FINANCIAL REPORT OF ALL-CHINA FEDERATION OF TRADE UNIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700180453-8
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: September 6, 2011
• Sequence Number: 453
• Publication Date: June 14, 1954
• Content Type: REPORT

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STAT
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Hs in-hug Yueh-Pao
Peiping, Jun 1953
FINANCIAL REPORT OF ALL-CHINA FEDERATION OF TRADE UNIONS
[Comment: The following report is a condensation of a speech
made by Li Tsai-wen on 3 May 1953 to the All-China Congress of Trade
Unions on the financial conditions of the All-China Federation of
Trade Unions.]
The management of our finances has been developed to fit the over-all ex-
pansion of the trade unions. Financial. operations in the trade umbra were
initiated after the conclusion of the Sixth All-China Labor Conc ess and with
the subsequent revival of the :,11-Chin:. Federation of labor [now known as the
All-China Federation of Trade Unions]. At
trade-
union financial receipts are paynentc r.;-de toethettrade unions by the narige-
ment of either government or private enterprises under agreements ?aith trade
unions. Other income is derived from dues paid by union cenbe-s -n nccordance
with the constitution of the All-Chinn :'sder tlor of Trail
by the Sixth All-China Labor Congress. During the past h year_-., cinreotheed
promulgation of the Trade-Union La:: o^ -.e 'an ]e 'a iiepui li: o ::h_'na, the
payments by management to the trade unions have received legal sanction.
The fol'owlrc Is a b-iF?f cc c-, f thu fig:d, ^.c in' situat[c' r the ]1-
China Fede ut.ion of Tradr Unions fo- the -art 3
Iocome
Member:, du'. 105 , . G.
? . ..';
Other receiftc 1 50-1952 5,530,
Total
Culture and education .,ur;l 1q5'_, x?
labor insurance general fund ;;,]_
(Does not include payments c~ e !I?--tly ty trans and fart ^iec .u
trade unions or income of tr:,Je :miens an various __velc)
Expenditures
Operating
International .ctivitics 56 Cadre training and printing h6,7E7,F}0 000
Operating expenses for all organs
of the All-China Federation of
Trade Unions 337,929,530,000
Total
4E1,2E7,o(0,000
Culture and education fund, outla's
61
Labor insurance general fund, payments 153,469,?10,000
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Cash on Hand
Operating funds
Culture and education fund
Labor insurance general fund
Present Conditions
In examining this ,financial vtatca'. ,
rarest.
Trade-union fund:: ,-'r-d,; a11. . re :::e? z c ;.
r.;:r.t of production. The fo:ce:. th.'- .'c-iirr -1: -rc, .
e_ecate the
an'-- eu loin try t :? i ~;;
th~ 'I nner.
the working cluz L , and t7: r; :: thin.
T:iese ideas could destroy the m..._., nat-u'c ~, r. !c-union or
._aai:-
would also disregard the fun?_tiuns of 'he trait union ink the
party and the working masses.
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STAT
It is quite true that many trade-union affairs are managed by the govern-
ment; however, the trade unions also operate on behalf of the masses. Services
which deal with improving the living conditions of the masses of workers, and
which influence increasing production must both be entrusted to the masses. We
must direct the masses to take care of their own operations, and not to rely on
the government. This is one of the positive aims of Communist education. More-
over, when services to the masses are being expanded, the funds for the services
should be controlled by the masses themselves. Independent financial operations
must be set up in order to facilitate the positiveness of the workers and to
utilize to the fullest the appropriated sum of money to fulfill the needs of
the workers. We must recognize that trade-union financial activities are the
most important means of guaranteeing the physical welfare of the whole trade
union.
In the present stage of financial activities in the trade union:, the fol-
lowing problems still exist.
Tendency to Neglect Politics
For a long time it was not clear to the anions that financial activities
were a service to production and to the masses and of gre:ct pclaticul s.gnifi-
eanee. This misconception w4s ap arena ir. t.h:e folLra'na si a bans
Trade-union finances were widely considered as purely technical work by
the financial cadres. In their handling of trade-union fends they were in-
terested only in the collection and in the administration of the funds, and
paid no attention to the use of the funds. They li?, net know how to use the
funds as a means of solidifying the relations between trade-union agencies
and the masses.
The isolation of trade-union finance:; from. trarle-union work as a whole
created a situation in Which financial cctivitles were completely isolated
from the over-all work of the trade union.
Those in control of trade-union fun.i:: ,,:?'++om or never ;:a-+e much attention
to those in charge of ot?ier ar,*ivitiec. Those in :harp of furnishing cadres
to the unions pay little or no attention to tine needs of the masses, or to
the development of collective welfare s.rvic:en. For instance, in the last few
financial conferences or at other ronferencer where financial problems were
discussed, there was more attention since to 3r,-ument about allocation of
cadres than to the discussion of the n-;gds and ac4,1;.aaons of the messes.
The trade unionc hove accumulated a real cum of mcrr:ey, but as soon as
they start any service pro?ram the;; c n.tch o;t their hands to the government
or to the administration of enterpriris,._
What is done with the trade-unioc fund::: 'f1.c macs, c?e not told or
given any explanations about it. Now f t? r u
. ? r,cd` Thu macs-.,;.re not
consulted nor ure their orinion_ coujhtas to the rice c: the money. Flrancial
decisions are made only subiectivel'r. ? r t?:e -
are not given a report :nd the ;:ccounec nre not subjected tcthetsupervision
of the masses.
Control of Funds
operations of the funds of the national trade union do not have c unified
method or system of control. Great sums of money were saved up, but there was
no accounting [on these sums]. The leaders of the All-China Feder?.'a on of
Trade Unions did not have any figures regarding the vital financ.ic+1 operations
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which indicates that they barely knew the status of the funds controlled by
the federation nor did they have a grasp of the over-all figures of the Cul-
ture and Education Fund nor of the labor Insurnnce Fund, nor of the status of
the income and expenditure of these funds. Because we do not have these vital
figures we cannot formulate a definite program to carry out our activities,
and cannot draft a coordinated and practical plan for these nctivitie, Con-
sequently, in carrying out and rendering various activities and cervi-es there
is much recklessness and confusion in the _rerding of v::r_et: fur:1a.
The total of all types of funds on hand of the All-c'?ina Federation of
Trade Unions, according to incomplete statirti-. of t? 1953, 2.7 bil-
lion yuan.
As a matter of fact, the accumulation of r?nch on hand is not a mistake
in financial work,. in fact, in carrying out tear. farce cj.c-s.tion; t accumu-
lation of funds is not only possible but =,e-;tine, but at present we are
accumulating funds unwieel;r and without ..an. :'oreover, we have not
reached the period when we can accumulatr.'?unds, because we are not carr.'inc
\ out a sufficient number C' r.rtivities and --ar-vicc?c.
Our chief aim ou'ht to be the solution of the prohlec of meeti:;3 t e re-
quirements of the masseu. Under these ,cir--~;mst:.nres %-e 7,-Lt r:e.;o?.:?ec,;e that
the storing up of fund:: ie roof.
Supervision
There is a lack of democratic control and .f sul.errision by the messes
in financial activit:,Ctatements of financial conditions are issued
sporadically and the aunts are not repo_ted tc the masses. The masses
only see money paid into the trade union; they see no financial report of
what is being done with the money. This situation is unsatisfactory. When
the status o' the fund is reported and the funds are supervised by the
masses, th:t corkers are satisfied; trade-un"on ope!?ations :._no expand %nd
prosper end the coontru Live :!t.titude of t.h. worke,?r in productic!! is al:.')
improved.
Complex Control F?;stemt
.There is no coordinated, scientific ,:,..,tics ftn.r,cinl system and
no special. agencies and special'y ass ii net cudr.... for the control
of the fonds. Consequcotly, the situs?.tion r:ri.ec ~hr.?. 'v,ryhody in control
means nobody in control, and this breeir -:?r:ri?:r ^ v%Fnnce. During
the Three Antis and The Five Antis `?:o:r-!:?'nt, ,1t`r-,tionc ::f the tort
were uncovered; more remains to be prig r ci,
In establishing, it:; financial s ctcc. t'..: ;.!I-Chu:a Federation of Trm de
Unions also made the mistake o' bc_ The ::chine up of con-
Ll. u
trols was too premature, too complex,
and too }coot;:. Th~nrc were tco many
systems. Some of them were confusing; cif i pre_ti_ui. They were vary diffi-
cult to carry out on the basic level. There :erc -everal ;;;;terns, however,
which were fB.rly efficiently installed, ttut ?;er c..tcn the cadres did not
understand them, and the masses understood them ever: less and thought that
the financial cadres were deceiving them. Inciallation of complex financial
systems is not proper at the present stage of development of the All-China
Federation of Trade Unions, and poses difficulties in various aspects of
financial work.
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not succeeded in obtaining-completeocontrolisfapparent that as yet we have
irs, and we
not have the support of the working class of the nation. The large sum of do
money which is accumulated has aroused dissatisfaction among certain sections
of the masses. In sincerely criticizing ourselves these are the reasons why
we-have not done a good job of management: (1) lack of experience, which is
natural; (2) the leadership of the All-China Federation of Trade Unions lacks
direct control over financial operations; and (3) there is also a lack of
government direction and control and of ideological direction. The chief
reasons for these deficiencies are: First, during the long period under the
old system, the masses were accustomed to having their lives directed by the
state, and they were not accustomed to being united, nor to taking the initi-
ative in business transaction. Second, we loo;; at the large-scale operatiors
of the working class from the viewpoint of the peasant or of the small pro-
ducer, and hoard large sums of money rather than using the money for mass
operations.
In trade-union financial work, there are several. problems which have not
yet been overcome; the leadership of the All-China Federation of Trade !!pions
is charged with this important task.
During the Three Antis, and the Five Antic movcaents, ma;-.y problems were
discovered. Last July, at the Joint Cenfere?:? _? of Mmir:ictrctive Area Trade-
Union Chiefs, our honored chai:'man, Liu Ihao-cia, ~7,
To start in on this work the Ail-China Federation of TradeoUnions asrinstit-
tuted certain new regulations; but at present some of the old Oegulations
which are not practical still remain unchanged. Sc, in reality the entire
problem has not been solved. Therefore, we must have a thorough investiga-
tion of bureaucrat;, in trade-union financial operations.
To accomplish its required program during the period of national con-
struction, the financial work of the trade union must be enormously improved.
We must strengthen the ideological Leadership at all levels, we must make
the cadres of the trade unions aware cf the fact that the trade union finance
is never an isolated piece of technical wore, but is a political activity of
great significance. The aim of the financial activities of the trade union
is to be of service to production and to the masses. With this in mind we
must truly work toward doing a Food Job in collecting, administering, and
using trade-union funds. Collection and edninistr:.Liun of the funds must be
directed towards the use of the funds. if the funds are not well used it will
certainly affect the income, that is the c_)!e~tion of the funds, which is
dependent on dues of the members, if the furls s :ell.-us ;d rhea the members
are happy to pay.. To use the funds well raises t
In their own organization and also develop- + `0?fideace of the cgs;es
- vr,lt.e of
proda'riop.
Future Program
How can we do a good job of using the funds^.
an operational pl.sn and a financial plan. 'Without aidef initemaro?rham, fin.^n-
cial activities will not build up trade-union work, and will nit Eca,.antee the
building up of.t}he materi-tl recou:ces o the Ixodle union.
We must continue our revisions of the financial work which has already
been started; to achieve centralized control of the All _China Federation of
Trade Unions, and to build the foundation for progress in financial independ-
ence. In revising the present financial system we must begin with the follow-
ing points:
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1. Revise Our Thinking
We must carry on the fight against subjectivism; we must carry on
the struggle against bureaucratic leadership, and recognize the at that
financial services to the working masses differ from financial services to
government agencies and cadres. We must establish a definite policy in
finance in order to achieve uniformity in thinking and understanding. With-
out unification, improvements in financial activities are impossible.
2. Revise Our Organizational System
We must establish and strengthen finan-ial o encies of the trade
union at all levels; improve the controls of operational funds and establish
special agencies for the management of these operational funds, and decisively
eliminate irresponsible officials and decentra:.ized control.
We must set up a scientific financial system which is well integrated,
positive, and simple; and decisively eliminate the situation of no accounting
for vital expenses. We must change those old systems and re;;ulat.ions of for-
malism which do not conform to reality.
We must consider funds from the point of view of use; in this we must
examine the present funds and decide what service is .important and what is
unimportant, what is urgent and what can be deferred. We must have discussions
with the masses, in order to solve the pressing problems of the masses; we must
decisively oppose hoarding of funds, as well as subjectivism and irresponsible
officials. On the other hand, we should also review past experiences in order
to set up a really operable budget to make proper use of the funds.
4. gtren-then Collective Leadership in Financial ?a tivities
There should he periodical reports to the masses and mass supervision.
The financial records should be checked to overcome the evils o: bribery and
waste. We must see that the funds are used to the profit of production and of
the working masses,
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