CCP REGULATES UMMER GRAIN LEVY; EXPLAINS STABILIZED BUDGET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600330381-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 29, 2011
• Sequence Number: 381
• Publication Date: August 1, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP80-00809A000600330381-2
CLASSIFICATION CONFIDENTIAL QONF~DE~T~~~
CENTRAL INTELLIGENCE AGENCY 1? R ORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD l:O.
COUNTRY China
SUBJECT Economic -Finance
HOW
PUBLISHED Daily newspapers
WHERE
PUBLISHED Hangchow, Shanghai
DATE
PUBLISHED 31 May, 1 Jun 1950
Chinese
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DATE OF
INFORMATION 1950
DATE DIST. ~ Aug 1950
N0. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
CCP REGULATES SUMMER GRAIN LEVY;
EXPLAINS STABILIZED BUDGET
ISSUES GRAIN COLLECTION DIRECTIVE -- Hangchow Chekiang Jih-pao, 1 Jun 50
Pei"ping, 31 May (Hain-hue) -- At the 34th session of the Administration
Council held on 30 May 1950 the following instructions on the collection of
the summer quota of public grain were approved:
1< The summer grain-collection plant is intended to facilitate the de-
livery of public grain> It has been decided that wherever there is a summer
crop and no severe famine, there shall be a summer and autumn collection of
public grain> The summer collection shall be counted as apart of the whole
year's quota.
2. The regional administrative district shall be the unit for computing
the summer collection. The percentage of the principal crops to be collected
in.t~e.,summer shall not exceed 13 percent of the total crop. The province
shal~.'be"t7~ie unit for the collection of local tax grain and the amount shall
not exceed 15 percent of the amount of national public grain collected.
3. The term "newly liberated area" shall be applied to areas where the
land-reform program hea not yet been carried out. The summer collection of
public grain in these areas shall be on a graduated basis. Details shall be
decided by the regional military and administrative committee concerned in
accordance with the following principles:
a, Ca~letn or partial exemptions shall be granted to families of he-
roes and soldiers, impoverished members of the families of distribution sys-
tem workers, widows and the aged., and those vho are unable to contribute to
the collection because of calamity after the summer harvest.. HoYever, ex-
cept for calamity-stricken areas, in areas where the percentage of poor folks
,is large, the number of exempted families shall not exceed 20 percent of the
total number of families in any ch'u having summer crops,
1 _ ~n~~.~~E~T9Al
OISTRIBUTIODI
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b. Within the pattern of the summer collection program there are
gradations among the classes of peasants. The collection unit shall be the
household. The collection from poor farmers shall not exceed 10 percent of
their summer crop. Middle class farmers shall not pay more than 15 percent
of their crop. Wealthy farmers shall not pay more than 25 percent and land-
lords not more than 50 percent of their summer crop. In special cases where
the income is more than 2,000 piculs, the collection shall not exceed 80
percent of the crop. The actual collection in these cases shall be decided
by the provincial authorities. Summer collections shall be according to
these scales; there shall be no deviation.
c. Where landlords have reduced the rent according to the law,
both landlord and renter shall bear an equitable share of the summer grain
collection, but where the landlord has not made the legal rent reduction, he
alone shall bear the burden of the summer collection.
d. After the landlord has reduced the rent, renters, who are able,
should pay their rent, but if they are unable to pay the rent, because of
calamity, the landlord shall be absolved from payment of the summer public
grain quota on those lauds from which he has not been able to collect his
rent.
4. The crop income from land shall be reckoned on an average over a
period of years. The harvest is usually governed by natural conditions, such
as soil quality, topography, water supply, climate, etc., and by conditions
of cultivation. In reckoning the proper production for any given land, ac-
tual conditions shall be considered; there shall be neither underestimation
or overestimation. Those who because of diligence and skill increase the
productivity of their land shall not be more heavily taxed because of that,
nor shall those who are dilatory, and for that reason receive a smaller crop
than the land should yield, have their tax burden reduced on that account.
5. The grain that was borrowed last year from the people by the govern-
ment because of military necessity, and over-collections that were made, in
the past shall be paid back over a period of 3 years in accordance with the
order of the Administration Council issued 24 February of this year, entitled
"A Directive Concerning Land Reform and Public Grain Collection in Newly Lib-
erated Areas." The amount to be returned this year shall be determined by
the regional military and administrative committees and reported to-the Admin-
istration Council for approval. The amount of public gain that was short in
the autumn collection last year shall be taken care of .in accord with the
above directive.
6. The summer grain collection for this year shall be based on wheat and
early paddy rica. A portion of the collection may be i.n cash. The proportion
of cash to be collected shall be decided upon by the finance and economic com-
mittee of the regional administrative districts and reported to the Administra-
tion Council for approval.
7. Local people's government authorities on all levels, especially the
hsien, ch'u, and village authorities shall mobilize all their workers and popular
organizations and, in accordance with these principles an3 methods, personally
go gut into the rural areas and carefully explain the purposes and pclicies
of the government to those from whom the collection is to be made, so that all
will fully understand the way in which the tax is reckoned.' They shall help
and supervise the collectors to make the collection in accord with the actual
conditions in each area and complete the collection in a thorough manner. The
collectors shall carefully follow these instructions and may no, under any
c.'..rcumstences, employ force. Any taxpayer or any of the local authorities who
perceives any inequalities in the collections or any favoritism shown may appeal
to the authorities on the next higher level for an investigation. Appellate
authorities shall promptly make the necessary investigation and adjust matters
CONFIDENTIAL ('111~'C~YICEITI ~ ~
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OL a~YFG YF.i~~Y~i ~AM
CONFIDENTIAL JOX1-HUM
according to the law; there shall be no delay in handling such matters. During
the investigation, however, the taxpayer shall pay the tax as assessed and .an
adjustment shall be made at the conclusion of the investigation.
8. The military and administrative counc3.1 of each regional administration
district, together with the provincial and municipal authorities, shall deter-
mine the details of the collection process in accord with the principles of
these regulations and report to the Administration Council for the record. En-
forcement shall be carried out in strict accord with Item 3 of these regula-
tions. No authorities on any level shall use any method to raise the collec-
tions above the required amounts.
CCP STABILIZED BUDGET -- Shanghai Ta Kung Pao, 31 May 50
People's Broadcasting Station -- According to a report from Peiping on
30 May, China's income and expenditures have approached a balance since the in-
itiation of financial and economic unification measures in March 1950, Accord-
ing to statistics of the Ministry of Finance of the Central People's Government
the budgetary deficit in March was reduced 80.2 percent as compered with January
1950, and 7]~ percent as compared witY. February. In April, income and expendi-
tures were almost equal. This was ?he basic factor for the nationwide stabili-
zation of prices since March.
The first reason behind the new equilibrium was an adjustment of income,
in which the amount of fluid capital absorbed by the treasury was increased.
Taking tax receipts as an example, March showed an increase over January of
10.8 percent, and April showed an increase over January of 58.3 percent. In ad-
dition, profits from public enterprises accounted for 16.7 percent of ~ational7
cash expenditures in April, whereas in March they amounted to a negligible
figure.
The second reason was the great reduction in expenditures by local govern-
men~s. For example, the Northwest Regional District, in March, reduced its ex-
penditures estimates for 1950 by 40 percent, while income was increased by 8
percent, thereby decreasing the expected deficit from 70 percent to 30 percent.
Other regional districts which have been dependent on central government sub-
sidies, have now readjusted their budgets in accordance with central government
stabilization plans end currently all have budgetary surpluses.
Thirdly, since income and expenditures have been centralized in the hands
of the central government, the latter can make expenditures in the light of
over-all needs. In this manner, funds for such projects as support of the
front lines, calamity relief and rehabilitation of the economy are guaranteed
without recourse to further issuance of banknotes.
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CONFIDENTIAL
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