ECONOMIC CONDITIONS IN SINKIANG PROVINCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A001400020010-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: October 29, 2009
• Sequence Number: 10
• Publication Date: June 1, 1953
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
Wagedas ad Currency
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SECURITY INFORMATION
COUNTRY China/USSR
Economic Conditions in
Sinkiang -Province
REPORT
DATE DISTR. 1 June 1953
NO. OF PAGES 5
REQUIREMENT NO. RD
REFERENCES la
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
l., In 1950, shortly after the arrival of Chinese Communist troops in Sinkiang,
the workers in the province were organized into trade unions, and were
given to understand that they were the real government, and that leadership
rested with them. Effective October 1952, wages were fixed, on the following,
soalewof daily pay.
New Wages
Chinese currency
Highly skilled workers 25,000
Skilled workers 17,000
Unskilled workers 14,000
Former Wages
Chinese currency Rupees
20,000 2/81
14,000 2/-/
10,000 1/4/
circulation, and were
3. Under the Chinese Communist regime, all existing roads were improved,'and
some new roads were constructed.
Communications
This Document contains information affecting the Na
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the 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 it prohibited.
Rupees
In 1952 gold, silver and tangas were withdrawn from
redeemed for cash by the Bank of China.1
a. The roads from Kashgar (N 39-29, E 75-58) to Irkeshtam (N 39-40, E 73-50),
Urumohi (N 43-48, E 87-35), and to Yarkand (N 58-24, E 77-16) and Khotan
(N 37-07, E 79-55) were improved.
In late 1952 a road connecting Yarkand with F'uli (Task Kurghan, N 37-47,
E 75-14) was under construction.
25 YEAR
RE-REVIEW
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STATE ARMY I x INAVY x AIR J x
FBI L_JA:EC
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a. A new road was built to connect Yarkand and Khotan with Aksu (N 41-15,
E 80-14) and Kuoha (N 41-43, E 82-54).2 These roads are meant to
connect the oasis on the fringe of the Takla Makan Desert with Yarkand,
Khotan and Aksu. The people who lived on this oasis were removed, and
it was believed that the desert was being used for some secret military
experiment.
d* A network of roads was built to connect all districts in northern Sin-
kiang.
e. In late 1952 there was talk of building a road along the Soviet border
from Kashgar to P?uli, but there had been no evidence of work on this
project.3
4. The projected railroad which is to connect Sinkiang with Central China and
the USSR will be extended from Lanohou (N 36-03, E 103-41) to Urumchi, and
thence to Kuldja (N 43-55, E 81-14) and Alma Ata. It was anticipated that
after the construction of this line is completed, a line will be built to
connect Urumchi and Kashgar.
5. The airfield near Kashgar is used by both civil and military planes. The
Sino-Soviet Civil Aviation Corporation operates a bi-weekly service.4
6. The existing telephone system was improved, and new mouthpieces were
installed. Up to the end of 1952 telephone service was limited to offi-
cial use and not open to the public. There was no trunk telephone service.
7. In 1952 there were few land telegraph lines in Sinkiang, and the telegraph
system operated on wireless. The operation of both postal and telegraph
services had improved appreciably.' New post offices had been built, and
at Khotan, Yarkand, Kashgar and Urumchi new post and telegraph offices
with modern equipment were under construction.
8. The radio station at Ptuli was strengthened.
9. A large Soviet radio station was in operation in Kashgar, suggesting that
there may have been other Soviet stations in the province. The Kashgar
station appeared to be used only for Soviet trade and other business.
Industry
10. In addition to the industrialization carried on under the Sino-Soviet
agreement, whereby China supplies the materials and labor for industriali-
zation and the USSR supplies machinery and technical guidance, the
Chinese were developing a number of industries independent of Soviet aid.
All the development of industry is under.'.government auspices, and private
enterprise plays no part in it.
11. The power plant at Urumchi was improved, and one intended for Khotan was
under construction in late 1952. Machinery was being installed in a
power plant just outside Kashgar. A press report indicated that all
cities in Sinkiang would have electricity within five years.
12. The carpet industry of southern Sinkiang, which centers in Yarkand and
Khotan and was formerly based or private enterprise, was reorganized on a
cooperative basis.
13. The silk industry in the Yarkand-Khotan area was similarly reorganized.
More mulberry trees were planted.
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14. A large ootton-weaving factory was built in Kashgar.
15. In southern Sinkiang there were some 200 centers for the cleaning and
grading of wool, an industry which was completely under Chinese control.
16. The existing tanneries had been taken over by the Trade Department, and
technicians had been aesigned to improve the output. There was a
tannery at Kashgar, the chief center of this industry.5
17. Five or six new pottery factories had been built in southern Sinkiang.
18. In 1952 a textile mill at Urumohi had begun operations, and another
textile mill was under construction outside Kashgar.
19. A refinery at Yingohisha (N 38-56, E 76-09) was put into operation in 1952,
and a new refinery at Kashgar was to go into operation in the summer of
1953. A refinery at Sheiku (N 41-30, E 79-25) was expanded and fitted
with modern machinery.
Mining
21. Gold and silver were being mined under the Sino-Soviet Corporation at
Khotan and Keriya (N 36-52, E 81-42) in the south, and at Kuldja and
Sharasume (N 47-52, E 88-07) in the north.
22. Soviet experts were testing the iron de osits in Sinkiang. The iron
industry at Ighiz Yar (N 38-41, E 76-135 had been reorganized along scien-
tific lines. Ighiz Yar is about 60 miles from Kashgar on the K.ashgar-
P'uli road which goes through Yingohisha.
23. Coal mining was reorganized on modern lines. In the -Kashgar area coal was
being worked at a place about 30 miles from Kashgar on the Kashgar-Irkeshtam
road, and at another site about 10 miles from Yingohisha on the Yingohisha-
P'uli road.
24. A material known as "auktash" (white stone) was discovered at Kangsove7,
about 50 miles from Kashgar on the Kashgar-Irkeshtam road. In late 1952
between three and four thousand men were employed in removing this stone,
which was being taken to the USSR via Irkeshtam. It was said that this
stone was material which could be used in the production of atomic energy.
Similar material had been discovered in the Khotan area, and machinery and
workmen had been moved to that area from Kashgar. The workmen were inves-
r
Trade
tigated before they were sent.
25. Up to the end of 1952 private enterprise, though eliminated from industry;.
had met with little interference in.the field of trade. However, the
petty traders were meeting heavy competition, and it seemed probable that
they would eventually be driven from the field.
26. The Soviet Union holds a monopoly on Sinkiang's foreign trade, and has
opened agencies throughout the province. Raw silk, wool, hides and skins,
carpets and felts constitute the main exports. In late 1952 the only
consumer's item imported from the USSR was sugar, the importing of kerosene,
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cigarettes and liquors having been stopped.
Agriculture and Land Reform
27. The Agriculture Department was in 1952 experimenting in connection with
the cultivation of sugar beets, with the intent of developing a sugar
industry in Sinkiang.
28. Eighty percent of the population of Sinkiang is directly or indirectly
connected with agriculture. Before the land reforms carried out by the
Chinese Communists, about ten percent of the
population owned estates of
more than 500 mou, some seventeen percent had.'ho'lding of 200 to 500 mou,
twenty percent owned from 5 to 200 mou, and twenty-three percent were
landless peasants.
29,. Preparations for the Communist land reforms began in 1950, when a census
of persons and land holdings was completed. In 1951, the campaign for
reduction of rents was launched. The rents were fixed at 40 percent,
retroactive for two years.: Landlords who had received more than this
amount,of rent for 1949 and 1950 were required to make restitution to
their tenants, who could have recourse to the people's courts if the land-
lord failed to pay the correct amount. This program at once endeared to
the peasants the notion of agrarian reform, and effected the ruin of the
landowners.
30.
From duly to September 1951, men and women in every district were given
special training in the techniques and procedures of land redistribution.
They in turn were to instruct others in their village areas. The actual
program of redistribution was initiated in August 1952. Trained teams
were sent to each village, equipped with bopies of the census and record
of land holdings made in 1950. After studying the local situation and
discussing the problems with the local residents, theteam,devises'a'plan
for redistribution. The amount of land assigned to each person varies
according to the village territory and population in some villages each
person may receive 2 mou of land, in others as much a.s 5 mou, and in
still others, :.other amounts.8 The process ends with the public burning of
old title deeds, and the distribution of new deeds to the new owners. At
this point the distribution team's work is done, and it proceeds to another
village to repeat the process. In its place another team moves in to
check on the process, and to rectify any mistakes made, It was expected
that the program would be completed by April or May 1953.
Comments
1.
no one was allowed to have ggd or..'silver in his
ossession. the aktanga was described as a silver coin.
a "ype of ourrenoy, the koohu, equal in value to
eight sheep, as recognized in Sinkiang in the fall of 1952.
road from Kashgar to P'uli via Tash Malik?
daily passenger service between Kashgar and Urumohi.
the only tannery was at Kuldja.
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6. Sheikh le (N 41-24, E 79-41) is probably intended.
7.L
a sort of stone was bein taken from
a mine in the vicinity of Ulugh Chat.
Ulugh Chat appears to be farther than 50 miles from Kashgar; an inter-
mediate point is Karanglik (N 39-32, E 75-18).
every man agreeing to work the land was given ten
mou to cultivate. This may have been true of a given locality.
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