CCP STRENGTHENS CONTROL OVER FINANCES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600310119-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 12, 2011
• Sequence Number: 119
• Publication Date: May 9, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600310119-5
C~GEI NTRALIOINTELL~~ E AGENCY~~
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
SUEJECT Economtc -Finance
HOW
PUBLISHED Daily newspapers
WHERE
PUBLISHED New York; Canton
DATE
PUBLISHED
LANGUAGE
THIS OOCUYFxT CONTAIN] IN iOPYATIOM AiiEG TING IN[ HA iIONAI O[iEN]l
Of THE UXIiED STATE] WITHIN TH[ Y[ANIXG Oi f]PIONA4E AON IS PPO~
NI BIT[D PT LAW PLPROOUCTION O[ THIS fONY I] PROHIVIIEO
REPOR'
CD N0.
DATE OF
INFORMATION 1950
DATE DIST. 9 May 1950
N0, OF PAGES 3
SUPPLEMENT TO
REPORI" N0.
THIS IS UNEVALUATED INFORMATION
On 7 April, the Administration Council announced its decision .regarding con-
trol of cash resources of national agencies. The text of the decision is as fol-
lows:
The Administration Council has derided to enforce cash controls on various
national agencies, to accomplish the projected control of currency circulation
and economy in the use of rash. The cotwctl etas designated the People's Bank
of China (PBC} as the authority to administer cash controls, bear the response- ,
bility for control methods, and examine ma~l.ters attendant on cash control.
Cash and negotiable certiftcates held by any publicly operated business
enterprise, government agency, army unit, or cooperative, excepting that spec-
ifie3 amount approved for reserve, must be deposited in the local PBC or its
duly authorized agency. Such funds shall not be deposited in private banks.
The smount of cash held. by the various public business enterprises, gov-
ernment agencies, army emits, and cooperatives is limited to 3 days' normal
expenditures iu places where there are PBC facilities, and to one month's nor-
mal expenditures where there are no PBC facilities. '
All transactions among publir_ business enterprises, government agencies,
army units, and cooperatives must be handled by drafts drawn against their ac-
counts in the PBC Inter?port transactions must be handled by FBC drafts. Ex-
cepting such disbursements as wages, agricultural purchases, miscellaneous mu-
nicipal payments, etc., which must be made in cash, all transactions shall be
handled by PBC :rafts and shall. not be handled ?^y cash payment.
The various public business enterprises, government agencies, army units,
and cooperatives shall be required to spbmit periodic plates for :,alancing cash
receipts and expenditures to the local Finance and Economics Commission for
its approval. Subsequently, the r:ports shall be sent to the local PBC, which
will fermttJ.ate plans to reduce the money in circulation.
Sanitized Copy Approved for Release 2011/08/17: CIA-RDP80-00809A000600310119-5
 Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP80-00809A000600310119-5
~C~~~@~CE~~A~
As the Ff3" bt:: umes t,hP : enter Cor cash deposits and withdrawals, it should
eft?r it;, asair.~?n c,hc:,9,n:: r!i:.';;;ic :,;] work toward improving its business
urocedures and fac,litics, so rxs rn serve the needs of these various agencies.
r'ENTRl~L CHINA :'AtftiEc, i)I;'?' 'r7:!:':11, FLANS -- Canton Nan-fang Jih-pao, 29 Mar 50
Hankow, 2'T March ilisin-trrr~) -- '?he authorities of the provinces of Honan,
Y:tnan, 1lupeh, :end Kiar:gsi a-? tsk>na step:; to carry uut the new tax collection
and warehouse inventory policy of the r.eni::?al government. Honan provincial au-
?;hcr'_ties have ordered r?d~,~tioar Se tar. 1?:Ills, and have asked party leaders to
f;,.rr_1sh able :-a,: ~ e. be fore. the r:ul oi~ March 1950 to become tax office chiefs
arc'. taz Lnventi,atota. I;'?:{i--i'eng ei?y authorities called a meeting of the heads
of all gevernr:,eat-operated ent,erpr~s~?+s to ~:onsult on carrying out the program.
All present pledged rareflz!. coopera.Liorl.
The Hung^. Trr,~y ir;f- Company has or~;antzed warehouse inventory committees in
all _ts branches. Ch'tI'tg-shs has carrted nut the same plan. A department has
been organized for the coo ^dlnation oC ali grain transport throughout the prov-
lnce with leaders to ge out _nto the couary to give personal supervision.
In hiac!;si, an :,.:?=story collation r..ommittee was organized 22 March to
stut9y the task for thr_ !role provin.:e~
7n Hupeh, a Ineetir:~, cf oruvincial cadres was called to hear the report of
the deputy governor on '_':nancia? conferences called by the central Ministry
of Finance a.nd the ?;ent,ral and South China Military and Political Council. The
deputy governor ple~ged ?3upeh t.o carry out the goals of tax and public grain
collection and boa~9 sales. Bon:: ss:.les were to be completed by the end of March
and the inventory collation program ca.:ried out promptly.
CCMD101iITY TAX COTdFESEIV;:Is FiE1,U -- Canton Nan-fang Jih-pao, 28 Mar 50
Peiping, f?o Mar::h ~iisin_r,,.,;j _- The Central Tax Bureau of the Ministry of
Fir_arc:? of the :"entral Pr.ople's go,~ernment rom'oked a conference in Peiping
.from 26 February to ?j March 1950 to discuss commodity tax problems. The con-
ference dis~us~iors foli.owFd the commodity tax program of the Administration
Council iu con.ncction with loc.,.l. expericnc,e. 'The conference discussed and
prepared preliminary d?cail?d rerommi-:;lotions on commodity tax collection pro-
cedtrr~es for the whole ,:o.Irtry The conF?rees also decided on the periods in
w'~ich collections are to re made, o.. a ,reification of the investigation and
collection system, a*_~d o*.her pertir?nt matters.
Smug;ling was given ?_n?slderabl.e att.ention., It was acknowledged that
lieretofcre many of t}IQgn ,.h?:razed with handling the smuggling problem had con-
sid?red it ton lightly, wi?h cor.r.~dcrable resultant loss to the national rev-
enue. ~
In additio.: t.o ?x-ila:_ging :nforma*lon based on experience in various
harts of the country, the corlfererce studied the Soviet practice, seeking to
adapt it to cond~t.ions in China.
LOCAL GOVERNMENTS IMPLEMENT i.TNTf'TEB FINAiv`CE PROGRAM -- Canton Nan-fang Jih-
pao, 1 Ap_ 50
Peiping, 31 March (Hsin-l:u.:t} -- The various regional governments and im-
portant mur_icipal:fi?: are takl.rg rapid -t?ps to implement the recently sn-
nounced national unified fiscal policy by setting up trade treasuries.
Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP80-00809A000600310119-5
 A part of th? uaiflcazion orog;ram is the inventory of all goods in the
war~hou~~~s of the varirnr~ g_?~-rrrment z:i~cnries thrcughout the country. Chen
`'un anc fang Li-can t'ia~r=_ bc~-n appointed ^hairman r.nd vice-chairman of the
National_FTarc:house Property L:q~iida.ti.on and Redistribution Committee by the
Administration Crnar.; il~
The giant China Military and Political Council has issL:ed a directive
on the matter., which, except for provisi~rs for locra arrangements, follows
the general regulations issued by t,h? ?dinistry of Finance for the whole coun-
try
APPOINTS 13 DIRE~;TOitS -- Ne? ?orY. Hua-ch'iac Jih-pao, 29 Mar 50
P?aping, 22 March lHsi.~-heal -- To strengthen the government's control
of the Feople's Bsrilc o'f Chinc, appr~;xi.mately 70 percent of whose stock was
government-owned n~der t.h? b~%T, a.rd to strengthen the financial position of
the tank, the A.dmir_istration Co:mcil has appointed 13 directors and five comp-
trollers. These rren will replace the former KMT directors and comptrollers,
msny of whom are war cruninals.
Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP80-00809A000600310119-5
Sanitized Copy Approved for Release 2011/08/17 :CIA-RDP80-00809A000600310119-5