ECONOMIC - FINANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600250406-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: July 5, 2011
• Sequence Number: 406
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250406-3
CLA.SSIF1C ? ON BFSTRIC1~ w A
CENTRAL ITELLIGENCE AGN9
INFORMATION FROM
FO F!CN DOCUMENTS OR RADIO BROADCASTS CD
COUNTRY Communist China; China
SUBJECT Economic - Finance
HOW
PUBLISHED Daily newspapers
PUBLIaHED SUPPLEMENT TO
LANGUACE Chinese REPORT NO.
WHERE
PUBLISHED Hong Kong
DATE
on Jul 1 Aug19149
-
Oi YXR UNITIb STRTSE 110010 In? T,0000I IO .........-- ---
y, 1. ~., N ANb Si. R! RNNMO66. iT! TRRNStl0000I OR TMl RSY TION
Al; 4NNJTN IIIRRD RTlO SOX IN It !RO.
p! ITE CONfRRYS IX ANT NANXSR TO IR
NIRITSO RY LRtl. RRIROOOOnON O/ 4NIS IORN IS IMONIRI. ---
SOURCE
Newepape
THIS IS UNEVALUATED INFORMATION
EMT PASSES CURRENCY ISSUE REWLATIONS
BANK PRESIDENT LISTS BANK DCTIFS -- Wen-hui Pao, 28 Jul ':?9
Pei-ping, 27 July 1949 (NCNA; -- Nan Han-oh'en, president of the People's
Bank of 'Jhina, in a recent newspaper article -odicated the duties of banks. His
conclusions are as follows.
The primary duty of banks should be to promote exports and prevent speculation
in foreign exchange. Foreign exchange made available uy exports should be con-
trolled for use in importing materiels necessary for economic reconstruction. fo
encourage exports, loans should be extended to aid in producing and marketing ex-
port goods. Materials for experts which do not show a profit may be subsidized by
the ' tional Trade Corporation or the People's Bank. In the use of foreign ex-
change, there should be a close relationship between aid rendered to foster pro-
duction in the interior and aid given to foster exports at the ports. Foreign ex-
change must be used sparingly and expended only on items necessary to economic
reconstruction; it should not be used for materials which China can furnish her-
self or for which other goods may be substituted.
Another duty of the bank is to hasten the restoration of industrial production
by Industrial loans, The aim ehvuld be to satisfy the needs of public industries
and also those private industries neneficial to the people's livelihood. The ex-
perience of the Tien-ohing Bak of Communications in aiding industry confirms the
correctness of the principle of aiding both public and private enterprises.
Inward remittances should be increased and function freely because of thei!
effect on the flow of goods In the interior. The monetary units of the entire
nation, excluding the Northeast, have been standardized, communications have been
restored, and other conditions mat for the development of inward remittances.
77e bans; e'iould exercise strict control over currency, in conjunction with
trade organo and i.:duetry and czm rce administrative offices, in order to end
speculation. An important consideration is tho control of Idle capital so as to
guide it into prodl.ictive channels.
_ CLASSIFICATION RESTRICTED
IST\TE NA1^I -r~kSHe T LISTf;IBUTION
Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250406-3
 Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250406-3
and also on the Durchasing Dower of tie farmers.
industries and subsidiary industries in large saoantr."
opens a deposit account and 5,000 Yuan opens a checking ao onmt. steal ssT1qu
POSTAL SAVINGS }2E3UM IN VIEN-CLING -- Hue Shang Fao, 21'Ju1
The Executive Yuan on 30 July 1949 authorized provincial banks to issue
silver yuannotes, The statute is outlined below:
HMr AI.ww9 PP07INCN TO ISSUE CUBAENCY -- Kiang-:hang Jib Pao, 1 Aug 49
3. A Board of Control of seven to nine persons shall be appointed by he
provincial government.
4. Bz-officio members of the board shall be: chairman of Provinc5al Council,
duditor, chief of Finance Office, an inspector of the provincial ban's, head of
the merchanto' association, and head of the bankers' association.
6. Notes issued shall be backed by a reserve of 60 percent in cash and not
over 4C percent in securities,
7, All notes which have been transferred from the circulat'.an account to
the operations account still will be considered as notes in circulation and must
meet reserve requirements.
8. The Board of Control at the end of each mouth shall check on the amount
of Issue In circulation and on reserves and submit. a report to the Ministry of
Finance,
10. The Board of Control, uhenaver reserves are insufficient or issues ex-
ceed the limit set by the Ministry of Finance, shall notify the issuing bank to
stop isede, call in the excess, and report to the Ministry.
11. On receiving such a notice, Ana i.~ovincial bank shall stop issuing and
mate 'p all deficits in ieservas, call in all excess notes, and issue no more
notes except by permission of the Board of Control.
12. The Ministry of Finance may appoint a representative to examine a
provincial bank'& issues and reserves, or to take part In the control of issue
over an indefinite period.
2 4;EST0,141
Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250406-3