NEW REGIONAL CHINESE COMMUNIST PARTY BUREAUS ASSUME RESPONSIBILITIES FOR ECONOMIC COORDINATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A001000310002-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: November 16, 2016
• Document Release Date: February 28, 2000
• Sequence Number: 2
• Publication Date: May 26, 1961
• Content Type: BRIEF

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CIA/RR-CB-61-31 Copy No.
36 May 1961
CURRENT SUPPORT BRIEF
NEW REGIONAL CHINESE COMMUNIST PARTY BUREAUS ASSUME
RESPONSIBILITIES FOR ECONOMIC COORDINATION
OFFICE OF RESEARCH AND REPORTS
CENTRAL INTELLIGENCE AGENCY
This report represents the immediate views of the
originating intelligence components of the Office
of Research and Reports. Comments are solicited.
This document contains information affecting the national defense of
the United States, within the meaning of the espionage laws, Title 18
USC, Sections 793 and 794, the transmission or revelation of which
in any manner to an unauthorized person is prohibited by law.
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NEW REGIONAL CHINESE COMMUNIST PARTY BUREAUS ASSUME
RESPONSIBILITIES O ECONOMIC R T
The establishment of six new regional bureaus of the Central Com-
mittee of the Chinese Communist Party was announced on 20 January 1961
in the communique of the 9th Plenum of the Party, 1/ but the communique
did not explain the purpose, function, personnel, crr structure of the
bureaus.* Subsequent fragmentary information in the Chinese press indi-
cates, however, that these regional Party bureaus are beginning to exer-
cise considerable authority in the coordination and control of economic
activity within their jurisdictions. Although the responsibilities of
the bureaus probably have not yet been completely determined, up to the
present the purpose of the bureaus seems to be the reassertion of cen-
tral control and direction throughout the economy on a pragmatic basis.
It also is possible that they are intended to serve as nuclei for the
future development of full-scale regional economic control centers.
The importance of the new regional Party bureaus is suggested by
the appointment of a Central Committee member, Sung Jen-chiung,** as
First Secretary of the Northeast Region. 2/ In addition, announce-
ments in the press in March and April 1961 report three of the bureaus
(the Northeast, East, and Central-South) actively issuing directives
and coordinating plans within the region for agricultural production,
allocation of manpower, allocation of important industrial commodities,
and retail trade. 3/
The Peoples Daily of 18 April 1961 provided the first.indication
of a forma organizational structure in the regional bureaus. The North-
east Bureau was reported to contain a planning committee, an economic
committee, and a finance committee, strongly suggesting that the regional
bureaus have broad responsibilities for working out regional plans that
support national economic objectives.
Economic control by regional organizations has not been exercised
in Communist China since 1954 when the seven regional "administrative
areas" were abolished. These "administrative areas" had operated from
1949 to 1954 as strong semiautonomous centers of control with formal
Party, government, and military elements. They were replaced in 1954
by a system of direct central ministerial control over all aspects of
economic activity. In 1958 the highly centralized administrative system
was relaxed to give the provinces direct control over (1) production
in all but large heavy industrial plants, (2) investment in small con-
struction projects, (3) over-all allocation of manpower, (4) allocation
of all but a few major industrial commodities, and (5) retail trade.
die probable boundaries of the new regional jurisdictions are shown
on the map included in this memorandum. These boundaries have been
pieced together from press references to the bureaus, but no official
announcement on boundaries has been made. (These boundaries differ
in a few respects from the regions tentatively established for the forth-
comin ORR project 'Location of Economic Activit in Communist China.)
**** Sung wasponjy recently released from his position n t e centra govern-
ment as head of the ministry responsible for the development of atomic
energy.
26 May 1961 25X1C CIA/RR-CB-61-31 Page 2
1'. e" ~ ,. n ~T T T T~ T:. 1T T A T
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C-O--N-F- I-D-E-N-T- I-A-L
The."leap'forward" in 1958, however, did.much to encourage provincial
officials to overcommit their resources. Shortages of construction ma-
terials and other important industrial commodities developed as local
officials scrambled to meet plan targets-, and men and machines were over-
worked, leading to poor quality of.output, breakdowns in machinery, and
costly delays in the supply of raw materials and in the delivery of
finished goods. Although attempts were. made in 1959 to reassert central
direction and control (by more carefully defining the responsibilities
of the State Planning Commission with respect to the provinces), this
current establishment of regional Party bureaus at a-level between the
Party center and provincial officials tends to indicate that earlier
measures to restore national direction and purpose were not completely
successful. It also is possible, moreover, that the Chinese Communists
intend to use these bureaus as the forerunner of more elaborate regional
organizations. The Chinese have stated that a system of "economic re-
gions"'would be.evolved during the Second Five Year Plan period (1958-
62) 4/, and although no'one.set of regions has ever received official
sanction, planning officials have discussed "economic coordination re-
gions" throughout 1957-59. The boundaries indicated by the six:new
regional party bureaus include fairly logical groupings of provinces
very similar to the pre-1954 "administrative areas."
NORtHWEST
HINA:,
26 May 1961
. CIA/RR-CB-61-31
C-:O-N-F- I-D-E-N-T- I-A-L
sin
CHINESE COMMUNIST { PARTY
REGIONAL BUREAUS
I-----"-- Intl I
EAST
CHINA
SEA
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Anal st:
25X1A
Coord
Jen-Min Jih-Pao, 18 Apr 61, p. U.
State, Hong Kong, Surve of a China Mainland Press, no 253,
20 Mar 61. U.
4. CIA, FDD Summary no 1118, 27 Nov 56, p. 61. C.
26 May 1961
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