PLAN FOR ESTABLISHMENT OF COOPERATIVES IN DEMOCRATIC REPUBLIC OF VIETNAM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R011100330009-7
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: December 20, 2016
• Document Release Date: January 5, 2006
• Sequence Number: 9
• Publication Date: March 26, 1952
• Content Type: REPORT

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FORM NO. 51-4"
FEB 1952
CENTRAL INTELLIGENCE AGENCY
CLASS I F I CATION CONFIDENTIAL/CONTROL U.S. OFFICIALS ONLY
SECURITY INFORMATION
INFORMATION REPORT REPORT NO.
CD NO.
COUNTRY Indochina
SUBJECT Flan for Establisbz4ent of Cooperatives
in Democratic Republic of Vietnam
DATE OF
INFO.
PLACE
ACQUIRED
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DATE DISTR. 26 March 1952
NO. OF PAGES 7
N1 A-1%3 1 D BELOW)
25X1A DO NOT CIRCIII__ATFREPORT NO. 25X1X
Resistance Administrative Committee Democratic Republic of Vietnam
Thu Dau Mat Area Independence Liberty Welfare.
Project end Plan for Establishment of Cooperatives
(Extracts from the report by the. sub-group.on economic and financial
questions of the Assembly of the Administrative and Resistance Regional
Committee of Nam-Bp for the year 1950)..
I Project for Establishing Cooperatives.
To,counter the false conception about cooperatives.
Dissolve those organizations not in accord.,with the
established.principle
To.explain..anrl make extensive and concentrated propaganda
to all the;w4if4ed people's military and administrative
cadres;. iTt establish the principle :"Every citizen should
be as,ateeped in the idea of cooperatives as he is in
knowledge of tbe.constitution."
SIFICATION COIFIDENTIAL/CONTROL - US OFFICIALS ONLY
Create a, broad and deep-rootedd, movement for the establishment of
cooperatives in a completely rational way, because cooperatives
are, the foundation for the organization of the Peoples Economy,
based upon Socialistic Economy...
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To train agents and active agents to .work on behalf of cooperatives
among the population, especially among farmers# administrative
personnel, and infantry. troops .
In accordance with the conditions of security, production, and
specialization of each region, create and organize, an a small
scale,; model production consumer and. transport cooperatives.
To aid specifically the cooperative movement.-
To participate directly in stimulating the movement# foliowing
ganiizing .mod.el cooperatives.
it closely, and or
b4 To assist in raising capital and in the allocation of funds
0. Tads ,promote consumption and.. coaa.servatiQn.
d, To give instructions on cooperatives in study sessions of
administrative and military organs 4.
II. P Lora. for Puttj~g Cooperatives Into era t ion ?:
The base of the Government's economy is the People's. Economy, and.
.cooperatives are the most su.itable.form for the organization of
production, distributiqu, and consumption for the Government of
the new democracy.
1,., The Principles Applied to Cooperatives
,
Wo g
somewhat restricted,, limited to one or
free zones or in a. hamlet, and one or two groups of 5 families
free each in small free zones.
Under whatever form, they must conform to the following
fundamental principles
large cooperatives in that they do no
an Administrative Committees. they nevertheless perform a
~otnmon service for one or more months in. matters of
transport, purchasing,, or mutual aid. They do not seek
profit, as the large ones do They serve to orient the
people to the collective life,, especially in those
regions where the comprehension of the people is still
law', and. to instill the idea -of the movement in regions
where the population still retains a prejudice against
cooperatives .
(`} .Large Cooperatives: These. have complete statutes., and
Ad inistrative Committee..
Under battle conditions, ,in. order td avoid. enemy destruction;
t1~e organization- should not be overly extended but -should be
111a sin 1 arse
t
e
13asic principles of organization..
(1) Small. Cooperatives: Although they axe ,,afferent from the
t ha e statutes or
(1)
political. They shall be based on the principles of
li equality and true democracy.
They shall be organized and directed by the people and
,Lased under the control of the Government.
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(2) Economic.
Abolish the middlernxa; avoid exploitation..
.
Increase production...
Improve technique o
(3) Finari iala Distribute the irfofits to the members of the
coupe' ive onl the basis of their capital investments.
Distribute in proportion 'to the. work done or the consump-
tion of each member* Set aside the greater part far
distribution according to work; the .smaller part for
capital
(4) Social. T r Dve the living cvnditi onfl of the members,
and. m:at-ually aid One another and do wt seek individual
enrichment
2 a principles Applied to Statutes:
The regulations should always be.adopte& for each ,area and in
accordance With the c~rmirrehe?~sion. level of the population'
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Shares
(i) The snares should.be cheap so that everyone may participate
in. the cooperative (temple ~. . a, share equivalent to one
days s pay) and paid for in several deposits either in.
money, material,mrcha ise,. or labor.
(2) The number of shares of a cooperative. will be determined
by need.
b Provisions for participation.: Free participation for all.
e 4 Withdrawal
(1) Free. 'itbdravai, but prior notice moist be given to the
Administrative. Committee and. this organ's approval. must
be received.
(2) The share ,and profits shall be withdrawn afterwards.
(3) The legitimate heirs of deceased owner members may
receive the profits left by,their relatives.
d Expulsion.- Convicted members who have lost their rights of
citizenship ;or have been. the cause of loss to the coopera-
tive or to the Resistance;, shall be expelled.. Their, shares
and. profits. shall be refunded aftervarda:.,
e o, The Adm.ir;strative Committee
(l)
the Admi..r. stratzive Committee i.s elected by the Genets l
Couil of the Cooperative..
T e functions and powers. of the Administrative Cc n.ittee
are to mane. the activities of the Cooperative in.
accordance with its aims and regulations.
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The Control Committee
(1)
(2) The Control Committee has the power to inspect the books
of the cooperative and to control the cooperative's
activities.
(3)
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(4) When necessary and warrantable it can convoke an estr?a-
ordinary meeting of the General Council of the Cooperative.
g. The General Council
At the end of six months or a year, as the particular
situation may demand, the General Council shall convene
to settle the problems of the cooperative. With regard
to elections, each.member can have only one vote.
h. Statute
The regulations must be approved by the Provincial
Resistance Administrative Committee.
Principles for Dividing the Profits
The periods for dividing the profits shall be determined in
accordance with the activity of the cooperative and the propor-
tionate amounts shall be based an the following principles.-,
Mutual aid and no personal enrichment.
Do not concentrate on seeking profits for members (Consumers-
Cooperatives) but on ending their conditions of poverty and
improving their level of livelihood.
The Administrative Committee members receive no salary. If they
put aside personal affairs to attend to activities of the coopera-
tive, they will receive their share of provisions in accordance
with the appropriate allocation for each region. (as part of the
provisions of an official).
According to category and region, cooperatives in the provinces
must follow the following provisional table for distribution,.
From one to ten percent for the Administrative Committee and its
agents in accordance with the amount of profit and the efforts.
of the Committee.
Ten percent for the social welfare budget of the cooperative
(to purchase medicines for distribution to members and their
families).
Ten percent for the reserve fund
The Control Committee is elected, by the Ger}eral Council of
the Cooperatives Member's of the Administrative. Coamnittee
and persons permanently working for that Committee shall
not be selected for the Control Committee o Whenever it
i.s.impossi:ble for the General Council to be egnvokedy the
Cpntrol Committee is elected by .representatives of the
members a
It also has the power to call upon the Administrative
Committee to hold meetings.
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The remainder is divided into 2 parts- Half for the shares (in
money, or labor), half for the personnel (in accordance with days
,worked. for production cooperatives or the various relationships
for consumer cooperatives).
Motet Members must be paid for days worked except for work
days converted into shares
In. order to reconcile the statement of the Central Government
in its secret telegram, "Those who invest only money as shares
and not labor, are not considered as members. of the cooperative,"
with the criticism made by the Resistance Administrative Committee
of Nam-Bo. ."The division of profits for capital is too small,`
we must apply the proportions stated above. The committees of
the provinces must remember that "The value of labor must always
be given more consideration than that of capital" in order to
diminish the part of the profits for shares paid in money.
Initially the reserve fund.can receive ten percent, but it should
be progressively increased so that the working capital can
increase proportionally.
. Principle of Organization.
After having made the requisite preparations for organizing a
cooperative, it is necessary to,
a. Convoke the General Council. If such a convocation is
difficult, then representatives of the members must meek,
to review the regulations and elect Administrative and Control
Committees.
b. Prepare the report of the meeting.
c. Dispatch the report and the regulations to the Provincial
Administrative Committee. Operations will not begin until
the regulations have been approved.
principles must be kept in sight
(1) Use simple forms and on a small scale.
(2) Conform to 'the needs and capability of the region and
the mental level of the population
(3) Pay more attention to quality than to quantity.
(4-) Give due attention to the importance of production
cooperatives for provisions and-clothing.
do Direction and Organization of Cooperatives.
In the organization of cooperatives, it is necessary to select
active agents who understand the spychology and mental level
of the population and know thoroughly the needs and productive
capacity of the region. They can. also mobilize the capital,
laborers, and materials in a rational way. These active
agents must have political prestige and the assistance of the
unified committee (People,'Army and Administration) in their
activities in order to be able to establish the movement,
t. he active agents for administration of financial records
are the members of the Administrative Committee themselves
The :agents selected must be honesfs? capable, and able to
prevent misuse of the cooperative's budget.
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Direction is in the hands of provincial active agents. This
does not mean that the provincial active agents cannot and
must not orgaR4ze. The activities of the active agents of the
cooperative must guide it strictly in the direction and toward
the goals which have been plann.ed.
Since the Bureau of Cooperatives has not yet been established,
the Provincial Economic Service will select persons qualified
for the work and, propose them. to the provincial Administrative
Committee for appointment. Those appointed will be in charge
of the activities and responsible for relations with superior
cadres.
The provincial Economic Service can, designate agents to assist
in the proper functioning of the Cooperatives. In such cases
these agents are no longer part of the Government; but are
placed within the cooperatives as ordinary members.
e. Plan for Effecting Operations.
(1) Starting the Cooperative Movement.
(a) The Government and Popular Groups- Representatives
of the Government andpopular groups will be convoked
to outline the programs of activities and organiza-
tion of cooperatives. An agent shall be designated
as promoter on behalf of the cooperatives.
(b) The People e Organize a "Cooperatives Day" _. Use all
forms of propaganda (newspapers) and information,
tracts, streamers, and the village resistance
megaphones. Assemble members of youth,.women's,
and farmer's groups.
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(c) Explain clearly the usefulness and goal of cooperatives.
(d) Publicize the results obtained in. the provincial
cooperatives and the success of family cooperatives.
(e) Especially emphasize the necessity for active agents
before the organization is put into effect.
(2) Setting up of Cooperatives.
(a) Promote first production cooperatives for food,
clothing, and, local handicrafts.
(b) Organize consumers' cooperatives in regions of high
consumption.
(c) In the regions where provisioning of rice and, salt
is necessary, set up transport cooperatives within
the confines of one or two villages. Provincial
active agents will assume responsibility for
organization and control.
All cooperatives must act in accordance with the direction desired. by
the Government. in. difficult cases, organization can be gegun in the
form of Government or people's associations.
f. Government Aid to Cooperatives.
`Training active agents.
Loan of capital (by issuing production credit).
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(1) Training of Active Agents
,.he regional Agriculture and Economic Services shall sot
together to train active agents for cooperatives. The
provincial branches of the above services mast furnish
agents to attend training courses The largest number
of agents, however, must be sent by popular groups,
especd_atLy agricultural, labor, youth, and women's groups.
Were are three categories of agents for cooperatives:
(a) Agents of management and organization.
(b) Specialists and. technicians.
(c) Administrators and Accountants.
The agents, must be loyal and bard working, applying
themselves to their assignments until the cooperatives
yield results, because although the study of theory
and principles is difficult, it is only practice that
is of consequence. o The agents most be patient in the
activities of establishment, guidance, and popularization.
The system of bookkeeping must be simple during the period
when. the movement is small and must not be the type
applied to a larger organization needing a fors ,of strict
accountability. Such cooperatives also require specialized
agent s
24 August 1950
Resistance Administrative Committee
of Thu Dais. Mot Province
Commissioner Delegate
Tran Khac Can
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