MISCELLANEOUS COMMENTS ON NORTH CHINA ECONOMIC SITUATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R007600380009-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: April 24, 2003
• Sequence Number: 9
• Publication Date: May 31, 1951
• Content Type: REPORT

INILLLUNIX 2 25X1
? CENTRAL INTELLJUNs7,, RaFDRT
1 6A-RDp82-oo457Rponoomo
?4 Approved For Release 2003/08/12 ,. E po prr
von- oN CD N'0,
SUB FT Eiscellaneons Comments OA 7orth China
?canonic ituation
PLAC?7:
.DATE:
INFO..
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31 EA7.7' 5:,..
NO. or PAGES :3
NO, OF ENCLS.
(U5TED (MELOW)
SUPPLEMENT TO
REPORT NO.
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I C.0, 4X.i) 1AA.F 'AU )1F41(Ffalt`FM`t On OF raVELLTVAI
Cf:.;.grge9r, :e 1) MWTFIIFFIFnED t,file2..01i FA
egor,F31 ",!,.Q!'. 5121FrOCV.FIFT,OF1 AFF!t!$ 61:07.tterF20
aligEMV.F*1,..SAMMEIVIMMOTZ4=1":
THIS IS UNEVALUATED INFORMATION
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Tflup, Inaustrinl M coonercial fir ns holAinn busines,' licenses are re,nvired
to nay the industrial nnfl covnercial tax, the income, tax, and the conrodity tax,
The industrial and carrercial tax is levied in the following nannert the
Adninistration of industry and Comnerce allocates to each category of bnsineun
a certain quota of the tnnz for which it is real)onnible: then the officials of
,the Trade Association assin;n to each member the exact amount for which he is
resnonsible,' The income tax is levied at a flat rate of 15 ,ercent on the
Income earned which is cam-Aztec' as the total value of canh assets and stock
in a comnercial or an industrial concern (calculated at the nrevailing mnrket
rate) minus cost. The commodity tax is nayable when nny nroduct is shinned from
the factory or when imnorted cargo reaches the consinnee. The industrial and
? commercial tax and the Income tax must be declared each month, although col-
lections are rade on a seasonal basis. Persons who to not hold business licenses
are known as traveling merchants. They most rer':i?ster and orovide rvarantees for
the issuance of traveling merchant& licenses and are required to nay a traveling
? rerchants tax for each transaction which they conclude. This tax is computed
at the rate of five nercent of the, selling nrice of the commodity.
Government Bonas ro new government bonds have been floated recently.
3. cthfr LevieA. crdinarily levien include the real estate ovnershin *Lev, the
house tax, the land levy, snnitation charges, the entertainment levy (the mini-
mum taxable amount is Jr? 30,000), food levy (minimum taxable amount is
XIV 10,000), license levy, and the s'tann tax. All of these are im-osed by
ex)ress nrovisions of law, In arldit:on, there are also cnntrinlutinns snch as
the Anti-America and Aid Yorea contributions and investment in the 7orth Chinn
and nputh China Investment Company. These cnntrnntions and investments are
voluntary but in nractice they can be raised only by nnmnelling neonle to nay,
Customs. rPthods emnloyed for ealoolatin,- ell,tons are essenti-,117 the
saris Ps th,-se usek under the Yuaminton$ re.tre nithough tariff rate%t 'Invn been
c!ned i.e, hir*her rates are charn,ed on innortalt iny,:ories lot,or r:0;es
on sun-Illes needed in innortant industries, 7,Flonts arm claa into three
cate7nries:
CLASSIFICATION 12(71F11/70.1"TA',',,
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Approved For Release 2003/08/12 : CIA-Rppp279.021:8,7LROg#0380
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Approved For Release 2003/08/12 : CIA-RDP82-00457R
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07600380009-2;
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are xer-lt from ens
cinl s, These p.rc :i iy ri.vite business an6
custonS quties vith the PX:c e tion O? lristles. on 1,hLch a
ereent tori.f is chrlfTi.
.t tP1 'cv nay be eznorte,'nnler orlinrry erlort
erAilee ' the ttlIt''?:;`-s '.uties thereon ncoording to tile
I-Port Customs Duties Tte.%lations of 193/4 (as rev sea 3e-ltember
towever, a decree of 28 June le149 exerrnts ll .ut eS on 07..norts,,
3efore forelaa exchancp ,:ras fronen all irmortant
nr-oUtes not rolacea China Yere jxorted. byovernrent 2..nPort trale
1)ut after 4cre ex,:enari,--,e -vies fro-,en, a larce -Portion of thest3
been left for brivate irnorters to Ilaryl:Le. The coFrod.ities includg
sportation omit telecon-unication swr,l1e asolie 1-erosene, lubricating
lroPlieissre4xte. ?rzeconstructio,u 'm1'-,03eak 7'elchinerY, scientific
A
rur
?ents, eltn.crlin'Jtr-zrentso and r-edIce..1. sur;--plias, At 'resent :lost rf
these i emu :::lecl iatO China Iron I
r7:n"firniithin China who handle ilffnorts frOin 7.-a,rone. .2,e3.45.1321 z4,14
at GPrnarlYr :3011,th 4f-..,.rica. The rrvernrent .a,3encv in chor-se of irnort-
e:tlort OliC7 i the Central ?P0-110 Cover nrent "'rale 4t4,rir4stration he
cornany dertis irith the '32.1e of imorte; coltrr.',11,ties.so..ril the
'CP Ina Trust Con is resnonsible for arre.nging orders and nallng intro-
ftactiona.** The Onverarent has not yet nlacel restrictions on -Persons elicazerl
fti irrnorttht': ant, er,ortiaZ. "itit restrictions -1:*Ear'1;1 T)"..r-cerl on foreign ex-change
the freetnC of fori:;n. e;:chn,m3e hove traiP it very difficult for meet
qtrs.
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The salary 0: o.n ori nary anlreati ce 41.rirlistratiTe , employee
mouth- 4 reular, ernloieC receives. 300-600
eeQf ml let. 71h1ch is 3uffio1e4t only to mainY1441,1 -11.4443P-,PtA4,44;z7a
- for t1;.?:PerSOns, As a result the average -.public ex71-)1oyee is quite
.,?perturbe The:salary o f acool teachers also ber;ins, at aoo catties of
rtillet but university --)ro:esrs receive much more andrare the highese
of th antari,e4 class. Their irw wr:,..1.115r 16 1200 catties of _Millet.
gOverwent faztorlas are the best 11./6. An ,orilnary mar77er
cattle's, ef millet each month; a foreran receives as much
'660-7400 catties; an",. a technician mny,receive over top?
rrices, Actual 'rices are nractical1y. identiera vith those
.quotc1. 14 the localeis,-);..7.-)ers lith the exce-)tion of the -price of flour Tihich
inzrep.sed a litt:te about tiree nonths ago. The 1-)rice of, other conno1ities has
rerained :quite Stable.
The nurchrsing Power of th 72ublic in general hp.E.,: bepn
eagly eclinin an.. no ilp-,ret e::.1sts for CC 1-J104.1. ele 4 other than a,Aly
14,0-1.74,es
nestt.been. very auil. In the nast: two _;ears the Soviet
1P'17
have .71rOaSea laroeql.r4ntities of c:006s ingluaing furs. 7urn-Pean
Careras, .1)11t their bUYiril.i.rii*. hn.s, sto-nea since the snrin.
TheRf.O.SV-113 are. very -)articular &ont arl'ainf.ng over rices and are na as
enerous the Americans, . They usn-lly bur consum,,re zoois.. Clothing awl
Cnnlx :t.4e4Tge t nurchnsee$,Y1 t4, cosr.:f,tics co.:-.7ing next,. very few
of he '-'341.ane .buy curios arrl art objects
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authcrtttes 74.1.r...1.--11 all
ot'ner wor::ers.Thth
rinpr recel,res three
.merp.tion
,
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c`.1 1'50, -:ter the e.hi..T e e Corrc.nist-, too'r.
-0 in the T a--Lan 9fl7fl3J,. T1
the i-tici.ers astrP Serl,
IS :40ve been Z01.71C am99thlY ever
ngs of flour, half 4 ton of coal, awl 2.0
each month. riner6 r5,1ce lir to a
ot1 of -qt 3C00000. il1evrrs :11 -nriatt,rs gtt even more than
he ra1e1Por'-ex4 but t.-:e 3-:11,sry of r-in.,...lerent '.)ersarriel is not any ni,rher
.n that of the :liner, he :ine costs rout JP 5X3,000 000 rIllerit
0000,000) a month to o-erate: It has over 5, 00 rimers nryl, over ,1,?000
nagenent nepsonlel ' outTrat of th- nine suffiAient to ne-t vv. 1.rmargi
Jqrth Catna anl tbe rortheast. There is cso n surnluo tq be 4174"Inq'a to
a to exchanle for other
25X1 1 Sppregt: 'Up, .0 now in TI.,entsin a great, -col..,tion,
*fl.0 et1.6.1 tra Shotllererl by the itmart,aari.pppt tr404, Tow
*incetae1r-s e.re o "1r acti cr1114,7 no busine,.3s at all, the
ithoritis are trying to , &lift the burlen to o her business, scerins.
niequentlY cost thf,Tre fina t:ier-,selves,hfarcl hi cjue 447
bear 4 /_age share taxes cruino t tie, of ,thel.r, s,tP,s47?
The only exce-Aion i 'tho tragin,?, in plet-C, vorksant 1e 1cr. sultes
T.,,itti,governvent authorities. These ,qoponhl es fIxe -ibis ot
? 1flakep on but also to nal,:e money.
,
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... not yet been i,t et untier unilied control, Gcveriren
rL c6on'7anies such as The Oil and. Lard Corvany tie nriSil e 3
he ;ear and ":.-tifle Corroany, The 7gg Co., and:the,
octwts Co. were all in o Jeration,
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