WAGE STABILIZATION AND COST OF LIVING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A003500380003-9
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: April 27, 2001
• Sequence Number: 3
• Publication Date: February 9, 1954
• Content Type: REPORT

Approved For Release 2001/11/21 : CIA-RDP80-0081OA003500380003-9
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
;CONFIDENTIAL
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 is prohibited.
COUNTRY China REPORT NO. 25X1A
SUBJECT Wage Stabilization and Cost DATE DISTR. February 195+
of Living
NO. OF PAGES 3
REQUIREMENT NO. RD
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
SOURCE:
1~ Prior to May 1953 the cost per day of the necessities of life for one laborerl
was designated as one fen (0118) by they Chinese communists. Wages were then set
on the basis of the fen.2, In June 1953 one fen was equivalent to about imp 2,000.
2. In government-managed enterprises an apprentice received from 150 to 300?fen per
month in wages; a skilled factory worker from 200 to 700 fen per month,, Following
is a monthly accounting of a family in which the husband and the wife worked for
a government-owned textile factory in Shanghai; this couple had one child and no
other dependents. The family was living in a rent-free house, and their taxes
were paid by their employer. The JMP 450,000 balance was used for new articles other
than the listed items, permitting little saving.
Income: Wage (for both husband and wife), 462 fen
Bonus
Total
Expenditures: Labor union dues
Food
Fuel
Water, electricity
Cigarettes
Newspaper
Amusement
JMP 921+, 000
47,000
JMP 971,000
JMP 11,000
2811., 000
28,000
13,000
6o,ooo
10,000
11.0, 000
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CONFIDENTIAL
Expenditures: Goc s purchased through the
cooperative society
JMP
7,320,000
Miscellaneous expenses
1,360,000
JMP 20,830,000
Balance (to be used for the purchase of
livestock)
JMP 7,170,000
5. Government workers were given all necessities in kind and additional pocket money
of about JMP 150,000 per month.
25X1A 1. -Comment. It is not clear if the use of the word "laborer" in' l is
instance indicates that the value of the fen is based or, the necessities
required by the members of the lowest economic level or if laborer is synonymous
with wage-earner.
25X1A 2. Jomment. This system was first adopted to stabilize living when price
fluctuations were large and was later adopted by most enterprises.
25X1A 3. omment. The tax paid by employers was presumably individual income tax,
omment. The figures given in this column f'o~o 728,000.
_s .
4+.
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CONFIDENTIAL
-2-
Expenditures: Miscellaneous expenses
Total
Balance
75,000
JMP 521, 000
JMP ?+50, 000
3. Following is a monthly accounting for a family of four in Shanghai. The husband worked
for a private trading company and the wife as an accountant in a department store,
both companies being in Shanghai. A 15 percent taxi was paid by the employers,
and most of the remaining JMP 102,000 was used for new clothes.
Income: Husband, 172 fen
Bonus
Wife, 170 fen
Bonus
Total
Expenditures: Union dues for both
Rent
Food
Water, electricity
Cigarettes
Newspaper and magazines
Amusement
Miscellaneous expenses
Total
Balance
JMP 344,000
120,000
340,000
62,000
JMP 866,000
imp 16,000
40,000
360,000
12,000
80,000
50,000
120,000
50,000
JMP 764,004
JMP 102,000
4. Following is the annual accounting of a farmer's household in Shantung.
Income: From farming
From other work
Total
Expenditures: Cooperative society dues
Food (calculated in terms of cash)
Taxes
Cost of raw materials paid
to the cooperative society
JMP 24,800,000
3,200,000
2 , 0~~ 00 000
JMP 100,000
7,050,000
3,200,000
1,800,000
Approved For Release 2001/11/21 : CIA-RDP80-0081OA003500380003-9