STRESSES EXTENSION OF PEOPLE'S NOTES IN RURAL AREAS; MONGOLIAN REPUBLIC LIFTS RATIONING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600330790-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 30, 2011
• Sequence Number: 790
• Publication Date: August 14, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/31 :CIA-RDP8O-OO8O9AOOO6OO33O79O-8
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGJAGE
CLASSIFICATION coNFIDENTIA o~~l~~ l
CENTRAL INTELLIGENCE AGENC A ~RT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADiO BROADCASTS CD t:O.
China; Mongolia
Economic - Finance
Shanghai; Hong Kong; Peiping; T'ai-yuan; N 0. OF PAGES 3
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DATE OF 1950
INFORMATION
DATE DIST. fit/ Aug 1950
SUPPLEMENT TO
REPORT N0.
THIS IS UNEVALUATED INFORMATION
STRESSES EXTENSION OF PEOPLE'S NOTES I$ RURAL AREAS;
MONGOL.LAN REPUBLIC LIFTS RATIONING
EDITOR DISCUSSES PROMOTION OF PEOPLE'S NOTES -- Shanghai Hsin-wen Jih-pao,
23 May 50
The past few months have seen the following developments: a universal sta-
bility in commodity prices; the defeat of inflation; a shift in the people's
basic standard of values from goods to money; an increase in bank deposits;
longer periods on time deposits; and increased expansion of the people's notes
into the rural agricultural villages.
The extended circulation of people's notes in the rural areas bears a
strong relationship to mutual assistance between city and country. This fact
.led the East Chins ;lili?~,.y?d AAminigtrative Committee to formulate directives
governing the program to encourage wider use of people's notes in rural areas
to stimulate commodity exchange between city and country, at their 13th regular
administrative session on 16 May 1950.
Objectively, the problem today is to find a way of achieving effective and'?
speedy penetration of the rural areas and of helping the people's notes to be-
come accepted in the agricultural villages. The key to the problem lies in two
aspects:
a. The concerted movement of goods to rural areas will provide a route
of entry for people's notes.
b. It will be necessary to approve the purchase of silk, tea, and millet,
as well as the granting of agricultural loans. This will place poeple's notes
in the hands of the farming population. Since people's note circulation is ex-
tremely meager in newly liberated areas which lie off the beaten back, the pop-
ulace in such places still practice9 barter.
The advantages of enlarging the area of people's note circulation are as
follows:
1. It will encourage rural-urban exchange of commodities, eliminate the
decadent practice of barter, and facilitate the movement of large quantities of
goods into the municipal markets. This will put an end to hoarding, free many.
commodities for marketing, and ultimately increase the supply of agricultural
products. - ~~~~~~~ ! !~~
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CONFIDENTIAL
2, It will break up the concentration of currency in the cities and
reduce fluctuation in commodity prices.
3. The issue of people's notes was primarily devised to curb inflation.
But the expansion of people's note circulation into rural areas will now serve
also as a stabilizing factor in the national economy.
CONFIDENCE RISES IN PEOPLE'S NOTES -- Hong Kong Wen-hui Pao, 7 Jul 50
Canton, 6 July (Hsin-hua) -- With the stabilization of commodity prices,
the people's note has pushed Hong Kong currency and silver yuan out of the
Kwangtung market, which they had held for the past several years, and has come
into circulation throughout the province.
The representatives attending this Sirst session of the Kwangtung Province
Agricultural Delegates Conference have requested that the government put on a
concerted drive to extend the use of people's notes into the rural areas.
NORTHEAST MONOPOLY CORPORATIONS CUT BUDGET ESTIMATES -- Peiping Jen-min Jih-pao,
24 May 5U
Mukden, 17 May (Hsin-hua) -- The Northeast Ministry of Trade in a careful
study of the budgetary expenditure estimates for seven monopoly trading corpo-
rations for the second quarter has trimmed one trillion Northeast yuan from the
total.
In view of the fact that the second quarter is lean in receipts, but long
on outlays for summer construction proje'hts, the Ministry urges all seven com-
panies to meet and exceed their sales quotas, and at the same time cut down
their outlays.
As an example of the possibilities, the Ministry cites the case of the
Food Corporation that had an estimate in its budget for 3 million straw bags
to sack 80,000 tons of salt. Careful study of the needs revealed that only
540,000 bags would actually be needed, making it possible to reduce the esti-
mated outlay for this one item from 60 billion to 10 billion yuan.
SHANSI BUDGET EXPENDITURES CUT -- T'ai-yuan Shansi Jih-pao, 24 May 50
Local expenditures in the 1950 Shansi Province budget have been reduced
by a sum equivalent to 27,294,000 cattier of millet, which is more than 16
percent of the original budget figure. This will help the hsiens to reach
better adjustments in their budgets and enable local finance organs to balance
their ledgers, with a surplus equivalent to 17,615:000 cattier of millet.
The budget revision was made on the basis of the findings of cadres sent out
by the provincial government to examine finance practices in the special dis-
tricts of Hrin-hsien, Yu-tz'u, Fen-yang, Lin-fen, and Yun-ch'eng in March. The
cadres found that old idealogies still persisting in some areas were impeding
the centralization program and fostering improper budget considerations. In
view of this, the provincial government has decided to send out cadres to
strengthen the administration of local finance activities.
RATIONING ENDS 29 APRIL -- Urumchi Sinkiang Jih-pao, 9 May 50
Peiping, 6 May (Hsin-hua) -- According to a Tass dispatch4from Ulan
Bator, dated 28 April, the Mongolian People's Republic will lift its rationing
The dispatch states that the large amount of foodstuff and manufactures
goods now being imported from the Soviet Union makes rationing no longer neces-
sary. Rationing was partially lifted .last year when ?such items as meat products,
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cosmetics, bread, and cake were taken off the ration list.
REDUCES HUPEH GRAIN TAX -- Hong Kong Ta Kung Pao, 10 Jua 50
HarAkow -- The 250-million-catty summer-grain tax which was to be collected
in Hupeh Province this year has been reduced 150 million catties by direction
of the Central government. Also, the basis unit for taxation has been revised
to 70 market catties in calculating both taxes for the year.
PERMITS AFPEAL FOR TAX REVISION -- Shanghai Chieh-fang Jih-pao, 24 May 50
Following the decision that industrial and commercial taxes for March,
April, and May 1950 would be levied according to a new system of democratic dis-
cussion, there was considerable confusion among industrial and commercial cir-
cles. Many persons feared that the tax burden would exceed the bounds of actual
conditions by several times and force their enterprises into difficult circum-
stances, People in general were gravely concerned about the system of democra-
tic discussion, and many industrial and commercial houses prepared to request
permission to close shop. However, now that "democratic discussion" has been
clearly defined, a system has been devised whereby requests can be made for
reconsideration in cases where the tax burden has been improperly distributed.
On 23 iday, members of the Standing Committee of the Council of Democratic Dis-
cussion, acting in the interests of the taxpayers, formulated regulations govern-
ing methods of requesting reconsideration by the Council of Democratic Discus-
sion on Shanghai Municipal Industrial and Commercial Taxes in view of actual
conditions.
HSIN-AUA BANK EXTENDS FACILITIES -- Hong Kong Wen-hui Pao, 5 Jul 50
The Hong Kong Hsin-hua (New China) Bank is the primary banking agency
designated by the CCP to exchange foreign remittances with the mainland. Most
of the overseas Chinese remittances exchanged in Hong Kong are handled through
the Hsin-hua Bank.
The bank's area of exchange has been expanding daily, and remittances can
now be negotiated for various parts of Sinkiang and Northeast China.
Peiping, 8 July (Hsin-hua) -- On 30 June, the Committee of Finance and
Economics of the Government Administration Council issued a directive author-
izing temporary permits to refund duty on items now being exported, as follows:
1. All export duty ma be refunded on cement, rugs, glassware, casings,
flannel, epicurean powder presumably monosodium glutamate ], and firecrackers.
2. By joint consent of the Ministry of Trade and. the Committee of Finance
and Economics, duty on Chinese canned goods, spirits, beer, various talismanic
paper products, and incense may be reduced or waived, depending on export con-
ditions.
3. Export duty on raw materials used to make talismanic paper products may
be completely refunded to lower their export costs.
~. After the product has been exported, the expert certification specifi-
cally issued by the customs should be sent by the exporting firm to the tax of-
fice where the duty was originally paid, and a refund should be requested.
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