DESCRIBES CONDITIONS UNDER COMMUNISTS; GRAIN LEVIES, TAXATION INCREASE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600300672-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: September 7, 2011
• Sequence Number: 672
• Publication Date: May 2, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/08: CIA-RDP80-00809A000600300672-2
CLASSIFICATION CONFIDENTIAL
CENTRAL INTELLIGENCE AGENCY 4 REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
Sociological; Political; Economic
Daily newspapers
Hong Kong
19 Jan - 9 Feb 1950
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SUPPLEMENT TO
REPORT NO.
DESCRIBES CONDITIONS UNDER COMMUNISTS;
GRAIN LEVIES. TAXATION INCREASE
CHANG KUO-HSING TRAVELS TO HONG KONG -- Hong Kong Kung-shang Jih-pao, 19 Jan 50
Chang Kuo-Hsing has been attacked editorially by the
COrnsIunists because of his articles citing mismanagement and unrest]
On 1 October, the activities of foreign correspondents in Nanking were
banned, so I decided to leave. A travel permit to Hong Kong was not hard to
obtain, but I was warned it would be difficult to get into the Crown Colony.
I went to Shanghai, but finding steamer travel very difficult, decided to make
the journey by land. y trip took me, by train and bus, through three provinces,
via Nan-ch'ang Chi-an, Lung-chou, Ch'u-chiang, and Canton, following closely the
southward route of the Communist armies. The line was crowded with American-
made trucks bringing up supplies with which to evade the effects of the blockade,
much as the Burma Road was used during the Sino-Japanese war. Friends had warned
me of dangers and delays that would come to a US sympathizer, and I was glad to
arrive in British territory.
When one enters Canton, the red guards force overy traveler to get out of
his ricksha on approaching the city gate, and he may not get on again until
after passing through the city wall. When I pointed out to the sentry that such
was the indignity practiced upon the Chinese by Japanese during the occupation,
the sentry replied that he was acting on orders from higher authority. All cities
along the way enforce a curfew from 2300 to 0500 hours.
Conditions after liberation are the same as in the Shanghai-Nanking area;
business is slow, people are unemployed, taxes are high, and there is widespread
disillusionment and discontent. In Nan-ch'ang and Canton a new tax has been in-
augurated which had not been seen in the lower Ya_igtze region, the borrowing of
funds. Nan-ch'ang made two loans to the Communist party, totaling 24 billion
yuan, or 6 million US dollars at current rates. It is said that Canton made an
even larger Torn. The Communist regime in Nan-ch'ang is not as mild and free
as in Shanghai. Shop clerks are ordered to join the "study movement." The Com-
munist Party makes periodic "thought investigations" of intellectuals.
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Al
One intellectual has said: "Communist investigators have two favorite
questions: Is the Soviet Union an imperialist nation, and will a third world
war break out? Most informed persons know the Communist answer to these ques-
tions, and say 'No' to both."
The Communists have founded a "First of August" "-'--c- slLy in Iran-ch'ang
to commemorate the setting up of the First Communist Army there on that date
in 1927. One day, a disc'mssion group was being held in the university; the
subject was whether a third world war would break out, and if so, whether the
Soviet Union would win. The walls "ere placarded with calls for expression of
opinions. A great discussion ensued. Many held that the war would break out,
and that the Soviet Union would lose. The next day, those who had expressed
such views were charged with being "Kuomintang special agents."
So far, the Communists seem able to control the people, and, within Kiangsi,
conditions are about normal. It is said there are still some guerrillas in the
hill country of south Kiangsi, but they are no threat to highways or railroads.
In Kwangtung, the CCP has less control and has not stopped banditry or anti-Com-
munist guerrilla attacks. Canton is not under control, but conditions have be-
come better. Robberies occur, even as in KMT days. Police were mostly absent.
They were attending school, the writer was told. Hotel men warneP. hi', to keep
off the streets. Shops open at 1100, and close at 1700. Throughout the province,
villages have ramparts and home guards. Communists try to take arms from the
people, but without much success. Another difficulty the Communists have is that
of getting the people to accept the people's currency. Although prohibited, Hong
Kong dollars still circulate. The authorities are discouraging their use through
a propaganda campaign by worlmmen and students.
My first experience with the Communist regime in Nan-ch'ang was through the
extortion of a ricksha puller. With other newcomers I was held up for ten times
the ordinary fare. When I -!as leaving for the railroad station, I asked the
hotel to hire a truck for my baggage, to escape the extortions of the ricksha-
pullers. The hotel man declii.ad, saying that when trucks went to the station to
get baggage, the drivers were beaten up by the ricksha-pullers and charged with
being capitalists who exploited the pullers. When I was coming to the hotel,
and was being held up for a fare higher than the price agreed upon, I became
angry and wanted to send the coolie to the police station. The hotel men begged
me iot to because the police always support the coolies.
The Communists have made good progress in restoring railroad bridges, but
trains must proceed slowly when crossing them. S, me highway bridges have bee,-,
washed away, so ferries must be used. When I came to the Kan Chiang, there were
some 40 commercial vehicles lined up waiting to cross, some having been there
5 days. Military vehicles have priority for crossing. I was in a vehicle owned
by the government-operated transport company. The ferrymen gave it permission
to cross ahead of the others, but the guards forbade such permission. Luckily,
there were two soldiers in the vehicle, who jumped out and argued with the guards.
As a result, the crossing was made without further delay. -- Chang Kuo-hsing
GRAIN LEVIES SEVERE IN CHUNG-SHAN -- Hong Kong Kung-shang J.ih-pan, 27, 28 Jan 50
The Communists, like the Japanese before them, have seized upon Chung-shan
Hsien's abundant production of grain as a rich source of supply for their troops.
The Red Army's actions are astounding. The landlords' grain was sealed off;
then, repeatedly grain and f? were borrowed froci them and from rich and medium
peasants. In less than a month a universal campaign of borrowing was started.
Each mou was assessed 12, 2, or 3 cattier, under the plea of "army grain to help
the front. after this, the landlords were asked to lend Grain -- 30, 40, or 50
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COIN; IDENTIAL
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catties per mou -- without any definite classification of land. In some places
the requisition went up to 70 cattier per mou. Those veto had more, lent more;
those who had less, lent less.
In December 1949, the Communist authorities published n..1 zt1c r
requisiL1on an su tee
ing of grain. The general principle is s that a landlord must surrender
40-50 percent of the grain he takes in; rich peasants, 35-45; working peasants
and medium peasants, 10-15; poor peasants, 5 percent. But when the Red Army comes
into a village, it does not act according to this principle.
CANTON REGISTERS PERSONS, LASS -- Hong Kong Kung-shang Jih-pao, 9 Feb 50
In Canton, great stress has been laid on a careful census of population and
on taxation.
A month ago, the authorities began a general survey, with a new registra-
tion of homes. The survey has not been completed, because of the difficulty of
keeping up with migrants. It has been ordered that all migrants to the city or
all urban dwellers who in the last 3 months went to the country but are now re-
turning to the city, must register and get a shop guarantee and civic card before
they can move in. No unenumerated families are allowed to dwell in the city.
Population officials are held responsible for the appearance of such families
or persons, so they watch the coming and going of migrants. Canton's population
is now nearing a million, and it is densest in the broad Bid-fu district, inhabited
by the poor.
Merchants say it used to be hard doing business under the old regime, when
officials infringed on the profits, but business could still go on somehow. Now
there is no chance to reduce or escape business taxes, and profits are genuinely
restricted, so the trader finds life harder all the time. To lay in goods he
must get a business license; to ship goods he must pay a stamp tax or have it
deducted at the month-end accounting; he must pay a business tax and a profits
tax. Water and electricity costs have been raised. Employees may not be dis-
charged. If he wants to close down, he may not, and if he wants to open up, he
cannot. Like the gold merchants, he can neither go backward nor forward. The
authorities have decided that a merchant may not suspend or close business with-
out obtaining permission. If he wishes to close, he must pay all taxes and give
employees severance pay. If the manager closes down without attending to all
this, he is arrested as a tax-evader, while the owner must assume responsibility
for the taxes before renting to another.
Search in the country for unregistered land and property continues. When
the Reds begin requisitioning grain, search for such land begins with zest.
Hired men and tenants are brought into an assembly and a committee to hunt for
such land is formed. No landlords are admitted. The tenants must point out,
on a previously prepared chart, what parcels they cultivate. After measure-
ment, a mark is made at the boundary line. All parcels lacking that mark are
termed "black" and are confiscated by the government, so the peasants dare not
conceal any land. If an owner trys to do so, the tenants report him. Or ;ourse
the real objects of the "black" land hunt are the landlords and rich peasants.
If they are found concealing land, a mass attack is started against them.
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