CHINESE GOVERNMENT TAKES STEPS TO RELIEVE SERIOUS COTTON SHORTAGE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600400489-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 489
• Publication Date: July 28, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400489-5
-- -- ~
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBL'SHED
DATE
PUBLISHED
LANGUAGE
CENTRAL INTELLIGENCE AGENCY REI ART
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
CLASSIFICATION CONFIDENTIAL
Economic - Agriculture, cotton production,
consumption
Daily newspapers
Hankow; Peiping; Hong Kong
8 Mar - 3o Nay 1951
TMI] OOGU Y[M1 CONTAINS IN /ORYATION A11[C11Mf TN[ NATIONAL 0{It Nit
Oi TX[ UNIT[D STATL] ?ITNIM TNt YtANINO 0/ [f IIO NAG[ ACT LO
U. !. C.. ]I ANO ft. A] AYtNDLO. ITS TRANSRIlSION OR TNl R[Y[LATIOM
Oi IT] CONT[N T] IN AXT [AMN[R TO AN UMA UTNO PI [[D I[RSOM 1] IRO
MILI TtD LT LAtr. RIIRODU CTION Oi TNIf IORN If IRO XIfITt D.
DATE OF
INFORMATION 1951
DATE DIST.~~ RTul 1951
NO. OF PAGES 5
SUPPLEMENT TO
REPORT N0.
CHINESE GOVERNMENT TAKES STEPS
TO RELIEVE SERIOUS COTTON SHORTAGE
The government has taken various measures to stimulate the pro-
duction of cotton. It has set up an exchange ratio between cotton
and grain, guaranteed the minimum price of cotton, increased the
market price for cotton, expanded the cotton acreage, selected, dis-
tributed, and loaned seed to the farmers, built up reserves of cotton-
seed for future planting, and levied a sale tax on cotton cloth to
reduce the purchasing pasre~ of Yarmers.
In Shensi Province, the cotton and food ratio has been set at 8
catties of wheat per catty of medium-quality raw cotton.
.,,, A.>:5-pex~g~,,;inerease. in ,the price ofl cotton is justified in an
article by Chou Cliuag-fu,~assistant manager of the Central and South
China branch of the China Cotton and Cotton Yarn Corporation. Of
the 15-percent increase, he said, 6 percent goes to sales tax, 6 per-
cent to the farmers for the price of raw cotton, and 3 percent to
processors for incidental expenses, He also stated that the price
oY raw cotton has increased a:oout 9 percent recently.
To insure the success of cotton production of 1951, various
localities have de~ps~.tedd sufficient cottonseed in preparation for
the sowing season. Selected seeds of various types are used accord-
ing to the requirements of soil and climatic conditions. About
200,000 pounds of high-yield cottonseed were imported from the USSR
for planting in .Sinkiang.
Despite partial drought conditions, North China exceeded its
cotton-planting quota by 3 million mou. The Hunan and Kiangsi areas
have been able to complete only 25 percent, due to too much rain.
STATE
ARMY
CLASSIFICATION
CONFIDEN'PIAl?
DISTRIBUTION
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400489-5
 Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400489-5
CdPTON AND FOOD EXCHANGE ftA`l'IO SE'i --- Hanko,:~, riu~eh Jih-pao, ,8 ~~ 51
~~
The Economic and Finance Committee of the Go~'~xment Administration Coun-
cil has issued a directive aimed at raising the pric~:of cotton and encourag-
ing cotton production, The exchange ratio for cott~c~x food is set as fol-
'
~~ ~~
lows for the various locaiitiese
Rai,io per. Cb~y of Raw Cotton
Locality mood C'j~'i inch, median qualms ity)
'_`
Hopeh, Pingyuan, ~\ \
Shantung M.i11et 8.5 c`~tti~
Shensi, Honan Wheat 8.0
Hupeh La+.e ri,.e
;medi.um qualit?yl - 8.5
Kiangsu, Anhwei, Early rice
Chekiang ~med.ium quality; 8.5
Hunan, Kiangsi, Ratio to be d.ctex~mined locally
southwest areas
4. A fair-trade policy _hould be adhered to. The price paid for cotton
should be determined prima*ily by its quality. Higher prices should be paid
to encourage quality production.
1. In millet-producing areas wi_t.h.in predominantly rice-producing pro-
vinces, the miJ.let prir.e compv.ta+,io, is to be made on the basis ~f the local
price of rice, The price o.f Aaxl.y ripe is +.o be the basis after 15 November
1951.
The late rice of medium quality i.s comparable to early rice which has
been run through a hul?_ing ma;'~ine tv.ice.
2. The above pries ratio i,4 the :ninimua guaranteed price fox' the farm-
ers. Commodity prices in the be'rd.=~ reg~en of :tiopeh, Pingyuan, and Shantung
should be put under ade:~~iate rota-oi by the M_nistry of Trade to assure~stabil-
ity in the price of cotton.
3. The Ministry of Trade of the Gentra.l People's Government is respon-
sible for keeping the price of cottoa at the above level. Gooperatives and
state trading companies should contract to buy future cotton at that price.
At least half of the cotton in favorable localities should be contracted for
by those organizations before tY.e cotton reaches the market. Various levels
of farm and peasant organizations should assist the farmers in this movement-
of selling future crops. Contracting for future cotton is the best way of
stablizing cotton prices at? this level. In areas where cooperative and trad-
ing companies are inadequate to de al'1 the buying, the local government should
help.
R ar,:~n to ba ?ie+,ermined locally; must be higher
than preceding year
CONFIDENTIAL
~-? ,_M1
f'
Sanitized Copy Approved for Release 2011/08/25: CIA-RDP80-00809A000600400489-5
 Sanitized Copy Approved for Release 2011/08/25 :CIA-RDP80-00809A000600400489-5
Jr -- - 1
CONFIDENTF_4L
5. Cotton farms should receive ?b.e =tee co,.~`leca*.'.en in taxation as any
other farms> Taxes may be paid in cotton an. csymert ztsv be delayed until
after the autumn harvest.
The above directive shoul3 be a?ihPred ':^ by ieper'..re!lts an3 ministries
concerned, Propaganda on the above Lrov'_."?].0:15 should, be: ronducte3 emong the
masses to assure popular enthusiasm i.: co`t=~~ p1~r??.aa ~.;3 ~cb.ievement of
the production goal.
DISCUSSES INCREASE IN PRICE 0~ COTTON CLt?TFf ? - :d~::u~.r.'~. .n cog-~~hiang Jih-pao,
10 Apr 51
Chou Chung-fu, assistant manager of t}ie C:~^trs:..s.^.d. South Ch9_r_a Branch
of the China Cotton and Cotton Ysrn ':or_re-*.at'.cr_, i.n ?~~-~use.ing the recent
price changes in cotton cloth, ststed that tn.e ?~-:per=.~nt. price increase, from
6,650,000 to 7,650,000 yuan per bolt, ;.br st4T~'_ard E1': Phoeni:~: brand cotton
cloth has caused much confusion and even susp!.cion sm.:ng 'che consumers. Be
offers the following explanation for the ~....r~s:?.
To save our country from P~eri-:an imperie.l~sm, t.c r_efend Korea, to ful-
fill the responsibility of securing pee..e, sr.~? to ma_.ntslr, tY:e economic and
cultural reconstruction program, national exp