CPW REPORT NO. 13-A --COMMUNIST CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04864A000200100009-9
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 16
• Document Creation Date: November 11, 2016
• Document Release Date: November 18, 1998
• Sequence Number: 9
• Publication Date: March 16, 1952
• Content Type: REPORT

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DATE FI.THIR
SOURCEf;
s
CPW Report No. 134. -- COMMUNIST CHINA
(mar. 10-16, 1952)
N"44
3b1 THIS IS UNEVALUATED INFORMATION
CONTENTS
ANTIVAME,. ANIUMBRUPTION, AUTIBTJREAUCRLCYUO 0 0000000
RESISTANCE TO DRIVE. eo-**000400,oecesserna*VaDas00.0000
CASES OF CORRUPTION....... **cornea***
ECONOMIC 000000000-00.0.0errn*a
00
4
7
WAR PROBLEMS.. 0 . .. aseeee isa0e0. 0o0-0.000.100serneasase 12
LAND REFORM. 0 00 0.0.0M00040000000.60,000. 00 0 000000000 14
,NISCELLANEOUS........... ..... .0.. .. 0.. ......... 15
ARTIWASTE ANTICORRUPTION AUTIBURENUCRACY
Promotion of Drive. Use of promotion methods and propaganda devices to build up interest
in tWAAVacOrzuption drive Showed a marked decline. Bangdhow announced (Mar.A.2).that
the Resist-America, Aid-Korea Associations of Hangchow city and Chekiang Province would.
hold an exhibition starting Mar. 13 to promote the. drive. Taiyuan (Mar. 14) quoted from
article in the SHANSI j1H pp urging the people and workers. to "intensify the Struggle,"
and nOt stop the anticorruption drive "until all capitalistic elements are wiped out,
inclUding.counterrevolutionaries and reactionary landlords."
Wuhan declared (mar. 12) that under the leadership of the Party committee of Canton,
workers in 47 Cantaa factories Were promoting -the anticorruption drive, "detertined to
struggle with the capitalist class until all corrupt elements are -wiped out." Canton
said (Mar. 15) that as a result of rallies welcoming the veterans from Korea: clerks in
Canton had "renewed their efforts" to promote the drive. Yhngchow announced (Mar. 15)
that in Fantung, Kiangsu, the Youth Corps was "absorbing activists" of the drive into its
membership. At a rally, 32 persons active in the campaigA.Were given Youth Corps member-
ship, including Tang lot-kuei: who exposed his uncle, and Chen Pe-ho? Who made 16
accusations. Yangchow reported (Mar. 16) that both. the Communist Party and. the Youth
Corps had called meetings to commend cadres in the North Kiangsu branch?.Peoplets Hank,
for their "patriotic support" in gathering information on corrupt elements.
Confessions and Accusations. Dairen announced (mar. 12) that workers in the Dairen
Railway Administration held a rally to hear confessions by corrupt cadres. Tsinan
reported (Mar. 10) that a rally Of Shantung Province offices was held Mar, 9, which was
attended by 22,000 persons, and at which 118 corrupt elements, .including 31 big tigers,
?
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eonfeseed or were exposed. Pardons were granted, following fall confession, to the following:
Liu Nai-kuang, Department of Construction, who took 365 million yuan; Lu Sha-tunge Health
Department, who took 100 millions; Wang Yen-chi, Postal Telegraph Bureau; Peng Shouehsien, Salt
Bureau; Li Hsien-ling, qpilt factory; Bhou Ching-chin, Yeentai Tobacco Factory; Liu Hsune Salt
Bureaa;'Tsao Ting-chies Construction Department; Chao Wen-ping, No. 2 Cotton Factory; Chao
Haa-lie Native Products Company; and Ku Chi, Department of Trade. Tung Wen-pins of the Chinsnien
Pres, Na Ti-chang of the city Tax Bureau, and Tan Kao-hua of the Tsinan Health Bureau refused
to confes= mad were arrceted. Tainan said (Mar. 13) that cadres in the No. 302 Textile Yell,
Tsingtao, held a rally to "indoctrinate he workers with the dangers of the capitalist attack
upon the people," with the resulting organization of tiger-hunting teams and. 4o reports of
accusations. Tsinan reecrted (Mar. 14) that the East China Department of Industry machine shops
NO. 1, 2 and 4, and the Chemical Works, had reported 1,300 accusations against corrupt elements.
,Shanghai vonoeeced (Mar. 12) that the Nanking and Shanghai Austerity Committees had called
rallies of shop clerks for accusations, and had urged the clerks "not to relax their efforts"
until all,ceerapt merchants were rounded up. Hangchow reported (Mar. 14) that the Chekiang
Hemp Mill held a rally to accuse cadres Shi-wu and An Peng of bureauctacy and urge their
dismissal. Ba chow stated (Mar. 15) that in the Wenchow Special District a rally was held to
hear Party Secretary Chai Chi report the arrest of 15 major corrupt elements and warn all
corrupt elements to tonfess or face arrest. Yangchow asterted (Mar. 12) that 6os000 local
clerks had organised 600 tiger- hunting teams and reported 5,600 eases of corruption. In
Nantung 60o senior clerks "overcame their hesitancy" and made 5,800 ?=ecusations.
Nanchang declared (Mar. 11) that tiger hunters in Elangsi Province were intensifying their drive
against corrupt merehants. They "promised to kill off all tigers and then take on the American
imperialists." Banehaeg reported (Mar. 13) that in Shangjao, Kiangei, 44 tiger-hunting teams
had captured 73 tigers and. were hunting 42 more, with corrupt merchants "confessing in large
numbera." In the Fulisng Special District, Kiangsie at a rally attended by 1e400, merehant
Tang Wen-pe confessed to corruption amounting to 220 million yuan? made aceusations against
other corrupt elements, was pardoned and made a member of the tiger-hunting team. Lumber
merchant Wang Heiewen was pardoned following a full confe=sion. Accordiag to Nanchang
(Mar. 14) in Taiho Hsien, Kiangsie as a result of the exhibition on International Women's
Day Mar. 8, women exposed corruption amounting to 200 million yuan. Nanehang reported
(Mar. 16) that Wang Fa-tenge head of the Nanchang City Hospital, vete called upon to confess
at a rally of 400 medical workers Mar. 13. He refused, "which aroused the anger of the
listenerA." Several women "openly accused him of mistreating wamene" and, demanded his arrest.
Wuhan stated (Mar. 12) that, the local Federation of Labor called a meeting for confe5sione and
accusations, when several cadres who refused to confess were arrested. In Hunan Province the
drive made good progreea, with many corrupt cadres and merchants exposed. Canton ava,uneed
(Mar. 14) that Canton shop clerks held a rally Mar. 13 to accuse native drug shop ownere of
evading taxes. Canteen said (Mar. 15), that local shop clerks were holding cho rallies, at
which clerks active in the drive were invited to join the Youth Corps and the Communist Party.
Shop clerks Liu Wen-tai and Chang Hsiang-min were commended at a rally for making accusation
against members of their own families. Chungking announced (Mar. 10) that workers in Kveiyang
held a rally Which closed with a monstrous parAde, and at which it was reported 20,000
accu=ations had been made by the workers. Commendation was offered 20 workers for their success
in exposing corruption0
Kunming announced (Mar. 11) that in Yuanchiang Haien. Yunnan, Li Chaageehuan, accountant, and.
Tseng Chia-ka and Chang Chi, employee, all of the Salt Bureau., made confessions of corraption
and.. were pardoned. After listening to reports by the Volunteers from Koreae shop clerks in
Kunming increased their accusations from 7,000 to 20e000.. Kunming reported (Mar. 12) that in
Tali Helene Yunnan, 5,000 persons from all circles attended ea rally called by the Party
Committeee at which 170 accusations were made against merchant.. Peking reported in
numeral code' (Mar. 15) that in. Tientsin the managers of 120 large weaving companies had
confeseed to illegal acts.
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Desire to End Drive. Reports of wholesale settlement of corruption case and promises of
lenient treatment were heard arith growing frequency. Chinchov announced (Mar. 12) that the
local Austerity Committee had met and announced a full pardon for 1,000 corrupt merchants who
had confe.sed. Shanghai stated that the Nanking Austerity Committee vas making a check of
reported cases of correetion in order to screea out minor casess and cases where confeesion
had been satisfactorys eo that they might be Closed. Major ca es wbere confessions had not been
made or were not eatiefactory would be reviewed for poasible punishment. Shanghai added
(Mar. 12) that the Bangebaw austarity Committee had announced a list of firms mhich bad been
pardoned, at the ewe teie praising Chao Yuan-fa, maneger of the Chingnien Bookatores for
exposing his father and the manger of the Meihua Photo Shop.
Hangchow announeed (Mare 10) that an inepection group of the loeal Austerity Committee met
Mar. 9 to adjudieete the :ises of 200 corrupt merchants, annourcing that 76 would get levient
treatment and lietiag another 91 as semi-law-abiding shops." eetton merchants in Hangchow
issued a statement of appreciation to the Austerity Cammittee for claesifying them as "law-
abiding ehop e." Hangehow reported (ar. 13) that the Chechiang branch, People 'e Banks held a
rally of cedres and family dependents at which Chu Wei-min confessed to embeeelement of one
billion yuan? accused eight others as his accomplicess and was pardoned. Wives immediately
urged their husbands to confess and take advantage of the offers of lerlency. Fooshow'reported
that in Yuagtai Beiee? Fukien, a meeting was called to commend cadres for their aacompliehments
In the drives when the Party Committee i sued new instructions to cadres to "place emphasis
upon the Spring fann peoduction drive." HUainan announced (Mar. 1,51 that 158 industrial and
commercial firms had been given lenient treatment by the local city. government beau ee their
owners had made satisfactory confession:.
Yaftgchov Etated ( re 14) that at a rally of :,e persons called by the local Austerity Committees
Chang Feng-ehau, Tan, Su-chengs Tung Chi- ents and NW) YV-yen confeeeed to,corraption and accused
others, while the Mayor offered lenient treatment to all who would, confese. Yangchov added
(Mar. 16) that at a meeting. of all cadres' in northern Kiangsus Party Pdblicity Directer
Chou-Yung-kang directed the cadres to wipe out all corrupt elemnts and ""pardon minor offender .
Wnhsi tated (Mar. 13) that two documente issued by the Central Goaernment AdmiuIetrative
Council on: regnlations for treating case of corruption "coMbined aeverity witb leniency, reform
with punishmente" at propheeled that After conslu ion of the antieorraation drives "national
construction will eater a new phase. After that anyone who violatee la and diecipline
undermine the eeonomac policies and financial syetem of the State will, be considered guilty of
undermining national construction. Severe punishment will be meted outs ahdjio lenienny is to
be expeetede" Nanchang announced (Mar. 11) that the !mai Austerity Committee ealied a
meeting to adjudicate corruption cases, ordering that minor tax evaders and.Othera who made
confeseioae were to be pardoned.
Sian reported (Mar. 10) that the Northwest Clidna Austerity Committee eelled Uy of all
Government woakeess ordered cadres to "overcome their hesitancy and make aecusationss" promised
leniency to 11 corrupt element who would confesss and declared that all caaes of corruption
involving less than 10 million yuan would be treated loath lenieney. Sian announced (Mar. 14)
that inspection committees in the Northwest and group in varioue'State induetriee were holding
meetings to plan carrying out the Central Goverament direetive on lenient treatment. Wuhan
reported (Mar. 14) that the Wuhan Austerity Committee had called a meeting to adjudieate
capes of corruption, diemissed 632 cases because the per ans concerned had confeeeeds but
ordered the arrest of Chang Hainamins manager of the Taehunghua Printing Company, for refUsal to
confess. It was reported that in Nanchang more than 59000 charges of corruption againat bu ine
men had been dismissed by the Austerity ConiMittee. Kunming anneanced (Mar. 11) that the local
Austerity Committee had issued an order centering the anticorruption drive in it awa geoup, and
declaring that all matters pertaining to the driae must be proceeeed by it. Kunming stated
(Mar. 16) thats at a rally of commercial and industrial circles in that citys Austerity Committee
Chairman Ma pointed out that email offenders and "all lave biding induetrial and commercial
concerns' shall not be puninhed.' However, punitive action would be talea againet thcese who
"not only refused to make public? confessions but aleo netted a large amoaat of illegal profits
endangering the people and the State."
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RESISTANCE TO DRIVE
Niwoo.
Capitalist infiltration. Chinchow asserted (Mar. 15) that during the anticorruption drive 25,146
workiii-i0:FM77-FEEFerna had joined trade_unions,..a number egasi to the total enlistments of
the past 3 years. The :'aeon for this was that in. the past workers had been prevented from
joining by "aorrapt.merahants?" but now "senior worker who formerly served the -capitalists
had returned +n the ran of the workers." Peking announced in numeral code (Mar, 13) that
a. Wang Ke-chuan and Chang Yun-mu had been arrested at the Fushun Mining Bureau, Nbkden. Wang
had mitered the Bureau "Ilaguised as a. worker," won over. Vice Superintendent WV jih-hain? learned
the secret of fat decolotization, and conspired with Tai Ching-jung and Tang Heiang-pu to open.
two fat decolorization fastories. Merchant Chang Wenefu conspired, with hie brothers, Chang Yua-w
Chang Wenachinana Chang Wen-hung, all teehnicians in the FUshun Electrical Eagineering Factory?
to steal 10 blueprinta and specifications for products, including plans for a planing lathe.
One factory owner had offerad..one billion yuan for such a lathe plan.
Shanghai seerted (Mar. 10) that Lu Chun-hu, Yangchow an workera had been given high
praise by localasorker groups because she accused her brothers, Youth Cori e membere, of being
agents of capitallets. Shanghai reported (Mar. 13) that in Fukien Prcvinne the People os
Court contained nany-leftovers from 'the former regime, who had aonaived with corrupt
capitalists to delay hearings on their crimes. Merchant Wang Seng-ahun was Able to evade
trial for a year, in pite of the many accusations, against him by workere. The Peoplels
Court in Fukien held 40 meeting. with 40,000 neraons in a fight a,ainet the methods of capitalist
especially in bribing judicial personnel? .and planned to "carry out the extermination of
the capitalist cleas." Hangahov claimed (Mar. 13) that the anticorruPtion drive hac7 led to new
napersting reacala in the Hangehow Railway Administration, for the Waters now reallael the
"dangers of the capitalist watack upon the working clane." Hofei declared (Mar. )5) tbat
Shla siacheng? Yu Tzu-Seng, and Liu Wan-stung had been ,placed in. the Tschug Trading Campay
of Tainghsieno Anhwei, by merchant Ho Yungachin? Lu Kno-fu, Kat, Talaheing? and Yeh Chung-hsing
to defrsud the Government through speculation and false orders.
Wuhal announced (Mar. 13) that the Canstruction Warkers Union in linhaien had been dissolved
and orders issued for the arrest of its officers, Bhu Shueh-seng, Ta Fingayuen, Hsu Hal-ning?
KaaaChienaliang, Chet Ming-fu, and Li Mingashan? who were agents of capitalists, Wahai
-reported (Mar. 14) that in the northern-district of Yitheien corrupt merchants bribed Tax
Bureau cadree eeveral hundred times, giving. them 30 -million yuan. Wahan etated (Mar. 16)
that 28 "capitalistic elements' had been exposed in the Vahan Conatruntion Workers Uaiona and
several capitalists expelled from the Hardware. Worker's Union, The Wuhan :Federation of Labor
had sent cadres to check an all unions and reorgantae those -which had been dominated by '
aapitalistic agents. Knnming announced (Mar 11) that the arrest of Wang Hnng-ahi had been
ordered. Wang served 0 the agent of he capitalists while a- cadre. In the Aiming Trading
CoMpany, corrupting all cadres with whom he came in contact. He connived with corrupt
merchants to organize a grain market, monopolised the grainbueineee, and raised price
Obstructioniet Tactice. Tsinan reported ()gar, 10) that Hung Yu-aeag? Official in the atorage
'sectio3-3?-Tg Shantung Department of Tndastry, had been expelled from the Communist Party
for conniving with corrupt merchants to rob the State of one billion yuan, forming mutual
alliances, and refusing to cunfese. He relied upon his Party melhership for protection.
Hangchow announced (Mar. 11) that Shen Chivalu had been arreatea for corruption, obstructing
the anticorruption drive, and forming mutual alliances. Hangchow added (Mar. 22) that workers
had c.:cused Wang Chien-yun of obstructing the drive by closing his aye fastaay and atopping
the worker s0 food and wages. Lung Hoachun, another aye manufaetuacr, was accused cf cutting
his power line to .top work and drive the workers away. Both men were arrested. Haagahow said
(Mar. 15) that owners of the Lihua and Tungching construction companies had been held far
investigattoa for refusing to confess and obstructing the ansiaotruption drive.
Nanchang reported (Mar 13) that cadre Chen Nai-kaang had been arrested for setting five to
the FUliang Department St.re? Xiangel? to bide his embessiements? an av forming mutual
alliances. Whau stated (Mar. 12) that the Mayor of Wuhan aallea upon workers and shop
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clerks to intensify their attacks on the bourgeoisie,"who are trying to obstruct the antiwastes
anticorruption, and antibureaucracy drive," and threatened with "serious puniehment" merchants
who tried to oppress workers for exposing them. Canton said (Nhr. 11) that an article in the
CRANGCRIANG Jiff PAO warned merchants to observe the regulations governing their treatment of
shop clerks during the anticorruption drive.
Reluctance and Resitancl: Dairen announced (Mar. 15) that a local rally heard accusations
against corrupt-gto by senior clerkss "who had heretofore been reluctant to expoze"
corrupt elements. Tsinan reported (Mar. 15) that cadres in the Pelting Sanatorium were lax
in promoting the anticorruption drives and respired. a "course of reindoctrination by Party
cadres" before they started their tiger hunt. Shanghai stated (Mar. 10) that in Tsingtai the
drive wae making progress among the import-export houses since a tiger hunting team had
"influenced eenior clerks"to make accusations." Rangchow asserted (Mar. 10) that the Cbekiang
Construction Compaey hed started its second stage in the anticorruption drive by "eliminating
rightist leanings in the leading cadres and workers."
Hofei /Mar. 15) voted an article in the RUN HAN TIAN PEI JIR PAO as citing corruption in the
Tacheyas Trading Company, Tunghsiens Anhwei, as an example of the dangers of the attack by
c:pitanaste on the working class, and warning cadres to "overcome their complanency." Yangchow
aneclared (mar. 10) that in the salt fields of northern Klangsu the anticorruption drive made no
Trogress 'becauee of the laxity of leading cadres." Action by the Austerity Committee 'smashed
mutual alliances" and eerved to get the drive started. Wuhei said (igar. 11) that leading
cadres in the Chenchiang Water and Power Plant, Klang:us had "changed their attitudes" with the
result that relationships between senior and junior workers had greatly :Improved, and steps
were being taken for mose efficient operation of the plant. Nanchang aneounced (mar. 12) that
nadre in the Pinghsiang Collieries had been "accused of rightist leaningss s they had not
eaptured one tiger for a whole month." They were warned that they must not only peomoNe
the anticorruption drive, but also increase production.
Itinming announced (mar. 11) that workers in the construction industry held a rally "to correct'
rightist thought," as many of them "thought the drive had gone fer enough and were getting lax."
Zssaming added (mars 15) that in Yenehingirsiens Yunnan, the drive had made no progress because of
she "rightist leanings of the cadre and the obstructionist tactics of the corrupt elementee"
7he Austerity Committee called a meeting Nhr. 5 and reorganized the committee 'by replacing- .
sac) complaoent cadres with several actiViste." Kunming stated, (Mars 16) that cadres in the
nseilio Mining Bureaus and in Mitu and BOhsi Eden, had "overcome their complacency" and. were
sttacking -corrupt elements. In Kunming shop clerks held a rally Mar. 15 to "indoetrinate
esnior clerks and urge them to expose corrupt merchants"
ekSES OF CORRUPTION
1111Latre. Chfnchow announced (Mare 14) that Wang Chineling and Feng Ko-chang had been
Trested o charges of defrauding the Government on licorice root buying contracts in 1949
anig bought the root for 3,000 an a catty and sold it to the Government for 204000s assisted.
y Fang, who wae. an inspector in the buying department of the Liaosi Industrial Company? The
aro made enough on two deals involVing 500,000 catties to retire to Tientsin a*d open sron
nundries. /Dairen reported (Mar. 16) thatlenChting-chen had cheated on Government contracts -
errupted cadres, and epeeuleted on.comtoditiess his entire corruption amounting to 3..7
illion. yuan, At the beginning :of the anticorruption drive he confessed to minor corruption
ith- the idea, of evading puni hment. Tsinan stated (-mar. 10) that Wang Cheng-chis department
anager, and Chou Hsin-jus accountant, with the Tsingtao Rainshun Textile Nillss plotted with
astir accomplices to place cantrol Of the factory in corrupt hands and rob the Government of
?42 billion yuans
Kingchow reported (Mar. 10) that contractors 1U Tu-an and Chao Chi-heng had cheated on labor
eimaterials.in connection with the Tushan Engineering project to rob the Government of 1.2
Ilion yuan according to disclosures made by cadres in the Chekiang Department of Agriculture.
Jag Ssu-ping, deputy chief Of the Chekiang Department of Finance and Economics, was dismissed
areorruption amounting to more 200 millions.. Most of the cadres in his office also
are corrupt, many of them having taken more than 10 million yuan. Peng Shou-chuans manager of
Tahua Transport Company, Chinhua? Chekiang, corrupted the, entire etaff of cadres at the
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Chinhua Railway Station and monopolited the 10 transport companies theres causing a loss to the
Government of 1.1 billion yuan. Bangchow reported (Mar. 16) that Li Oki-ye cadre in the Shenghsit
branch of the Chekiang Tea Company s had been arrested with his accomplices Lan Ping-hais for
altering receipts to embeelle 1.69 billion yuan fram the Governmeat in is year's tea buying
program. Chien Te-bo and 'aang Chia-huas bacon merchants in Chinhua Bbiens Chekiang, were
arrested for monopolizing the ham and bacon trade to make illegal profits. When the Army gave
them a contract to furnieh 1,500 catties of ham for the Tinghai Army of Liberation they raised
the price from 1.36"mil11on to 1.54 million yuan a tans and made 100 million yuan on rotten hams.
Out of 212 ham30 were chewed to pieces by rats. The Chinhua Native Goods Company loot 300
million yuan on the deal.
Hofel stated (Mar. 10) that Tung Iamings cadre in the Pengpu Farm Tool Company had his agents
in the People's Bank in addition to serving as the agent of capitalists, and was responsible
for corruption amounting to 500 million yuan. Nantung reported that Wang e,en-lings yarn
merchants edbezzled one billion yuan of Government fund ss and in addition corrupted cadre
Chang Hein-ynen of the Rantung Grain Bureaus who joined him in speculating in grain with
Government funds. Nanchang said (Mar. 15) that after angry workers worked on Sunday to gather
information on hi ms Manager Tao Ping-chi of the Hsinseng Textile Mills was arrested for
defrauding the Goveinment of 700 million yuan.
Wuhan announced (Max. 12) that, cadre II Ssuakuang had been arrested for defrauding the Chianghan
Shipping Company-of 500 million yuan and refUsing to confese. Wuhan added (Mar. 13) that in
Wuchang 2.9000 people accueed Bhieh Shou-yuen of 300 million yuan in corruption. Several
merchants at the rally made confessionss but they were found to be ineomplete when the vorkers
accused them of new corruption. Wuhan tated (Mar. 15) that Chang Yu-yu and Kuo Chung-shans
manager and deputy manager, respectively, of the Wuhan Industrial Comnanys had been charged
with buying 100 million yuan worth of lumber In July 1951, insuring it for 200 million yuan
with the Wuhan branch, People's Banks and 300 million with the Peeple's Insurance Company,
and then setting fire to the lumber. The fire destroyed the Beinhua WharT. and caused hundreds
of workers to Jose their homees and the culprits were expo ed by Chang Shou-kuens a fire victims
and the company aceountants Chang Chang-tung. Canton announced (Mar. JO) that local rice
merchants had lowered prices to cheat the farmers and make 23.5 billion yuan illegally in 2
years. Canton reported (air. 11) that building contractors Wang Chin -Ns Liu ChiebasengD and
Chang Shouelo of 'Nannings KYangsis had been ordered arrested after cadres investigated them for
cheating the Government out of 7 billion yuan.
Chungking stated (Mar. 12) that Bo Pao-ling and Chang Yu-chuan corrupted cadres in the purchasing
office of the Chengyu Railway to defraud the Government of 2.26 billion yuan. Pao Won-chu and
Yang .!ei-shu, defrauded on steel processing.contractes and Liu Penchi on lumber contractesto
rob the Government of billions of yuan. Kunneirg announced that the Knnming Tax Bureau WAB
making an investigation of a ring of local businessmen who juggled their accounts and corrupted
cadres in the Tax Bureau to evade taxes totaling billion of an
Busineme Dairen. announced (Mar, 14) that peanut merchante le Cheng-jih and Yang Bangaching
had been arrested an charges' of sabotaging the Government peanut buying prograin by hiking prices
on. 67s000 cettiee of peanuts- and organizing peanut merchants to form a monopolae Peeking announced
in numeral code (Mar. 13) that in MUkden 10sQ00 cases of corruption adong industrial and
commercial firms_ had been processeds with "20 notorious robbers arrested."
Hangchow reported (Mar. 13) that merchant Yang Chiaetangs Wu Chien-yens and Chao Pei-kang "bad
been depraved of their legal statue" by an inspection team of the Hangchow Austerity Committee
and. "handed over to their Yorkers for adjudication." he Chu-vhi vas held for trial on charges
of trickery after workers refUsed to accept his -15 confessiams.. Yengchoy stated (Mar. 11) that
Yao Tao-sengs Yangchowcontraetors and merchants Chen Tung-ju and Chen Tung-hsiangs had been held
for trial on chargee of exploiting workers, cheating on labor aad material on conetruction
project ss- nd bribing cadres. Wuhsi announced (Nhr. 13) that in Yitheien the city government
had clozed the Cbingniens Yunglis aad Bsipmin soft drink and iciele shops and mould open a
healthy people's soft drink parlor." Owners of the cloged shops had endangered the people's
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health by cheating onematerials, and one of them, Wang !lh-chiang, connived with cadres in the
Health Department to evade inspection. Foochow reported (Mar. 12) that landlord and merchant
Fang Chu-chang, dreg peddler Chang Ning-ahen, and -their accomplices., had been arrested in
Chinchiang Haien, Mikien, for selling morphine under protection of cadres. they had corrupted.
Fang VAS caught With 1,200 catties of morphine worth 9 billion yuano
Wuhan stated (iler. 16) that when the Austerity Comaitten of Khangkang Haien, Hupeh, met to adjudi-
cete 32 C0.59R of corrueteon, merchants Lu Bai-ching and Nh Rsing-chi were atrested for refusing
to tonfase to bribery, tax evasion, and ob truction of the anticorruption,drive. 'Sian said
(Mar. 12) that Han Teo-kuei and Liu Pen-chi, Sian machine shop operatoree had been eharged with -
cheating on Government eortracts to make water-Wheel. Kunming announced (Nhr.-11) that Tai
Yungakang, manager of the Teho Canning Company, had been arrested, fee cheating on aelghts when
elling'cured hams to the. State Trading Company and for trying to eabotage the Company.
Government Officialee Rangchov announced (Mar. 12) that the Chekiang Peopled -Court had exposed
cadres Lo Yung-chi, Wang Chen-chin, and Chu Hungayah for corruption and removed: them 'from their
positions. On Mar. 6 the Rangchow Party Committee, expelled and arrested one of its members,
, Ban Chung-halang!,. expelled /V Chenaliang from the Party and from the managership-of a provincial
tactory and puniehed OFLOS Chang Rein-min? Chou Tzu-heing, Tseng Ynng-ho? and 2V Fnaehuan for
corruption. Haegchow reeerted (Mar. 16) that the East China CommUnist Tarty Committee had,
punished seven corrupt Party menbart, including (Li Chien-hua and Jen Yuaching). Rotel said
. (Nhr. 15) that under the pereonal leadership of Commiesioner Tang of the Suaneheng Special
.eDistrict, Anhwei,- 25-corrapt cadres in the local branch of the China Grain, Company, -headed by
-Wang Hsinaku, ware eharged With corruption amoenting to 310 million plan. After exposing
a correction ring of 10 led .by LI Hai-seng, cadres in the company 'blindly believed, that the? drive wee over and .became complacent." Huainan announced (Mar. 10) that Teng Ho-te, ancountant
In the Tatung Collierye had been arrested "Upon the demand of the amrkeri" for regularly stealing
from 12.ounces to one pound from the workers.? flour rations!. Whrkers ta the Colliery captured
a ring of tigers charged with 'corruption amounting to 150 million. yVan. Aemine foreman., To
Ju-shun, exploited the vorkere and cheated the e*vernment oat of 10 yuan by &yoking
the workers g wages. He also connived. 'with merchants Ma Ping-yuan and Tan Ynafeag to epeculate
by using hie .knoeledge of Government price 'changes that were contemplated.
Wilhei announced (Mar..10) that the tiger hunt in Sungelliang? Kiangeu, uneovered correption
involving one billion yuan in the cooperativee and a corrept ring of 20 to 30 cadres
In the Grain -Bureau who had embezzled 2 Million catties of grain. Nanchang revealed, OWer. 12)
that Mho Placa head of the Shangjao, Klangsla Federation of.Labore had been di, 'ed and
charged Withembezailng 49 millioneYean, incompetent leaderehip, boargeoie leanings, wad the
illegal taking Over of the Chiangssutang Collieriee .Wang Ssu-jen. and. Tea? 4h-fang, other
officials in the were charged with fraud and corruption, and the latter with
having embezzled 8.5 million yuan. Wuhan stated (Mar. 10) that "several cadree whe weee agent*
:of corrupt merehante" had been excoped and arreeted in the Wehan branch Of the China
Department Storee.Wilhan reported (Mar. 13) that Wang nen-lei? cadre in Pinglo Haien, AVangsi,
had. heen 'arrested_ oricharges of beating farmers, taking the wivee of rich landlords, and lending
funds at a high rate of inteedst. Li Chun-tang, village 'head in Chu. 8, Kheipitg Hien? KWangsi,
was removed., for correction and. bureaucracy. Emig said (Mar. 16) that Chao Fn-chi, "major
corrupt element "-in the local Salt Bureau, had been arrested on charges by the Amateilty Committee.
Ecommic PROBLEMS
Food Shertanalse Chungking announced (Mar, 10) that the .North Szechwan Administrative Office
had iesued a directive setting aside.3 million catties of rice for the "spring famine rice loans"
in -four speceal administrative distriets of the area, including Suining and Nanchunge Sian
reported (Mar. 15) that the Kansu Bureau of Cooperatives had allocated 2.3 billion. yuan to
farmers of five districts- for ?purchase of food and fertiliaer. Sian stated (Mare 16) that
inspection teams had been set up in Northwest China to inspect food storage conditions in ware-
houses with a :view to .minimizing losses. The Northwest Department of Trade instructed various
State toricerns to "strengthen the purchase, aale, and transportation of foodatuffs, and to ..
continue to stabilize the prices of foodstuffs."
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Canton declared (WI% 10) that workers in the local Beieh Lung Bice Shop had accused the owners of
smuggling 100 misill'on yuan worth of rice out of Canton in 1950 and 500 million worth in 1951, and
demanded seveee punishment of such dealers, who are endangering the livelihood of the people."
Canton anneneced (Mar. 12 that the Kaangtung .loa,:.'nment had iseued a directive Mar. 8 offering
rewords for the apprehenelon of food smugglers x;F f,DileSWE 50 percent of 1,000 catties or less
of egiggled.food reeorte.' 70 percent if the smugglere aleo were caught; 50 percent of 1,000-5,00C
cattiee, 60 percent with else amugglers; ?140 percent of 5,000-10,000 catties, 50 percent with the
emugglere 30 pecent T eore than 10,000 cattiee, 50 percent with the smugglere!, and 20 percent
to military or civil oegee;zations reporting smuggling of Less than 5,000 catties.
Livestoek Lo:eaes. Mukdea announced (Mar. 12) that the Northeaet China Military and Administra-
Isve C;mm1i7tee-had leveed a directive calling for "strong measure to prevent the spread of
eattle Aleeese. Mukden explained (Mar. 13) that the mein concern we the pread of the
hoof-and mouth dieease, and that the Northeest directive had ordered that measure be taken to
"wipe out the aleesee by Apr. 3 so tha1-, spring farm production would not be affected." Foochow
reported (Mar. _14) that cattle specialiete had been sent to Chu 3 and 4 of Katlen Bien? Fukien,
to innoaulate cettle and control the outbreak of rinderpeet, which had killed 19 cattle.
Shanghai reported (Mare 14) that six work oxen had frozen to death recently in TUngnan Hsiang,
Chao Helen, Anhwei. A a reault compacts had been drawn up for faraere which pledged the* to
give their exen better care, refrain from overworking them, and, never to sell sick animalt. -
Nanchang eaid. (mar. 16) that death e of workeoien.from cold weather and wet fodder had been.
reported in Faengsi Provinee.. with the result that peasante had 7seen ordered to give their oxen.
better Care, and to keep their pens clean and dry.
Yangchow revealed (Mara 12) that in Jukao Helene. Kiangsve the pig indUetry was threatened by
inability of producers to find markets for 180,000 animals. Financial and trading organiza-
tions were directed to make purchases, or to make loans on the animals so they mould not be
destroyed. Yangchow added (Mar. 13) that in .Taiheing Haien, Klangta, the local government,
had reigneeted that emergency measures be taken to remedy the leek ef ealee and consequent
drop in price of hogs. State trading organs were urged to inceeseee their purchasee of hogs,
and financial organs were asked to make loans to producere, with preference to be given
dependents of Armymen and Huai River workers.
Fear of Droteght. Special offices and organizations to push drought-prevention work still were
ore
being set up. Chinchow announced (Mar. 13) that Liassi Province had eeteblished a drought-
control offiee. Tslnan reported the organization of drought'-pnsaention teams and the eetoing up
of offices to aid the farmers in irrigation and insect-control work in Kaoyuan, Wentung, and
Ling Helen, Shantung. Wuhan announced (Mar. 13) that the Central and South China Office for
Agricultural Production and Against Drought and Flood had been formally established, with the
chief of the Agriculture and Forestry Department as its head0 leepection teams had been
organized to study spring farming and prevention of drought. Wuhar aided (Mar. 16) that cadres
In the special districts of Bonen Province had organized droaghtepreventlon offices an/ chosen
cadres to lead fermers in the antidrought work.
Chungking announced (Mar. 13) that the Southwest Department of Agriculture and Forestry had
instructed local governments to set up drought-control and. farm production offices. In
Kweiyang the Party Committee had instructed rural cadre to organize and take the lead against
drought in Keseichow Province. Kunming reported (Mar. 12) that Chsotung Helen, Yunnan, had set up
a drought-prevention office, and 180 million yuan would be epent QD conservancy work.
Chinchow (Mar. 12) quoted a Liao :i Province directive on spring farming as eying "drought is
imminent," and ordering repair of dams and irrigation projects. Hangchow said (Mar. 15) that
cadres in Chenhai Helen, Chekiang, had called a meeting of peasants to map irrigation system
repair work. Farmers in Beinteng Bolen had started their antldronght campaign "after indoctrina-
tion by the cadres" by signing a drought-prevention pact and forming battalions to carry out the
program. Foochow stated (Mar. 15) that in Haichsag, Wuping, and Nanping Haien; Fnkien, rural
cadres were leading the farmers in building irrigation systems to combat drought.
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Wuhei reported (Mar. 13) that farmers in Changchou had organized teams to dig ditches, plant
trees and. eradicate meeils; that 18,000 peasante in Shanghai Hien, Kiangsu, had completed
2793370 fang of dikes on the Huangpu River and its tributaries; and that farmers in Chiaheing
Hien had completed 100,000 fang during the winter and would complete another 23s000 in the
spring to open 77 irrigation ditches. Wuhan announced (Mar. 15) that in KMangtung Proviaces
and the Chiuchiang Speelel District; Kiangsi, speeial loans had been made for antidrought work,
including 600 multou yuee for water conservancy mork in Kiangsi and 10 billions in Kmangtung
to repair water conservan-y facilities and install pumpe.
Taiyuan reported (Max. 1.L, that in Shansi Province a directive was iseued Nar. 12 on drought
prevention and cotton planting, with rural cadres ordered to give priority to the program.
Sian announced (Mar. 11) that the .Northmest China Agrieulture and Forestry Department had
issued a directive Nar. 7 Lo Shensi, Shane's Kansus Sinkiang, Tsingbais and Ningsia Provinces
on "reeisting and preventtng drought." Included in the directive were instructions for carrying
out a "spring reforeetation program," with a goal of "one tree per person planted." Sian said
(Mar. 16)that special cadres had been appointed to carry out the Irrigation construction program
in the Tunghuan area of Shensi- Kunming announced (Nar. 15) that cadre in Iliang and Yuchi
Hsien, Yunnan, were orgaeizing teams to "rehabilitate the irrigation ystem." Peking stated in
numeral code (Mar. 14) that the Hainan Administrative Office had ordered that the .propaganda
camp=ign for drought pregeetien be stepped up ard broadened and. that irrigation cadres be eent
to aid peaeants in inetalling and repairing water mheels.
Chinchow etated (Mar. 13) that a Liaosi Province directive on spring farming and drought prevention
ordered cadres "to overcome their laxity and take the lead. in preventing drought." Taiyuan
(Mar. 13) quoted from a SHANSI JIH rAo article which criticized rural sadres for their "laxity
in promoting the drought-prevention programs" and called for more intenee effort at organizing
mutual aid teame Wuhan stated (Mar. 13) that 55 cadree in Yuchuan Helen had been commended by
the Kwaagsi government for their work in drought prevention. Wuhan said (Mar. 15) that no rain
had fallen during the spring on Hainan Ieland5 7,1d. that offices had been set up at pal levels to
expedite irrigation construction and the making of lvanss with 560 wells already dug to benefit
1,300 moi of land. Homevers there was a need for the "elimination of the peasaats1 complacency
and reliance on fatP." Chungking stated (Nar. 13) that cadres in Szechwan had been "yarned to
overcome their complacency and take positive eteps to implement the program of drought prevention."
Peking announced in numeral code (Mar. 15) that 11 millimeters oE rain fell in western Szechwan
Mar. 11-123 the "fir=t good. rain in 4 months."
SpEirig Farmiag Pr2gram. Radio attention to getting epsing farming under mays end to the
production goals for 1952s mae stepped up considerably. Peking in numeral eode (Mar. 10)
announeed the 1952 higher production plan of the Central Ministry of Agricultures which etresed
the increase in unit-area production, and use of the challenge and emulation campaiga. Only
high-yielding unite can send out challenges. These challenges are to be accepted by units suh
as villages or cooperatives, mhen the cadres directing the work in the it can iseue iudividual
challenges or goals to individual farmere. Peking announced (Mar, 13) over the home eervice
ystem that the North China Administrative Council had called for an emulation preduction
campaign "greater in cope " than that of 1951.
Shanghai announced (Mar. 11) that for northern Klangeu the 1952 goal was 1.68 million catties of
food tuffs, and to reach this goal there must be a mobilization of 100000 mutual-aid team and
1,000 production villages, or cooperative venturee. The goal for each mutual-aid unit vas set at
a unit-area increase of 15 percent over 1951s and for each production village at 30 percent over
1951. All local governments were called upon to carry out the program. Wahei aseerted (Mar. 13)
that farmere in Yunehu Hsiang, Changchou, mould increaee their wheat production per mou "in spite
of the heavy rain e and insect plagues." Sian declared (Mar. 14) that in Ninehins Changyehs and
Minlo Helen, Kansus farmers had mapped out their spring farm programs, had organized mutual aid
teams, would increaee their farming areas and would increaee their livestock by 10 percent, in
addition to crying out a major afforeetation program.
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Tina n anneuneed War. 14:0 that in jt e directive on the sprina farming program the Shantung
Provinelel Gwerment had ordered all cadre engaged in the anticorruption drive to 1rnmedthtey
change from that de've to the farm production drive." Yengchow stated (Mar. 16) tbat the
Nanturg Peaty CemmitAee had inetruoted cadres te 'take up the production drive Immediately,
and suspend the antlaaste anticorruption, antibureaueracy drive until later." Wuhsi reported
(Mar. 10) that the loea oarty Committee had ordered re to 'temporarily cease work" on the
anticorruption drive lei eer to give "full attention to the spring farm production drive."
Wuhse added (Mar. 26) the- in southern Elangsu the aaticorruption campaign had been 'temporarily
suepended in order to 'el.ta-y out the pressing task of spring cultivatien."
Reports of organization en mutual-aid teams were menitored from Shanghai (Mar. 14); Hangchow
(Mar. 13); Yangehow (Mar. 21, 15 and 16), reporting 189 teams already at work in nine chu of
Hatmen Helen, Mangeu, Nenehang (Mar. 14), which claimed 33 teams in Nanfeng Ralen, &angel.;
Sian (Mar. 14)3 which eaid mutual-aid teams were busy with spring plowing in -einghai and
Ningsia Provincee and Wellman (Mar. 13), claiming that cadres in Plagio Helen, Evangel, had
organie,ed mutual-aed teams of peasants who had brought ont goods hidden for landlorde to use in
spring farmLng.
,Claime that spring farming had started, or reports of bend made for fertilizer, were monitored
from Mukden, (Mar. 12-13), qnoting a Northeast Government directive calling for elimination of
the aphis by Apr. 30; Peking (Mar. 13-16); Shanghai (Mar. 12-14), saying the East China
Cooperatives office had placed supplying- farmers with fertilizer As its firet responsibility,
and that in Fukien 65 yuan had been lent to mutual-aid. uits; Hangenew (Mar. 16); ?
Foochow (Mare 12); Yangehow (Mare 14); Wuhei -(Meer. 11-15); and Chungking (Mare 11e12), which
called upon farmers to take eteps*to eliminate insect,
Hangehew reported (iler. 14) that rural, cadres in Lanchi, Ytehienn and Linen Helen., Chekiang,
had been urged at meetings to "correct their rightist thinking and intensify their efforts to
complete the drought prevention, aad irrigation programs at once, " In eennection with floods in
the Wukang area, Chekiang, Hangehow Fetid. (Mar. 16) that chu, helang, and, village cadres had been
ordered to "correct the peasants attitude of leaving their fate to heaven, and to lead he '
peasants in. draining water fram their fields." Yangchow reported (Mar. 11) that Chu, Pao-seng,
leader of a fermers association :Yr Tangnan Helen, Yencheng? Klangeu, was charged with laxity
at a meeting, "confessed his err ore," and premieed to hurry up the program of organizing
mutualeaid teams and starting epaeng farming. Foochow quoted (Mar. 15) from an article an the
FUKIEN jiR PAD which supported the spring farming Program, and, "netrengly attacked the
compl ceney of maay rural cadres."
Wuhan reported. (Mar. 14) that the Ronan Youth Corps had issued a directive calling upon. eadrea
to support tfte spring farm program? "overcome their complacency, and organize the broad, masses
of youth for the struggle." Taiyuan (Mar. 12) voted the SHANSI OIEH FAD as seying?rural cadres
Ln the Northwest were "hindering the spring farm production program," and calling upon them to
"correct their errore in thinking,,"
Sian reported. (Mar. 11) that wich completion of the Lowei Dam in 1950, an area of about 70,000
_emu had been placed under irrigation. However, "due to the corruption of the building
contractor'" the dam had started, leaking and had caused flash floods. Peking reported in numeral
code (Mar. 11) that at the Sinkiang agricultural production conference there was severe criticism
of the "conservative minds of certain cadres" who insisted that unit-area yields in the border
areas could, not reaeh those of the interior, On the contrary, it was claimed that yields could
be raised stead 1" "If the peasante of various nationalities" were properly mobilized to carry
cut the preduetion drive and improve farm techniques. Uighurs in Suitt Beien, southern Sinkiang,
Lad learned the advanced farming teenellteis introduced by the People's Liberation Army, and had
'hrecognized the superiority of collective production." However, it was admitted, "there are some
localities where guidance in production and organization had been, neglected," and a etruggle?is
necessary to reach the 1952 goal of organizing look percent of the total labor force.
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Pekin eadd in numeral code (Mar. 14) that the Ceiltral Minietry of the interior had released
a directive calling for ammediate inspection of preferentiaj.. treatment of dependents of Jarmymens
and an examination of their farm?problems, "to make sure that no arable land of the dependents
of military-personaea and aartyrs will be laid locate.," and to strese. the fact that "dependents
who are phyeleally fit ehould be encouraged to increase production." Peking added in the home
service (Mar. 16) that the Central Ministry of Trade had issued a directive calling for an
immediate inspection of sesning farming done for the families of servicemen "to insure that
all such lands art propesee cared for."
induatrial Production. Coneiderable mention of production problems in connection with the
anticorruf,tion. drive *sae wade, Peking said in numeral. code (Mar. 14) that various State-operated
specialty companies in Neseking had alloted, during the drive, a definite number of personnel to
handle the daily operationse "thus assuring the normal. functioning of businese operatione.".?
Peking :reported in numeral code (mare 15) that Increaaed Production and, Economy committees in
merchants.
Chungking and Changsha had taken over the work of diepoaing of conieseion eases of laWbreaking e
Chinchow asserted Nat% 10) that workers in the local telegraph office had "increased their.
operating efticieney" to paamote the drive. Tainan declared (Mar. 16) that in. the Knomin
No, 7 Factory, Tsingtao, the 'outstanding achievements" in the anticorruptlen drive were
credited to its "denier, ratio organization and high production record." Shanghai claimed
(Mans 16) that workers in State-Operated factories in Shanghai had. completed their monthly
norma ahead of aehedule and reduced the accident rate "becauee of their heightened politicali
conscioueness gained from experience in. the drive." Undte the slogans "Hurt all tigers and
carry out production," 1 factories had completed their peeduction target for February.
Hangchow Oeclared (Mare 13) that the Chekiang Salt Bureau had "greatly- improved ita tax
collectiens and produrtive activities" .since the start of he delve, and had leveled a, directive
to worker to "organize and stop emuggling." Hangchow admatted (mar. 16 that 3#* textile
mill operatory had 'suspended productions withheld wages, and tricked merkere" during the drive.
The Hangchaw Bureau of Commerce and Industry and the Labor- Bureau called a meeting Mar. 15 "to
oppose suspension of textile production," and to request that step e be taken "te order all idle
textile factories to resume production." One factory, the Tsengfeng Cloth. Cees was said to have
admitted Its errors and "guaranteed to resume production by Mare 18." Yangchow said (Mar. 12)
that-the northern Kiangsu branch of the China *Native Products Ce. had "allocated a certain- -
annaher of cadres to attend to the normal. operations of' the business," which at present included
-the buying of furs, brietles, fats, sausage, and casings.
than reported (Mar. 12) that during the drive in Hunan Province "in many cases huge Sums of
3-Late capital tied up in dead stock had been uncovered, " Wuhan added (Maio 13) that weetere in
the Wuhan Construction Bureau "promoted the drive" by "intensifying their work, in repairing
eoads and Wharves." WuChan stated (Max', 16) that in the course of the drive the Wahan Federatien
Df Labor had "reorganized store clerks and employee".and "uplifted their production enthusiasme"
3ian asserted (Mar. 15) that while promoting the anticorruption drive State enterprives in the
:orthweet 'sere "also promoting regular business operations by allocating eadres to carry on trade
avi distribution of needed supplies," including flour, coal, and cotton. Workers in the. North we
'wrin implement Factory had launched a production drive. "While catching tigers the 'workers will
ontinue to produce needed implements at a reeord pace."
Isungking claimed (Mare 12) that in the Southwest branch of the China Food Company its quota had
?een- maintained through "making early provision for the promotion of active elements and the
etention of corrupt elements who have confessed and, have reformed." Knnedng declared (Mare 11)
bat trading companies in Kunming had pushed their. regular operatione through "uncorrupted
adres?" and that in the future "all organizations will allot part of the time of tiger-hunting
earns to normal business operations." In the People,s Bank cadres had been transferred from the
aticorruption drive to "give full attention to normal trade needs.' Production did not suffer in
ae Kunming Electrical Supply Company because of the policy of promoting senior workers to succeed
ereien who gave' their attention to the drive. Kunming asserted (Mare 13) that in the Kunming
sanch of the China Cotton, Yarn, and Cloth Co. the anticorruption drive was. promoted by "intenei-
_catIon of the efficiency of its normal. business operations,'' and added that now.orders for
-oceseing had been placed, and the "sales offices have resumed normal operations."
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There also were numerous claims In radio broadcasts that the anticorruption drive had actually
increaeed production, or would do so. Peking asserted in numeral code (Mar. 15) that in the
irsinhu Steel Works, Shanghai, increased efficiency in casting wheel had been obtained "by
elimanating grafters." Tainan elaimed (Mare 12) that the Tsinan branch of the China Oil and
Fats Company had achieved neW production records "as a result of the tiger hunt." Workers in
the Tsinan Hallway Admineetration had "increased production to promote" the drive, and had held
a meeting "to expose corravt elements and make plans for increased production." Wuhsi stated
(Mar. Il) that workers in the Chibsiyen Railway Shops had "fulfilled productioi norma to
promote the antimaete, aeeicorruption, antibureaucracy drive."
Wuhan said (Mar. 12) that. the Chichi Water and Power Company had increased production to promote
the drive. Canton declared (Mar. 10) that workers in the Kwangtung Cement works held a
symposium to "map plane for increasing production to promote the drive." Chungking aeserted
that workers in the No. 611. Yarn Mill overfalfilled their quota to promote the drive. Kunming
said (Mare 11) that the Kunming Electrical Supply Factory had increased production to support
ene anticorruption drive.
-
Wkden repoeted (mar. 14) that the Northeast China office of the Bureau of fommunications called
a meetleg of tranepoit and industrial organizations to "discuss meaeureato improve cargo
movement Teinan announced (Mar. 15) that the Finance and Economy Department of Shantung .
had sent 19 cadrea to make an inspection of the operations of cooperatives, trading cempanies,
tax offices, and "the progress of the anticorruption drive and the spring farm program" in the
province. Peking reported tn numeral code (Mare 10) that in Ronan Province the co9perat1v
enettrmitng companies had collected large amounts of iron and fate, with local blaekemithe and
eri*eptaraeting
worker e manufacturing fertilizers and 1.58 million units of farm tooiea through
."leal'epiirehase of raw materials, local processing, and local consumption." In Tahan Village,
raliii42'Henehang Hsien, one-thixd of the villagers obtained fertilizer from the cooperatives.
i0Ong claimed in numeral code (Mar. 13) that the Mnaden Chemical Works had increased its
efficiency in making cylinder oil by 60 percent, and reduced the cost 20 percent, through the uee
of residual Wax, a byproduct formerly used only in making lighting fluid.
Peking reported in numeral code (mar. 12) that the Government Administration Council of the
Central Government had adopted new regulations concerning the control of lecal government organe
that had been engaged in productive enterprises. The new resolution admitted the valuable
contribution of these small productive operations in village and hsiang during revolutionary days,
-alien small areas often were isolated for long periods of time, but declared that now the
"diffusion and aimleseness" of the scattered enterprises had militated against the planning of a
National economy, while "the influence of capitalist thought" in these small enterprises had led
to "serious corrnption and waste." Therefore steps had been taken to strengthen the control and
management of these enterprises, with the exception of farms and gardens operated by Army units
for their own use, enterprises managed by relief organizatinns, and enterprises operated by
recognized eooperatives. Under the new set-up the smallest unit, would be the hien, with the
heien government or a special committee taking over all chn, haiang, or Village enterpriees.
Some enterprises would be organized on a level higher than the heien -- special district,
province, and large administrative district.
WAR PROBLM'C
Sabotage la Contractoreo Tsinan announced (Mar. 12) that Chang Fu-ting, cadre in the Tsingtao
People's Radio Station, had been arrested for taking 83 million yuan illegally and causing a
loss to the Government of 293 millions through fraud in fulfilling radio contracts for the
Chinese Volunteers. Rotel reported (Mar. 16) that Chou Hua-chuan, Wuhu merchant, bad been
arrested for cheating the Government out of 200 million yuan on Army contracts for shoes, uniforms,
cloth, and other supplie. Mulasi stated (Mar. 10) that Yu Kao-fu, Yinhsien confectioner, had
been charged with cheating on contracts for 40 tan of.meoneakes for wounded vetetane. Wuhsi
added (Mar. 16) that Chai Yung-sem, owner of the Chengeai Drugetore, VAS "reluctant to confess
completely" to evasion of 50 million yuan in taxes, illeget dieeemiration 'of 100 million yuan in
capital funds, bribery of cadres, embezzlement of Government property, and the manufacture and
sale of falee drugs to "secretly injure the Chinese Volunteers and the people."
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Wuhan announced (Mar. 10 that members of the Youth Corps held A rally Nar. 9 in the People's
Palace of Culture) Chu 29 Wdhan, to hear accueations by to Yuen. of the Chinese Volunteers- againLi et
Wenechuan, who defrauded the Government on cotton proceesing contracts for the Volunteers.
Wuhan added (Mate 14) that. studentof Wuhan University demanded the removel and arrest of
Chen Hal-chiu, head of university's chemistry department, for conniving with merchant
Li Wen-chuan to defraud tele Government, on Army contracts. Canton reported (Nhr. 10) that
officers of the Peopiele neberation Army in Canton had charged local rice, flour) and 'biscuit
factories with making unneelthfnl food products and defrauding the Government on Army supply
contracts. Cantnn sain, (ef-ri,re 13) that workers in Canton rice processing plants had accused
their employers of defeen;deng the Government on contracts to process rice for the Army during
the Hainan. campaign.
Chungking aneounzed (Phr. 10) that bueinessmen in Chengtu had been charged with serfoue cases
of fraud in eupplying Army units that fought in Tibet. Pan Chi-hung sold one million catties
of hardtack, all of which rotted; Chang Wei-hsien sold adulterated flour; Yang Teu-ehing eold
soy sauce ybich made the eoldiers sick; Yang Chn-peng sold 30 million yuan wneth of sheepskin
for 190 million yuan; and the leather trade in Chengtu used horsehide and rotten leather to
make shoee, which rapidly dielntegrated. Peking reported in numeral code (Mar. 15) that 'heinous
offenders among merchants" had been apnrehended in Chengtu and lean? and would be legally
. punished for injuring the Feopleos Liberation Axmy that merched into rriinet. WAng Li-chen
-eland Kang Chi-hung of the Hsin Chung Farm Produce Company, Chengtu, sentituted improperly
cookea bean powder for rice powder and smeared putrified meat with sat for the soldiees.
_Che-eu of the Hein Hei-yuen and i-chu tea faetoriee, Teeny added water to tea to increase
nen *ight, and substituted ueed tea, flavorlees stalks,9 and unproceaeed tea up to 50
Ont of his orders., Tea was absolutely necessary in the digestion of eee etaple fool of
lareas so "deeeitful merchants seriously injured the health of the fighters by eunplying tea
of such bad quality." Other Southwest contractors supplying tent-euppoen rode for the Army used
decayed woody so that at an altitude of 5,300 meters above sea leveln tat, the rode broke.
Baeteri012glea1 Warfare EEmenIto Peking in numeral code (mar. 14) made new and detailed
charges of bacteriological warfare by American planes, saying that 19 planes on Mar. 6 dropped
"large quantities of flies, mosquitoes, fleas, Spiders, beetles, lizarde, email mosquitoes,
lice,.ante, earthworms) and small black insects" over Artung, Elulleneheng, Fengcheng, Shuifeng,
Tatungkoen and Changtienhokou. On Mar. 7 one plane spread mosquitoes? flies, fleas, butterflies,
And other insects, which were discovered in Chian, Talpingkou? Chuangho, Inaantien? Chinnhow,
NUkden? and Sinmintune On Nhr, 8 spiders, centipedes, locusts, toads and bees dropped frfAva
American planes were discovered in Makden, TUnghua, Linehiang, Fusung, Chian, Sinpin, Feneeheng,
Antung, and Fnehun. Peking added in numeral code (Mar. 16) that the Peking PEOPLES DAIM had
ecarried photos of the "germ-laden bomb shells." The Peking home service declared (Mar. 14)
that the temporary 1101 on the Korean battlefield "does not Indicate that, the American aggressors
have abandoned their, military venture."
Peking said in numeral code (mar. 14) that a delegation of 70 persons, headed by Li Teechuan)
would be sent by the Central People's Government, to make a thorough investigation of the ?
bacteriological warfare methods in Korea and Noeth. China. All 70 names of delegates were
listed. At the Government Administraeion Council, session in Peking, Health Vice Minister
?Ho Cheng made a report on "the spread of cnntagious, disease germs." The home service announced
(mar. 16) that the delegation had been given aye= send-off upon its departure from and
that the "broad masses" of North China nere protesting at the. American crime. By the time the
"fact-finding mission" had arrived in NUkden reports were received of protests by various circles
in Teinghai and Ningeia Provinces.
Other broadcasts of protests by various groups and organizations, or even by the "broad masses,
emanated fram Shanghai (Mar. 14); Mukden (Mar. 14), -where 160,000 persons held a demonstration
to protest, and the TUHOPEI JIH PAO carried numerous protest letters from "farmers, soldiers,
students, workers and women"; Tsinin (Mar. 12)9 where farmers had resolved to "Increase production
to support the Volunteers" as a protest; Dairen (Mar, 14), where workers In the No. 18 Machine
Shop had "launched a production drive" in protest; Canton (Nher. 15); Chungking (Mar. 10-12);
-and. Kunming (Mar. 15).
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Elgelnntlast_ Epidemics. Peking announced in numeral code (Mar. 14) that medical and, health
workers throughout the Dation had responded to the appeal for workers at the Korean front to
fight bacteriologaeal warfare. At one Mnkden university 1,000 teachers and students wanted to go;
at another school 95 percent of the teachers and stndenta signed a pledge in one day;' doctors in
all, private hospitals in kden organized e and Dr. Liang Yon-kang, Shan Shan Hospital, Hoping
Chu) MUkden, mobilized 130 workers. On Mar. 9 the preparatory committee of the Shanghai branch,
Special Committee for Defense. Against Bacteriological Warfare of the National Medical Association,
pet and decided to mobilize personnel in Shanghai. Medical students and professore ateeach
university in. Shanghai seleanteered, and a medical operations volunteer team left Shanghai for the
front Mar. 10. The mosemeat met with an, enthusiastic response in Eofei and Wuhan,. and at Wuhan a
Central and South China branch of the committee was, set up. Medical and health workers in Wuhan
"unanimouely enrolled one after another to join the epidemic-prevention team to work in Northeast:
.China and Korea," Teams organized. in Changsha and Canton were awaiting orders, while in Sian a
'branch committee had been set up and an inspection team organized.
MUkden announced (Mar. 114) that the Northeast Peoples Government had issued a dixective to all -
local gOvernments to launch an antiplague campaign, called upon all medical units to have on hand
an ample supply of antiplague serum, and ordered manufacturers to step up the production of serum
.MSIkden stated (Mar. 15) that under the leadership of model workers Chang Wan-shou and, Liu Tau-min,
workers 'In the No. 2 Northeast Rubber Factory had organized antiplague committees to eombat-
. bacteriological warfare in the various shops and among the dependents of the workers." Peking
:in numeral code (Mare, 15) quoted reports from Mnkden us saying medical workers there were
joining groups for duty at the Korean front.
.Dairen announced (Mar. 14) that medical workers in the Dairen-Port Arthur area had organized-
eeplagne-prevention teams to cembat American bacteriological warfare in Korea." Pathhouee and
'hotel operators had called an emergency meeting to take measures for plague prevention, with all
operators instructed to follow the directions of the flague-Prevention Committee. Dairen said
(Mara 13) that. the Luta branch of the Northeast Medical Workers Association, and the Luta.
Plague-Prevention Committee, had called a meeting of 19000 medical workers to support the spring
farm production program by carrying out plague-prevention work, and preparing themselves for the
.struggle against U.S. bacteriolagical warfare." Tainan announced (Mar. 15) that an Anti-Baeteriolo.
gical Warfare and Plague-Prevention Committee had been organized in Tsingtao.
Shanghai reported. (Mar. 10) that the 10th .Medical Corps, under Huang Ling-hsin, and the lith
:Mdical Coras? under Tseng Wei-lo, left Shanghai Mar. 9 "to fight bacteriological wax-rasa in Korea.'
eThe.Isth Medical Corps, under Nieh Chuan-hsien, which had just returned to Shannhai, had members
'eWhen."offered. to return to Korea to continue the fight against bacteriological warfare."
-sShanghai said, (Mar. 15) that peasants in Shangchien Hsiang o Fengeheng Haien, Anhwei, had issued a
statement calling upon all peasants in northern Anhwei to join the fight against bacteriological
warfare. ?Shanghai. stated (Mar. 16) that the Uth, 5th, 6th and 7th Battalions of medical and
operative workers had returned from Korea, denounced germ warfare, and some suggested that they
should return to the front. Hangchow announced (Mar. 13) that medical waters there had organized
a committee to fight bacteriological warfare.
Yangchow reported (Mare 15) that students of Yangehow High School held a rally which was broadcast
-over the local radio, and called upon peasants to organize for the fight against.bacteriological
warfare. Wnhsi asserted (Mar. 10) that 330 students in the Kiangsu College of Medicine,
Chengehiang, had "demanded that they be permitted to fight bacteriological warfare in .Koreas":
Nanchang reported (Mar. 13) that medical workers.lp the-eityeheld a meeting and organized a
Kiangsi Committee for Defense Against Bacteriological Warfare,
Peking declared .(Mare 16) in numeral code that 'various governmental organizationa, associations,
schools, factories, rural districts, and religious organizations have unanimously denounced the
AMerican aggressors and demanded that strict sanctions be applied on the bacteriological warfare
criminals."
LAND REFORM
Wuhan announced (Mar. 10) that the Hunan Government had sent cadres to Changsha, Iyang, and Channts
Haien to check on land reform and the reinspection program. Wuhan added (Mar. 13) that in KVangsi
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Provincesjan Wen-hsing had been commended by the provincial government for his work in fighting
landlords. Nanchang stat.ed (Mar . 11) that farmers in Ningte Heienj Kiangsi, had organized
landlord-hunting teame, and had captured 30 refugee landlords. In the llth and 13th Hsiang
of Loping Hien MAS meat ngs of farmers "greatly increased their political conscioueneee,"
with the result that thee turned in all their weapon.. Kunming claimed (Mar. 11) that peasante
in Waehl Hsnang, Yuehi Taien, Yunnan, had been "very sueceesful" in driving out local despots
and Jandlorde.
Wuhan, reported. (Mar. 11) ahat the Party Committee in Chingehou, Hupeh, issued a directive
"correcting errors on. the. part of land reform cadres of ChU 71 Chingling Hsienj in the
distribution of the fruite of land reforna" The directive "charged the cadres with corruption,
lack of democracy, and ineomPeetence." Wuhan. added (Mare 13) that in Htangkang Heiang, Chenliu
Haien, Horan, farmere "waeted much of the fruits of the land, through corruption, so a dietribu-
tion commtttee had been eet up to "divide the fruits and adviee the farmers in uee of the fUnde."
The Loyang Party Cammttee ordered land reform reinspection cadres "to correct their errors in
thinking," and to "overaeme their complacency." Many cadre had not even epoken to the peasants,
and "miseed some of the eleh landlord properties" by not winning the confidence of the peasants.
Wuhan said (Mar. 14) that, the Loyang cadres had been called together to organize a .einspection
program and aecused. of "obetrueting the program" by theia alghtist thoughts and undemoeratic
attitude. "In, some areas poor farmers were found unliberaeed and landlords still in control."
Nanchang stated (Mara :IP; that peasants in Katien Hsiang, Loping Helen, Xiangel, "had greatly
imereased their political consciousness" after land, reform reinspection, had seen through the
tricks of the landlords and were sticking together. Landlords had stirred. up dissenzion,
especially over water rights and the distribution.. of confisaated goods.' In.Fankang 'Hsiang,
Hanfeng Helen, peasant; were alerted to 'tricks of the landlords when Peng Kang-chin set fire
to the house which had been taken.from him, Feb. 25, and tried on Feb. 28 to set fire to the -
warehouse where confiscated goods was stored. Nanchang declared (Nhr. 1).) that women had taken.
an active part in. land reform in AnfU Hsien, Kiangei.. Landlord Hsieh Heien-chu was aecused by
his wife, Wang Yualaly of hiding a gold ring; another woman accused him of hiding a.ai.ie. ut
of 12 persons who accused, landlord Yang KUan-chi, i.ght were. women. Nanchang added (Aara 16)
that peasant. e in Tiebehan Chua Shangjaz Hslen, Kiangei, had, confiscated 5i cattiee of gold,
Boo silver dollar, and 6yoOo catties of grain from landlords. By frightening the fameadee of
Yang Chin-hen and Yang Chiu-hei, they were able to uncover the 3 ounces of gold, 50 eilver
dollars, emd 232 eatties of grain hidden by them.
:Kunming ennonneed. (Mar. 12) that the Party Committee in Luliang Helen , Ytrnana had given cadres
30 days to complete the land reform program. The program got off to a gce4 start, but 'bogged
down because of the laxity of the cadres, so that 23 hsiang never were taken caxe of Kunming
said (Mar. 15) that in Chuchi Helen., Yunnan, the land reform?cadres were making good. progress
"after taking a reindoctrinat ion course and.. organizing the peasants."
Shanghai announced (Mar. 16) that the Shantung People Js Government had organized a largeaecale
collective farm of 600y000 mou, embracing Lichingj Kaangjao, and Wuti Haien. This year 20,000
mon will be cultivated, with an expected yield of 20 million catties of rice.
MISCELLANEOUS
Counterrevolutionaries. Wuhan asserted (Mar. 12) that the drive against local despota and bandits
In the iuhan area had. been successful, with organizations of farmers and workers now controlling
the regione Nanchang reported (Mar. 10) that KU Yeh-fu, despot in Hsinping Hsiang, Hsinchien,
Bhien, Mengel, fled to Changte, where his eon lived but on Jan. 1 the son, arrested hie father
and brought him bank. "His spirit is to be commended." Lo Ping-hem? farmer of Tanen Hsiang,
Hsingkuo Helen, Mange., was executed for making false charges against a widow nemed Tien and
then murdering her to get her property. Nanchang stated (Nara 12) that 4,000 farmers' attended a
public trial in 'yang Haien, Kiangsi, of Chang Yuenaseng, Weng Chung-ho, Liu Ghin-chang, and four
other landlords and counterrevolutionaries. Nanchang added (Mara 13) that Chang Haiu-chuan of
Shantao Hsiang, Heiushui Helen, Kiangsi, was executed on the spot, "among cheere" following a
public trial attended by 1,500.
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National Minorities. Wahau reported (Mar. 14) that a delegation of 106 persons representing
eight nationalities from Sikang, Kweichow and Szechwan, led by Chen Wen-ming, was welcomed by a
tour of the city and sent on to Peking. Sian announced (Mar. 11) that Tibetan and other ranking
officials of the Governments of the Northwest, Kansu, Shensi, Tsinghai, and Sinkiang, attended
ceremonies in Lanchou for the dedication of a lama temple Chungking said (Mar, 12) that
Government officials and 80 Chinese, foreign, and minoracy group merchants attended the
ceremonial opening of the Lhasa branch of the People's Bank. of China. Kunming announced
(Mar. 16) that 1,000 pereene were present Mar. 15 at the graduation exercises of the Yunnan
College of Nationalitioe.
Women's ?1:11,10J22n Kunming reported (Mar. 15) that the People'e Court in Yuehi Haien, Yunnan,
celebrated hiternational Women's Day with a trial of Liu Yung-chi, Chang Chin, Li Kuaug-lin,
and eight others charged with mistreat:iig moman and children. Nanchang announced (Mar. 12) that
Lu Chen-rhen, mili*iemae of Heingkno Haien, Kiangsi, had been sentenced to 5 years in prison
for forcing Liu Loey.Lng to marry his brother, and causing her fiance to commit suicide.
Nenpney Reading. Pekin g declared in numeral code (Mar. 16) that circulation of newspapers
had been reduced in some localities, and added e "This neglect of newapapers and current
affairs by some people is an expression of political paralysis. We should not, becauen of the
stressing of economy, refrain from reading newspapers. Immediate rectification should be
carried out in those localitees where such a phenomenon has been diecovered."
Pneumonia Epilaaic. Vanehang announced (Mhr. 10) that 98 medical cadres had been sent to the
Yuanchoa Klangsi, where in ipo hsiang, 830 cases of pneumonia had been reported
with 300 deaths,
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