(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A000200070002-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 14, 2016
• Document Release Date: May 21, 2001
• Sequence Number: 2
• Content Type: REPORT

Approved For Release 2001/07/31 : CIA-RDP80-0081OA000200070002-0
SEORET/CONTROL - UoS. OFFICIALS ONLY
25X1A
Most of the cotton processed by the firm is of Chinese origin, with the
remainder coming from India. The cotton is supplied to the factory by the
gr vernment, and the government pays a fee to the firm for converting the cotton
into cloth., The fee is fixed by the government and is considered fair, as it
does allow a small margin of profit after payment of all costs, including taxes.
All cotton mills in Shanghai are working under the same conditions and all are
satisfied with the conditions but not happy, as the profits today are not
anywhere near what they were prior to Communist occupation.
In general, the Communist officials in Shanghai are the better men that the
government has available, and they are experienced and do not indulge in rampant
punitive measures such as are applied in other ports such as Tsingtao and
Tientsin. According to reports reaching Shanghai, Tsingtao is notorious for
the poor treatment of foreigners. Very few foreigners have been jailed in
Shanghai, and. most of them who did suffer incarceration were later deported.
During the five-anti?s campaign which was. carried out all over China,, the
foreigners in Shanghai were not publicly tried, and word got around that the top
Communists in Shanghai were responsible for changing the order of public trials
for foreigners. The formula for staying alive in China is patience. The officials
of the Communist government have no regard for time, and therefore, to deal with
.them, it is necessary to work on their basis. The business dealings with the
government officials are for the most part.fair. Contracts are respected regardless.
of a change in market conditions and likewise government officials insist that
merchants carry out -their be gains.
Building rents are high. The government seems to have an endless number of
offices to set up, and, as a result, it takes over all available office space.
The Hong Kong and Shanghai Bank Building.is fully occupied by Communist
government officials.
Foreigners. are allowed to live nearly normal lives. Parties in. homes are not
stopped and club life continues on a limited scale. The majority of former
clubs have been. closed by the government; and, as a result, most of the
foreigners belong to. the R.A.F. Club located atop the Hong Kong and Shanghai
Bank. Building. The Race Club and the Golf Club still function and are open to
members. Parties are not restricted to foreigners since Chinese friends gather
with foreigners and spend an evening in dining, dancing, and conversation. There
does not seem to be any restriction about Chinese-fraternizing with foreigners.
The foreigners who had Chinese friends in pre-Communist days still have them
and continue 'to meet. At some parties there have been some quite frank
discussions conducted on tle political situation, the Korean war, and the
blockade of China,.
25X1A.
SECRET/CONTROL - U0S. OFFICIALS ONLY
Approved For Release 2001/07/31 : CIA-RDP80-0081OA000200070002-0