COMMODITY CIRCULATION INCREASES IN SOUTH AND CENTRAL CHINA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600320212-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: August 18, 2011
• Sequence Number: 212
• Publication Date: June 19, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/18: CIA-RDP80-00809A000600320212-0
CENTRAL INTELLIGENCE AGENCY ORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CLASSWICATION CONFIDENTIAICONFIDEN1I1 50X1-HUM
COUNTRY China
SUBJECT Economic - Domestic trade
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Canton
DATE
PUBLISHED 21 May 1950
LANGUAGE
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DATE OF
INFORMATION 1950
DATE DIST. /9 Jun 1950
NO. OF PAGES 2
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
COMMODITY CIRCULATION INCREASES
IN SOUTH AND ;RAL CHINA
Hankow, 20 May (Hsin-hua) -- The various national monopoly corporations
in the Central and South China Regional District have approved a plan to:
(1) buy up agricultural products and by-products; (2) circulate industrial
products and people's currency, exclusively, throughout the rural areas;
(3) stimulate the- flow of goods and materials between city and country; and
(4) enlarge industrial and agricultural production.
Since commodity prices began to fall in the various distl,?icts, toward
the middle of March,1950, goods which had been frozen during the period of
.currency inflation appeared in quantity and were dumped onto the competitive
market. This created a surplus of goods,.but a dearth of buyers, in the large
metropolitan market's and in the smaller markets along the coastal transport
routes.
In the major agricultural towns, the market was still controlled by the
silver yuan. Nationally operated trade agencies were not yet firmly estab-
lished. Commodity prices fell more slowly than in the larger markets. The
farmers could not market any of their local products or by-products and it
then became impossible to exchange the essential materials of production and
livelihood. This disjointed condition greatly affected production in agri-
culture and industry, and added to the difficulties in the commercial market.
?Faced with this situation, in mid-April, the various national monopolis-
tic corporations in the Central and South China Regional District began to
buy up all kinds of agricultural products and by-products and to push the cir-
culation of People's Currency and industrial products through the rural areas.
By 12 May 1950, the Central and South China Cotton Yarn Corporation had pur-
chased as much as 59,700 piculs of raw cotton through its local subsidiaries
and purchase warehouses. Between 1 and 13 May 1950, the Central and South
China Fats and Oils Corporation had bought more than 21,000 piculs of tung
oil, 2,280 piculs of vegetable oil, and 600 picule of sesame-seed oil.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP80-00809A00060032021
 Sanitized Copy Approved for Release 2011/08/18: CIA-RDP80-00809A000600320212-0
CONFIDENTIAL
Since the central and subsidiary offices of the Central and South China
Local Products Corporation have been formally established, they have begun to
distribute large amounts of capital and to buy up vari,)us local products,
wood, and bamboo wares, and handicraft products. In addition, the Central
and South China Hog Bristle Corporation and the Central and South China Egg
Products Corporation have enlarged their purchase prograv.
To assure equal distribution, the various nationally operated corpora-
tions dealing in food, salt, sundries, etc., have approved the plan of send-
ing out small commercial units (hsiao-tsu) to develop retail trade and branch
marketing. In this way, large quantities of everyday commodities have been
circulated among the rural areas. The Central and South China Tea Corporation
has combined the purchase of tea leaves with the transport of industrial prod-
ucts and focd to supply the farm people.
These operations have already begun to achieve great results. The na-
tionally operated Ch'ang-sha Branch Salt Corporation exceeded its original
marketing quota in April bY.38 percent, as a result of having enlarged the
market in the farming villages. The Central and South China Cotton yarn Cor-
poration raised the cotton-rice ratio from 1-5 to 1-8, to the benefit of the
cotton farmer, and fulfilled the raw-cotton demands of its No 1 yarn plant
in Wu-han. As a result of this increased activity in urban and rural markets,
yarn, sales rose from 1,470 bales, for the whole of April, to more than 6,300
bales for the first 12 days of May.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/08/18: CIA-RDP80-00809A0006003202