomings as poor opera- tion and administratioii and poor production organization also still prevail.... Some people have been heard to say that the peasant.' enthusiasm in production is Jeopardized because of poor results in the cooperativi.- zation of agriculture and =door food work.... The following year, he admitted in a report to the Third Session of the First People's ("ong re ss held in Peking on 15 June 1956 that: ... there are still man shortcomings and faults in agricultural cooperation and agricultural pro- duction. In the work of c,oo-reration, there have been rather serious extravagance and waste and abuse of manpower and materiaL resources in a number of agricultural producers, cooperatives. Prices fixed for draft animals taken into the cooperatives have not been fair enough and the work of tending and managing public livestock has been poor, leading to the weakening and death of draft animals.... In the work of agriculture, a number of cooperatives in some places have set their targets for increased production higher than the technical abilities could encompass.... Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 The Chairman of the State Planning Commission, LI Fu-ch'un, in presenting the Five Year Plan to the First National People's Congress in July 1955, acknowledged that there were instances of d l un u y hasty and coercive practices and warned that- If these mistakes are not corrected production not only will not increase but may even decline. Chinese Communist Newspapers and Radio Admit Coercion In late 1956 a copy of the Shensi Daily News which reached Hong Kong reported the arrest of 100 "counter-revolutionists" after they had sacked a People's Council building, burned the records and killed the secretary in June. The Peso le's Daily (Peking), commenting on the event on 23 August 195b, stated that: The Provincial Party Committee held between August 8 and 16 criticised itself in familiar terms for "commandism" which had "aroused dissatisfaction among the masses and suppressed the enthusiasm of the peasants." An excerpt from the People's Daily (27 June 1956) disclosed the following: Now that the great majority of the peasants have joined cooperatives, local party organizers can terrorize them through both political and economic means. They say: "Now that the cooperatives own the land, we have the peasants' throat and they dance to our tune." The Kwangming Daily (Peking, 8 July 1956) admitted that: Many local organizers are acting illegally, they are searching houses, arresting and torturing people, forcing couples into marriage and stealing collective property. The Kwangtung Provincial Committee of the Communist Party re- ported on 8 May 1957 that- Since last winter 117,916 households have withdrawn their membership in agricultural cooperatives; of these, however, 10,214 have rejoined. In the course of consolidating the agricultural cooperatives, harsh measures to restrict the withdrawing members were used in some localities, thereby resulting in a certain degree of tension which should not have arisen.... In areas where there have been great economic changes and in the calamity-stricken areas, little has been done to improve the livelihood of the people. By the admission of the Chinese Communist leaders themselves, by their press and radio broadcasts, and by the testimony of foreign travelers who have visited Red China, the government has been guilty of brazenly disregarding its promises to the peasants. It has eliminated private ownership of farm lands and stock, established unequal wage standards, arbitrarily distributed food, and failed to provide equipment. It also has used adminis- trative pressure, coercion and commandism to herd 96 per cent of the Chinese farmers into state-controlled cooperatives- collectives. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 C. Effects of Forced Collectivization on Peasants The regime has repeatedly proclaimed that its agricultural pro- gram will benefit the population by raising the standard of living. Peasants have been promised that the income of APC members will be increased, food will become plentiful, children of peasants will receive a good education and that farmers will be provided with machinery to lessen their drudgery. The following documentation indicates, however, that all these promises have been broken by the regime. Peasant morale is low and discontent widespread among the population, undermining the sociological structure and threatening the economic stability of the country. The failure of forced co-'lectivization to raise the standard ov living has resulted in large scale desertions from the APC?s and migration to the cities. 1. Peasant Morale Low and Discontent Widespread The morale of the peasants Is extremely low as a result of the forced herding of farmers into the state-controlled agrarian organizata~~ions. ~~u1lliaFnTsays in his article that - The peasant state of mind in the early winter of 1956 was conclusively revealed in the sabotage of the preparations for the spring crops of 1957. The People's Daily comp ?_ained that the cooperatives were not carrying out their, winter tasks; winter sowing was being held up and maintenance work was being neglected. This was claimed to be the case in Shantung, where the peasants were discouraged; the accounts had not been feompiled and the workers still did not know how much they were to be paid for their work during the past year. The organizers did not dare to push the peasants, and both workers and their superiors, said the Daily, made no pretense at the enthusiasm which wa,3 shown when recruitment was initiated the previous winter. The People's Daily stated in November 1956 that there was a wider use of coercion by the authorities often "directly stimulated by the plans and arbitrary decisions made by the higher authorities." To control discontent, local organizers called "accusation meetings" which gave the peasants an oppo 't.uiity to voice their grievances and the cadres a chance to imp(-)-,e additional controls. The new rural bureaucracy LL?Lso was rapidly gaining in number. In one cooperative in Shansi there were a total of 300 officials for 400 homes while in another cooperative in the same area 100 officials were being used to control 200 families. The peasants were required to attend meetings lasting far into the night, then rise the following morning, at five for work, still tired and distressed. Local leaders often furnished false reports to their superiors. The cooperative accounts were badler kept because the accounting system was too intricate for the semi-literate peasants to compre- hend. The most serious complaint by the peasants was that there were numerous injustices and errors in calculating their wages for work done. Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 2. Living Standards Low For the last two years, the farmers' income has decreased, as indicated in the following items: a. The text of the Grain Distribution Directive, re- leased by Peking on 25 November 1956, states that 10 per- cent of the members of agricultural cooperatives suffered "income decreases," due either to natural calamities or to improper management, of such severity as to cripple them from operating unless assisted by the regime. b. The Christian Science Monitor (3 July 1957) credited Frank Robertson, Special Correspondent, Hong Kong, with the following statement: In spite of claims that agricultural. production for 1957 will reach a record of 191,000,000 tons, it is admitted that the revenue from collectives and the few private peasants :Left has fallen off considerably.... A study of the Chienchin APC in Yungping County, Yunnan, showed that while 70.6 per cent of its total income was distributed to the peasants, the were only paid 0.-i-6 yuan for each working day which averaged 3.4 yuan per month, proving that the peasants' living standards are still very low. In this cooperative, a num- ber of peasants kept no hogs and not even the chicken most of them had before collectivization. The New China News Agency stated on 18 August 1956 that in a certain district in Kwa.ngtung Province 21 out of 87 ACP's had been dissolved due to living standards having been reduced. On 20 November Peking Radio informed its listeners that in the Chunli cooperative in Hupeh seven out of eight production team leaders were encouraging 100 members to neglect their agricul- tural production in favor of trade. Tgq''s Daily (244 August 1956), in an article on the cooperatives in Changsha Hsien, Hunan, said that a.. There are altogether 163 such co-operatives, which constituted 13 percent of the total number of cooperatives of the hsien. Of these 163 coopera- tives, 71 will suffer a decrease in production ranging from 10 percent to 40 percent in comparison with last year. None of the remaining 92 coopera- tives can fulfill this year's plan for increased pro- duction.... Over 7,000 households which are members of these cooperatives will, without exception, re- ceive less income this year than last year. Under such circumstances, many cooperatives have lost confidence and members have become restless; 4 per- cent of the members have withdrawn from the coopera- tives; 7 percent of the members are asking to with- draw and 19 percent of the members have grown pessi- mistic and disappointed and have given up production work.... h 24 October lq5ih, PPki nZ ra rri n _ 1-hrrnicrh the~'hin~ a? Home bervlce, broadcast the following: Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 Approved For Release 1999/08/24: CIA-RDP78-02771 R000300180002-5 This year, increased agricultural production assign- ments of a number of agricultural cooperatives in the Mienyang Special District, Szechuan Province, were not fulfilled satisfactorily as a result of improper business management. The World Today (Hong Kong, 1 May 1957) quoted a woman who recently ed rroomlRed China concerning conditions in the farming districts of Kwangtung Province: We were working in rural. districts mostly. Farmers there were living a life e~;-en poorer than beggars. They were wearing patched clothes, and didn't have enough food to eat. As far as we know, each of them was given four ounces of rice a day, and had to buy potatoes to make up the shortage. Even so, each of them was allowed to buy only one catty of potatoes each day. Each got only four ounces of oil and the same amount of sugar a month. No pork was on sale. You can imagine how scanty their life was. John Roderick, in his dispatch from Hong Kong to the Washington Post (14 July 1957), indicates the reasons for the low standards of living on mainland China? For this was a nation beset with economic troubles, dissatisfied with the bureaucracy of government, still aching from the effort to convert itself from near-feudalism to ;,ocLalism. Floods, drought and a disastrous 1956 typhoon had laid waste to millions of acres of land and brought suffering to 70 million people. The country had gone into debt partly because of the }wavy expense of bringing relief to ravaged area,,. `here were still food shortages. Officials E-:a.dmi lted graft and corruption in newly-created agricu_cltu-al. producer cooperatives. Party members were inc?-easingly arrogant and more and more concerned with their own comforts. Party cadres among the union;; were inept .... The impoverishment of the rural. population resulting from forced collectivization is des