GOVERNMENT TIGHTENS CONTROL ON COTTON INDUSTRY, ENCOURAGES CULTIVATION OF RAW COTTON

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600390258-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: October 18, 2011
• Sequence Number: 258
• Publication Date: May 7, 1951
• Content Type: REPORT

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G'JVEIT.1INIEd4T TIGHTENS CONTROL ON COTTON INDUSTRY,
' VNC _ _ AT ON OF RAW CO'TT'ON
The Central People's government has takentsteps to control all
cotton-yarn and cloth sales completely through registration of stocks
and production, and all sales are forbidden except to the government-
operated China Cotton-Yarn and Cloth Corporation. Prices are fixed
by local bureaus ofi.industry. A Hong Kong report tells of serious
difficulties in the Canton cotton-textile industry because of op-
pressive controls and taxes, with factories being denied permission
to close down.
Production of raw cotton is being pushed in North and Northeast
China, while measures are being taken to encourage deliveries of raw
cotton by the-Carmers. A barter system has been set up in Hopeh
Province to enable the faam ers to exchange their cotton directly for
food, oil, hardware, and other necessities, as well to allow tInzoi: to
pay taxes in cotton at a rate based on the ratio to millet.
TAKES OVER PURCHASE OF COTTON YARN, CLOTH -- Hankow, Ch'ang-chiang Jih-pao,
4 Jan 51
The Financial and Economic Committee of the Central People'sCGovernmeat
Administration Council issued a directive on 4 January 1951 concerning govern-
ment purchases of all cotton yarn and :loth produced. The provisions, effec-
tive Thom date of issue, are as follows:
1. Beginning on the date of promulgation of these,'provisions, all cotton
yarns spun or cotton cloth woven by publicly or privately operated cotton: mills
are subjected to purchase by the government-operated'China Cotton-Yarn and
Cloth Ccgrpnration. All Yarn, and cloth stocks of all mills should be regis-
tered, and future sales cease cexcept for government purchase by the China
Cotton-Yarn and Cloth' Corporation.
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CENTRAL INTELLIGENCE AGENCY REPORT
CLASSIFICATION CONFIDENTIAL CONF1DENTL t.
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
Economic - Industry, cotton, agriculture
Daily newspapers
China; Hong Kong
4 Jan - 13 Feb 1951
DATE OF
INFORMATION 1951
DATE DIST. t way 3.951
NO. OF PAGES 4
SUPPLEMENT TC
REPORT NO.
.14 peerr[IT CONTAIN[ INFORMATION APMCTIRS TRI RATIORAt NMRN
OF TN' YRmO STAN, ~ITNIM TN[ MONIR. of MrnO.wa~
r. S. O.. PI MO RRf'1R AR[NOU. IT[ TRAR)NUOION OR TRt UYIUTION
OF IT, CCRTNTS, ART RAUU TO RR oAIIRORltts PINION IN /RP
RIRIT[O AT UTC RZMOOVCTIO* OF TMI[ TORN IN FROMIRfl[1.
I
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CLASSIFICATION coNFrnENTIAL IFIE
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2, Purchase by the government through the China Cotton-Yarn and Cloth Cor-
poration, in accordance with Article 1, should be at prices based on costs and
including a reasonable profit to the mills.
3. Publicly or privately operated cotton mills, when receiving processing,
spinning, or weaving orders from the China Cotton-Yarn and Cloth Corporation,
should recommend an appropriate fee.
4. Yarn and cloth produced by all cotton mills should comply with the
standards prescribed by the China Cotton-Yarn and Cloth Corporation. Quality
must not be lowered.
5. To arrive at reasonable prices and fees, consultations are to be held
under the sponsorship of the local Bureau of Industry and Commerce with partic-
ipation co the Association of Industry and Commerce, the trade unions, the
China Cotton-Yarn and Cloth Corporation, and the cotton mills. Their proposals
are subject to approval by the Ministry or trade of the Central People's gov-
ernment.
6. The Ministry of Trade of the Central People's government should set vp
measures dealing with marketing and production of cotton yarn on the basis of
actual conditions of production and demand.
7. The various local people's governments should bear responsibility for
control over the cotton-yarn market, restriction of speculation and hoarding,
and assisting the Chinese Cotton-Yarn and Cloth Corporation to carry out effec-
tive marketing and distribution. When necessary, the China Cotton-Yarn and
Cloth Corporation may set up retail outlets.
FIX PRICES ON COTTON YARN AND CLOTH -- Hankow, Chang-chiang Jih-pao, 5 Jan 51
Following the directive issued by the Financial and I:nonomic Committee of
the Government Administration Council of the Central People's government, all
prices of cotton yarn and cloth in the Central and South China Region, begin-
ning on January 1951, are placed under government control. Prices are fixed
at a reasonable level, based on costs and profits.
The fc7.lowing are prices of items in various cities and provinces as of
4 January 1951:
Hankow -- Red Lion Globe Brand 20's yarn, 6,640,000 GyuanJ per tale; Dragon
Head Brand cotton 26 -W'15uasJ p1er. bolt.
Sha-shih -- Ching-thou 20's yarn, 6,550,000 CyuaJ per bale; Dragon Head
Brand-cotton cloth, 284,000 5a7 per bolt.
Ch'ang-sha -- Red Lion Globe Brand 20's cotton 'n, 6,850,000 5yua7 per
bale; Dragon Head Brand cotton cloth, 271,000 `yuan per bolt.
Canton -- Blue Phoenix Brand Cotton cloth, 272,000 Cyuag per bolt.
Other types of cloth, as well as cloth and yarn in other Central and South
areas, are priced on the same basis under the price regulations.
COTTON HARDY STABILIZED IN SHANGHAI -- Peiping, Jen-min Jih-pao, 15 Jan 51
Since 10 January 1951 over 20 textile companies in the Shanghai area have
requested the East China Cotton Yarn and Cloth Corporation for permission to
sell cotton yarn and cloth. They have sold a total of 2,324 bales of cotton
yarn and 30,430 bolts of cotton cloth. As a result of all these transactions,
the cotton market in.Shanghai has been stabilized.
CONFIDENTIAL
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CONFIDENTIAL
GOVERMMMM CONTROL DEPRIb:E1PPAL TO CANTON COTTON INDUSTRY -- Hong Kong, Kung-shang
Jih-pao, 13 Feb 51
Since the Central People's government has controlled cotton spinning and the
buying and selling of native cotton-cloth, output of the cotton-textile industry
of Canton has decreased daily, because of the restrictions of the government and
weakened buying power of the public. At the samettime, each factory is forced
to carry the burden of assessed enterprise taxes. Therefore, there is no other
recourse than to shorten operatingl;hours and drastically curtail all expenditures.
At the end of last year, every factory bad to advance its date for shutting down,
and only one or two out of 12 have returned to operation by now. The Textile
Workers' Union has brought the matter before the Commerce and Industry Bureau
because of the effect on the livelihood of the workers, and each factory has re-
ceived orders that it is to return to operation by 15 February 1951 or be taken
over by the Central People's government. All the factories and businesses in
operation last year suffered losses and applied for permission to go bankrupt.
Not only were their petitions not granted, but they were faced with the possi-
bility of being liquidated by the.Cestral People's goverament, so they all de-
cided to conbinue with 6 operating hours daily.. According to talks with textile
merchants, the city's cotton-textile business is duller than has been seen in
this province in several years.
COTTON TURNOVER BEHIND SCHEIUIE -- Peiping, Jen-min Jih-pao, 21 Jan 51
Purchases and tax collection cotton for the government in the Northeast
by that state'd.n Cotton-Yarn and Cloth Corporation had reached only 77.5 per-
cent of the 1950 quota at the end of 1953. Local cooperatives assisted greatly
in the purchasing and tax collection of cotton. Though the quality of cotton
is definitely higher than that of 1949, it is still below the standard required
by the cotton mills.
PUSH COTTON CULTIVATION IN NORTHEAST -- Peiping, Jen-min Jih-pao, 21 Jan 51
Farmers in Liaotung Province and the Dairen-Port Arthur area are busily plan-
ning to increase their acreage of cotton. In the Hsi-hai district of Kai-p'ing
Heien, for instance, 4,000 mou of cotton were planted last year, as compared to
14,500 mou this year. Shih-san-li Village, near Dairen, plans to increase cotton
cultivation to 2,800 mou, which is three times as much as that of last year.
Many farmers devote all their lands to planting. cotton, hemp, peanuts, and other
profitable crops. Local hsien and provincial governments are endeavoring to
assist the farmers to Aolving many technical problems. The farmers are encouraged
to plant cotton and hemp by the reasonable, high prices paid by the government.
COTTON CULTIVATION PUSHED IN LIAOSI -- Peiping, Jen-min Jih-pao, 25 Jan 51
With the encouragement and help of the Provincial People's government, the
acreage of cotton cultivation reached 121,000 shang Jne Shang equals 7 mo,7,
in Liaosi Province duripg 1950. The farmers want to devote even more acreage
to cotton cultivation because it is a profitable crop. The People's government
has planned to increase cotton acreage by 80,000 shang in 1951. At present,
the 5rovincial] agriculture department's cotton-yarn and textile mills, coopera-
tives, transportation companies, etc., are all working to provide the necessary
cotton seeds for the farmers.
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CONFIDENTIAL
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CONFIDEMA1.
BARTEF. SYSTEM SET UP TO ENCOURAGE COTTON DELIVERIES -- Peiping, Jen-min .iih-pao,
17 Jan 51
Food, grocery, oil, coal, hardware, salt, and other stores in Ting-haien
Special District, H-)peh Province, are collaborating with the Cotton-Yarn and
Cloth Corporation in organizing a mutual exchange. The purpose is to furnish
all the foodstuffs, cloth, coal, salt, and other daily necessities directly to
the farmers in exchange for their cotton. After realizing the advantages of-
fered them, the cotton farmers are very enthusiastic about such an arrangement.
The exchange work was initiated by the Cotton-Yarn and Cloth Corporation
to secure all the cotton available. The corporation makes direct contracts
with the other stores (food, grocery, salt, etc.). Price lists are furnished
to the cotton corporation daily by the individual store. These are used to
compute an equivalent price list showing the exchange rate between units of
cotton and various items on sale. Exchange tickets are gi-.en to farmers to
exchange for specific items at the contracted store upon delivery of cotton.
The cotton farmers in Ting-hsien Special District were able to exchange
25 million catties of cotton for necessary foods and goods in 1950. Prior to
the exchange system, the Cotton-Yarn and Cloth Corporation was only able to
purchase part of the available cotton. Also, food and other stores were un-
able to predict the exact volume of purchases by the farmers, thus resulting
either in overstocking or understocking. Demand and supply equilibrium, :as
well as the farmer's faith in cotton as a crop, was destroyed. The exchanre
system will help eliminate the problem of the withholding of cotton by the
farmers and the uneven and sparodic distribution of goods needed by the farm-
ers.
HOPES FARMERS PAY TAXES IN COTTON -- Peiping, Jen-min Jih-pao, 27 Jan 51
After approval by the Hopeh Provincial People's government in the fall of
1950, allowing cotton to be-.,used in tax-grain paymcats, the masses are very
enthusiastic in paying cotton because they consider it more advantageous.
The substitution is indeed fair since one catty of average-grade ginned cotton
is equivalent to 3 a8ftl0raud 5 taels of millet. The local cooperatives are in
a good position to collect them. In 2 days Ran-tan District and Ch'iu Hsien
collected over 600,000 catties of ginned cotton. From September to early
December, Han-tan, Wei-shui, Shih-chia-chuang, Pao-ting, Tientsin, and other
special districts collected cottbn.91214 percent above their quotas.
CONFIDENTIAL
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