ECONOMIC - COMMERCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600250407-2
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: July 5, 2011
• Sequence Number: 407
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2
TNIY 000VNNNT CONTAINS INIONNATION APPACTINN 1.1 NATIONAL 0SI1MHS
01 TMN UNMTYO $TATtS WITHIN TOE NS...IHO CF SSPIONASN ACT NO
0. Y. C.. SI ANY Ii. AS ANNNOYO. ITS TRAHTNi1114N OR TH: ANMOLATION
OI ITS COHTINTO .M AMT HANNNN TO AN UHAVTMDNI;NO IM,. 10 PTA
HIYITNb IT LAW. NRPNYYYCTION OF THIS ION. IA P000I NIY{Y.
T'IEN-CHIPG MAKES TRADE PLANS -- Te Kung Pao. 3 - 4 Aub 49
Tien-rhirg is the center of trade and industry for North China. It
has 2 rdllion people, 51000 facto tea, and 3G0,000 workers. The texti'.e,
flour, and rubber induatriee are eepocially prosperous. There are 30,000
ahcpa in the city. Communications are good, converging on the cii:,, from North
China, the Northeast, and the Northwest. The revival of the city's nrrun-
rural trade will have a great effort .+ the reconstruction of North 'Tiina?s
ecQbomy.
Present Statue of Trade
The Trade Control Bureau hap been active in making plans. A barter agreement
was negotiated with the Central Plains area for the exchange of Tien-ching'd
cloth, yarn, gasoline, kerosene, caustic soda, and glass for raw cotton, tobacco,
and peanut oil. Similar agreements were made with Shen-yang and Eeilungkiang,
in which the city's cement, cotton, tobacco, cloth,. and yarn were bartered
for grain, beans, and railway ties. The trade Bureau, operating through its
Trust Company, has 319 branch offices in North China and four other liberated
areas. It buys farm products, war materials, and manufactured goods. The
Tien-ching Central Cooperative has aver 50 branches with.warehouae facilities.
Water transportation is used to a great degr,e for trade with the interior,
private merchants employing approximately 1,200 boats for this purpose. With
the help of the Trade Bureau, such merchants are exchanging all aorta of goods
between Tien-thing and the interior. There is a brisk demand for L'ai-luau
coal and Chang-lu salts
- l -RESTCICTEC
S~TE ,XI NAW---Ik NSRB
ARMY ~AIR j~ FBI I
DISTRIBUTION
Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2
 Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2
T7rada --dustry Stir.:lated
liberation, 20 flour mills, unable to get grain were prepared tq o
,
middle of May 360O0 bags, and in the latter part of Mqy 48000140
e
ed
l
-rpp
i
_-.r ._- ---- 3-- A_.-._. .
machine r --- .-,
in March, and 14 in April, making large quantities offcottcn-prbOaI ib3 '
loans, knitting machines, milling machinas, plows, and spa3es. Ts._Yaro5
aga.inop.nedand, 'are manufacturing farm tools, Machine parts, and. ;ipei. Tm
_ - .
. . _- ..8 i'__ were --Yd A
sult
-
re
s
of
of shortages and small deman;~ before the liberation, 61 private rubbeir *moorns
Bicycle tire production in April 1949 was 69,840 sets. Including avail&ble stocks,
in urban-rural trade. Before the liberation, there were 42 farmer markets, now
Means, of Restoring IIrban-Rural Trade
Under imperiallemanO bureaucratic capitalism; the T'ten?-rhtng,market was
marked by inflation,' high prices, hoarding, and apeculation, which interfered
with the normal growth of the people's economy. When liberation came, the
.government look steps to revive trnde between city and country, such as ..storing
and expanding industry, eontrolling the me ket, stabilizing prices, and attacking
speculation. Obstacles were removes by controlling finer^lal transactions and
the grain market, elimhiating hoarding and speculation.
At the same time. the Trade Bureau supplie' the city with necessities for
living (chiefly grain) and for production (chiefly cotton). More than 200
million catties of grain were brought Into I"ien??ch.rg from the Sort'
China, East China, and Suiyuan?_?Mongolia eear and properly rationed so
that all classes of the population were supplied with food. Forty million
cattiee of cottor wee brought in from North China, guaranteeing a supply to
China Textiles Corpora:;iun Mills, which do over 80 percent of the manufacturing.
These mills poured into the market 1,200..000 bolts of cloth and 30,000 bales
of yarn, thus assuring a sufficient supply. These two staples, grain and yarn
or cloth, have always been the important factors in commodity prices in T'ien?-
ching, so when the Trade Bureau assumed control of them, there was a btsic
stabilizing of prices.
Since Tien-thing 15 the commercial center for North China, both its supply
and demand eve coni66p la-rg^. To control this _ ket. wnr) etahilize
:'~uuiiKyij . p..
prices, the Trade Bureau has, uneer the principle of recognizing the
interests of both publil and private concerns, organized private businesses
to serve the public interests. As examples:
1. The Municipal Grain Company and the 24 private flour mills in
Tien-cuing have organized c. purchase and sales committee, which unifies the
purchase of wheat and distributes it to the mills on the basis of production
needs (when distribution is made, the company yields to the mills, iteoli
getting litt'.e or none), to eliminate competitive buying. Acting according
to the principles of both profits t:!: the producer and benefits for the
consumer, they agree upon a sale prize for flour.
2. More than 5CO feed shops have been organized so that foot? may be
easily accessible. The shops are allowed a definite profit and prices are not
affected.
Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2
 Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2
ESTRfC
B1STRICTSq
and 506 grain depots were supplied with 46,o58,.853 eat't 0
and the firma were allowed to continue in operation.
4. Private merchants were aided in solving their problemry ?~a 1':'1hd1t''
February to June they brought in more than 200 million cattlai.oor;
5. More than 3,000 private knitting, weaving, and dJeing es~baitd
were aided in obtaining materia:.e and in ceiling their products, thus 1moraaai4g
the textile Supply of the city,
which'aaauredprofita to producers, As a rea?It of price stabilization, there
of goode hat followedtime-honored.channei.s. F inn-thing htextilee go to the
facilities, trumei'. taxes, etc.
To depend entirely on the government's economic power to redtore trade
is a hardship, and so the authorities will depend on private merchants to expand
trade.
Foreign trade is not yet well developed, and this affects urban-rural
trade. A vast amount of produce in rural areas is awaiting export, but the
Trade Bureau has been slow in getting the merchants together to push exports.
The agency is not aware of the needs of locel plants in the way of imports.
A few trading firms are still too concerned with individual profits.
Purchasing agents sometimes insist on higher profits than merchants.
Whon prices rise, trading firms are unwilling to eel:. bolding out for
higher gain. these practices do not encourage trade. There is the mista:en
idea that piling up of capital and development of the economy should arise
out of high profits. Industry and farming will benefit most by wide sales
at J ov profits and quick turnover of goods.
NAN-CSi i FACIL'TATES TJRBAN-?RURAL TRADE -- Ta Kung Pao, 5 Aug i9
The Nan-thing Trade Company has 9Ant out small uuic;aai:g teams, one of
wh.'^h. after aiding in -,ha organization of a cooporati,re in Chin-chiao,
exchanged cloth for 19,000 csttie3 of rice. Towels and soap were sent into
Anhwei for 5,000 cattier of rice. Su Heien in north Anhwei has sent beans and
malt to Nan-thing in exchange for cotton gins and fluffers, farm tools, matches,
and cloth. The Nan-thing People's Governmert called together representatives of
12 groups to form a committee to investigate urban-rural economy in industry,
agriculture, and commerce in an effort to improve the flow of commodities
between Nan-ching and nearby towns and haiena.
_
Sanitized Copy Approved for Release 2011/07/06: CIA-RDP80-00809A000600250407-2