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November 19, 1953
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Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 CLASSIF!CATIgJ~, (`T IF3Tmv ~,,. CENTRAL INTELLIGENCE AGENCY REPORT INFORMATION FROM FOREIGN DOCUM::NTS OR RADIO 9ROADCASTS CD NO. couNrRY SUBJECT HOW China, UaSR DATE OF Economic; Biographic -Soviet advisers INFORMATION 149 1 2 - 95 PUBLISHED Booklets WHERE PUBLISHED Peiping, Canton DATE PUBLISHED bray 1951, Dec 1952 LANGUAGE Chinese THIS IS UNEVALUATED INFORMATION ECONOMIC DEVEIppI.fENTS IN CHIP!A AIDED BY SOVIET ADVISERS 1949 - 1952 ~omment: This repor` presents information on economic developments in Chinn, 1949 - 1952, and shows how this development was aided by Soviet advis- ers. The Chinese documents from which the information was taken are propa- ganda pamphlets designed to promote Sino-Soviet friendship. Since this report is focused on economic and biographic information, most of the propaganda has been omitted. Asa result, the information is frngroentary. However, names of Soviet advisers and all information on them and all specific economic data and data on general economic deve~~pments are given. The activities of Soviet sperial;a+~ ~,.,, d-- _ hA?ai.,_-, - - c. i~cd u-,dar t'?e following -.n~? railway construction; railway worYshops; industries (steel, zinc, basic construction, mining, machine, electric power, and paper); agriculture and forestry; water conservation; and medicine and health. The type of information ranges from statistics s?~ggesting the amount of steel production in 1952 in the Northeast to the hoarding of metal cuttings by lathe workers; from Soviet estimates of the potential increase of China's wheat and rice production to discovery of a new method of manufacturing alco- hol as a by-product of the paper industry; from the e.tablishment of six Sino-Soviet hospitals in China to the price of lumber in the Portheast. In comparison with the information Sociological Developments in China Aide (~~Economic and the information in this report is noticeably less specifics This may9be )~ explained by the institution of censorship at the outbreak of the Korean war. Names of the Soviet advisers have been approximated from the Chinese characters. The Russian approximation is followed by the Wade-Giles trans- literation in parentheses. STAT STAT STAT . ~:~, NSR9 Fsl DISTRIBJTION T I I Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 ~. Railway Con_str~ction nomicBconstructione theofirsteSovietispecialistsitotcome to China wereerailway technicians. In the 3-year period ending in October 1952, these Soviet tech- nical experts helped to repair mere than 10,000 kilometers of railways, to coonstruct 1,255 kilometers of new railways, an3 to extend the total length of perating railways to 23,785 kilometers? J4riny examples might be cited of Soviet assistance in the repair of rail- way bridges. Chinese engineers had estimated that repairs on the Tientsin - P'u-k'ou railway bridge over the Huai Ho would require 6 months. Fortunately, Soviet specialists arrive on the scene, and as a result the project was com- pleted in 60 daya,(2) In building bridge IIo 8 ~n the western section of the Lung-hai Railway], the highest in China, it was planned to st:_ngthen the bridge with 800 cubic meters of reinforced concrete. Rowever, the necessary sand and steel rods were unavailable? Soviet experts, who arrived in September 1949, recommended Fhat -:are cement 30 centimeters in thickness be added 'to the first pier, and pointed out that the remaining peers required no further strengthen- ing. In this way, the railway started operating in the first 10 days of Oc- tober, more than s month earlier than originally expected. No 796, and Noe8031ontthehLungShaieRaiiwayewereaComradesiNelnikov8(NNeh791~ ni-Y.'o-fu), Zhilin (Hsi-lip), Shatalln (S ha-to-lip), and Sharmatov (Shah-me- erh-to-fu),(1) Other Soviet advisers who have made a great contribution to's rail- way construction program are: Bachurin (Pa_shih-Wing), Peip;_ng_Hanl:ow Railway; Hagalov (Pa-ke-'.o-fu) and YadolenY.o (ya-to-lien-k'o), HanY.ow-Canton Railway; Zaytsev (Cha-ssu-to-y~h-f u), Ch'eng-tu--Chungking Railway; Zingerenko (Chin- ko-lien-ku) and Tikhonov (Chi-ho-no-fu), Huang Ho Bridge on the Peiping-Hankow Railway; and Gumalov (Ku-ma-to-fu), a railway bridge ~ot named].(1,2 B. Railway Workshops ) 1. Peng-t'ai Car Inspection Division Soviet specialist Milishukhin (Iii-li-shih_,.r,i.,~ _ head of ?.he ~cncrr.l GperatSGns bureau of the Chinese Ministry of Railways~he came to the Feng-t'ai Car Inspection Division ~eipin~] on 20 Idsy 1950?] for a 10-day visit. The pu:?pose of his visit was to help the Feng-t'ai Division become the model for all. of China, excluding hianchuria? hlilishukhin is a famous railway specialist of 30 years' experience and a former chief of the Bureau of Rolling Stock in the Soviet Union. He was solicitous for the workers' safety. Among other recommen- dations, he suggested that workmen in the machine shop wear gogg~es and masks to protect them from antimony-tin particles thrown off during the repair of axle bushings. To increase the division`s efficiency, he proposed several improve- ments in the oil purifying equipment.. After the installation of a wooden grid in the oil circulating trough and thz addition of a heat radiation pipe, the purification process was shortened fry+m 48 to 18 hoarse Iiot only was the efficiency of the process increased 12 times, but also the q?:ality of the purified oil was :wised. Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 STAT Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 tdilishukhir. was concerned about correcting the workers` carelessness in handling machinery ara tools and the leadinr?. cadres' indifi'erer,ce toward this problem. The most frequent instance of carelessness was the depositing of tools and heavy objects on lathe beds, seiioucly damaging the specifications and dimensions of the sliding surface. t4ilishukhin also pro- posed organizing teams to undertake the important task of wheel work and to overcome the grave deficiencies of careless ~~li~nment and slipshod repair methods of the past.(1) The Chinese Chang-ch'un Railway, by virtue of large-scale assistance given by Soviet technicians, has become the most advanced railway in China. After applying advanced Soviet experience, in 7.951 workers on this railway increased their efficiency 27.8 percent over tl,tst of 1950 and reduced actual expenditc.,:s in 1951 by a sum of 72.3 billion yuan less than that originally bvc~geted. More than 1,000 Soviet specialists on the Chang-ch'u? &3ilway have trained over L5,900 managerial cadres and technical workers. Bulosbin (Pu- lo-hsin) helped wor]:ers at the Harbin Railway Shop make great strides in their technical proficiency. Diany illustrations might be cited of self-sacrifi;,e end proletarian internationalism on the part of the Soviet experts. While lecturing on pro- duction to Chinese cadres in the winter of 1951, Soviet specialist SynY.ov (Hsin-k'uo-fu), chief engineer of the Chang-ch'un Railway Control Bureau, became i11 from overwork and fainted. He ]ester insisted on finishing his lecture. Soviet specialist Bakhvaleyev (Pao-hues-lush-yeh-fu), chief of the Chang-ch'un Railway Station st Lu-pin, received serious injuries in August 1951 while rescuing several Chinese from the path of a runaway box- car.(2) 3. Railway Workshop ~ot named] Soviet specialist tfatal3khin ~h1a-te-li-chin) inspected e railway shop on 10 April 950 ~. Although he wa; there only 8 hours, he discovered a number of deficiencies in the work, Far example, he noticed that certain locomotive fittings were made of copper, wtrile others serving the same purpose were made of metal alloy. After he pointed out that the coefficient of the two was different and that the metal alloy was preferable for this purpose, the personnel realized that insufficient attention had been paid to this type of problem in the past. On discovering excessive play in a lathe tool-post turning mechanism, he quizzed shop personnel on the upkeep and repair of the lathe assembly. They admitted that there was no plan for peri.odie; inspection and repair of the lathes. hioreover, he uncovered the unhealthy phenomenon of lathe workers hoarding heir own stocks of] metal cuttings, thus impeding over-all produc- tion. The responsibility for this was attributed to the shop administration because of its failure to supply an adequate amount of metal cuttings.(1) The Soviet technique of "rapid steel smelting" has already enabled Chinese steel production to increase rapidly. Assuming the time required to smelt each hatch of steel is reduced by 30 minutes, the Northeast Adm ni.s- trative Area could, with its 1952 furnace capacity, increase its annu::l steel STAT Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 production 35,000 tons by employing this method. Another widely disseminated Soviet process resulting in increased steel production is the "hot repair" method of fixi:,g the Smelting furnace fore wall. Whereas the "cold repair" method required '200 hours, the new method takes only 30 hours. Improvements brought to the An-si;an Iron and Steel Works by Soviet specialists have been of many kinds. F'or e.cample, a special control room has been established for each iron-smelting plant, in which a single supervisor can check on the operations of the refrigeration, water, gas, and steam systems. Moreover, the mechanism for removing coke from iwo coke ovens at An- shan has been improved, thus reducing both the number of coke-removing oper- ations and the daily cons-imption of electricity.(2) In the past, the great majority of technical workers at the An-shan Iron and Steel Works were Japanese. The total number of Japanese workmen there was 20,000; of these, more than 40 percent were engaged in technical operations. Consequently, Soviet specialists have concentrated on training ChineP~ cadres at An-shan to fill the vacancies left by the Japanese.(1) 2. Zinc Production Soviet specialist Alenchenko (A-lisng-chin-k'o) formerly was the manager of a smelting plant in the Urals, In January X1950 ?] he arrived at one cf China's zinc plants. At the time he came, this plant consisted of several ruined buildings and some broken-down equipment. There were about 100 workers experienced in producing sulfuric acid, but none experienced in producing zinc. The Japanese sought to produce zinc at this plant, but gave up after 3 or 4 years. Three F,merican engineers subsequently tried and failed. But Alenchenko guaranteed that the plant would produce zinc by 1 July 950 ?] After n month spent in cleaning, repair work was begun. In dis- mantling the eight circular furnaces, it was found that a number of the bricks could not be reused. Because silicon carbide bricks were not locally avail- able, the Soviet specialist proposed making the new furnaces square-shaped. Not only would this save on raw mater is 1, but it would also save the labor time needed to make smooth bricks for a circular furnace. mr,~ p?rn???~ ::?~ ~~i~lpmrui, pad Deep repaired by early June. But before operations were actually begun, Alenchenko spent several weeks in teaching the worY,men the technical skills necessary for zinc produrtion.(1) 3. Basic Construction In the field of basic construction, the vacuum process of concrete placing introduced by Soviet experts has been a very important contribution. For example, the Northeast 21st Construction Oompan;, has been able, by using this process, to raise quality, reduce costs, and shorten construction time by three fourths. The Soviet method of employing "continuors brick-laying" teams, com- bined with the "two-handed mortar laying method," has speeded up the rate of brick-laying 400 percent. Wor:cer teams, organized on the basis of a scien- tific division of labor, are to be used in all phases of basic construction work.(2) 4. Mining Indu^,try A process which has greatly cut down on construction time in the min- ing industry is ttie "parallel operation" method. For example, the Northeast Hsi-an Mining Btu?eau undertook the sinking of a vertical shaft in 1950 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 ~ e ic., of the mine wall. 1t vas Pctimated that 10 years would be required to Yinish the project, in 1951, the Soviet-intro- duced "parallel operation" method wss adapted, that is, simultaneously digging the well and laying the mine wall. Witi: this method, only 5 years will be required to complete the project. Soviet mining slecialists Steklov (Ssu-t'u-ko-lino-f u), Marchenko (Ma- erh-ch'en-k'1), and others have helped solve many difficult technical problems in restoring and reconstructing coal mine:: the nw Soviet mining method, which has raised the extraction rate to 75-80 percent of the coal deposit, has been applied to 90 percent of the coal production and has greatly reduced wastage of natarai resn?rces. Soviet experts haw=_ taught the usd of various kinds of mechanical equipment in coal mining. Yor example, most miners at the Buai-nan and Feng- feng Coal Mines can new mine coal using pneumatic drills. The process of re- covering pit timbers has also been mechanized Some Chinese technical personrei thought that many of the country's coal mines had become obso]?ae anti that by i957 some 120 shafts wculd have to be abandoned. They therefore recaomended sinking new shafts. But Soviet ex- perts made an investigation, and decided that only about. half this number of shafts would ha?re to be abandoned. 'I'ney also decided that the productive life of most of the restored mines could b_ exterden from 20 to 40 years. In this way, the productive capacity of ca31 mines can be increased to 170 percent of that existing ':; 1951.f2? employing the "si,~gle operation" method; that is, first clgg.,-,~ a next the shaft and then laving a er ct' ion of 5? Diachine Industry Soviet specialists are as zealous in wort;ing for China as in working for their own, country. One specialist, after being engaged, took it upon him- self to examine ca:?efu L}~ iu Moscav one of th_ Chinese invoice orders. When he noticed that man;; of the requirco nrec~sicn gauges (these items are very scarce even in the Soviet Gnicn) vcr= laclcing, he proposed aoding them une by one. tdoreover, ne vas on hand tc supervise the unlo.3ding of this equipment when it arrived in China Alter assembling and installing the machinery, he then organized classes to train cadres in t'.e use of the. machiner?;. The Soviet "high-speed cutting metha3" has already been applied it machine manufacturing tLants ?hroughcut tiro entire ccuntry After Soviet ex- perts introduced it at tae Fu-shun tiiach.ine and Electric Works, the productive capacity of the old-style lathes was increased by an amount equi?ralent to an increase of 500 technicians. After t're workers in six new machine works in the Northeast had mastered tl-:e multiple-blade cutting method, the rapid cut- ting method, and the high-speed cutting method, they increased their rate of efficiency in finishing work by ten times. The Soviet method of "production according to chart" has greatly ac- celerated national construction. Three machine factories in the Northeast in 1951 produced not quite 100 laths . P.ut after adopting this advanced technique, they were able, with +,he same means of production, to manufacture more than 100 lathes in the first quarter 1952. Every.~here ir, China one encounters the statement by administrative and labor union cadres: "We need more technical workers, more experienced workers." This was the case whe^ Soviet adviser Cul'banov (Ku-1l-pan-no-f u) inspected hfachine Factory No 1 at biukde-.(1) STAT Sanitized Copy~App_ro d for Release 20w 1-09/13: CIA-RDP80-00809A000700` 15 0 6 0 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 6? Electric power Industry With the enthusiastic assistance of Soviet specialists, Chinese electric power production in October 1y52 had increased 15 percent over the highest prewar figure. At the same time, commercially sold electric power had increased to 2.8 times the peak prewar amount. The Soviet "rapid overhaul method" has cut in half the time required for the old method of repairing electrical equipment. Soviet experts have been instrumental In restoring existing electrical installations to maximum efficiency. The resulting increase in electric power in Tientsin is equiva- lent to a new electric power plant costing 155 billion Yuan; in Shanghai, to an increase in generator facilities producing 10,000 kilowatts. Soviet specialists have helped reduce the rate of factory consumption of electric power and wastage in the transmission lines. The amount of elec- would exceed by 11 tric power thus savperbynitahe total power lp power plants in the past 3 years Plants in the North China Administrative g-oersted by all state-owne3 Ar,.a in 1449, Power hsi PowerBPlantl~annsayhe Soviet practice of burning low-grade coal, the Chi- creased efficie 20 t''--ion yuan annually in fuel costs. ncy cf the Shin-ch~ng Shan Power Plant, resulting from the aid of Soviet specialists, has ensured that there w]11 be no need to increase the power installations servicing Peiping for at least 2 years., To mention but two of the more than 200 suggesticns advanced by Soviet specialists at Sh'h- ching Shan, the hard-water disposal process has increased both the efficiency and life of the boilers and the utilization of waste steam has already saved 2,700 tons of coat (2) 7? paper' Industry Soviet specialist Velichkln (Wei-lieh-chl-chin), or, the basis of rigorous tests conducted at the Peiping Paper Factory, has invented a pul process which uses rice straw as 50 percent of the raw material. principal advantages of this P crude pulp is high; the amounpTofesodarused isllows' the yield from the The the paper is great;,tye pulp processing time is the tensile siren process is simple; the investment short; 9th of the raw material s and the wood ordinarily' used can beoaevotedoto basic constructioncturing plentiful; of the AdminihtrationeBurenulofithe Northeast AcPlnistrative Arearr,ctory fie 1. cessfully utilized the waste fluids from paper manufacture to make alcohol. It been estimated that a as suc- nually could, by means of thisamethodpofdmanufact~000gtalcohol,~savepanpamount equal to the value of between 6,000 and 10,000 tons of grain.() 8. 1?todern Factories Soviet specialists have also helped build ultramodern industrial plants. For exsmple, ~ coal burning electric power plant which began oper- ation in mid-^ueptember 1952 is outfitted with the newest equipment and its production processes are automatic. Another example of a completely auto- matic factory is the Asia Hemp Mill in Aarbin.(2) STAT _ ... ~ _. Sanitized Copy Approved for Release 2011/09/1.3: CIA-RDP80-00809A000700150076=0 _ Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 D. Agriculture and F'oreatry 1. Agriculture in General Following the introduction by Soviet specialists oi' the techniques of deep plowing, close planting, crop rotation, and proper irrigation and fertili- zation, crop yields per mou have greatly increased. At the Shuang-ch'iao Ex- perimental Farm of the School of Mechanized Agriculture of the idinistry of Agriculture, the 1949 production of seed cotton per mou was only 50 catties. But after the close planting method was followed, the yield in reased to 162 catties in 1950 and to 296 catties in 1951 ('with fertile areas producing up to 537 catties). Soviet specialist Lushchenko (Lu-shen-Y.'o) believes that, providing China thoroughly assimilates the whole body of Soviet advanced agricultural techniques, it can increase its present wheat production by 100 percent. More- over, if the present. method of planting paddy rice seeds at J.ntervals of from 21 to 26 centimeters can be changed to planting at intervals of 18 centimeters, he believes that rice production can also be increased by 100 percent.(e) 2, i?:echanized Agriculture Soviet specialists Belov (Pi-lo-fu ), Oborenkov (A-pu-liang-rho-fu), and Chernikov (Ch'iu-erh-ni-k'e-f u), among others, have introduced techniques of management and mechanized farming employed on Soviet sovkhozes. With their assistance, 52 state farms on which production levels from mechanized farming exceed those on farms of individuals by 100 to 2U0 percent have al- ready been established in China. The Soviet government has sent large numbers of the newest-type trac- tors, harvester combines, and other types of agricultural machinery. tfore than 700 new-type horse-drawn farm implements have been supplied by the Soviet Union, and already have proved their utility in the Northeast. 11oreover, Soviet specialists have helped in the manufacture of farm machinery. For example, Soviet adviser Kucherov (K'u-tzu-lieh-cho-fu) helped devise and manufacture a single-animal, four-row seeding machine at the main plant of the north China farm bachinery Factory. O 3. Animal Ftusbandry Soviet specialists have been especial;., helpful in improving live- stock. Teloydzudzhiy (T'e-lo-i-tz'u-chi) aided in the establishment of several tens of state-owned stock-breeding farms and in the training of 1,000 cadres to carry on this type of work. The Soviet. technique of artificial insemination was app.,led at a state-owned stock farm in Ku-shan Hsien, Heilungkiang province, in 1952 with outstanding results. Soviet specialists Bondarenko (Pan-ta-lip-k'o) and Zvanov (I-wan- no-fu) have helped manufacture improved veterinary medicines, establishing nationwide regulations for producing and testing veterinary supplies. Through the use of various antiepidemic techniques, including the "K'o-to-feng" vac- cine for hoof-and-mouth disease, they hate bc~^ instrumental in stamping out both rinderpest and hoof-and-mouth disease, which have been prevalent in wide areas in the past 2 y~ara. Soviet advisers Lushchenko (Lu-shen-k'o) and FSalakhotonov (t?ta-la-ho- t'a-no-fu) helped devise and install equipment for airplane dusting operations against locusts and have participated many times in insect control work at Huang-hua in A Leh Province and other localities. They have also undertaken applied research in cutworm control at the Shuang-ch'iao ExperiQental h'arm.(2) ,: .. 111?~ ~ Sanitized Copy Approved for Release 2011/09/13: CIA=RDP80-00809A000700150076-0 . Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 ~+. Forestry Advanced Soviet experience has been applied in the work of foresting some 1,350,000 hectares of land during the peat 3 years. It ie also being utilized in the newly initiated program of transforming nature, that is, ~ ~~ and sand shelter belts extending Prom several hundred to more than 1,000 kilo- meters in length in such areas as the Northeast, the Idorthweat, and along the coast of North Kiangsu Province. The "sector inspection method"?introduced by Soviet specialist Nen- arokov (Nien-na-lo-k'uo-f u) has solved many difficult problems in the survey of China's forests. The amount saved by this method in inspecting 330,000 hectares of forest in the Nor..*.heast in 1951 was 6.9 billion yuan. In the selection and cutting of timber, a number of Soviet techniques have proved of great value. In the Northeast Administrative Area alone, the resulting increase of lumber production in the past 3 years (October 19k9 - Oc- tober 1952) has been 700,000 cubic meters, an amount worth roughly 1,323,000,- 000,000 yuan. This lumber could build some 202,890 workers' residencea.(2) E? Water Conservation Soviet specia~_.:;t Bykov (Pu-k'o-fu) has made an outstanding contribution to China's water conservation program. He took the lead in planning and superviai? the Ching-Chiang water dispersal project. He has demonstrated a method of constructing locks which does not require the driving of piles; he has also shown how to construct sluice gates out of corrugated plate, in order to save steel. With his help, two locks measuring 330 and 1,000 meters were completed ahead of schedule o^ the Ching-c`'iang. The entire project required on?.y 75 days. The same Dykov, ? companied by Soviet adviser Chapayev (She-pa-yeh-fu), made a tour of inspec on in 1952 of the reservoir project on the upper reaches of the Ruai Ho.(2) F. N,edicine and Health At China's request, the Soviet government has sent a good many medical scientists to assist in disease prevention and in medical work. In June 195--^, the Soviet Red Cross Association founded the "Peiping Soviet Red Cross hospital," xith more than 30 Soviet doctors and nursPS. Among the distinguished Soviet specialists at this hospital are its director Furakhorov (Fu-lo-ha-to-fu), its deputy director Yegorov (Yeh-kuo-to-fu), its chief sur- geon Voskresenskiy (Ida-szu-ku-lei-hsin-azu-r_hi), and a nurse, Idariya (Ma-li-ya). Zn addition to their hospital duties, they-ar~: training Chinese personnel for medical and public health work. The Soviet Union has established five other Sino-Soviet hospitals at Port Arthur, Dairen, and other places. Soviet advisers have provided guidance to the pharmaceutical sup- ply industry. With the help of Vasil-yev (Wa-hsi-lieh-fu), Chins row has learned how to manufacture penicillin. Various Soviet advanced therapeutic methods have been applied to good ad- vantage at the First bfilitary Medical College 1^ Tientsin. (2) >, _, . Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0 SOURCES 1. Su-lien Chuan-chia Tao-liao Wo-men Kung-ch'sng (Soviet Specialists Have Come to Our ~ , Kung-den Ch'u-pan She, Peiping, May 1951. Sanitized Copy Approved for Release 2011/09/13: CIA-RDP80-00809A000700150076-0