FACTUAL INCONSISTENCIES IN CHINESE COMMUNIST STATISTICS OF CONSUMER GOODS PRODUCTION

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Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79T01049A001400080005-3
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RIFPUB
Original Classification: 
K
Document Page Count: 
21
Document Creation Date: 
December 9, 2016
Document Release Date: 
August 3, 2000
Sequence Number: 
5
Case Number: 
Publication Date: 
March 22, 1956
Content Type: 
REPORT
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PDF icon CIA-RDP79T01049A001400080005-3.pdf1.53 MB
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Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 101031 956 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 r C st C Article C.re Coat (Jr yesr Ilion The, Problem of qAlttY 4. T1w o 50 7. 8> 9. the Farmr in Chime Co iat Price- The o the Communist Chinese Consi t ractieability of Now Chinese Co=wniei Year plan amt program ,r the Five or t~ lon to Forced Pro in CO==1st Chime's AXA Rationing Sys Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79T01049A0014000800051-3 significant policy decisions B odied in Communist China's to allocate over 3/4 of state investment funda to t other activities that do not add exiyth welfare. The appexent neglect of the standard of living has been explained essary consequence of the industrialization program. Other Chinese pattern of v+estarn of .living. These d t, despite the seeming imbalance in the rrtant improvements vill be made in the standard industrialization requires or producer goods > e concentration of investment funds will not prevent considerable iro rtexit questions. Lon to use as much as 75 percent of new investment be sacrificed for some future l .eni n. Indian for it furnishes proof that the welfare of present output bs increased at an annual rate of about 8 percent under ve Year Plan, a rate that ranks well in comparison to development astern industrial economies. More important, the investment ase in India is not at the expeni;e of present In fact,, India plans only to raise inve s to ent from 5 to 7 percent of total output of goods and services, while Communist China has uble the Indian rate a pz osea to Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 practices? recoguition.to the fact that over 70 percent of its labor force is e d in agriculture and that fo, tut to 75 percent of Co=wziet China to 70 percent of ? has, accordingly, allocated .5 percent of its investment poxtion of its population engaged in agriculture and with ural sector. Co==ist China on the other hand - with food occupying the lice's share of people's consumption a nditc es ? ,'allocating only 8 percent of its investment funds to agriculture and. water in terms of grain output ich Communist China t of 16 billion - are far out of proportion crops to increase by 4 an increase of ro b1 7 million xpects to get 4.7 ton of new investment Comumist China in, areas kdie? ti.6 _,p on only .1.5 tons for each 1,000 yuen of investment, The absurdity of +C i.st Chime's capital-output ratio; only in o india, but in relation to trends in. agrfcultur : production in other countries, belies their a -unced expectation as to #nc Ue+d ability of grain per capita in 1957 if the planned allocation of nt funds in Communist China is such that grain to is cannot possibly be acb ei n one my conclude that the food component of per capita consumption may not even be maintained, let alone increased 2 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Doubts as the iab ance . use of investment firth u r Co uuniet borne out by a look at official of eco ueer goods, in Shmwi ovince in 1952 d. for 19 57 ease C are to Zvi 8 1/2 kilos a tndent consumers would thz of rate of min production of about 4 to the approximate 8 t?nte to lose en for i proven in 1952 when lass ;e of not PS.ts per further the pace at ihich Com ist , ~ by 1957. Row mob ii t an, beat will 1 kilo of q u a c y of t h e plame& increase in sugar I kilo per 11952 consumer activities. Kerosene consumption is to be increased Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 A *1owing down of the rate of industrialization in favor of a more effective F grto raise present consumption levels -ou d seers to be the obvious course for a +verx ex t ;forting to be the true representative of worker interests and. welfare,. Proof of the sincerity of their claims to certainly vanting in light of their on consumption statistics. clotting portion of coneumptton, fare under moist ina'e event plans? Cotton cloth spa psi markets in 1952 were just about enough to provide each person with are quit of padded clothes. The inc - ed ly will be enough for about half of another suit. The clothing picture is even less equate vhen firms: on stems, towels and the lire even at the end of the Five Year Plan there will be less es will be increased less than a little over I pair, mot be denied that certain cur goods will wDlY In 1-957. lowever, of consu s tion sti ow. The neglect of consumer goods production in C et China's such that there will be little or no i vement in of living during the first Five Year Flan. One questions the of Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO0140008006-3 J=e 1958 to tt =buaMd t tie with t in ak Attlee per pier. bbxevver, C1a of unhuskod graln. This rye t rure1 r c%Utre is for eel:, teed, arA Vas per 4e O r to as Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 so-called "Voius to Y" purees re y of C m is t policy ee enfor d by the mi3. ton of ley crre thr UOxt the country, In the second place x accord Chines Cunist Five Year -n, the pA=ha for 1957 is 29 million to Of c rei&3. in. Of the 43.25 million tons to be lei and p c d in 1957 e only 14.25 million tons collected in the form of tees in kind. Bet eta 12 aid 13 percent of the 1954 55 output a taken under the grain tax, or a total of from 19.0 *tUtou metric tons. even if the tax as a r rtt+an of total - which is not probable, of tax ,i unaccounted. fear in the pfd 1957 total could simply be left out of the or levy and purabaae, but i' be coil valqMt to at least 5 minim metric that, in order to mOkO up the total of p rain a o cti+ ns the burden , the pe a te in 1957 vould ine: ,base Program on bx4to5 C - et grain collection goal re mined as star pUnned: increases . In r 13 percent end pureb e under the forced collecti za figure is grain taxee from food deficit fart bouseholds Xll be form of cox, wobebiy increase. acts: Valn such higher year rim . Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 3 ,ttY i Eof t M%Uwtry a of the sbz~m of criti t ;h. Rubber pact rya wore out too r"t rubber re a tis tyrtr footwear ' WAs not men; boor no ate vt: is 54 V i .e ) bow ever to 4udge by t ii lbduatrY nor AU it bet the criticism h Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 lit? ,-fit coax, ss amity, they ti q t)* is t 1-10 Doe 53. Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400086605-3 d Dragon or the Case of Inflated Statistics in conouu r } s goods s ctua output of 32.4 percent roxi tes 7 to 8 pzrceut. Cbia fu was referring output of modem tents o Light must output from source goods output duzIne the tt a bl Teen In July 1955 by Co=mnist C l a Minister ess, Perbaps 7 to 8 percent fit. nt of at. The sct *i is a e se nee of anted sector of rganized Since government c of ovexs af 1. Spech by Cbia o-fu, Minister of Light Industry, f6wle C +n ss, 23 JW.y 19 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 L zction Ministries as opposed to the z u . 5. Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 e Con v r VMad natural to think that if the production of consumer goods d, the U-berg of the su r would be greatly japroved; powe r C Est Ch this t of light Industry ; restored by 1952 es in production of consumer goods, have Conti d; uses for the products. China uses sea rather than for consu tf on purpose of light indt atry outer to acquire foreign exchanee is given gwntitiez of light %tion system 1esves only the bare mintw= of goods 'creed to vitbt so industry can de. A stric? of the Communist Case in 1954 ?xe 'ttberrsttont" the figure perceu of mazy and is intensified by the only tech by Yep Chi-eh0*n&, Minister, of Foxe. Trade, People 'a C. es, 29 July 1955. Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 woment because 6. Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 bility of Neu CUM" 1957 Originally Est in 1956. t1 d uvre ems; 195-7 tarot) ma 19 cote.0 1. d 19533 Later 1954 to 955- both gmin st o grid chmiftl fei.zs 1 At the Cc ` c'e, 62 co tea On& 61 o I 8 SILUOn tms. videx # 1955 z' eta the id rm 4 In this z& 25 cta of exit: Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 our c o t m t r y bas bwM 6 sine, ' latter hat V, 1955 after t3 f tat pr ants, rich pesaants ., and fo ,c t, t, a3 Dcc ar 1955. t Of t was nts of socialist x by Cbatxu ofa =all rod' for sp txb t is 'ist&b4 ati iab e of the P*QVIe'6 WIY farmig Cooperatives ratites Aou3A Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 the Vice Peer a inn: of the state ni at '* cc s i of the First Jktiomi rt by tom: D.ty Director - y, tlul committee of the cc g Liao C "e ce 4 5 J%nuary i 5, Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79T01049A001400080005-t- of Industrialization for the Pe, only demand a cOMPftMtivel y long-razee target for ihoc4. After having dove ed agricultural d their Income, the broad masses of peasants demand their living increasing of higher-production measures, ry, fishery, handicraft industry; ti establishment of Primary soboois, tu.=yeu States, "Thus o can predict that this 40-Article draft program for developing China's agriculture to to be eventually realized by the peasants them elves, using their own financial and material resources. These tasks include agricultural cooperatives, forestation; development of elution of illiteracy among the pe of broadcasting receivers, development of cultural and physical but have also made a series of requests covering ent of public health work and living conditions reaa, and absorption of unemployed personnel in urbon amass to work The above etataa ent contradicts Liao's araarlfer statement that the state ve to fulfill the above mentioned conditions. etatea, "of course to support t out by its financially tery 19W86, especially during Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 if everything were dependent on the State or State investments not be a quate . As a result the carrying out a ska would b impossible, or a large amount of the state's financial ourcee would be directed to this field, thus reti~cic,, industria investments zed, we will have a Urge domestic Zap effect, what Liao is saying economy has to sup :dustriali zaation. " Living conditions. stags, "Once the draft proms for develo, is the peas If accor lag to his previous state men o be the main Support program, this would necessitate forced, saving boss purchases and gloving back of agricultural income into industrial, invest: ailed high pure der will p without any or increase in market goods for the ordinary consumer. 1. Report of the Deputy Director of the Rural Work Department of the Central Ca tttee of the Chinese Communist Party, Liao fiat-yen, at the Supreme State Conference, January 25, 1956 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 a, Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 to Forced vcurewu: or as the BOW hies., tur oar be void to t end to be bot t this system can not be toria revealed the in 1955 to t e villages acre go percent cox the qua tier am still ~ 1955a .955 1955- ant policy ;& in the abler . Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Discrimination in Cowmad-ot I - uspropartimate allocatim to t luduatrUJ- sector of the eaoumW .-1937: str of cause of the 1955, is ed two atts twee W rat. of squ& ty bet wen eities s Vi s in the vi 0 p still Vory b in e Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 ttie, td into Ulm X wtidowe of i M tf o tks wvarmwut} is t1 1 ] e+ t13 of food 18 Fovea 804 r 1la. < The fo Wi PSOVIO jf 23 ' Tientsin, 5 acytomftr 1955. c# i t exempt" Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3 10 Approved For Release 2000/08/29 : CIA-RDP79T01049A00140008090t-3 rchasinS power under the Chine place due to greater increases in prices products ,th agricultural products. Typical of this decline is the e in 8h n hat c with the price of cloth -- the two mein d in rural.-urban a clumV? In 1936 p in terms of average picui (110 pounds) of rice could be exchanged for 5 bolts (Of quotations show that in October 1950 one prjcui of rice was equivalent in value to =67 bolt of cloth and in yebruary 1951 one picul of rice was equi lent to ?+5 bolt of cotton cloth. Average Shanghai prices for 1952 meted in the 8 i ii*in-wen Jih_ - show that a picul of rice coil& eh of cloth in that year. The 1952 ratio of prices for rite and cloth has continued throughout 195k a1thougb there has been a sb rise in production of cotton cloth end a much slog rise in output of food crops. Therefore Chinese C et price policies run counter to the price relationships tba - coed be expected to by sharply restri. yards each) of cloth. In contrast, under the C ists , ability to pure n burden on the peant products. Approved For Release 2000/08/29 : CIA-RDP79TO1049AO01400080005-3