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June 20, 1952
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---1 CHANGE TO UNCLASSIFIED PER REGRADING BULLETIN NO._;2-0 NOV 1951 ANNOVediGeRehMOTMAMAIoNCIA-RDP80-00809A000500740072-8 CENTRAL INTELLIGENCE AGENCY 25X1A INFORMATION REPORT COUNTRY COMMUNIST CILTNA SUBJECT INDICATIONS OF PSYCHOLOGICAL VULNERA.13ILITIES PLACE ACQUIRED BY SOURCE DATE ACQUIRED BY SOURCE DATE OF INFORMATION 5X1A IniS DOCUMEN7 CONTAINS INFORmATION AFFECTING TM( NATIONAL OfFENSF OF 7nf UNITED STATES, RITnIN s'nf MEANIN, OF TITLE :h, SECTION: 7'7! AND 7s4. OF int U.S. CODE. AS ANENDED. IT; TRANSMISSION OH 11.1. CATION OF ITS CONTENTS TO OR RECEIPT PT AN ONAulnORI7t0 PERSON It PROnlOITED Os LAO. TNE REPRODUCTION OF TnIS FORM IS PROISIRITED. THIS IS UNEVAI.UATED INFORMATION REPORT NO. SPONSIVE TO 2 3 DATE OF DI STR 'Lb 41,44j, 1952 NO OF PAGES h2) NO OF ENCLS AT END) D'Jo SUPP. TO REPORT NO. /,;" CPW Report No. 22 -- CONITINIST CHINA (May 12 - 18, 1952) SUMMARY Austerity Committees and People's Tribunals work diligently to settle corruption cases; workers are urged to help their employers restore production and State companies to give business to private firms, and businessmen are offered refunds on taxes and fines if only they will get business back to normal. Yet despite this anxiety to have done with the anticorruption drive, the apparent No. 1 aim of the broadcasting stations is to convince listeners that the drive has strengthened both capital and labor. Workers are credited with improving techniques, becoming. more efficient, and achieving a higher phAne by becoming "supervisors" of their employers. "Model accusers" and "model informers" who were rewarded with promotions are represented as accomplishing miracles in businela? though it was admitted only a few weeks ago that many of them were unable to handle their new jobs. Workers are promised higher wages, new houses, and better living conditions from the gains of the drive. The need for new houses is apparent. from a lamming admission that "no regular housing is available" for 90 percent of the city's workers; further disappointment may be in store, for in the Northeast higher housing allowances now are offset by higher rents. One noticeable result of the drive is the rising Importance of the Yeath Corps, Which has strengthened its membership with thousands Of enthusiastic anticorruption workers, many of them now assigned to Government positions, and seems to have assumed the task of supervising capital through its new members. Many of these are given special courses in business, along with political indoctrination. Another obvious result of the drive is the disclosure of inefficiency among State trading companies, which in some areas fulfilled only 80 percent of their 1951 contracts. A tightening of controls over these concerns is seen, with all major purchasing to be done through Central Government agencies, and. - CONFIDENTIAL ? - - - - SECURITY INFORMATION DISTRIBUTION I STATE ARMY NAVY AIR 113 FBI Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 ii 25X1A Approved For Release 2003/10/01 ? CIA-RDP80-00809 2-8 CONIUDDiTIAL ccoperattim limited to small local operations. Cadres get their usual quota of criticism for farm ills, especially in the Southwest, where in one district they distributed loans equally among all farmers, irrespective of need, and where drorght, Miami, insects, and livestock disease are serious. 'Even more serious is the farm situation in southern Kiangsu, where only about half the cotton land is under cultivation. Medical workers are singled out for special censure, aS they do not want to work for State organs; schools are accused of being reactionary; and new attacks an missionaries are disclosed. CONMENTIA.L Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 NOV 19:J.1 Approved riar ReleaKM3OFOAUTR-RDP80-00809A000500740072-8 I CENTRAL INTELLIGENCE AGENCY INFORMATION REPORT COUNTRY SUBJECT PLACE ACQUIRED BY SOURCE DATE ACQUIRED BY SOURCE DATE OF INFORMATION 5X1A FOR OFFICIAL USE ONLY REPORT NO. 25X1A RESPONSIVE TO 2 3 DATE OF DISTR. OF PAGES OF ENCLS. END in 00CuM1mT COhimim, INFOhmATIOR AfFCCTIRS ?If NATIONAL Olf[h:f OF Tmf uhlifp STATES, IlYMIN rp(1.4AhtMG OF TITLE Id, SECTIONS VO AND 7,4. Of tor J.S. :.0Df. AS AlliffiDEn. ITS TRA4SKISSIOk Om Rfff. LOtION Of IT; [CA17(475 TO OR 1.1:CE imT IT AS 0N1011081113 miRSOmit PROnIAITCO mf tAm. TmE lifPRODUOM Of fmI5 FORM .S PROMIPITED. NO. NO. AT THIS IS -UNEVALUATED.. INFORMATION IDISTRIBUTION1 STATE SUPP. TO REPORT NO, CPW Report No. 22-A -- COMMUNIST CBINA (May 12 - 18, 1952) CONTENTS ANTIWASTEp ALTICORRU7TIONp ANTIBUREAUCRACY" ...... 000 1 COMMERCE AND INDUSTRY... ....... ... o....... 0'000000000000 2 AGRICULTURAL PROBLEMS.... ...... ., 00 6 PROPAGANDA AND INDOCTRINATION..." ...... 8 MaSCELLAIIMOUBoom00000rno ............ 0000 ............ oo I ARMY SECURITY INFORMATION NAVY i I AIR 9 Approved 'dor Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For Release 2003/10/01 : Cl ABTIWASTEp ANTICORRUPTION, ANTIBUREAUCRACY -RDP80-00809A00015e4t072-8 ETLI.220211, of Drive. Tsinan reported (May 12) that 136,000 persons visited the local anticorruption exhibition. Dairen announced (Nay 16) that Dairen and Fort Arthur authorities arrested 400 corrupt elements in a 201rday raandx$10 and that during the drive workers had made 100,000 accusations. WUhsi said (May 13) that in Changchou the China General Merchandise Co. called a meeting of 60 model workers .to publicize price reductions and "strengthen the determination of the workers to promote" the anticorruption drive. WUhsi reported (Nay 12) that in mobilizing its forces to persuade corrupt merchants to confess the WUhsi Wamen2s Democratic League had called together family members of the merchants to hold discussions until the corrupt elements were ready to confess. In this way the owner of the Chungming Machine Shop was prevailed upon to confess and seek leniency. Anshan announced (May 18) that 19 active shop clerks had Youth Corps at a ceremony May 8, after which a rally was the unity" of Youth Corps members in their surveillance More than 800 cadres were told that it was their duty to prevent them from carrying on illegal operations. been taken into the local held May 13 to "strengthen f the capitalist class. watch capitalists and Adjudication and Settlement. Shanghai reported (May 12) that at a May 10 meeting of the City Council a decision was made to set up a Peoples Tribunal to handle serious corruption cases, while Mayor Chen called for a:Settlement of the cases "in the spirit of magnanimity shown by the Central Government directive, so that production could be encouraged." Shanghai said (Nair 13) that at a meeting of all circles in Tsinan the Mayor declared that all priVate traders would be given lenient treatment if they mere willing to increase production, promised that corrupt elements would not be fined if they agreed to confess and resume productinn, but asserted that those who refused to confess would be fined heavily. Hangchow declared (May 13) that the local Austerity Committees in the city were reviewing *Ur-- cases of firms whose corruption had been adjudicated, with the idea of granting greater leniency. The case of textile merchant Jen Yeh-chai was reopened and the firm reclassified as law-abiding beCause Jen wasrifling to invest more capital and encourage production, although he had formerly obstructed the drive and had been given a heavy sentence. Chang Shui-chien, a worker in the Huafeng Textile Mills, reported that the workers had reduced the percentage of defective goods "in order to help the mill awners." Hangchow reported (May 14) that the Hangchow Peaple2s Tribunal ?Ma' 12 sentenced Kao I-jen of the Te Hain Construction Co. to life imprisonment forl refusing to confess, forming mutual alliances, cheating on du:Lense construction contracts, and stealing 4,000 trees during the Kuomintang regime; Han Erh-lao ofj the Han Chang Being contracting firm, charged with cheating on military contracts during the Chushan Island invasion, was pardoned when he confessed and made restitution; Tu Cheng was sentenced to 7 years and Fang Te-fu to 5 years; and 10 other cases were settled. The People2a Tribanal of Chinhua, Chekiang, ordered the arrest of had dealer Wang Yeh-fa because he refused to confess, and allowed lenient treatment for Li Shao-yuan, 'who embezzled 220 million yuan, because he confessed and l made restitution. ! Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For Release 2003/10/01 : CIA-RDP80-00809A0005MW2-8 - 2- Wuhsi announced (May 12) that the local Austerity Committee had called a meeting of all district subcommittees to discuss plans for complete adjudication of all cases in order to bring the ',drive to a close and "change the emphasis to production." In Wuhsien, Kiangsu, workers in the transport, hardware, textile, and food trades were expediting investigations in order to adjudicate rapidly all corruption cases, with 105 cases being investigated under tl'e five-antits program and 3,000 adjudications already completedo langchaw stated Way 15) that in Nantwag, Kiangsu, 3,646 firms now had been classified under the third stage of the five-antils drive: with 95.22 ? percent of all cases settled. Most lawbreaking capitalists had confessed and resumed legitimate busineas under the leadership of the working class. Kunming reported (May 14) that the People's Tribunal of the Chaotuna, Special District, Yunnan, alloWed lenient treatment on May 7 for eight corrupt elements who confessed and made restitution, while two others were sentenced to priaon for refusing to confess lamming stated. (May 18) that the Kunming Austerity Committee had ordered cadres in the Yunnan Postal Telegraph Bureau to make a fall investigation of' oorrupt elements in 'the Bureau, as there had been laxity in seeking the return of embezzled property. COIMICE AND IIIDTJSTRY Gains from Anticorruption Drive. Peking reported in numeral code (May 11) that as a result of the anticorruption drive officials in the State-owned Knagan Mining Equipment Co. now consalted the workers in mapping production plans, had installed requisition, inventory, and operational systems to eliminate waste, and had increased production 28 percent.. The anticorruption drive had disclosed that the company operated without any definite procedure, filed work plans without consulting thee, was regularly short of materials and loaded down with dead stock: reollarly wrecked machines by overloading and operating at high speeds, and wasted en:yo.h in the past 3 years to pay for eonstruction of a new factory. Dairen asserted (May 18) that the norms at the Ni.. 2 Power Plant had leen rained 30a percent after progressive cadres had demonstrated that older workere were wrong in saying that productionconld not be increased. Tsinan declared (May 12) that at a result of the anticorrUption drive the Inifeng Machine Shop had inereased production 33 percent and the Chuaglite Machine Shop 50 percent. Private ausinessmen were increasing their capital and putting in more machinery, as well as ahlowi warkers to inspect their booksO and offer suggestions. Shanghai stated (May 12; that in laanaaae the Hain Min and Min Pen Flour Mills had, improved production both qualieatively uoi quantitatively after the anticorruption drive had led workers ta sign ney compaets. Shanghai said Way 17) that the Nanking Railway Administration had improved Predaetton because of the promotion of active cadres to positions of leadership and raid established a record of 10 minutes in crossing fram Hslakuan to Pnkou. Peking said in numeralHode (May 12) that in Canton the success of the anticorruption drive led to worker-capital consultative meetings and increased production. The Canton Textile Factory No. 2 aet a new production record in February; production in the copper department of the Chieho Iron and Steel Factory for February- and March was 25 percent higher than in November and December, with a drop of 70 percent in defeetive goads; and rice processors had increased their productivity efficiency 20-30 percent. Anshan asserted (May 14) that a "new atmosphere" pervaded the Bureau of Industry Machine Factory because of dismissal of the director, production section chief, and accounting section chief, "promotion of a number of enthusiastic workers,' and resulting new production records. Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For Release 2003/10/01 : CIA-RDP80-00809A0005WWW/2-8 - 3 - Milian reported. (Nay 13) that because of improved management following the anticorruption drive local transactions in rice increased. 8.percent, wheat 500 percent, and increases were recorded in yarn, cloth, salt, and oil. According to Hangchow (May 14) the 'bureaucratic - manager of? the China Good. Cempanyte Hsincheng Rice NI11 at Chianhsing, Chekiang, had refused to cooperate with the workers, causing frequent shut-downs and mechanical diffi- culties that led to huge Government losses. ? During the anticorruption drive the Austerity Committee removed the manager and replaced him with Ling Chi-seng, with the result that the factory now was increasing production.. ' Shanghai stated (May 12) that with adjudication of corruption cases and increased seper- vision by workers the Shanghai Sahhsing Textile Mills, Hhafia Chemical Co., Changfachi Hardware Co., and Chungbua Pharmacy had cleared out dead stock, cut costs, improved quality of goods, and bettered working conditions. Peking reported in numeral code Nay 12 that after the five-anti's drive established a system of examination for factory products ? the Shanghai Pencil Factory ".as producing fewer pencils below standard and with broken leads; the Kungya Dyestuff Co. had changed from a wholesale to a retail business; and the Huaming Tobacco Feetory, which formerly sold only in Shanghai, Yanking, and neighboring. areas, had seat agent to Nantung, Yinnsien, and Shaohsing, and had. made plans to set up sales offices in Sian, Canton, Hankowa and Tientsin. Shanghai asserted (May that?the ? success of the antisorruption drive had made it possible for the Ea'; Chino Inland Navigation Co. to recleee freight. charges between Shanghai and Yangchow 38.2 neeeeat on cloth, soap, oiI, an 'kerosene. Hangchoy stated (May 14) that with the reopening of five private feetbries in the city the workers increased preduetion and cut costs because of their increased politia-aconscioes- ness, while the factory owners were encouraged to increase their capital inNestmehts. Wuhsi reported (May 18) that the owners of the Chengwei Flumenac:y of Wuheien lost i:xtereei. in keeping the business running when they were accused during the ql:iicorruptan driv selling fake dregs. However, when the workers ooperated with the owners aed devised ways to increase ,aales and stock tueneYer, the owners were eneouraged i!xpest mnre capital in the business. Wuhan asserted (May 13) that workers in Canton aolv held retraez? sessions with shop owners to mar production plans and check on peopee fulfilineet ef Government contracts, and as a result had cut costs 10 percent .ahlie still proteeting "the legal profit of their employers. Wuhan reported (May 18) the. fheirmae.. Nan-hsien of the Opium and Narcotic Suppression Committee of Cen+ral ano. 5.1eth reiina pointed out in a meeting May 13 that corruption cases involving had been exposed daring the anticerreptiohdriae,? opening the way for final ,:.umpreesio:. f the traffic. Sian assertad (May 17) that Siaing merchants had. so changed their tili.:fdg during nnt corruption drive that they had drawn up compacts promising not tc .;-1,mt on labor and materials In processing contracts. Sian said (May 16) that Vortrpeet cumanies had reduced priees on wheat, rice, flour, oil, salt, and, other daily :eeoeesitie as a result of gains made during the drive. The Shanghai market report for East China eities (May 14) showed edible oil down 2.1 percent and newsprint damn 3.k percent in Nanking. Edible oil was up 2.5 percent in Tsinan, salt up 509 pereent in Teingtae, and yelle'ie Leans up 2.4 percent InNanling. No other items were changed since the le,st quotations. Peking stated in numeral code (May 12) that trade Ilad increased greatly in r.7hulloying ? because most merchants expanded their operations When they were gran-,';ed lenient treatmene. In order to encourage the merchants, Chungking workers and shop clerks eeeently called a meeting to devise plans for increasing production. Chungking reported (May ? 12). that in the KWeichaw branch of the China Cotton and 'Yarn Co. new and progresvive cadres in the Account- ing Department had audited ana corrected the books, -while new cadres :in the Processing Department had reduced. the amount.. of cotton required in a skein of yarn from 41=5 to 395 catties? aud had increased 'the cloth output" In the Yunnan Import-Export; Co. effi-tency had so improved that now five persons did the work formerly done by 18 in the 2radihg Department:, in spite of the increased volume.. Chungking said (Nay 17) that as a result, of the anticorruption drive Chou Chi-ling had been put in charge of the Statistics Department of the Sikang Tea Co., and immediately was able to bring order ? out of chaos and improve business. Technical ,j..1_,v2i_aents. Makden asserted (May 13) that adoption of the Soviet system of specifications and requisitions had greatly Increased production in the Makden Nc. 3 Machine Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For Release 2003/10/01 : CIA-RDP80-00809A00050W01Y9?2-8 Shops'andthe ChinChow Textile Mills, as veld_ as in other enterprises under the Northeast Bureau of Industry. The Northeast Maehinists Union and the Power and Machine industry Administration set up a committee to promote progressive methods, po.Oed a general meeting for May.. and had. 70 cadres undergoing training in advanced techniques. Milki.lein said (May 14) that miners In the Northeast had been called upon to emulate tht Its Wen-chi mining team, which set several production records after adopting the Scrcriet method .of coal drilling. Dairen reported (May IR) that the Dairen Construction Co. and. the Dairen Con.struntion Workers Union held an exhibition at which model workers demonstrated the use of nei? tools and new operational techniques. Chinchow stated (May 14) that in the Chinchom.- Central Telecommunications Station the technicians no longer considered themselVes abaci's: ordinary workers since the antinorruption drive, and assisted the leorers In haildina machines just as good as. imported ones: for Instance, :the aix-raid alarr bailt by 'Pang Rsi-an Ln 20 days of effort. Peking announced. in numeral code (may 13) that Northeast Mac.bine Shop No. 20 constructed. a Model 080 amall-sized experimental locawtilre .reining 16 tons, capable of pulling 160 ton's, for use in collieries and lumber mills- Sung Jen-ywa of the Water Supply Department of the Shanghai Bareai Cf 1..F.eyarded. 5 milliox. yuan for Inventing an instrnment? more simple and, better than ths Amarican type, :tar: checkina lealia in water pipes. . Pekingreporttd ta numeral code (May 16) that thr flhangsha Railay op hai suncenied in applying the 'polished surface and tight joint" technilne of flnni gate nonstrne.nion introduced into China by Soviet experts. Wuhan said. (May 16) that wollsere and tenhninnins in the: Hsitsun Powx Plant of Canton weirked. 20 months to rehatiLit:ate r.j:, generator. 20 years old, vorth 4 billion yuan,' placing it tn. Kan! 80 21.2El5ztion and Control. MAfien announced ;:May 12) that laxge nafIL h/z.d vec, given ideologic:al indoctrination and commercial training LO .4ror a, trade .;;J:d: inn. Government trading companies in order to strerkathen State Ilacde7... Oki 16) quoted the MOCTETAO, official organ of the Northeast RalIway6 .4im:,4trstior., !as', fa,ri.g the Railways Commission Oftize had been reorganized as the Nortneaf. Orfe of the Ministry of Railways. under Liu Chi-yLag. Shanghai announced Nay 13:.-ft. t Eai6t Lttt Military and Adniniatrattge Committee had organized, aft 6 matt:, of,77eDexu:,:Lann tne East China Electric and Pomer Administrative Burean to central1.2e :xitrol of all plants in East China and provide tower for large-scale WLsci.T.t,:sted (fty 14) that the chief of the Isle Tal Conservy Buresu hal r.2.4mi as chief of the Himangshan Port, Rehabilitation )fl ice of Cnft.angyin He ten, will be in operation by the end of the year. Wuhan announced .(May 15) that. In all Central and South pr.,.:1re Honzcc.? brev75., distilleriee? liquor salssmen, storehouse an and peddlers, '47L-th monopoly offices and pay taxes in. proportion to: their profi:t.e? -Fe.aaan: less than 300 c.:atties 'were exempt, The idea Of the nen' reg,Iation inte Government revenue and eT'alize production and ccns-amption.'' R...nan, the iloL4or inAiatry vas a State monopoly, while in Vanning, Bavhgai, it had been A. i':.....".rfrIlEtratia. monnpziy as an experimental basis since last year, with an increase tn. l'averrte.t a L7.41,1,1eatn reported (May 12) that all pnrchasing operations in the Sonthw,tet hav.s approved by the Finance and Enacomy Committee., vith all existiog organinational pa:chasing offices required to get permits at once or ,.!.lose. In leading cities as Gaaton Shanghai, purnhasing would have to he done thro?gb Central : '.:rnmerit agenniet, anrin. level Government offices would purchase locally. Crnungng ,tat,:.d (may 16) that .r)nrXels. in private anun&ing textile mills mere cooparnting mlth the capitsdists to promote efficiency, and had set, up .work apecifications and qnality standaz%ls,, and cost accounting, systems. Peking announced. in numeral code (May 12) that? in order to ennonzsge. air transport, the Civil Air Transport Bureau had reduced passenger faxes from Circn4Intn(n to BanInoog by 500,000 yuan, making the ne...R. rate 2.3 million yuan, and had (net the rate from Chmngking to Kilandng fram 305 million to 2.52 million yvan. Chungking-RanRow freight rates ,ere cut fram 42,000 to 21,000 yuan per kilogram', and Chung:wing-Kmmtirgfreight rates fran,52,000 to 15,100 yuan per kilogram. : ap221E to Workers. Cbinchow.stated (May 14) that workers Ma Ya-hua and Kao Te per.l.k;ed Chairman Mao and promised. to increase production .t-Ien the NO. 2. fLoutt' inf;:reasa -wages. Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For eleas 2003/10/01 : CIA-RDP80-00809A0Rg017440072-8 I Dairen reported (May 13) that in the Dailen No. 2 Power Plant corrupt cadres had been replaced by active anticorruption drive Iforkera, with at least a dozen of the latter now in positions of leadership. Tsinan reported (May 13) that 155 workers, including model workers, senior workers with 10 years of experience, and enthuitiastis:: seprorters of the anticorruption drive, had been proMoted fro high positioas, including shop foremaa? by the Tsingtao Bureau of the East China Textile Administration. Wnhoi saad (May 13) that in the Government-owned Wahsien Dyeing and Weaving Co., workers had been badly treated by the capitalist agents that ran the plant, and produced only 14 to-its o:,: cloth per day, heas of which was of inferior qua1ity0 on the 33 machines? Since the antieorruption drive, workera . had received meat with their meals each day, beds in their dormitoriee, and educational and health facilities, with the result tl t production had bee: raised. !-,c, 2:4 bolts per day, only 10 percent of inferior quality. 1 1 Kunming stated (May 12) that workers in the Kunming Power Plant had na ietereet La membership befoiv the anticorruption drive, but after the union adjueeed their .angos they became enthusiastic members. Chuagking ?aid Olay 18) that a6 Leber .o.n.l.orc.... tr. Cl-itcafjcing had been reorganized and had inereased their meMberabip ly Y. falloadeg meetings In which the unions overcame the hesitancy Of madners in makfoag aeeaaations against eomrupt cadres. Formerly the unions in the Szechwan hsien of Mac, f7,e., Maeeyaag, and Senraa had been in the hand e of corrupt element who exploited them for peesenal .7,4, 183 cd- the 185 low-level union:. in Mienyara,'HaieLn being =irrupt, r Dairen announced (May 18) that local off ce space- had been readiteeated te make ofeacee available for workers unions and Make buildings available for woekerel oemit-ores. Tainan reported (May 17) that the National Committee of the (:!hiela leatdae ;40T1nT:i. Federation mould zomplete at Tsingtao in Auzaet a worker-s1 sanateraum t: aeummoaate 50e persons, at a cost of 10 billion yuan. Shanghai announeed Nay 16; thaa a wsirkeral housing project of 64 units aina being constructed in ea a. eoet af: le': miIliae yuan. It would eventually provide qaaxt ts for up to 3,00C; wra:ere, ead o.-sttio.E1 facilities, including a school for 1,o00 pupils. nrangling repoeta.i..Nay 16) that the Minming Government had started construction on Taiho Road of e ,e).1ezeraq eaandeory.te house 500, and was building ';oorkerst dwellings to take care of 300 ,-,;.G.?:. ,11. l',,Irch'Lawat-:., Changliying? and Heiaoahangtsun. In Naming no regular houatng vas. at. preeeene svealaable for 90 percent of the workers. Dairen announced Okay 16) thae Dairen an by the Northeast People7r. 7iovetnment, had employees and factory a7orkera to aave 20? repair of houses. AP increaee in housing Port Arthur authomitiee, aetleg us:dee e -1::eeetLae raised. reris million yuan tabs ee. ana all.:ivrances had. beet Weaknesses and Shortcomiya-ol. Peking reported in numeral aode Nay. thee a'La&h. Chita trading companies made 1,153 sale contracts in 1951, of wIalen pe:yea,at -aere fulXi17.ed. In order to systematize the native goads trade, it had been to leni1xr.2 distant markets to State trading Compardea in 17-)2? and aLleaveoopeeaeea?x ee local sales. To facilitate the inter-by of goods, Pingyean Proaeetee af stations to accommodate travelers handling goods. Peking aaid (May eha. the Canteeci Arbitration Committee of the North China Trade ,-e.inference bad eited eae Sortheaat traltee organizations for their failure iyie1951 eo fulfilL contraets. Sone nil:Axes eesuJttal e:eca,) a disregard for marketing eanditiOne. Far instance, Pingrian Prov-ince 5oaght raras) catties of licorice from Suiyuan,?Where it was highly maratable, and atoc'Nei enaage of the material to last for 3 years, while Chahar bought peppers and tobacco oe the higher-prieed Plngyuan market. The Pirogyuan Native Products Cc,, boeght 38o,0 eatties of nuag oil in Hunan for 6,550 yuan per catty, wUile the l'ingyaa_71 Oil 7 1 hc'ubr tLieme proluet in Herikow at 5,445 yuan per catty. In anot6r talrkance Mahar rejeeted an order al ntive cloth from the Hopei Federation af .Cooperativea because of substandard Taality, thoagh the contract said nothing about quality. ? ? Tainan reported (May 12) that tbeA.usterety Committee of Claaieheng Tea, Taiagtae,. at a meeting called to persuade factory owners ,"to resume business,' pointed out that State trading companies had placed processing arders, workers had increased their enthusiasm f:Or production, and financial asaistance had been offered, even to the .-cerozyling of 'evaded taxes and fines. Tainan announced (May 16) that relief workers In Laiva, Feicheng, and Wehnshan Haien, Shantung; had been, employed in transporting goode, aad in making straw mats and bags. Shanghai reported (Nay 12) that Shanghai State trading Approved For eleas 2003/10/01 : CIA-RDP80-00809A000500740072-8 Approved For Release 2003/10/01 : CIA-RDP80-00809 - 6 - 25X1A 2-8 companies had "greatly inereas,ed" their orders with private firtra,? with the reeult that. trade -was making progresa:. while bank loans were 10 times- as aaeat as last year. Shang-tau said (May 14) that the Fast China branch of the China General 1,t, Co. had eigned processing contracts with 53 private firma; that. "made satisfaztara, :inresiona d.r Jni't: tie anticorruption drive and. were producing high-qual.ity merchandise. Hangchow reported (Kay 1)4) that the Chekiang Finance Deparment had ordered warehouee aadzes to make carefal checks of stocks -to pre-vent :spoilage:, trhaan had been heavy, 'because some cadres knew nothing about warehoueing, and through "erroneous thinking of eadzes that -tale:7 should. concentrate on the antiwaste, anticorruption, antibureaucraey drive and drop eaery- thing else.," In Chuchau Iisien Hsu Liang and. Pao Wel-kang? cadres later rermaved for corruption.. left 2?000 logs to rot in the vater? and in Chiangsban Haien a cadre thaazaht it "only natural" when rain leaked through the roof, and dad nothins aboer it. Wuhan announced (May 131 that State trading companitts had. plaaed oadera arith 3i fae.-a?. in 11 Wuhan trades "to title the over the dull season." Wuhan added 16) that eac Government had placed orders satith 800 firms. in 11 trades "ta revive private trade.' Chungking reported May 15) thaa Chungaang workers, had called aameaauas maetanga capitalists to acrae Them to expand production "ta promote the rilataooal eaariamy anh support the Korean var." .Processing charges of private merehaaia red:easel 3-aC, percent. Kunming stated 4.May 14) that it. a meeting of leading eadeee in State ana. lee...rate industries May ?7 to review- 'the achievements of the antiaorraatiae ive? the loceaa. Part-1?, Committee criticized cadres in the Yunnan Textile Mills, To., ?a0.3 Factary, Taafenr. Yuanfeng '.funnan Tobacco Co.? and. Yunnar. Power Co..? ?for ' 'aaa_aza to YOT:e.: air:a:x.1a with workers r aral as...liming a superior attitude.'` Ku:raping asserted (May- 1.6) that. the Kuraming Labor Bureau had shown bourgeois le.aningz during the -antiaar.a.a.Rearae :17.%;,,r;? On the plea that they were busy, they ignored the preateee of Kauai:re; iyaiseale I'eataaa workers yhen -the owners stopped. their food., and they atrenaatheteat ahepo.aa.? the capitalists by refusing to act. when owners in the hardware and t raearayet ara.dea,. workers t wages and bonuses. Peking asserted in numeral coda (May 13) that many or tkte .4'4? exaaaataamaart? flame .ta ? Canton, Wialeh made um 50 percent of Cantonle private firms:, had.traaealy alaata-al laws by engaging in illegal emta.gglirig. In Karch? 1.5 at': these ameacaing rcsts., dainonc estimated. bateinee.s. of 110 billion yuan in the past 2 years., rer?apr Ta..a.a export-import firms Included many former bare.aacz.'.atia. aapi. ? ....ampra.piore ? landlords., and bandits nt the "three moantaine and aaae saestaa: graapa.' IL-lei:- depended. upon 10,000-20?000 "atatex traveler's" 'who moved. about .U1 a$-. go I'd and peddling nava ot s.,. They retained 'Ism.u.ggling ape 'who :Laid au. r smugglers, and bribed. al...stoma offialaala, The various rings samaagled. ZP?it. got:, Liaa.T. ? oxen, rice, wolfram, elm, antitaciuy? and other items use.bal to .1.mpareaaltea gaar ea:. at. 7. :, brought in. such things as morphine and opium. They la..3-ated. the Sairmera? heave:1.y ba? -,nappiaa out tung, oil and aa.aaia oil ahert the prices were ta be pegaed.? aeprsea:aaaa the yarld. ataraea AtaillerflaTURAL PROBLOIS Plans and Pra_12.-2.._me. Stan armounced. (May 1.6) that the 14angheia Party Canatittee had twat 4+ cadres to the neaaadia areas to lead in developing -the liveetoak Ladatatry tbrciugnveataarinarian stations and attacks on preying wolf paaks. Peking reparted La numeral .code May la) that the Northwest Government h-ad called upon the Goveraments of Shenei, K.ansu., and. Magnate to improve the ectonomy of the old. revoluticaary bases by spending 57 c-1.1.11,Dn. yawl or: eda-a- tion and health; Implementing the preferential treatment proarama anneaevelopina toreatry? agriculture, and. the livesteck industry? Shanghai announced (May 1)4) that tne Fast Maine Government would. issue 1.2 billion yuan in production subsidies and 4 billtaa, ura. in relief to people- of the old rea-olutionary bases in Fukien Province? Wtaltan reported (May 18) -that various loaslitiee. in Kaangtung feastriaae had held. meetirta.=.; attended by 7?000 cadres to prepare them for the coming. work in impfiaamentation of land reformy and to promote 307 cadres and make cadres of 124 waive elements. Clrangaireg anntaaaaea J 12) that in Mani-an Haien, Szechwan, and in Kueiahn? Teurtyi, Lungaliy Chinglung, Chinsha, and Kweiyang Haien, Kweichow, the old feudalietie methada of water distribution. had been abolished, with farmers signing "water rights agreements te act a rational system. Wuhan reported (May 15) that the Panchiao Water Reservoir on the apper Ju River, the second largest reservoir on the Huai River projeca? we completed May 1... Built with 145,000 civilian laborers working 6 months:, the new ae:?ervair would stor.a 2144 minim cubic meters of water and irrigate 150?000 menu.. Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 25X1A 1 Approved For Release 2003/10/01 : CIA-RDP80-00809A-)40.500740472-8. - - Drousht, Floods and Pests. KMnning reported (May 14) that because of tae :Long drought in the Wenshan Special District of Yunnan, crops were rapidly dying and cadres were "working feverishly" to lea?. the farmers in digging wells and opening irrigation systems. Ceres throughout Yunnan were warned that although the antidrought campaign had been "basically completed, the: nust avoid complacency and continue to leed the farmers in assuring a steady water supply. Hangchow announced (May 14) that 5,000 mou of wheat and 130. mou of rice had been lost in Lungyu Haien, Chekiang, because of defective dikes and flooding, while farmers were still battling to save the crops in Chinhua, Linen, and Chuchou Special Districts. Welian reported (Nay 13) that Central and South China cadres had been warned to "overcome their indifference" and take immediate action to repair dikes and drain swamps, while positive steps had been taken to guard against floods in KWangsi, KWangtung, Hainah, and Ehpeh. Nanchang stated (May 12) that in Loping Hsien, Kiangsi, the Office of Production had issued an uraent directive to farmers to plant emergency crops to replace the rice ruined on 50000 mou of flooded farmland. Nanchang added (May 13) that in Shangjao Hsien, Klangsi, the "alxity ? of cadres in failing to lead the peasants in building flood-prevention dikes had heen responsible for the failure of hundreds of' dikes and the flooding of 3,000 moo.. Water- wheel groups had been organized by 190 peasants in an effort to drain the flooied paddy and save the spring rice crop. Chungking reported (May 14) that Government cadres, teachers, and students had joined in a mass pest extermination campaign in Tai, Chiunglal, and Kaanghan listen of western Szechwan, TUngchiang Haien of northern Szecumen, and Fushun' and Changeina listen of southern Szechwnn. Chungking added (May 15) that Party CamMitteee in various areas of the Southwest had. called for all-out action on eradication of pests, pointing out that arose . were seriously infested in Chinft and Shuangliu Haien, Szechwan, *While eaterpillere and other insects were attacking crops in other parts of Szechwan, in Sikang, Seseasa, and KWeichow. Chungking reported (Nay 18) that livestock plague prevention statione had. bee% set up in the Chengtu and Nienyang areas of western Szechwan since the outbreak of plegee among the hogs, which killed 17 percent of the 59,000 hogs is. one hsien. Resistance and Weaknesses. Peking stated In numeral code (Nay 15) that peasants of Shulee Haien, Kirin Province, had been accused of spending their time in "sideline eeonomie activities" rather than in farming, under the erroneous idea that they eould fine nri easier way to make money. Natual-aid teams had made large sums of money and stored Jesse quantities of grain, which the peasants used as capital and blindly engaged in trade st the expense of farming operations. The Liu Cheng-ehang mutual-aid team organized e farmer 0 cooperative, but instead of buying fertilizer and farm tools., they 'seed millien . yuan to open a segar and flour shop, and when the bean crop tailed they dad netheng aboat it. In many cases such cooperatives were stocked with items that moved elasly, eaneIng losses of millions of yuan. Tainan reported (Nay 16) that the Shantung Work Relief Committse salled e meeting te revetes relief works and dispatched cadres to inspect conditions in.Techou, Hnimia, lateen and. Teng Haien, and the Linyi Special Administrative District. Although nateral disasters decreased In intensity in April, storms had damaged crops, native products had not been salable, and the cadres had been lax, leaving many peasants in a precarious condition. Tsinan said Way 18) that in Tangyi listen, Shantung? the cadres had shown irresponsibility in organizing mutual-aidteams, holding constant meetings without accomplishing anything until the peasants refused to attend the meetings. Aecoraing to Shanghai (Nay 13) the production program was failing in the southern Kiangsu cotton-growing region, with. only 1.2 million mou in 10 hsien, or 50 percent of the farm land, under cultivation, with only ? 110 percent being farmed in the entire area, and only 10 percent planted in some major producing centers. Yangchaw announced (May 12) that four inspection teams had. 'been sent to check warehouses in northern Kiangsu, where damp weather had caused rotting, and there was considerable damage from Insects and rats. Yangchow reported. (May 13) that because cadres had not adequately carried out the preferential treatment program, inspection teame had been sent to Hsinghua Haien, Kiangsu? to correct the situation. Nanchang declared (May 12) that in Lunghei esllage, Shangjao Baiens Kiangsi? the cadres had neglected to lead the farmers, saying that farming was not their concern, while the peasants had caused crop shortages by failing to prepare for spring farming. In addition, well-to-do farmers refused to take part in ccamunel affiars or aid the poor farmers. Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 App Oved For Release 2003/10/01 :CIA- DP80-00809 In Paowen Hsiang? Nanch g lisien? peasants 'were E kept i al of the Go-vernment -iseTele cif commercial fertilizer,. steadfastly refusing to believe the cadeer:. 7.3t-Le, tried them to use its, until farmer Hane-pten finally decided. to experiment y uinct the errame-yeeial fertilizer on half a mou and reillai fertil.izer on a simiL,r 'are a? lIs.nchang re.pareted (May 13) that in the P nIisian 11,111 of C', Pinghaianp was held. recently tc sholie how local landlords and. despots had. eau.erl to the until these erU ere eorrec.ted -by Land .r.e-fc,rme 8 25X1A Kunmi_ng asserted (1.',ay i3 that; in uchi 11-.A.en. Ye;eruran., carizet queted. the peasants" fea.z-7. of reprisal from r-o_frian laridlor.ds and this broke. dcr.ra .their re.lec--..ance ir -.on.f.tee..:tine- the landlords2 assetr Thungkinc announed (Ma,/ :Lt.L) that .rhe felo_eir....eleural Aee--.1isti.rE Office of the Southwest..-inance Department hail r.1e.d. ain levier ,h.o?Jled. 1,e. f.1..xeie: ' locally because of va.riost calarrtitier., should. be .11mated. te: wheat, ,-.--.:are2,ld entirely -where the crop was a total -I:ad.:lure, and shoaled normally be 1.-ilied ,-,.o:r.-H between'5-25 nerc.ent. CliinIgking reported (May 17) that although -7.Y.:' 1.-srre.nt, o.:. the al:gie-? cultural loa.rea had. been 7iioted in 53 I) s ier. of lc:vs:lc:how., the c.,-,dres !id beer. -./.1.2 e.1...=: in distributing the mor...ey In Shun Hsien loans -,eititn-t only to 4 trefic peee.a.e..4.,,,; L.r, lisien rich farmers .Ind landlords en,.., the loa,as.; and in Tuncrtze) 7.', ei.,.frer7,' peF,..eiteeee,. *es i alloted the saute 9:J1v:int ? iregasvils FS a of teLs need.., 1., Chungking reported (May : 7) th.a.t: in Wan Heiens. Szechwan, peasan'ei- hid :en r hariee-ed. abusing their oxen,, Ma cl",.71.1,11-yung of P5 :. ywag Hsiang reCeiv.-1-.1 :in oe: ix .71M e:: ?nil and almost worked it to death in half a d.ay; .Pei Weneheien of 10.Lne .72-Lia Viii...-1,-: d -ei. Iderier his ox to deatn; and Yu Pang-li slaughtered his ox ',then it; di.i freo:. di. see.,.., ,:ell the and caused all the villageri: to becnme ill? In C1.1,) 2 the ,easee_eei, ,-.....73.,eei e-, me.r.o.e. protect their oxen. PROPAGANDA AND relD.00IR.ITE, T.T.ON i_eLu.te, Control. ::.'etTer..:gk.. g aro...Dune:ed. (May 18) the.t.. ..1.:n..1Cifer.iya:e.g,, Ee-ere..L.e,o?-,w,, corruption drive hod ..ea?hed the stage of eradic,a,tion of c:Jipitalie?.1,eee-e-..e .0epri.e -,..'ritekier,E, and cor.rection of bourge is leanings amott*,.g. physic:Jams. at Hospital were r.eharged :with inill.fferenee in their care 3:f tatie:at.e.e, eele.i .eiii...1.: preee;f::,-e4rie to become c:api.tde.i.ets engage.d In Lite praetice? or ?ho work -.r.le'n -pei..-eert. e .1'.',..m..-, :6,1ner than accept positions with publi:.. orga.niezatione. ? ,! Kunming stated (May 13) ithat a Du:t.1,..h r,Iath.o.lic mis.sionary re. ed. knder e.,.:en .'..k ad,.,..n. eter.e.e..:e.,..ei by the security pollee 3.n!Ka.iyuan Hsi...ere, Yunnan; and tr:Led fix!: f,ea.i..4...-lorl. i'c'.tet..!.. hie li-.'i.e.eied. a confession he was sent eneed. .1.:-o banishment. Kunming5....1a.:,Wit.::E.A. (,..!.-b-,y. 16,.,.f :. at'_ A...7.4';1!'.L,t: '3.1:. missionary named. Morse 'w-(ki. arrested. :f.'or deportation by the Yunnez-.. .E..ei,r..ea..e.... e..: I'Lelea.'i... IS'afe'l. Morse first in Stpc.ang :La 192.1s, coming ''.;.:, 1'151-man in .192f.e. .14:.fee.r he:: :i:-..',1,7...r.:61:.,i7.1 t...e People's Liberation he?we,S... arrested in (7.1nrsehi ILaie.n in May 1i.,"1 .ae.e.el. se:eatereeed..':.e in prison fox. e-ta.te-tory aper to vhieh he eonfeses.ed.? .Eluarreing, eereeet:,......selC'eY'v.t.y .1.i ) +..:1..?1'. -, the Yunnan Catholic: Afe.ccid.ation had. ealled upon all Ceatholii..e,.=. tr, eie,ae-.e. :ne...i..ig, ' activities drerina the land reform. procedures., i I Indoctrination. Proeedure.. Dairen ann.ounce.d (May .18) that haa istsutd. a direeteive cling upon the people to implemen program by providing educeatio:nal fateilities for depenrie..nts reported. (May 13-) that propaganda corps at the Paichenti, Liaosi? in doetrinated 5C ,;poo railway passenger.:; on the ant announced (May II+) that the Sbautung Gotrelrnment had issued local Governm.ente to 1.1.,e! proper burial and ereet, suite:hie the leeale Reop3..e r:raxnment ; the preferential treatiteeent of Arukm.e.n. Ra:11y Station in germ ';.?:e?azrfi.e.:.e lireeetive ur,on meza.-xria:.7. to martyr. :nt the war against the Ja.panese 0,,ricl the War. of Lil-,eration, the memorialii; *1;e. irelede toil..s properly constro.eted for itetre storing: of martyr rolls and :records. Teinar.A. reported. (May 17) that, the anticorruption exhibition stc.r.l.aor.ed by the. arinoelF, elosed .May 16. . It exposed. imper-iallat in7filtration of China edu.:-.stiona.1 .1 istitutiatts le DX' gather.dae, intelligence and ensl.aving the people; exposed the waste 1.i seh.00lv., with large quantities of equ.1pment. Stored. away and. rotting; and exposed. the bureaacratie management of the school., App Oved For Release 2003/10/01 : CIA- DP80-00809A000500740072-8 Approved For Release 2003/10/01 : CIA-RDP80-00809A0005305/4d62-8 - 9 - Peking' in nimeral code .*May 14) quoted from an article by the Soviet adviser, (Roshenko), in the PEOPLE'S DAIL:i% "On Agricultural Techniques." The article attacked "bourgeois scholars" who hold the opinion that "human population grows =ch. faster tha-t production, and to supply human needs the excess people should be exterminated." This reactionary theory was lescribed as a fabrication of Wall Street warmongers. Chinchow announced Olay 14) that 17 "progressive workers" who showed an "active interest" in the anticorruption drive had been selected from among local State and private industries to enter the Northeast Workers Institute of Political Science. Peking reported In noZeral code (May 18) that 100 cadres from the 'Northeast Party sChcaal had been assigned to poaitions in State trading companies following an 8-month course in trade subjects and indoctrination aimed at correcting "their erroneous thinking that trade is beneath them and not easy to learn." Hangchov announced (May 15) that the local Federation of Labor was holding classes for low-level cadres -who were outstanding in the anticorruption drive, giving them indoctrination to increase their class- consciousness. Shanhai said (may 17) that several thousand cadres were atteniiiag the Hangchow classes. Sian announced (May 15) that 28 Ninghsia Youth Corps meMbers had been awarded citations In Yinchuan for "model behavtor in various fields of endeavor." In Sian the Central Ministry of Education granted a scholarship for study la 'Nanking to factory school teacher Chang Shou-te. MISCELLAMEOUS National Minorities. Sian announced (May 12) that a Uighur it .-aid '7eam In Tiima, MEEMEE, had isaued a bumper crop chellenga to cotton farmers. Sian said May 16) that 400 Han, Uighur, Moslem, and Kazakh children were attending the school. for all nationalities organized in Tihua by the kolkhozes. Kunming stated Nay 13) that a national minority autonomous district Government recently was crceolzed in the Liang Ho area of Yunnan, and immediately sent a message to Mao Tse-tung expresstng the gratitude of minority peoples. Peking reported in numeral code ;Nay 1.) that tiAn Tibetan People's Autonomous District of Silrang had estahlished ama11-,-cale LTI:r3le farms in 14 hsien. International Trade. NUkden stated (May 12) that tbe Fushun Colliery had receive& a letter fram the British workers' delegation touring China otferine thanks fez the '7.0ratal welcome extended them and expressing a determination "to stniggle fsr interms,xional comity among the working class.' Peking reported in numeral code CAay 12) that Robert ChaMbeiron, secretary general of the Committee for Promotion r_A Intern.btilnsl Trade, attended the meeting May 4 when the Chinn committee of that organt7at1olaii established under the direction of Chairman Van Han-chen and. Secretary C:enterAalCL Chao-ting. Approved For Release 2003/10/01 : CIA-RDP80-00809A000500740072-8 j