ECONOMIC AND MILITARY SITUATION IN CHINA AND THE MPR AS OBSERVED BY A DELEGATE TO THE ASIAN AND PACIFIC PEACE CONFERENCE

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-00810A001300320009-3
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RIPPUB
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C
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14
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December 15, 2016
Document Release Date: 
December 17, 2003
Sequence Number: 
9
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Publication Date: 
June 22, 1953
Content Type: 
REPORT
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Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 CENTRAL INTELLIGENCE AGENCY INFORMATION REPORT 25X1 COUNTRY SUBJECT This Document contains Information affecting Vie Na- tional Defense of the United States, within the mean- ing of Title 18, Sections 793 and 794, of4he U.S. Code, as amended. Its transmission or revelation of its contents to or receipt by an unauthorized person is prohibited by law. The reproduction of this form is pr(*ibited. 25XA lt_c a lu t ilitarj + ua* :S.o ? In China DATE DISTR. MF"Mt i s '0'6ss ;.r'V c! fL y a Del eg.Ite t;:i the l a..t P*", 1 i is Pea,. ;r~I 'fix' rw. NO. OF PAGES REQUIREMENT NO. RD 25X1A REFERENCES U J'unie 1953 /3 25X1X 25X1 25X1 25X1 1o 25X1 X 25X1 NS IN THIS REPORT ARE DEFINITIVE. OF CONTENT IS TENTATIVE. KEY SEE REVERSE) (.+'^. ';.'G.c; G'M r t;he the '"rTt'.".re: 8-out 30 k lanes on Wes i; Field) Of A-h.i.ch ."Were, and. t .he rest, twin e agt.ne bombers. No jet aircraft were seea an the ':4 eid.. At the southern end of the airport, there.. -ire aL:-L:W -,; :trc~; attt; gim axpl.ac:e ier~ tf and, three towers., each 30-40 meters high. e e ors. No these "YC3Wf:. 25X1X A "t;'i? 1_and: n; , ;he dea ^ x,A s were asked for passports and b? age tickets. '1''ae : z ,,s nc t &2 ,oI:. n~3 lr:r... ? .Ctrl at the field. T hrc,y were asked to fill oxit a reg- :.a,x fora;.. After c m i i_ ? i *ig at the airport for an hour, the leggy * were a.i ided t rzto groups and taken to the Hotel of Peace in Peip i-ng. On the zouth. s i dv off tht; road. bdtwen West Yield and Peiping, there were :?e cent, 1nfant-2- hti.;:'rr3 vts.s, The b-u.,l.d.ingF were not cano9jflaged, but had. a. ',ar'by d. -wire fence, eigh-15 wi;r-es high, around the instal_.ation. Guards were a~u the entrsa-ice. 5. The llote:sL of Fasl'^e in .'e ipi g, according to Chinese officials, had been rrox,p.etea by the corkers of (;hira in 35 days. it is a vni..ne-story hul.l..d1r!g with 25 to S0 rooms to a floor ; it has modern plumbing, dial. telephones in .each room, el evato s, a barber shop, a dining room on the first floor which se :vres Chinese- food, and one on the terrace which serves occidental food. The cha-3rrr~:a;.;. of each delegation was assigned a pleasant single room CON ?IDE IMAL LS,, I ARMY (Note: Washington Distribution Indicated By "X"; Field Distribution By "*".) Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081 OA001300320009-325X1 A CONPID TIALA 6. The delegations from Vietnam, New Zealand, Australia, Latin America:, Canac.a, Indonesia, Malaya, Iran, Morrocco, France, and the Philippine Islands stared at the Hotel of Peace. The Japanese delegation of 14+ to 17 people was in the Peking Hotel. They had left Japan secretly, and when the PPC was over, retrained in China because an order ha3 apparently been issued for their arrest on their return to Japan. Similarly the Philippine delegation had secretly left their country in small fishing boats after the Philippine government had refused to issue them passports. 7. From 7 to 10 p. m. on. 28 Septedber, the delegates participated in a que$tion-answer period in a large ballroom of the hotel of Peace. The questioning was directed through two girl interpreters by SHEN (flu), secretary general of the Chinese Youth Organiza.tion,l and another official The delegates were ask.ed-v."Y7ous questions on the political, economic and cultural aspects of their countries. This sepsion was apparently held by Chinese to collect as much information as they could on each country and also as a means of getting to know each delegate better. The delegates were later told that individuals would see them within three or four days to discuss these subjects further. 8.. On the morning of 29 September, each delegation met separately to prepare discussions of problems to be presented at the PPC. Colombia, as the only nation with troops.-in'Korea, was asked to be present at the Korean problem discussions.. The Chilean delegation was to make a report on the liberation of all peoples of the world; the Japanese on the rearmament of Japan; the Costa Ric ,on women and children; the Me:4csn, oil cult al problems. 9. In the afternoon of 29 September, the delegates toured Peiping. There were few automob:llee; atreetcars were old.. There were many bicycles and charcoal- burning ba e's.? Traffic was directed by traffic police. They saw no gun emplacements in Peiping. Water for drinking was used directly from the faucet; it contained a, certain amount of chlorine. 10. On the evening of 30 September, the delegates were invited by MAO Tee-tong to a large banquet held in the Hotel of Peace. There were some 10,000 people congregated outside the building. In all, about 1,000 people were invited to the banquet. Includfing delegates from all over the.mainlahd Of china. Delegates from other coo tries numbered 435. Chinese Government officials there were CROU En-lai, LIU Shao-chti, ministers, and vice ministers, and heads of all departments of the government. The tables were arranged in such a way that the d.e`?eates were able to circulate easily to meet MAO and other delegates there. MAO looked very healthy, gay and happy. There were no apparent security precautions taken to safeguard MAO's life. As the delegates entered the hall, three or four Chinese dressed like the other Chinese Government officials, that is, in a dark blue gown with a high collar, checked their special tickets and the badge which designated them as delegates. Seated next to MAO at the banquet were the chiefs df the delegations from India, Korea and Chile. They, as well the delegation frau the Democratic Republic of Vietnam,, seemed to be on very friendly terms with MAO. Speeches were made by the delegates from India and Korea. Manuel Cruz, chairman of the PhilA pine delegation, was loudly cheered when he walked over to MAO's table. In a private conversation later, Cruz stated that the Communists dominate l5 to 20 percent of the Philippine Island population. Cruz spoke fluent Chinese, having been educated in China, as well as Spanish, English and Portuguese. At 10 p.m. at the close of'the banquet, MAO and CEU Teh shook hands with all the delegates. 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13: CIA-RDP80-00810A001300320009-5X1 A -3- 25X1 II. At 9 a.m.. on 1 October, Communist China's national day, the delegates:,.. assembled in specially assigned places in frontbf the Red Square in Peiping; to view a parade. In the presidential box were many Chinese officials; to their right, the delegates to the PPP and Chinese representatives from the mainland.. The parade began at 10 a.m. and lasted until 1. p.m. The first part was the infantry, consisting of 22 groups of 120 i)Ops each, all very well equipped and well dressed. Following the infantry were the paratroopers, 12 groups of cavalry in-groups of 90 men each, the medical corps, machine gunners on motgrcycles in groups of 100, the horse,,drawn artillery whose assignment was mountain work, and numerous trucks, including half tracks mounting anti-aircrafts machine guns, and jeepscarrying :guns. Most of the jeeps and trucks were American-ma..e. In addition,there? were some 200 tanks of all sizes up to 70 tons, carrying guns of heavy, medium and light; construction, which also appeared to be Smerican-made. There were some Russian-made tanks. Following the tanks were trucks with long-range searchlights. Approximately 300 planes, including fighters, twin-engine and four-engine' transports and about 150 jets in groups of three, flew overhead.. Some of the pilots according to Chinese officials were women, everyone in the parade was Chinese. After the military units,. marched children and representatives of various civilian organizations. In all, approximately 700?000 marched in the parade. 12. The parade appeared to be planned to impress the delegates with China's well-equipped manpower. The spectators seemed pleased with what they saw. Russian delegates to the PPC were also well satisfied with the parade and its organization. There were l62 delegates from the U30 and a few Russian guests sitting in the Presidential boxy one of'' e: s a:. marshal.. wearing merry decorations. The Ru ;.an delegates were all in uniform. There were also some Russian civilian. present' wh0'.live:..ih. Ieiping:..9n :.:31Drkufor research organizations', act as advisers in f'ecitories and professors in ssc6Q1s- The Chinese have been learning Russian, ~s well various other languages: in their schools, and the. lhuasians. have learned Chinese inChina's, , schools and. universities. Military representatives from the satellite countries, including a Czechoslovakian army officer, were guests of the government -and sat in special places designated for guests. They did.. not mix with the delegates.. There were also some diplomatic groups. present. .13. In. the evening of 1 October,, the delegates returned to the Red Square and watched group dancing on the streets. This was the first time they had a chance to mix with the local population. The delegates were nicely treated, with the Chinese shaving no hostility nor Animosity toward them. The dancing had apparently been pre-arranged. 1. From 2 to 12 October, the delegates were at the PPC attending meetings and working on the agenda: of the fallowing days.. During the conferences the Indian and Pakistanian delegations appeared to be on very good terms with the Chinese.7.''n e ;Imes people, sc4ording to Chinese writers and newspapeImen) consider China their second motherland and have a great deal of admiration for the country. The Japanese delegation stated that Japanese rearment was a threat to Asian peace and that Japan would eventually turn on the nation that rearmed it. . There were some trade transactions "set up between the: Chinese-and various countries during the PPC China offered tea,.cotton, silky. jewelry in return for the goods of other:-;countries, or for cash, The Chinese were always careftfl"~` td':Pavoid secret meetings, having the delegates present at all times. COPt'1.kI1T.I,A, 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A CONFIDENTIAL/ -4 - 15. During the delegates' stay in Peiping, they were apparently never followed, normally taking tours of the city in escorted groups. However, when some of them wandered away from the groups, they were always brought back to th3 hotel by children. When they had time for themselves, some of them went to the local market and walked around the city. They visited museums, art galleries, and on one occasion a school where illiterates were taught by a new method which makes use of only some 600 to 900 Chinese characters. They noted that on the street corners of Peiping there were bulletin board,, used for economic, political and commercial news. On the same boards was a great deal of anti-American propaganda. There were series of cartoons depicting the enemies of China and showing American planes dropping germ warfare bombs. When the delegates first arrived in Peiping they were issued masks for protection against germs. Later source learned that farmers in the interior of China had been ordered to kill all insects in their area and to keep a record for the government of those killed. Millions of flies, mosquitoes and rats have been killed as a result of this order. 16. On two days between 2 and 12 October, the delegates drove out to some villages 40 kilometers north of Peiping to see the farms and observe the progress of the Chinese agrarian reform. The roads in the Peiping area we^e generally in poor condition, except for the road from West Field to Peipin, which was asphalt. Many of the buses in Peiping were Russian-made. They were gas-powered and named "Stalin." Russian automobiles in the area were called "Borlobov". and looked like the American Packard. The head of each delegation had a car assigned to him. 17. Delegates noted many small shops in Peiping all with fixed price: control. The price of rice was pro-rated according to the amount of work done by a person. Magazines in French, English and Chinese were on sale, as well as American razor blades. 18. On one occasion during the period of 2 to 12 October, the delegates were offered the opportunity to visit prison camps in Korea, but were later denied the trip. The reason given was the frequency of United Nations' raids, which made the trip dangerous. They did visit a political prison opposite the Temple of Heaven; thia'_was a de17pri:a.on.. 19. From 13 to 20 October, the delegates met with representatives of the Chinese Communist Government, and at the end of this period began their tour of China. 20. On 20 October, the group left Peiping for Shanghai by train. Their train, which was used for the entire tour of China, was 14 cars long, and had both dark green and dark blue pullman-style cars. 21. Between Peiping and Tientsin, on 20 October there were machine gun emplacemt:nts every five to ten kilometers. The replacements were mostly concrete pillboxes. Soldiers were stationed only at strategic points; while quite a few of the pillboxes were abandoned. At least eight freight trains of about 40 cars each passed during this four-hour trip. The freight trains Were carrying cotton. About ten new factories for cement and other construction material were noted along this route, starting about 15 minutes after leaving Peiping. CONFT. TIAL/ 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 CONMENTIALJ -5- 25X1A 22. The train stopped n Tientsin for approximately 15 minutes, then left for Linchao (Linhsiao) along a single-track railroad. Between Tientsin and TAnchao there were newly constructed factories and homes, and a petroleum Storage area west of the railroad close to Tientsin. At Linchao new construction for the maintenance of trains was noted. There were train yards and about 20 buildings in Linchao. From Linchao, the train continued to P'uk'ou (N 32.06, E 118-44), where they crossed the Yangtze River by ferry, still remaining on the train. It took from 20 to 30 minutes to cross the river to Nanking, where they arrived at 11:50 p.m. on 20 October. The railroad line between Linchao and Nanking was single track. -Many ships were noted on the Yangtze River at Nanking. At 3 a.m. 21 October the train left Nanking and arrived in Shanghai at 10:30 a.m. The railroad line between Nanking and Shanghai was double track. There was quite a bit of train movement in this section. 23. On arrival in Shanghai, the delegates were met at the railroad station by some 200,000 people representing various organizations of the city, who paraded from the station to the Cathay Mansions, where the delegates were to stay. The Cathay Mansions is a 10-story building in the center of the old French Concession of Shanghai, directly in front of the Lyceum Theatre. 24. In the afternoon of 21 October, the delegates visited a State factory for white Cotton, textiles in the northern part of Shanghai, close to the river, about a half-hour drive from the hotel. Of the 4000 employees in the factory, 60 percent were women. Delegates were told employees have schools for children and housing. The manager of the mill showed them around and described the mechanics of the work done there. The factory which was constructed in 1922,,had been in Japanese hands and was later taken over by the Chinese Communists. At the time the delegates toured it was being remodeled for a estimated capacity of 10,000 workers. Part of the factory was flooded at this time because of a flood of the Yangtze River in October. When the delegates arrived in Shanghai, the flood water was going up, but had not seemed to damage either Nanking or Hankow. All personnel in the factory were Chinese. The machinery was marked Dobson- Berlow, Ltd., Bolton (1931);-I#an'oya; Jido (1922); Sussakusko; Howard; Bulik; Togada Works, Osaka (1922). The plant had its own power plant operated by steam. According to the mar ger of the mill, about 200,000 people are engaged in the textile industry in China. 25. On the evexiing of 22 October, a dinner was given the delegates by the Mayor of Shanghai at the Cathay Mansions. About 700 people were there. 26. On the morning of 23 October, the delegates toured the House of Culture in Shanghai, which was formerly a club fo diplomats of foreign countries, about 10 blocks from the Cathay Mansions. It is a two-story building, built on an angle of a corner. It had a swimming pool, .a long bar which was being used as a conference room, and a small pmxk behind the building. The building had apparently been remodeled. A. new method for the construction of buildings were shown the delegates, in which concrete cement blocks are used, covered with fresh cement o4 top, then pressed down. They were also shown a new method for sanding wood floors, for making bolts and screws and for switching rails on railroads. According to representatives in the House of Culture, China has been producing new trains and locomotives, mainly in Mukden.' MAO had been given the first car of a new train made in Mukden. CONFIDENTIAL/ 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A c0NF3 R"I 27. In the afternoon of 23 October, the workers of--Shanghai held a special meeting in a large amphitheatre for the delegates. There: were some 30,000 people gathered,, includin ; the delegates of the TTIC, some -Soviet offici43 s, and a special dele atio4 from Canton. The president of the Soviet delegation, 8misnov (fnu) was hailed and applauded when he spoke. _.Be mentioned the friendliness existing between the USSR and China and spoke-of the various accomplishments of the Soviet Union in the past 30 years. He stated that the Soviet Union had completely recovered after the war, and that the Chinese people, following in the footsteps of the Soviet Union were building up their country as the Russians had re-built theirs. The USER, he said, was ready to talk peace, but if she is attacked, she is ready for war. At this gsthering,,aqat.all that the delegates attended, pictures of Lenin, Stalin and1(AO were widely displayed. Outside the amphitheatre, the crowd was divided into groups of 100, each having its own cheerleader. 28. Throughout their stay in Shanghai, the delegates were warned not to go out into the city alone. On two occasions, when one delegate tried, he was followed and brought back to the hotel. The men who followed explained that Shanghai was full of traitors, that is, people who did not belong to the Pexty and that if anything should happen to him, it would be an international, incident, which they wanted to avoid. During the entire trip through. China, government officials took great care to safeguard the lives of thec :'agates. There were always soldiers around or civilians who .guidk d the group through tours. The delegates were quite often followed by the ' ioneers, children abo,,zt 12 to 15 years of age who were distinguished by red neckerchiefs. There were no curfews imposed in Shanghai. At almost every corner were two or three military men. The police were instructed not to bother the delegates. They wore a green khaki uniform with an arm band that had Chinese characters on it, and carried rifles with bayonets. 29. On 24 4'ctober, the delegates visited another factory in Shanghai, which dyed the cotton textiles from the first factory they visited. The cloth was used for civilian clothing. This factory had also once belonged to the Japanese. It had about 150 workers and was being enlarged to hold more people. The machinery was old, but In good condition. The manager of the factory told. the delegates that new methods for increasing production were being used. The workers were getting 1.00 percent more pay than under the old regime. Cost of production had been reduced by 20 percent, while production,. itself had been increased by 8 percent. Percentages given were based on the 1949 index. According to the manager, all factories in China have increased production and have improved working conditions within factories. All. factories in Shanghai were guarded by military police. Special permits had to be obtained from the government for entry. Factory workers showed indentification cards when they entered the factory grounds. Two machine guns were at the entrance of the dye factory. The delegates rioted few automobiles in Shanghai, but many pedicabs. The streets of Shanghai were always crowded. There were a few electric streetcars, which were always very crowded vA th long lines . waiting to get on. There were also some charcoal and gasoline buses. Some of the automobiles had gasoline engines; other used charcoal. Air raid precautions were strictly adhered to in Shanghai. The delegates were told to keep their windows closed at night so that no light would show outside. Streets were poorly lighted with only about two bulbs per.city block. Houses had only about one-half the desirable amount of light. The reason given for this by the Chinese authorities was a campaign to increase.production,for which a large amount of .P electric power was being used for manufacturing at night. CONE"tD NT 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A C0F'IDE2 TIAL/ -7- 31. The People of Shanghai looked healthy and well-fed, although it was difficult to tell whether they were rich or poor because they all dressed in the sam. way. The only distinction between an officer Ps and soldier is uniform was the material; the officer's being of a better grade. In the same way, party functionaries and officials dressed in a finer cloth than most of the people. There were no beggars seen throughout their trip in China. The delegates were told that anyone who does beg is taken to jail, 32. The delegates were told that the mouth of the Yangtze River was mined becaused the Chinese feared an attack by CHIANG Kai-shek. 33. In the afternoon of 2i. October, the delegates visited a school for small .children in Shanghai. They were greeted by-more than 200 children and their teachers. The school building was large and comfortable, hada dining roaa, a clinic, with free medica_ treatment for each child and rooms for dancing. There was one teacher in charge of every group of five children. When a child reaches the age of one year (sic) in China, he is taken to school and from this age on is taught the Marxist theory of Communism.. 31+. On 25.October State-owned stores in Shanghai were toured. The stores seemed well-stocked and those seen carried silks, handicrafts and luggage. Prices on these articles appeared to be reasonable.. The few people who were in the stores appeared to be of the working class. They were dressed in cotton drill pants, jackets and caps, and had rubber-soled shoes. The same day they visited a government housing project for the workers of the metal industry They were told that the government had planned to build 20,000 buildings and had. at that time completed approximately 1,000. The latter were already occupied. The buildings were two-story concrete row houses with one family- occupying both levels. The ground floor had a living room, dining room, kitchen and bathroom. The upper floor had three small bedrooms. All rooms, were relatively small. The kitchens were equipped with a coal stove; the bathroom, a small bathtub, shower, toilet and washbasin. 35. At about 5 p.m. on 25 October, the delegates visited a section of the Shanghai inner port. There were a few small ships, one oT'which.sppeerbd to be a river gunboat, They were told that at the mouth of the river, there were a number of installations. 36. Quite a few Russian civilians were seen in Shanghai. No Soviet military were seen. The Russians were usually discernible by their clothing and speech. Most of them wore felt hate of a very poor quality. They did not appear to be specially privileged individuals. Some were seen riding in riclcsho; others in cars.. Hotels in Shanghai have all been taken over by the State; people,:living in hotels were required to have a government permit. Ordinarily hotels were reserved for special missions. 37. On 26 October between 9 and 10 a.m., the delegates left Shanghai for Hangchjw in the same train they had taken from Peiping. The roads between the two Cities were poor with no automobile. movement. The only stops made by the train were those to permit freight or passenger trains to pass. There were trains about every half hour; the freight trains had never less than 20 cars',and one had tzp to 45 cars. The Chinese were very proud of the maintenance of their V'ail1*oadsUevidenced by the fact that railroad workers are among the most privileged group of workers in China. Along the rail line between Shanghai. and Hangchow, as throughout all of China., there were a large number of concrete sentry houses, especially along bridges where the sentries were armed. They arrived Eangchow between 1 and 2 p.m. wherethey were met by a cheering crown of people. The railroad station was in very good condition. It was concrete and had a tin roof. CONFIRSPtTICAI+/ 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081 OA001300320009-325X1 A 25X1 38. On 27 October, the delegates Tisited the Needle Pagofl in5Hangchow from-which they noted a good deal: of commercial traffic on the lake. In the same area of Haagchow, there were some small factories for the manufacture of machinery, silk, jute sack, soap,, paper and chemicals. They -Were primarily small plaits within a five acre area each about 400 square meters in size`, with about 200 people employed. The buildings were concrete. 39. North of Hangchow outside the city wall was one of the largest jute plants seen by the delegates in China. The road approaching the plant was in very poor condition. The road crossed over a large old bridge which came to a steep arch. About 8,000 to 10,000 people were employed in the plant. The jute plant was in two sections; the old section which had been in use for :1.8 years and was built under the Nationalist regime, and the new section on which construction was begun in January 1952. Machinery in the old section was marked Robertson-Orchard; new machinery was built in Shanghai, Wuhsi and Lanchow. The plant was well guarded. Workers who were single men were quartered in barracks built on the plant grounds; there1weretwoicthree.or four men to a room. They were not permitted to leave the plant area. Married men lived off the plant grounds nearby. 40. On 28 October at 10 a.m. their train left Hangghow for Wuhsi (N 31-35, E 12,0-18)- They passed Shanghai without entering the city, proceeded to Soochow by 2 p.m. where. y obse - ed many metailur .ical. slants] some: oil .tames west ..the Soociiow. station'were also noted. Between-Sooc4ow and Wi hsi, &.few aircraft;; ' nustly fighters:ot=pfstori engine'.type,4:were seen. They 'appeared 't6 be-training planes. No airports wire seers. There was one coal mine in-th.is area. The route taken paralleleff. the Grand Cazial on which- there was :a .:large ;: tuber." o: .v.,'esie -s . At 3 p.m. they arrived at Wuhst. The delegates were lodged in a building which was regularly used as a school of fine arts. It was outside the cit; of Wi.~hsi, on a hill overlooking a lake." The guest house had its own power plant for ele idity.. The delegates visited rest homes and hospitals do the lake area. In the area north of Wuhsi, between the city and guest Eouse, and on the lake shore, were barracks, apparently for infantry troops. Some of the buildings were frame; others were straw and bamboo. Troops in five or six groups of about 100 men each were in the area. They appeared to be in training, and were equi ped with rifles, machine guns, and mortars. There were some military vehicles in the area, but no tanks or armored care. Three large buildings about 200 to 300 feet long and two-stories high were visible from the road. The camp had a barbed wire fence about eight strands high around it. 41, On the morning of 29 October, the delegates left the guest house and returned to Wuhsi to visit a silk mill and some silk shops. Between noon and 1 p.m. they left Wuhsi,on their way north to Mukden. They crossed the Yangtze River at Nanking by ferry. Many trains,, most of which were freight trains, moved on and:off the ferry. Their train of 14 cars occupied the whole ferry, wich seven cars in a line plus the locomotive. The delegates were not permitted to get off the train while on the ferry which was guarded by soldiers. .+2. On 30 October between 8 and 9 a.m.. the delegates arrived a~ Hofei (N 31-54. E 117-18). From Hofei they travelled by bus to Fushihlin which was aboiit 45 kilometers from8Hofei. The road pareal.eled for. -41,stWce one of the tributaries of the Huai River. The land appeared to be all farm land. Few cars and trucks were on the read, but there were many people. The roa=i was macadam and about 10 meters wide. They stopped about half way for lure and 'arrived in Fuahiblin at 7 p.m. where they were met by soldiers and workers who were engaged in the construction of a'dam on the Huai River. 00 T3Al 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081 OA001300320009-3 25X1 A CO N'i'IAL/ Aboix 15,000 men were employed in its construction, of which 10,000 were civilian laborers and the rest were soldiers, who worked on a special Wt of the dam. The soldiers were there to learn engineering and hydroelectric techniques. Shelters of straw and grass had been built for both the workers and soldiers. The delegates were housed in the military barracks within the military camp itself. On 31 October the delegates wexe shown the dam itself and were told that it was to be 70 meters high and 517 meters long. Two sluices were being built for irrigation and:: four for electrical generation. There were 157 pieces of machinery used to build. the dam, most of which were tampers and drills. The dam was due to be- coapleted by the end of 1953. The designer was an engineer named W (fnu). Russian advisers. had reviewed all the plans. and proposals prior to construction; however, no Russians were seen in the area at the time of the delegates' visit. WANG and an army general, who was also an engineer and who was in command of the district, were in charge. All civilian workers had contracts and were not permitted to visit their homes until the contracts o pdred.: On the road approaching Fushihlin there.,,ta s a guard. detae1unent,: - al ld~ all, through- the construction area were soldiers'-on'gua:td duty. :'."'Ih` the evening of a1 3ctober,. the. military held a banquet. for, the, delegates- after 't hick. they played a game :. df basketball with the. delegates;' which.,th-e. soldiers 'Tfoh ,'. 43- On 1 November at about 7 a.m. the delegates left Fushihlin and returned to Hofei where they arrived about 4:30 p.m. At 7 p.m. they left Hofei by tra__n going north toward Mukden. They did not return to Nanking, but went directly to Tsinan (N 36J41, E U7-00) on what appeared to be a new rail line and arrived in Tsinan at about noon of 2 November. The line was single track until they approached Talinan where it was double track.. At Tainan there was a large railroad m rs.h .g. yard with lines running east and west. From Tsinan to Taipai, which ..ig a small city just south of the Yellow River, the track was double, and from Taipai to Tientsin (N 39-08, E 117-12) single track. In the area of Taipai they passed four trains loaded with Janks. of Russiark const ruetion~ and with ammunition. On the two trains going south, some of the tanks had holes in them ,,as if penetrated by artillery fire. The two trains heading north had tanks which appeared, to be freshly painted and apparently repaired and pleiced in combat-ready condition. Each train averaged from 40 to 45 cars. All but two or three of the cars were boxcars; the others were flatcars. Tanks were loaded two to a flatcar with four to si4C on each train. Artillery shells in bundles of three were on one of the trains. They `- n'cl.'uded?, both expended shell cases and live amunition. 44. After leaving Tientsin at 7 P.M. on 2 November, they passed several troop trains heading north. The troop trains averaging about 40-45 cars in length had-been side-tracked to allow the delegates' train to pass. 45. On 3 November betyeen 8:30 and 9 a.m. the delegates arrived in Mukden. Two or three kilometers south of Mu?sden, there'was-a large number of machine guii emplacements, rifle pits and anti-aircraft emplacements built on both sides of the railroad tracks. Most'of them were concrete. Just west of the railroad station was an airport with fighter planes and some two motor planes on it. Between the railroad station and the airport were piles of wheat from which soldiers were taking out aerial bombs_., The wheat piles were almost continuous in this area and were in an irregular pattern. There were factories east of the railroad station, but no wheat piles were visible. Very few planes were noted in the Mukden area. Those seen were conventional type planes and one jet plane. In the railroad station there were many rusty and old trains, some with bullet holes in them. They were probably left over from the "liberation". Fifteen trucks with soldiers were in the railroad station. The trucks were Russian-made, had six wheels, four of which were in the rear. They were marked USSR in Russian. CONFIMENTIAL/ 25 X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A CoNF rIAZ,/ 46. Wkden had. the largest volume of automobile, truck and streetcar traffic seen by the delegates in all of China. There were a great any Russian men, vamen;T-and children on the streets. Names of stores were both in Russian and Chinese. Factories in Mukden seemed to be concentrated in the area of the railroad station. The delegates were housed in a hotel about PO bucks from the station in the city itself in frombof what were formerly Japanese government buildings. 47. The delegates visited an industrial exhibition in Mukdei};on 3 November vhieh was in a five-story building about 4 blocks from the hotel toward the rail- r ad statjpn. The exhibition was divided into five parts- (1) Products of the Hansa factory consist Lrg of nickel steel, steel bars, galvanized iron, various thicknesses of steel plates, railroad wheels and rails. A new coupling device for railroad cars., extra hard steel for ball bearingswhich are made in Dairen, steel wire and steel bombs were also displayed. (2) Mining machines made by a factory in Fushun, lathes, dies, coal pulverizers, woodworking tools, electric heaters, ovens, ship pumps. (3) Electrical equipment such as high tension resisters, generators, inductors,ejtectrical measuring devices, and elevators. 25X1 14 Hand tools of various types, bicycles, farm implements. () Rubber and chemical products of which one section was devoted to chemical engineering and included paints and paint products, an&-a...dbe ical called "Chemical 666" used in anti-bacteriological warfare. Paints for painting vessels are no longer imported in Chime. 48. Oak November, the delegates visited factory number 1 in Mukden where light machinery is produced. The factory is in the city itself east of the rail- r, surrounded by a wire fence and guarded by soldiers The director of the factory, BEANG (fnu) told the delegates that the factory had been torn down by the Japanese, was looted by the XXT and had been rebuilt by the people with the assistance of Russian technicians. It had a foundry, casting and, the cutting shops, and produced lathes, abrasive machinery, and polishing machinery used to make small precision parts. The machinery came from the Soviet Union and was marked "NSTSG" and "TOSMAS". The Chinese stated that theywere manufacturing heavy machinery in another factory using Russian patents. The factory was also equipped with air raid shtlters, the entrances to which were built up about three or four feet above tthe surface o f, the'.groi nd and had a wooden ramp stairway running down into what appeared. to-Se caves. In the area of this factory were a number of heavy machinery factories and steel mills with what appeared to be blast furnaces. There were alsp high towers buri:iog off ,. The delegates were told that there-here about 4000 factories In the .X *den area. Machinery being built was to be distributed in factories througbout China. New factories ere 'being'po'hbtrueted: to .the industrial area. "tea the "railroad station. 49., On 4 November the delegates were also shown a school of medicine in Mukden. Students in China go into medical school directly from a secondary school for a period of three to four years, after which they go into the army. 'ter a period of time in the army they return to medical school to finish their formal training. The first three to four year douse is designed to get the students out to take care of China's most urgent medjaa] needs. The medical school had about 2,200 students and was being enlarged to hold 5,000. CtE'IIMM'IAL/ 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A CONFI NTIAL/ 50. At 10 a.m.. on 5 November the delegates left )Csri-,by J4s:'-for`Ftishun E 41-53, E 123-54) to visit one of the coal mimes. The cpa~ nffnew in hun employ 8,900 people. Fushun also has 4.ron mines and oil refineries: open-cut mine was 6,000 meters long, 1,200 meters wide and 175 meter deep. was completely mechanized having machinery tp cut and d,i;l coal out of the of the mine., as wel7.as loading equipment aid ra4lroi}d c irs to haul the coe. , upper surface of the mine capgi?ted of shale which i ed in the production of petroleum products. L.ter they visited a I the area of the coal mine there was a factory uue}_fox the processing 0 the coal into coal tar byproducts and petrgleip. the plant had & L1 10 processing areas. Every ten minutes a train prriyed at the plant f W, the wipe with. from 8 to 10 carloads of she. A r9 n q.tel r 15 ft races were used for extracting petroleum fropn the e and "about 50 a.iprage tanks were used for the finished produetp. T#p tanks were about 3q'meters high with a diameter of 30 to~40 meters. One section of tanks wts used for paraffin; another for sulphuric acid. The facto and tanks ho4 been built about 1928 by the Japanese and were later rebuff t by the Chinese CQpmurists. a restri cted and gu arded by soldier's. f rY T d toae er leavi factory retur the delegates the ~21 Tb* road between ?[ukden and Fushun was dirt and stone With many holes ip it. An airfield about 10 minutes out of Mukden was noted on the north side of the road, near a place referred to as the Mausoleum 'of the Manchu Dynasty, Only one or two planes were visible on the field. There were piles of Kapliang between the air field and the road. 53, On 6 November the delegates went to a farm cooperative=-. near Fushun where cattle, pigs and corn were raised. The only machinery noted was one t ctor and a combine. In the afternoon of 6 NayempRr grey returned to X ;den and visited a political school used to refor* -for*er 1uoaintan1 bare. 54. There were many soldiers noted on the streets of Mukgep, including a platoon of airmen, and quite a few women in military uni'o} . There were also a, gt od many Russian civilians, who, according to the Chinese-were techn.ciewns in factories. They lived in houses west of the hotel where the delegates stayed, but in no one group in the area. Stores in 14ukdgn appeared to be very well stocked sad many people were buying. They carried Chinese style clpthing ouch as woolen suits, overcoats with thick cotton padding in then, as well as luxury items such as cologne, soaps, and cigarettes. There were: loge numbe35of soldiers in and around the stores who were apparently on police duty. All factory workers in Mukden were required to have an :' tification card and from time to time police in the city made spgt checks, someone appeared suspicious to the police they were stopped and as~ed fqf identification papers. None of the delegates was stopped because thpy wore the PPC badge. -. At 7 a.m. on 7 November the delegates left Mukden by train and returned to PAPing by 2 p.m. of the same day. They remained 1.n, yelping until 10 Z eember. While there, they took a trip to the Great Vail Along with apout- Y 4usu'ians who were in China on an artistic and cultural mission beciust, November was the month of Chinese-Russian friendship. CONFIDENTIAL/ 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1A CONFIDENTIAL 56. At 5 a.m. on 10 November the delegates left Peiping by air for the USSR. The aircraft, a dark green twin engine plane, had an all-Chinese crew. The first stop was Shangri-la Airfield12'where they arrived at ll a.m. The airfield was in a desert area with hills on the east and west sides. There were no hangers or buildings on the field; howeverythere were tents. All personnel at the field were military and appeared to be Mongolians. Their uniforms were dark green and resembled Russian uniforms. The eombsuiler of the airport and about 10 soldiers were at the field. There were no military aircraft at the field. The only other plane at the field had a group of Chinese youth who were going to Poland. On arrival, the delegate?s were asked to show their passports. The passports were not stamped. Runways were not marked on the field. The area of the field was very large and the sand hard enough for a light aircraft to land on it. There were no fortifications at the field. About one kilometer from the field on the mountain-side irere houaea with sloping; roofs., 'Many..camels Vrere7..in the area near the airport and on the hills. While at the field the delegates went into the e an.deri'Stent and some of the other tents. The epmmar de: tent was about 10 meters wide and had a small portable coal. stove in it. Both planes were left in the open.,. Gasoline for re-fueling was brought in to Shapgri- la by fuel trucks probably from Ulan Bator. The relationship between the Chinese and Mongols was very friendly. The Mongols as a general rule apokr Russian among themselves. There were only a few women at the field and those were members of families of personnel.. 57. At 4 p.m. on 10 November the delegates left Shangri-la and flew to Ulan Bator where they arrived at 5:30 p.m. There had been a heavy'"Mw storm in the area. Radio clearance for take-off had been given their plane prior to take- off in Shangri-la. A Mongolian member of the Peace Committee greeted the delegates when throy'.lahded. There were three concrete buildings at the airport Aeach one-story high. Runways were of..satd that had~:been_ sboothed..over with machines, and were covered with approximately one foot of snow at this time. There were 10 soldiers at the airport. 58. At 6 p.m. on 10 November the delegates were taken into Ulan Bator where they stayed at the only hotel in the city. It was a three-story building which was very modern; it hadcentral heating, but no bath or showers. Between the altport and the city, they noted from 20 to 40 factories, some of which produced steel, leather, wool, razor blades and tools. The Ulan Bator region specializes in livestock and the wool industry for which camels hair is used. There were also coal mines in the Ulan Bator area and the delegates were told that the ore was processed in one of the factories. Prior to entering the city there were military check points. The road between the airport and the city was one lane and asphalt. In the valley they noted "burning" towers of steel which were from 20 to 30 meters high. Three and four-story buildings of cement were near the towers. 59. The city of Ulan Bator had a population of about 150,000 people. All streets were paved with asphalt. The people looked very healthy and strong; their diet seemed to consist mostly of meat. The temperature at the time of the delegate's stay was 34+ degrees below zero. In touring the city, the delegates looked at parks and monuments. At the theatre they saw a motion picture on Mongolia which was similar to a newsreel. They were told that the power plant for the city was near the river and toward the hills. 60.. On each floor at the hotel there was one person who was responsible for the activities of all persons on that floor and who was also in charge of the telephone. There was one telephone in the hotel. There was also a radio that was amplified for everyone in the hotel. The radio station was a local station. CONFIiTIAL A 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-00810A0013003200025 l A CONFIDENTIAL/I 61. The railroad station in Ulan Bator was in the city and about three kilometers from the airport. It had a long one-story building and a single track line. Two freight trains transporting livestock in flat covered cars were noted, Telegraph lines pare l Bled:.'. the'-rail line. 62. At 8'a.m. on 11 November the delegates left Ulan Bator on the same aircraft for the USSR and Europe. 25X1A Comments 1. Although there is information that FENG Wen-pin (7458/2429/1755) lost his position as secretary-general of the China New Democratic Youth Corps on 2 September 1952, this may be the man whose last name only source remembers. 2. The largest tanks the Chinese Communists are known to possess are 51 tons, which are the Soviet JS-1 and JS-2. 3. Possibly Linch'eng (N 34-52, E 117-20). 4. This place may be the former British Country Club on Nanking Road., Central. Probably West Lake.. 6. Probably T'ai Hu. 7. This may be Fotzuling (N 31-22, E 116-16) where Chinese Communist broadcasts report a resevoir in construction as part of the Huai River Project-*,. 8. Possibly P'1 River (N 31-42, E 116-22) on which Fotzuling is situated. 9. Possibly '.Tahsien (N-37-27, E 116-17) 10. This factory may be the Manchu Machine Tool Company. 11. Possibly the Fushun Shale Oil Plant. 12. The exact location of this airfield is undetermined. CONFID NTIAL/ 25X1 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 25X1 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3 Approved For Release 2004/02/13 : CIA-RDP80-0081OA001300320009-3