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December 20, 2016
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March 9, 2006
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May 19, 1949
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25X1 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Approved For Release 2006/04/21 : CIA-RDP83-0041hR000qQ6cp0 4icw, April 2, 1949 HE CHINA MERCANTILE CO.,- LTD. Approved For Release 2006/04/21 Q`+CYA4WSOM0S600060007-4 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 THE CHINA WEEKLY %%..t't31. Weekly Newspaper Established in 1917 April x',.1949 SELF HELP Journey To Iced Shantung Banditry In Kwangtung Hnu i hien Christian Missions In China PACIFIC PACT VOLUME 113 Approved For Release 2006/04hY4'df-RDP83-00415R003000060007-4 NUMBER 5 Appproved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The' China Weekly 17evi,ew, April 2, 1949 THE CHINA WEEKLY REVIEW I E T T E R'S From The People d d t Sdm J. Wile, Aver aaang anager M Assistant Editors Correspondents J. B. Powell (Editor & Publisher, 1918-1947) John W. Powell, Editor & Publisher Fang Fu-an, Financial Editor = ' = Comments from readers on current topies are cordially invited: their opinions, how- ever, do not necessarily represent the views of The Chins Weekly Review. Post Office Answers To The Editor: With reference to the letter from Mr. S.F. Wei published in your esteemed journal of the 12th instant under the caption "Hongkong Postage", complain- ing of the exorbitant rate of postage for printed matter for Hongkong, I have to inform you that the rates of postage for Hongkong and Macao are based upon the Postal Agreements between China and Hongkong and China and Macao, which provide that, with the exception of letters and postcards which are charg- ed the domestic rates of postage, all other. categories of mail matter, special fees, etc. should be charged. according to the Union tariff of postage. As newspapers, magazines and other printed matter do not fall under the categories of letters and -postcards, the International rates of postage apply in accordance with the provisions of the above-cited Agreement. It is, therefore, obvious that, under the restrictions of the said Agreement, no unilateral action can be taken towards the modification of any of its stipula- tions. WANG YU-KUANG Director of Posts Shanghai March 28, 1949 Fukien Defended To The Editor: In his article, "How Safe and Sound is Fukien," which appeared in the March 12th issue of the Review, Mr. Lin has shown an extensive knowledge about my native province and his criticism is well- founded. But in his eagerness to point out the weak points of the province, he has totally neglected the human factor, without which the world would be a place of desolation. e While it is true that Fukien has never played an important part in any of the wars, this was equally true of Kwang- tung province before the Republic of China was established. That the last emperor of the Sung dynasty preferred Kwangtung does not prove that this pro- vince was safer than Fukien. As a matter of fact, the dynasty had removed its capital southward many times before coming to Kwangtung, and sought a place of refuge rather than an advantageous position from which to launch an offen- sive. During the recent Sino-Japanese war, the Japanese not only seized Amoy but fortified the island and stayed there for the duration of the war. Fukien's moun- tainous terrain and. unproductiveness was not a factor that kept the Japanese from invading that province. Since they could strike at the Central Government with comparative ease from any point other than Fukien, it would. have been foolish to operate out of a province where they were bound to encounter more difficulties. However, no place is worth much with- out the human factor. Look at the state of Utah in America, popularly called "The Great American Desert," with its Mary Barrett Yang Chen fanm Rose Yardumian Julian Schuman Joan Faulkner Contributing ;r ditbrs Lin Wo-chiang Charles J. Canni ig C. Y. W. Meng Edward Ro.rbou ch Ben Y. Lee Frank L. Tsao Tseng Yu-hao Shen Chien-tu James L. Stewart F. K. Chao, Busi cress Manager Jefferson Cath Van Shih-ching Tong Chun-cho Chen Fu-sheng Mark M. Lu Galahad Wood Joseph I. C. Luan Lauw Thian-hok Harin Shah C. Y. Hsieh Joseph P. Lyford Canton Chenychow Chengtu = Foochow = Nanking Kunming Batavia - Bombay = London Jacques Decaux - Paris S. E. Shifrin - Seattle Ngiam Tong Fatt - Singapore Hugh Deane - Tokyo Chen Pang-cheng, Circulation Manager Index for April 2, 1949 Editorial Pa -agraphs Pacific Pact . . ............................................. .... Self Help . ...................................................1 Special Articles 99 100 Journey To Red Shantung ..............................Hugh Deane 103 Springtime Note; From Hunan ......................Tioni Farnham 104 Christian Missicns In China .................. A Chinese Christian 105 Banditry In Kv angtung ................................Hsu Chien 107 Economic Section The Week':; Business ........................................... 108 Departmentt Letters From T ie People ......................................... 25 Years Ago ................................................... News Of The W ek ................................................ The Review's E--?glish Lesson LXXVI .............................. Chinese MagaznT e Roundup ..................................... . US Magazine Ii iundup ................ .......................... What Chinese Papers Say .......................................... What US Pape s Say ........................... .. ..... New Books Of Interest ... ............................... ... Subscription Rates S months Shanghai and China Outports ................. GY 30,000 China Ou ports (Air Mail) ................... GY 37,000 Hongkong and Macao ......................... GY 42,000 Hongkong and Macao (Air Mail) GY 49,000 6 months 1 year U.S.A. an i other Foreign Countries .... TJS$5.00 US$9.00 Price per copy: GY2,500 STUDENT RATES 93 102 109 111 112 113 114 115 116 3 months Shanghai and China Outports GY 24,000 Chins Outports (Air Mail) .................... GY 31,000 (All subscriptions must be authenticated by the individual stu- dent's school and must he sent directly to the offices of the China Weekly Review.) All mail rates are subject to change in accordance with postal changes. Cable Address "Reviewing" Shanghai Telephone: 14772 PUBLISHE:) AT 160 CHUNG CHENG ROAD (EASTERN), SHANG- HAI (0), CHIN),, BY MILLARD PUBLISHING COMPANY, INCORPORAT- ED UNDER THE LAWS OF THE STATE OF DELAWARE, U.S.A. RE- GISTERED AT THE CHINESE POST OFFICE AS A NEWSPAPER FOR TRANSMISSION WITH SPECIAL MARKS PRIVILEGES IN CHINA. Contents of previous issues of The China Weekly Review may be 'found in the "Intern aional Index of Periodicals," copies of which are on file in most standard :ibraries. All editoria's, text and other material in the weekly issues of the China Weekly Review copyrighted under certificate of registration * No. 9953 issued by the N inistry of Interior. Registered with Ministry of Interior of the National Government of the Republic of China, under certificate for and g asshoppersd bC1~Vi~(ilti~ft lrueelea'~u~i+QiQi{+(~+ai~ui~irm~~,il~ Approved For Release 2006/04/21 : CIA-RDP83-004IgF 9 a0Wg igOK7viI w, April 2, 1949 111111111 A 11111111 A 11111111 A 11111111 A Ile [III] A 111111111111111111111111111111111 11111111111111 AIIlrI,IIII I A 11111111111111111 Alt,; PRESIDEN LINER All Vessels Berth Downtown Shanghai Express Freight and Passenger Service to San Fri n&-co Via Japan and Honolulu PRESIDENT CLEVELAND Apr. 6 `PRESIDENT MADISON Calls Los Angeles Apr. 8 *PRESIDENT PIERCE .. .. .. . Calls Los Angeles Apr. 20 PRESIDENT WILSON Apr. 27 GENERAL GORDON via Hongkong, Manila, Yokohama May 4 *Omits Honolulu Cargo accepted at thru rates to various Central and South American destinations. Special Tanks for Bulk Vegetable Oil Availa 'le Round the World Freight and Passenger Service to New York and Boston i PRESIDENT VAN BUREN Apr. 27 PRESIDENT JEFFERSON May 11 Via Hongkong, Manila, Singapore, Port Swettet ham, Penang, Colombo, Cochin, Karachi, Suez, Alexai dries, Marseille, Genoa, Leghorn, Naples. AMERICAN PRESIDENT LINES - Shanghai nuummumuiuwnumurm1luulimit lwuuluuuuumlYuunulnAlto 111111 unuimwmuu1uu auuwuwunlnluuuluuu March 24, 1949 ['7 11 111/11/1 1 1 111111!1111111111 IU111111111111111111111111111111^ullu 11111111111111111111111111111111111111 1111111 A 11111111nUI111U 11111111111111G' Shanghai's American Daily --- d more than "just a newspaper" During these trying - post-war days, the Shanghai Evening Post and Mercury has slipped into a aeculiarly intimate place in the minds and hearts of readers. Per- haps that is because it tries in every way to be is human as your best friend. Read it for true straight n tws, most of it printed at least 15 hours ahead of other Shanghai papers; for outspoken views; for bright touches Etnd enter- tainment features which will take your mind off your troubles. For the times, subscription rates are low: REVISED MONTHLY SUBSCRIPTION RATES Effective March 16, 1949 (Subject To Increase) Local home delivery , . uY30 000 Pick up your own paper .. .. .. .. 27,000 China Outports (Ordinary mail) .. .. .. 31,000 China Outports (Air mail) .. .. GY38,000 to GY50,000 (Based on varit as districts) Single Copy .. GY1,500 The Shanghai Evening Post `& I ercury 19 Chung Cheng Road, Shanghai (13). tainous regions and soil too poor to yield any crop, it now thrives and prospers through proper cultivation. And Japan, with few natural resources, and soil saturated with volcanic ash, came to be one of the great powers of the world. Formosa, a wilderness, was built up to a rich productive island which contribut- ed greatly to the support of Japan before the war, and .ongkong, now called the Gibraltar of the East, has been developed into one of the greatest port cities of the world. All this was not conjured up over night, but was accomplished by great human effort. Many things have been possible despite poor natural resources and few advan- tages: Sun'Yat-sen's revolution was crad- led in Kwangtung where there was little to work with; the great dynasty of Ch'ing was founded in Shensi, certainly not one of the richest provinces in China; and the Communists have been fighting superior odds under adverse conditions for more than 30 years, and have sur- mounted great difficulties. If all this is possible, why can't the Kuomintang, with US aid behind them, do as well? I am not a pro-party man, but I do think the Kuomintang has a very good chance to win back if they work hard. They certainly have better conditions now than their antagonists did four years ago. I agree that Fukien is not a. Normandy, and in the event of war between Russia and America, the latter would surely use Korea rather than Fukien, and Japan rather than Formosa. But the article was not discussing such a war, and in the meantime the two provinces of Fukien and Kwangtung have much to offer the Kuomintang. If they fail, it is the fault of their leaders, mismanagement, despotic policy. It all depends on how they exert themselves. lI. C. HUANG. Magazine Ban To The Editor: I was greatly shocked by the fact that a number of 'Shanghai publications which spoke the people's view and had a great many readers have been forced to discontinue publication by the newly established "cultural control authority" of the. Nanking-Shanghai-Hangchow Gar- rison Headquarters. According to press reports, such maga- zines as World Culture, The Revelation, The Modern Woman, Outlook, The Uni- versity Review, and The Middle School Times were banned because they are con- sidered to be against the martial law. But these magazines, it should be pointed out, are legal and have been duly licensed by the Government authorities. These magazines have played a leading role in the present culture of China. They have suffered from economic hard- ships and, political pressure and their closure at this time is hard to under- stand. It's clear that political pressure on the cultural organs is heavier than ever before, and it is rumored that press censorship may be re-introduced. This is what is behind the "honorable peace" about which there is so much talk. Shanghai March 25, 1949 Spanish Loan To The Editor: To round out the sad picture drawn by your editorial "US Loan For Spain" in the March 19th issue of the Review, the following is quoted from the Euro- - pean edition of the New York Herald ,p~,~+ et ,~ /~++ ~eA~ ppppOPnr~f 561111111111111 11111 111 7 11111 111 111,,Approv~@1fi1Fi~aptriasteiQ/~/~~~Qd1/1L~n~f~g1toiiCI1l17RY"Gd415ROOG?0O0ft?O42th: The China Weekly11 PtRipse 2006/04/21 : CIA-RDP83-00415R003000060007-4 95 "The Spanish press has published the news of the $25,000,000 Chase Bank loan without comment. "Although financial circles were pleased at the transaction, privately, however, they were disappointed that it was neces- sary to mortgage Spain's gold reserves. "It was hoped the Chase deal will serve 'to break the ice' toward granting Spain an official American loan really big en- ough to revive the country's heavy in- dustry, agriculture, and transportation which, as interpreted here, is a dire neces- sity not only for Spain but also for the general rehabilitation program in western Europe. "(A spokesman for the Chase Bank said the loan had been granted after consultation with and approval by the US State Department.)" I ani quite taken aback by the views expressed by you in connection with this unholy project. You risk prosecu- tion by the Un-American Activities Com- mittee and the horrible threat never to be admitted to occupied Japan and Ger- many in case you finally realize that all "really" bad Fascists have reformed, and that the safest place in the face of the Red Menace is the US zone of Germany, Japan, and Spain in that order. I just came back from there. Nazism was a good idea badly carried out. "ADOLF" Shanghai March 21, 1949 New TB Drug To The Editor: The seriousness of the tuberculosis problem may be seen by figures compiled in 1946 by the United Nations Health Investigation Office, which estimated that some 300 out of every 100,000 persons die from this disease each year. If this estimate is accurate, at least 1,500,000 persons in China die from TB yearly. The Svenska Lacartidin Magazine 43, 2029-41, 1946, reported that 'a physician in the Sahlgrenska Hotal in Sweden named Dr. Jorgen Lehmann had utilized a para-amino-salicylic-acid preparation to treat tuberculosis and had achieved very effective results. I was therefore very glad to learn from an advertisement; in the Chinese papers that the Grena Chemical Works, a. Chinese medical factory, may be able to make a P.A.S. solution prepared by Professor Wong-Shao-ting, since its price will be much cheaper than that imported from abroad. Since the demand for P.A.S. is so great and I earnestly hope that our own medical factory can increase the produc- tion of P.A.S. FLYING DRAGON CHAO Shanghai March 28, 1949 New Education To The Editor: A schoolmate of mine has just come down from the liberated areas to see his mother. He told me the following about secondary education under the New Democracy: At an educational conference held last winter by the authorities of the North- east and North China. areas, middle school policy was discussed and certain principles laid down. The greatest difference between educa- tion here and in the liberated areas is that students there must work to earn h 1; ' F' I th t they spend half of tch day on such labor, their records d- not seem to be any worse than tho- of students in KMT-controlled areas. Textbooks in comp courses such as politics, history and the national language are being revised, but he others are not changed. School affairs- are decided by the School Affairs Ruling CoAmittee which consists of six teacher ; and one or two students. This body has the highest authority in the school I have described th use methods with the idea that they !tight possibly be applied to middle scho ds here as a pro- gressive reform. Soochow March 25, 1949 So-called Reforms To The Editor: What has happened to the reforms issued by Acting President Li Tsung- jen? One of them provides for the abolition of special criminal courts. These coltrts have been abolished, all right, but in their place has been established mili- tary courts with the privilege of execut- ing people "on the spot." The summary executions of 21 persons in Kunming and three bus workers in Shanghai illustrate how these courts work. A second reform was the lifting of restrictions on newspapers and maga- zines. However, the banning and con- fiscation of newspapers and magazines has been renewed in Shanghai. Thou- sands of copies of "inside story" maga- 'IIt111111IIII11111111111111I11111111!IIIII !IIIt111111111111111111111111IIIIIIIII II11111111111IIIIIIIIIIl IIIIIII111111111IIIIIIIII{IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIi'- ? 1199 Nankil g Road (W) Telephone 35171 =till llulull lunuIIIunlllluuulr Ilwunmluuuutnulnunnuuuullluwunlwuuulluullululuuwnulluunwuluqulmm~nr CONN ELL BROS. CO., LTD. - Established 1898 Importers & Exporters 149 Szechue 1 Road, Shanghai (O) Tels. 16833-2-1 Tiead Office: San Francisco New York Bombay Tientsin CONNELL CONNELI Affiliated Companies: BROS. CO. (HONGKONG) Hongkong and Saigon BROS. CO. (MALAYA) Singapore and Penang LTD. LTD. eir vmg. or e, ere are three producing groups which have been = CONNELL, BROS. CO. (PHILIPPINES). association at North Horan Middle = Manila, Cebu and Iloilo CHOCOLATE EASTER EGGS HOT + BUNS Confectionery ? Restaurant School. When school is over, these 2 grcups go to help the farmers and do whatever work is nsyovedl,m2eleasaIi~Q`il,~ntul~'illf~n{1~~r>~Q4~In~lII~QQ0~0Q~ipQQ71n411ul1uul!Initnunuul~!uni; 96 Approved For Release 2006/04/21 : CIA-RDP83-004'1 0 3m00 ee a6gQ0~ 4i y ev::w, April 2, 1999 tines" were confiscated by the police and garrison authorities on March 17., These magazines contained a number of articles that were pro-Communist or critical of the Government, and many of them may not have been based on fact. However, their wide circulation is an indication of the frame of mind of the general public, and the policy of banning or con- fiscating them is an ill-advised one which has not worked in the past. Despite the promised cession of acti- vities of KMT secret agents, the dis- appearance of people is on the march again. It is rumored that a delegate of a shipping company in Shanghai was arrested soon after his return from Pei- ping, where he had contacted Communist leaders. These developments, together with many other oppressive measures, go to show that the diehards and reactionaries are not willing to have any house-cleaning pre- paratory to peace talks with the Com- munists. They have never wanted peace; they want a hushed silence under threat of imprisonment, torture and death. D. C. FREEMAN. Shanghai March 23, 1949 Chungking Bombing To The Editor: I don't know what the B-24 bombar- diers could have been thinking about when they bombed the Chungking. I should like to ask them whether they thought it was for the good of the na- tion. China cannot make any warships and it is hard to say when this loss to our country can be made up. I believe that the bombardiers were disloyal to their country although they might be said to have been loyal to the KMT. I am sure that th Chinese Civil War is not likely to be von by aviators or the navy or by for?ign loans. Only a Government which is championed by the people can win, arr the action of the KMT in bombing u trships of its own country will surely de rease its champions. It is interesting tc note that the Chi- nese airmen rode on American planes to bomb a British war. hip. It is now re- ported that two more warships presented to us by America, ar, , to be anchored at Kaohsiung in a few days. Whether or not these two shit; will repeat the tragedy of the Chun; king no one knows. S. T. G. Taipeh, Taiwan March 22, 1949 Wants Subscription To The Editor: It is really hard t o obtain real news and just views from he newspapers and magazines of this country. Although there are many Chin se newspapers and .'Illl"IIIll"II"il"IIIII"IIlII 1111.1e IIIIIIIIIII11"Il IIIll~ll llll1Illl'. cm-ny s 133 Nanki -1g Road Sham -hail' lulu~i1111111111111II1tI11ltl nlnu lll11111InlIl IllIl111II1sIIi magazines, every one of them is inclined either to the right or the left. We would like to read your Review frequently but can't afford the price to buy it. Could you send us a free subs- critption for two months before we finish our school life? We are very `much obliged. H8I TANG YING Sl CHING CIIAU Chung Ching Technical School Wusih Marc'i 16, 1949 Any Old Copies? To The Editor: I have been your reader for only half a year and have grown so fond of it. I hope I can read the Review always. But now my finances have failed and 1 am obliged to bid you farewell. China, as well as the world, is. now facing a fearful storm and the grey clouds gather in every corner. We cc; t_ men people know not when the storm will come or in what way, and can cnly follow events through the newspapers and magazines. I think your Review is the very one to help us during this stormy period of time. I often have read that some of your readers get free copies through the con- tributions of other readers, and that old copies are sent to needy readers. Now, since I am in distress, I can only wish luck might fall upon me. D. J. CHOW Nanting, Kiangsu March 20, 1949 (The REVIEW'S free subscription kitty is empty too. If any readers care to contribute to this fund or send their old copies to us, we will be happy to pass them on to n,e.edy readers-Editor. ) _v"luu"untuuunlul"uulnnluulu~nwnun~uulu~{uu"u~nwulnlntnuumuunulnuluunnnu.~ nuu.u"nnullunwln~uulnluulellulu~u.u~uuluulu~llu~lun.ilsunulunulwnulllu.- THE CHASE BANK Affiliated With THE CHASE NATIONAL BANK OF THE QTY Ol NEW YORK Shanghai r ),,ice: 99 Nanking Road (0) Telephone 11440 Branch s: HONGKONG 4 D TIENV IN 4 D PARTS 1/11111111111"11"11"11111"I~"Illl"II"II"/j"II.111JIfJjl 11 ~"jf/II~Yi ~I~jl if!{'~11 "yIWW"'111f1Vflf]I-~11t~~2111111 ~.ICrIIY.'Im'~Ifillr~fAii/LOAi q15 7?y411 l llllll"II I [ill] III 111.11,' Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 2, 1949 Missing Persons To The Editor: In spite of Acting President Li Tsung- jen's directive against illegal arrests, four persons are missing here: Two teachers, a student of the Shanghai College of Law, and an employee of the District Government. Mr. Li Tze-cheng, head of discipline of the Provincial Chuchow Normal School, was visited by plain clothesmen who said several students of the Normal School had been taken to Garrison Headquarters because they had quarreled with some- body in a theater. They requested that he go with them to see these students. Ile wanted to call the roll first, but they would not permit him to do so. When he had not returned by the next morning, the principal of the school went to the Garris=on Headquarters and was told they knew nothing of Mr. Li's whereabouts. Mr. Wang Do-hsiang, a history teacher at the Provincial Chuchow Middle School, was chatting at home with his wife and a younger sister when plain clothesmen entered the house under the pretext of checking the census. They pointed to his younger sister and asked who she was. Mr. Wang explained and said she was studying at the Yu-Nong Middle School where she was to return the next day. The plain clothesmen would not accept this explanation and took him away with them. The student, Mr. Chen Nan-hsiang, also was taken away by plain clothesmen act- ing as census takers, who charged him with housing persons without registering them with the census authorities. His elder brother wanted to go instead but was not permitted. He followed Mr. Chen to the Garrison Headquarters but was refused entrance. Later he was told his brother was not there. _11111! IIIIIlIIIIIIII tIl111tiIl Il11111111111111I111111111111111111111 tI1111111t11111 tIItIl11I111111111t IIt11111111111l III IItIH itI1111111tlltllt111111111~1111tIIt1111111I111111111IIIIIIIIItII111t111iif lltllf llf llf ll.lielllllell ell/1lf llfllellfllf llel ~. THE NATIONAL CITY BANK OF NEW YORK SHANGHAI BRANCH : 41 KIUKIANG ROAD TELEPHOINE 11500 Mr. Kao, the C 'errment employee, also was taken .,.waa from his house when someone asked him to go out to talk over some affairs. I e has not been seen since. Chuchow, Chekiang March 18, 1949 "Wet Firewood" To The Editor; Present indication < are that the Gold Yuan has got out 'f control. At very short intervals, GY totes of $5, $20, and $50 denomination lave passed out of circulation. And y ^sterday, barely a fortnight after GY ':50 notes were pooh- poohed as "wet firer ood", GY $100 notes were being widely ejected in everyday business transaction here in this town of Dan Shui Hon, Hoiping. The local bankers and mercl ants are hurriedly shipping huge amounts of these unwant- ed notes to Kougmo In or Canton, where they are said to be still accepted, to be dumped on the mnl kete. there. From my obscrvat ons I find that small notes first were reused in the country- side, the rejection sp ?eading to the larger places. This state a` affairs implies that the people in far-lung places have be- come extremely nerv:,us about possession of GY notes and have learned from ex- perience that they an turn into waste paper over night. Also it is interesti'g to note that even before the $1,000 n tes are brought in here, the $100 not(: are being rejected, and the only ones _lsable are the $500 notes. It look;: her as if the peoples' rejection of the (i" may move faster than the Govcrnvu nt can issue new notes. JOHN HSU. Thank You! To The Editor: We are proud to tell you that your esteemed Review is made accessible at our University; both the University library and the Students' Center of the Christian Fellowship have subscribed to it. It has been our wish that hereafter more people will have a chance to know the Review, so that its recognized value may be known in even wider circles. LOO SAIH-CHENG. The National Chekiang University Hangehow, Chekiang March 18, 1949 Yenchow Bandits To The Editor: Recently many bandit outrages have occurred in this city of Yenchow, and in the surrounding countryside. They have entered the and robbed the people of their rice, money and gold. Many very rich men have received anonymous letters from the bandits demanding more gold and rice. Many of these men have paid so the bandits would not kill them and burn their houses. This situation is a disgrace to the whole nation. The provincial authorities of Chekiang and the troops stationed in this area should be held responsible for these incidents. The bandits are neither Nationalists nor Communists. We are, told by news- papers that the bandits are mostly sol- diers who have been paid off, and that the more soldiers we pay off, the more bandits will be let loose. Hoiping, Kwangtung Yenchow, Chekiang March 20, 1949 March 19. 1949 ?I IIIf11f IIf1lflleillllelif llf lttlly~llliill~ll~IQl{AI~T1QKil t~?~?~~?Ilylu0,6~fGla~d~t111YMIlMYfHrtflTrl~lillflNTfILIWf1Yl~%IGIiIVIM~IVIMMNUMMhIMI'11IY~111111111u11111111it11111111111111[ Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Thla China Weekly Review, April 2, 1949 !111111111111 IIt111111Illllllllllllltlle111111111111111111II11111111111111111I11111111111IN 111111111111111II 1111111111111111!1 111111 III111II111IIIIillgl!IIIIfliB11U111111111111II111tiI11I11111I111111e11 I IIlel111 11 I1 11111e9111 ell lLpMu111. CALTEX SUPER"SERVICE STATION * MARFAK Lubrication Service * Crankcase Flushing * Oil Change To Summer Grade * Oil Filter Service * Raditor Flushing * Repack Wheel Bearings * Battery Service Tire Inspection = Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 ? 1111111 IIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllll{11111111111iI11111111111111I11111JI111tI11111111111111111il llllllllllllllkl i1111111111111111111111111111111I11111111111111111111111111111111111111111111I111111111111111III111111111111tI1111I1111111~ * The China Weekly" Rp eoved F? 2,% I ase 2006/04/21 : CIA-RDP83-00415R003000060007-4 THE CHINA WEEKLY 149 nltli i M !J % A Weekly Newspaper Established in 1917 The editorial pages present each week the opinions of the editor. The other pages of The China Weekly Re- view are written by the other members of the staff and the contributing editors who report and interpret the news irrespective of the views expressed in the editorials. Pacific Pact T HE official announcement of the Atlantic Pact was the signal for an all-out campaign by various interested parties to persuade the non- communist powers with interests in Asia to unite in a Pacific version of the Atlantic defense plan. We don't like the Atlantic Pact, but we'd like a Pacific Pact even less. While. the Atlantic Pact is the latest in a series of moves designed to tor- pedo the United Nations, it at least has the blessings of governments put in office by fully sovereign countries, regardless of how naive or unenlightene4their respective electorates may be. The most vociferous appeals for a Pacific Pact, however, come from the capitals, of European colonial powers who are afraid that they are about to lose something to which they have no legitimate rights. The campaign to induce Uncle Sam to pull a few colonial chestnuts out of the fire began a long time ago and has been increasing in intensity in almost direct ratio to the advance of the Chi- nese Communists from the north. In the Feb- ruary 5 issue of the Review we warned that European .powers with colonial holdings in Asia, aided and abetted by individuals and organiza- tions in America and other non-colonial countries, were plotting a means whereby America's money and materials could be sucked into a Pacific plot to preserve colonialism. At that time we said: "The trap, laid snugly in. the various colonies, is being artfully baited with the red flag bearing the hammer and sickle and the European coloni- alists are waiting behind the bushes for the American bull, who seems to go completely berserk at the sight of anything red, to charge in and solve the crisis." In the few weeks that have passed since then, the campaign has reached a new tempo. Almost every day the newspapers are full of scare headlines over stories-largely undocument- ed-telling how the Chinese Reds are plotting revolution and anarchy throughout Asia. The pressure has become so strong that the few in- dependent countries that exist in Asia today have begun red witch hunts of their own, im- munist Asia has worked itself into a frenzy in an effort to impress Uncle Money Bags that it, too, is against communism and thereby is de- serving of a handout of US dollars. A most unholy trinity composed of European colonialists, misguided and/or corruption ridden native governments, and American vested in- terests are working night and day to involve the United States in a most foolish adventure in Asia. Whether they will succeed in their plot remains to be seen. Meanwhile it is well to be advised of their doings. The most prominent position in this campaign is held by France, a country whose bankrupt colonial policy in Asia is apparent to all. For about three years the French have been trying to impose their repressive rule on Indo-China. Today, the French are on the brink of being thrown out of Indo-China by the Vietnam re- sistance movement. With a Communist China in the offing, a Vietnam victory is assured. Fr ante's only chance now is for America to save her colony for her. To this end, the French propaganda machinery has been working over- time grinding out story after story about the Red menace in Asia, %how French democracy is on the verge of extinction in Indo-China, how China's Reds, who are nothing but Moscow's hirelings, are unfairly aiding the Indo-Chinese in, their fight. All of this, of course, is pure hogwash. The French are taking a beating and are looking for help. One excellent example of how the colonialists twist the news was contained in a United Press story from London on March 24, written by Harold Guard, one of UP's staff correspondents. Guard reported : "Intelligence reports from Indo-China said today that Chinese Communists from Yunnan Province have joined Vietnam guerrillas in fighting French colonial forces." The story then gave details of border attacks from China, saying, "Chinese Communists now control half 'of Yunnan.... 70,000 Communists (are) moving to occupy six important towns within easy reach of Indo-China by road and river." The first thing that is wrong with this story is that it comes from "intelligence" sources. No matter whether they are French or British, they are obviously suspect in this case since both are official agencies of governments which have ac- tively been playing up. the red threat in Asia for their own partisan ends. To readers here in China, it is useless to point out the many other errors in the- story. Correspondent Guard, perhaps, may be pardoned for not knowing his Chinese geography or for not being familiar with the many revolts-only some of which are Com- munist led-in Kuomintang areas of China. How- ever, he also should know better than to write about China from London, especially if he has no more reliable sources than French or British secret police organizations. The Siamese have not been far behind the French in their yelping about the dangers of the reds. The Siamese Government, which is prisoning in some cases thousands of their own not known for its eficiencw~, ossibly has two citizens. It aln#Agpr ForalRel}Ia>~g i6JON21 : CAArR 8~ Q41 W@0 #~@RO Qtdfg4to get on the Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 2, 1949 anti-communist bandwagon so as to be in a posi- tion to grab off its share of the money which it is confidently hoped Uncle Sam will dish out. The other could be to seize a fine opportunity for obtaining outside support for a continuation of its long-time campaign against the large Chinese minority in the country. According to- press re- ports, virtually all of Siam's estimated 4,000,000 people of Chinese descent may be- considered suspect., Government spokesmen have talk=ed loudly of the communist menace and have re- marked pointedly that the monstrous doctrine of Marxism has little appeal for Siamese, being confined almost entirely to the country's Chinese community. Viewed in the light of past actions of the Siamese Government, this sudden concern over Communism is merely another chapter in a long history of pogroms against the Chinese minority. The Philippine Government apparently does not wish to be left out and' has joined the scramble. According to daily press reports, Manaila is rapidly discovering that the Hukbala- hap rebellion is not so much a result of the government's inability to solve its landlord- peasant problems as it it the direct result of foul instigation by the numerous communists among the islands' Chinese population. The ability of the Chinese Communists should not be underestimated, but we wonder if these people, who have yet to bring the major portion of China under their control, are capable of turning all of Asia upside down through such extensive operations as some would have us be- lieve. What Press Association D'ya Read? " ..the first British skipper to return here from a regularly scheduled run to North China.... said that all it'- dustry in Tientsin was 'completely stagnant.'-United Prc. s dispatch from- Hongkong in the Shanghai Evening Post, March 22. "The United States ,Department of Agriculture says six of the seven former China Textile Industries, Inc. (govern- ment owned) cotton mills have resumed operations in Tientsin under the Communist regime. The seventh was reported to be beyond repair.-Associated Press dispatch from Washington in the China Press March 22. Self Help W ~'-` E have discussed the question of self help W upon several past occasions, usually point- ing out that no amount of foreignaid could solve China's many complex economic problems unless an energetic program of self help were inaugurated. Such a belief can scarcely be questioned, but the argument usually has arisen over whether or not the Government actually has attempted to help itself. Official sources, quite naturally, have maintained that the Government was exploring: all, possible avenues in its search for methods of obtaining aid within this country and that only the Civil War has prevented China from pulling herself up by her own boot straps. Others have maintained that there was little or no evidence of self help or that efforts directed toward that end were entirely too puny. Some critics have may give an inkling of how the question of self h d th l of deliberate misuse of foreign aid. Personally, we have been of the opinion that precious little effort has been or is being made to develop internal sources of aid, while the existence of waste in handling foreign aid is evident to all but the blind. This is not to say that the Chinese Government has not recognized the need for helping itself by using indigenous methods and materials for reconstruction and re- habilitation. However, it does appear that the matter has gone no farther than the "recogni- tion" stage. We have yet to see any evidence that this administration has. been able to or- ganize itself sufficiently for " effective action. Thousands of tons of rotting and rusting materials and machines, piled in huge storage areas throughout the country, bear ample testimony to the Government's poor use of outside aid. There are, we know, many standard reasons advanced as to why such materials have not been used. It is said that the materials themselves are unsuited to China, that the machines were not in working order, that the Government had no money to finance the distribution of the sup- plies, etc. A trip through any of these storage depots, however, will illustrate the flimsiness of such statements and adequately show that they are at best very poor excuses for a seemingly complete inability for organization. The continued existence of these depots, filled with materials which in some cases arrived in this country more than three years ago, is a visible indictment of the administration. The claim by officialdom that the materials are not usable in this country can easily be disproved by a walk through any of the several so-called thieves' markets in Shanghai, where salvaging and improvisation, developed to an astounding degree of perfectio , may be seen. For instance, the fact that the glass craftsmen have developed a. technique whereby the smallest pieces of broken window pane can be salvaged and made into use- ful articles testifies to the truth of the saying that nothing in this country need be wasted. The blocks-long sidewalk markets where gears, bear- ings, chains, and all sorts of machine parts are bought and sold and bartered, is proof that the small Chinese merchant can, if circumstances permit, organize his activities in such fashion as to fulfill a public need. The people have the ability and the organization to use the materials, no matter how small. It is only the Govern- ment, undecided and uncertain, which perches atop valuable materials like a hen sitting on infertile eggs which eventually will rot and be- come useless. Is it any wonder, then, that an administration which is incapable of making good use of materials given it has difficulty in discovering ways and means of helping itself? - * * W HILE there is as yet little information about such matters in Communist areas, a few Inge at, not, on y were there no signs of hol is bem met o 0 f I e. Obviously, self help .butt rfbeed mus R e2QOWOl 1 : CI4 B 01 44A i erica in sight, Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 2, 1949 the Reds will have to accomplish all their re- habilitation and reconstruction aims through self help. How well they will be able to organize themselves and how fast they will be able to proceed toward their announced goal of increas- ing production and making a better life for the people remains to be seen. However, it does appear that they have gone the Nationalists at least one step better by making an effort to do something. One story from Manchuria tells how the workers in the state-owned fa.rm implement factory in Harbin recently perfected two new farm machines.. One was a horse-drawn soya bean harvestor which is said to harvest more than eight acres of beans a day. The other, a threshing machine drawn by a four horse team, can handle more than three tons of grain per day. The story ends on a characteristic note: "Only after the agrarian reform did the farmers in Manchuria begin to have the spare cash for new machinery." This seems to us to be a very significant story. With reform of the land tenure and the tax systems, the farmer's living standard is raised, and as soon as this is done, the state factories begin turning out improved machines for him to buy which will in, turn increase his productive powers and, presumably, his income. In Manchuria the Chinese Communists found precious little in the way of ready made capital. In fact, the area had been pretty well stripped of its industrial machine by Russian confiscation and local looting, not to mention the American bombing during the war. Presumably, the Com- munists had to start pretty much from scratch. They reformed the land system and then, with the farmer's economic condition already slightly improved 'and with cash in his pocket for the first time, set about making labor saving ma- chinery to- sell him. Contrast this to the extensive agricultural improvement system blueprinted for National- ist areas. The emphasis was all on foreign help, foreign technicians, foreign money, for- eign machines. The foreigners, their machines and their money, all arrived, but what has been the result? True, some organizations, such as the NAEC, have been set up and are function- ing. However, what about the farmer? Shack- led with the old evils of tenancy, heavy and unjust taxes, and occupying a social position but little better than that of a serf, these improve- ments on the whole have been of little help to him. Hundreds of tractors were brought to China, but how many have been put into use? Some are used by Government organizations, but we would guess that scarcely any have. actually been put to the use for which they were intended. Take another example. From Kaifeng it is reported that the People's Government has completed the dredging of the Hui-Chi Canal which passes through the city. Un-dredged for 10 years, its overflow had inundated the flatlands surrounding the town, thus making unworkable one-fourth. of the area which in. the past used to the unemployment of an estimated 1,2010 salt workers. The dredging was accomplished. by the mobilization of 5,000 workers found without jobs when the Reds took over the city. One might be tempted to ask why the Nationalist adminis- tration of this city, which was in occupation about three years after VJ Day and which pre- sumably had at its disposal all sorts of mech- anical dredging and other equipment as gifts from UNRRA or secured through surplus pro- perty deals, failed to undertake the job? How is it that a Communist administration, working without the aid of foreign tools to lighten the work, was able to undertake and complete the job in a matter of months? Surely the Reds had to face at least as many obstacles as the Nationalists. There are many possible explanations, of course, for this seeming ability of the Com- munists to pitch into a job and get it done. One very likely one is easily explained by the old adage about how a new broom sweeps cleaner than an old one, meaning that people new to power are on the whole more earnest in their administration, more efficient and more deter- mined to please than an old gang which has be- come so accustomed to ruling that, it has, for- gotten the importance of popular goodwill. Another reason, perhaps, is that faced with the prospect of gaining control of a China which will be cut off from the American dole, the Com- munists realize that any improvements to be made must be brought about by their own efforts and that, therefore, they have to get busy and do what they can with the materials on hand. The KMT, on the other hand, has not really had to get out and dig for the past few years be- cause it seemed certain that Uncle Sam could be counted upon to provide the money and direction. A still further possibility-and the one which we believe is the most important-is that the. Communists are by nature a very realistic bunch not given to living in a dream world filled with wonderful paper plans for the future. At the present moment they are viewed by many as a huge colossus from the north which is about to shove the tottering Kuomintang aside and swallow the country. However, it should be re- membered that their dominance of the scene is a quite recent affair. As recently as -a' year or two ago there were many people who would not have given the Communists much of a chance. Ever since 1927 the odds have been weighted heavily in favor of the KMT. Purged from the Government, defeated militarily time and again until finally surrounded in a small pocket in Kiangsi in 1930, the Communists have been on the verge of complete defeat countless ,times. When the Generalissimo drove them into the barren north Shensi countryside in 1935, most observers felt that the end was in sight. Even many of their supporters and friends thought that all was up with the Reds. However, they seem to have come through very well. The reason fore their success, we believe, lies not so much in the fact that they are com- produce 1,OOO0a4? 1 . C # 8 0 b~ ears to offer nitrate yearly. ors 11lJ year-0 e 0o cause a hope o a e er i e for e downtrodden in Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Thy China Weekly Review, April 2, 1949 many lands, as it does in the fact that the Corn munists realized that if they were to exist at all, they had to provide a platform that was popular with the broad mass of the. people. Whether the platform was a pr` oper "red" one or not was unimportant. What was important was., that it give the people a better deal. Boiled down to one essential, the Communists' program meant reform. There is a lot of loose talk about the excesses of the Chinese Communists, their atrocities against "the people," etc. However, the fact remains that there is ample evidence that in areas where they have assumed control, they have been active reformers of the social, economic, and political scene. People fleeing the Reds have told of their brutality, their iron rule, and so on. However, it would seem that the mass of the people must like what the Com- munists have been doing. Otherwise, why would they support them and enable them to rise to their present powerful position? Suppose that all the stories of Communist atrocities were correct. Suppose that the Com- munists actually had killed all the landlords and their families and divided up their wealth among the tenants. Who would really care, aside from the landlords and those closely connected with them; a group consisting of perhaps 15 or 20 percent of the population. Observers who de- plore bloodshed might well object, but the vast majority of the population, which will benefit thereby, can hardly be expected to offer serious opposition to such a program. Since there seems ample evidence that these "excesses" which have been made so. much of by the KMT and others have been few and far between and that the Reds reform measures on the whole have been rather orderly, it would appear that the extreme realism school of thought has triumphed. Forced by circumstances - a.: much as anything else - to give good govern- ment and to face problems realisticly, the Com- munists have won out against seemingly over- whelming obstacles. The few reports of achieve- ments now reaching Shanghai from areas more recently taken over seem to confirm this view. The Reds are giving good, efficient, and honest government. A few, especially those who have battened off the peasants and the workers in the past, find that there is no place for them in the Communist's scheme of things and have come running to Shanghai and other havens with howls of anguish. The vast majority, however, appears to be staying put and to be enjoying such improvements as canal dredging, land redistribution, higher income and supplies of better farming tools. From the little evidence now available one might hazard a guess that the day of self help is approaching. Its arrival will satisfy a lot of people and at the same time will confound a great many, especially those who have heard ex- cuses for so long that they have come to believe that the Chinese were a special breed of people 25 Years Ago in The China Weekly Review Peace Plan Contest The various manuscripts received in the Review's contest for a best and most practical Peace Plan for China have at lost been translated into English or into Chinese as the case may be and turned over to the judges ...... The widespread interest which the. Review's contest has aroused throughout China is indicated in the number of letters which are being received...... One letter this week from Mr. Wilfredo T. Ty, editor of the Fukien Star of Foochow, reads in part: .....if you ever wish to be of any use in China, my Challenge is, do something for the next generation. Invest your fortune in the next generation and thus be assured of twofold greater returns. We already know enough about the nature of the human youth to supply us for a long time to come with a working basis for his direction and improvement. Our point of greatest interest is of course the prevention of the young from taking up the ways which are deplored in the conduct of the adult and further to develop in them in- dependent judgment, the power of sustained and self-directed activity in enlarging social relationships, the ability to grow in co-operation with, and not in opposition to, the rest of their countrymen. In other words, to develop in them a new morality. When this, and a few other reforms have been accomplished, then many if not all of the evils which now afflict China will vanish or remedy themselves automatically. Then and only, then will China be at peace." Opium Business The Anti-Opium Bureau in Canton has claimed the exclu- sive right of preparing opium for sale in the city. The Bureau is preparing daily 4,000 ounces of opium, making a profit of $8,000 every day, when all products are disposed of. The prepared opium is being sold from $11 to $5.50 an ounce according to grade and origin. 10 Years Ago In The China Weekly Review Industrialization Of Siberia Agricultural production in eastern Siberia has increased five times over the previous output, coal production has in- creased four times and scores of new mines with modern technical equipment have been opened in the Irkutsk region, according to the report of Kachalin, the Communist delegate at the 18th Communist Congress recently held in Moscow. ITe said that Eastern Siberia has become a flourishing industrial country where thousands of tractors, harvesting combines and other complicated agricultural machines work on collective farms. Gross industrial output had increased more than 200 percent, providing a firm foundation for future development of the region as well as strengthening the defense power or the Soviet Union in the. Far East. Puppet Nanking Nanking made much fuss and noise on the occasion of the first anniversary (March 28) of the creation of the so-called "Reformed Government" by the Japanese. Failing in repeated efforts to erect a unified structure fir the control of the various rival regional groups, the Japanese are now trying to make Nanking the center of their future political intrigues. This is revealed in a statement, ir;sued by the Nanking regime, announcing that plans for the organization of a central administration are nearing com- pletion, the fundamental principle of such an administration being close cooperation with Japan and its ultimate objective, the establishment of a new order in East Asia. With the assistance and under the direction of the Japanese Government, the statement claimed, Nanking and its affiliated groups made marked progress during the year. But l differing from b_e : Cl DR 04j1(5R0030000tf0007 killing of several in their reactions and a l11 les, important officials of the regime. The China WeeklyA'YCEVroeweCAFOIrPlse 2006/04/21 :CIA-RDP83-004158003000060007-4 Journey To hied Shantung IN Tsingtao, where dispirited Na- tionalists and uncertain Amer- icans await the Communists, infor- mation about how to cross to the Communist lines is as plentiful as beggars and deteriorating US-made materiel. This information is not always reliable, but getting to the Communists is so easy that it does not matter very much. Larry Tighe, a businessman and writer, Henri Cartier-Bresson, a Magnum photo- grapher, and I crossed over pain- lessly in a jeep on February 10th. We were escorted through the Nationalist lines by a staff officer who took the precaution of substitut- ing a private's cap for his, own. At Chimo, some 30 miles northwest of Tsingtao, the commanding general told us without fervor over lunch that the Reds might shoot us. "On this side is freedom; on the other, tyranny," he remarked. We spent the night at the Nationalist outpost of Lingshan, a fortified village. The next morning we drove slowly into no man's land, along the rutted road of a brown, tarred. valley, pass- ing the indigo figures of peasants who grinned at us.. When we saw people in the distance, we slowed the jeep to a crawl, and Cartier-Bresson and I walked in front of it, waving a white flag. But we went through several villages without meeting any- body except little knots of curious peasants and groups of racing children. In a village eight or 10 miles from Lingshan we met a blue-clothed militiaman with a Japanese rifle. He grinned, got in the jeep and 'took us on to the next village where at last we saw the padded yellow uniforms of the People's Liberation Army. We stayed in this village a week, living in battalion headquarters. Two officers came and interviewed us in Japanese,` and a day or so later an English-speaking hsien official interviewed us more thoroughly. This official took us on about 10 miles to a village suburb of the county seat of East Pingtu. Here we waited a fortnight vainly for a reply to our request to proceed to Tsinan. This request was transmit- ted through official channels to the East China and North China gov- ernments, both of which, we dis- covered later, were being moved. Another factor hindering quick ac- tion was the inadequacy of com- munications, which bear a. heavy military and administrative burden. After a fortnight I was obliged to give up, the idea of continuing to Tsinan and requested permission to return to Tsingtao. This request, too, was transmitted to the East China and North China governments. It was granted after another two weeks, and on March 18th the three of us drove back to Tsingtao, again crossing the lines without incident. Hugh Deane During our five v eeks' stay in the two Red villages w were restricted most of the time t , the compounds in which we livrd. The officials explained that th !y had to ob- tain authorization before we could go about freely. Trey also express- ed the fear that ve might be at- tacked by Kuoraintt rg terrorists, as, they declared, two Catholic. priests had been som.' t: me before. We were treated with friendliness by all soldiers, official: and peasants with whom we cam( in contact, given the best possible i'h od and lodging, and allowed to sei d whatever tele- grams and letters v e wished into the Liberated Areas. When we left., w: tried unsuccess- fully to pay for o it lodging and food. "There is i o provision for payment, and no o ie ever has," an official told us. Orr offers of gaso- line and tools wcr also rejected politely. At last wf forced our hosts to accept a medical kit, by threaten- ing to throw it it a ditch on our way to Tsingtao. * s OUR week in ba-_ talion headquar- ters gave its in imate and favor- able impressions o the Communist armed forces, thou;r,h the troops we saw were only hsie ' guards and not a component of a t old army. Most- ly young boys in heir teens, they were healthy; earn 'st and cheerful. They were well-unformed and fed, and their arms. th 'ugh presumably inferior to those is sued to the 'field armies, were zealoisly tended. We watched squads of hem practice field stripping light n achine guns in freezing weather. Recruits were given detailed inst ?uction with the help of diagrams balked on the walls. Perhaps ins t striking was the relationship between the troops and the peasant.. It was. so friendly and natura that the soldiers just seemed to he part of the popula- tion. I talked several imes in Japanese to a soldier named 11 who came from Harbin. He had leen in the Na- tionalist army two years and about a year ago had one over to the Communists. Re old me that he received the equiv.,lent of 10 Peo- ple's Bank dollars a month.. "The organization of th, People's Bank is a big step towar:l the stabilization of the currency," he added pride- fully. In the evenings t courier would come on a bicycle with mail and copies of the local newspaper, the. Giao Dung Pao. .c little knot of soldiers would read the paper by the light of a peanut oil lamp which cast giant shadowe on the earthen walls. Sometimes the paper would publish a new som.g, and the sol- diers would puzzle mut the tune and then sing it. Not only was th ,re a great deal them sang the Internationale, but the favorite song was a new one called Discipline for Entering Cities Song. Another was the Eight Dis- ciplines and Four Principles Song. The daily newspaper also served as a kind of textbook. Li told me that the soldiers would study the paper and then during a class would ask the instructor to explain things they did not understand. A group discussion would result. "A Well-educated army is a strong army," Li explained to me. Most of the newspaper was de- voted to local and national news, but foreign news was allocated some space. Thexpulsion of Anna Louise Strong from Russia was given a front-page box; Agnes Smedley's reply to, General MacArthur was summarized. American policy to- ward China was several times re= viewed, and survey articles dealt with the situations in Indonesia and Indo-China. A hunger for detailed news about the outside world was evident among the local officials. A half-dozen copies of The China Weekly Review which we brought with us were read avidly, and numerous articles from them were translated. A desire for scientific information was particular- ly apparent. One official listed for us foreign magazines which he would like to receive: New Masses, Po- pular Mechanics . . . On one wall of our compound was a skillfully-executed cartoon showing a big-nosed American general hold- ing a little bespectacled Japanese as if to place him on a saddled dog named Chiang. The title was- "Ser- vant of Servants." The soldiers would laugh merrily, and with a touch of embarrassment, whenever we went up to eye this more closely. The soldiers were curious about our possessions, which they would examine casually and discuss. They were always friendly, and some- times with great hilarity we would chase each other around the compound. The soldiers had a chin- ning bar lashed between two trees nearby and in the evenings they would take off their padded coats and take turns doing tricks on it. THE area in which we stayed has been the scene of intermittent fighting since about 10 years ago, when the Shantung Column and Lin Piao's Eighth Route Army division began to resist the Japanese in the province. The Communists early established a guerrilla base in the area, from which they harassed the Tsingtao-Tsinan railroad, and tales of raids, ambushes, heroes, traitors and tricks played on the Japanese, we discovered, have become part of the local folklore. The last heavy fighting took place, in 1947,. when the tionalist lines wit,pros; F mReleas4i2OO&/:Of12,ln=?-C At,RD G415Roe380o0a00.07~,+4 which had been lenged once. they walked along. Once a few of largely destroyed by Nationalist shell Approved For Release 2006/04/21 : CIA-RDP83-004T15R003000060007-4 z China Weekly Review, April 2, 1949 fire then, and were told that the local Communist forces had defended it bitterly, wiping out several Kuomin- tang regiments. Now what is left of the population is rebuilding slow- ly; new straw roofs have risen here and there among the smashed walls. The harvests of the last two years have been small as a result of the war and bad weather, we were told. This year the -local authorities, directed by the provincial govern- ment, have begun an intense drive to increase production. The Giao Dung Pao every day carried long articles and editorials about spring plowing and sowing, a seed and fer- tilizer loan program has been worked out, and about March 10th the sol- diers went into the fields to help the peasants. Daily progress reports were sent to Tsinan by radio. Land Reforth The land reform has been carried out in the area, a Communist Party member told us. The richest land- lord in the vicinity owned about 1,000 mow .(one-sixth of an acre) and the second richest, 365 mow. This land has been distributed to the former tenant families, - which now, own three mow, more or less, per person. Land owned by land- lords was confiscated outright, but they were allowed to retain enough for their own use on the same basis as the peasants. The rich peasants were handled differently. Efforts were made to persuade them to give surplus land to poorer relatives. If persuasion failed, pressure was brought to bear through village meetings. Peasants who owned only a few more mow than their neigh- bors were not asked to give them up. In some counties in Shantung some ultra-leftist incidents took place a- year agog we were told. A few landlords and collaborators were shot by decision of village meetings. These killings, however, were termed illegal by the higher authorities, since the magistrate is the lowest official with the power to order execution. Another problem created by the redistribution of land, we were in- forrned, has been the tendency of poor peasants who have received ad- ditional land to celebrate by working less hard. This caused middle pea- sants to grumble: "We worked to get our land. You get some for no- thing and now you just loaf." To meet this problem, the Communists began production campaigns. Poorer villages have been given land by richer villages. To effect such redistribution, conferences of several villages are called. If a village re- fuses to yield land to a poorer neigh- bor, the case may be referred-to the commissioner, the immediate super- ior of the magistrate, for settle- ment. For tax purposes the land in this area has been classified into ten degrees. The annual tax is two cat- ties of grain per degree times mow, regardless of the size of the crop. , g c es w t apprehen- Thus a peasant who owns. ten mow ed that General 1A it his process of lion the two threats to her peace- of eight degree land will pay 160 organization had cecnfiscated these the otentia ivil war to the catties. In some cl b''F'YSr,RelGesi,2? /(4p21otiCtA`6 #Z 00415RQ roOQ ~ 'aY Hankow to the a net profit tax sys e is eemployed. acts on. the part of are said to be north. Springtime Notes From Hunan -- Toni Farnham THE beauty of th Hunan country- side in sprint cannot be a source of joy to it, inhabitants this year with troubles even worse than economic chaos be: etting the pro- vince. Early in M rrch news of an army of rebels in t:he western part of . the province came first as a rumor. Then, with the publication of newspaper aecour ts, it became the subject of discussioi on everybody's lips. Are they' Conr;nunists? They deny it. Even -;troi-'er is the denial that they are bandi-.s; they are the "People's Liberate g Army" and they claim a just rievance and a cause for which ~ey fight. Tsao Chen-ya, the leader of the liberators, was the chief of p dice in Hwang- hsien, westernmost city in Hunan. Schoolboys learning the geography of their native province call that part "the nose on the old woman's face." From Hwanghsien, leader Tsao took his follow ire to the North and East as far a.,. Chenki, wartime capital of Hunan. Chis city is the site of the famous ave-arsenal, and a desirable plum fi,. anyone seeking power. Here the 'liberators" took captive the head o the arsenal and held him prisoner while removing 8,000 rifles and a oodly supply of ammunition. From Chenki the :.rmy, now grow- ing to a size report !d as high as 7,000, continued nun th to Yuanling. At this point the a ell-planned and executed "revolution " disintegrated into a campaign f pillage. The citizens" of Yuanling : ound themselves the victims, rather than the bene- ficiaries, of the upi ising. For ten days they huddled or, t'error while all shops and homes we e systematically looted. An estima ed 400 shops, after being cleared >f all valuables, were burnt on the pretext that illu- mination was neede( to prevent the Nationalist army, !cently arrived from eastern Hunan, front crossing the river. In any ev ~nt the regulars contented themselve: with sporadic rifle fire, making no attempt to cross. On March 10 the rebels after one last wave of loo "ing, turned the city back to its, ofli ials and with- drew in an orderly manner. The grievance of t ie revolutionary leader and his folk wets has been directed against ti e Vice Com- mander-in-Chief of t"h , Peace Preser- vation Army, Generic Li Mo-an, who was sent recently from Changsha by Governor Chen Chien to organize and prepare that part o' his command area for the nation i resistance to north. The farmers ,f this area are known to posses:; go is for their in- dividual protection a id it is report- the cause of the uprising. Leader Tsao declares his loyalty to the Nationalist Government, and espe- cially to Governor Chen, while seek- ing the overthrow and removal of General Li. On the eleventh of March a nego- tiated agreement was reached in which the following points were made: 1) All the "rebels" at pre- sent under the leadership of Tsao Chen-ya would be formed into a division of the National Army. 2) Commander of this new division would be Wong Yuin-wha. 3) All the junior officers under Wong would be elected by their own men. 4) All pay, subsistence and supplies to this division are to be on an equal basis with those remitted to the Nation- alist Army proper. Tsao Chen-ya is to be commander of a regiment in this new army. At present, members of the liberation army have returned to their home villages and Tsao Chen-ya has gone back to his job in Iwanghsien to await the reorganization. Governor Chen is reported to be sending an official to Hwanghsien to count, in- terview and organize the new army. Other parts of Hunan also are re- acting to the weakened authority of the Central 'Government. Southwest of Changsha in Shaoyang, from where this is being written, life has become tense after many rumors of bandit attack. The present state of mind is best evidenced by a collapse of the market for staple commodi- ties. First grade rice plunged from 7.60 to 4.50 silver dollars, even though transportation costs in this rice importing area have been in- creasing. All the police from the Hsien villages have been brought into the city for fear they would suffer the loss of their arms. A curfew has been ordered, and one night recently the lights of the city were -kept on all night in anticipa- tion of an attack. However, the recent arrival of troops from the First Army Regiment has helped ease the tension. Wu-kang Hsien, south of Shao- yang, has not been so fortunate and is now experiencing the discomforts of its own small revolution. Its rebel army, starting with. fifty men, has grown, if rumor may be relied upon, to 2,000 men. A door-to-door canvas of the largest village yielded the necessary guns, flashlights, and tennis shoes to equip an army. Local tailors were set to work making uniforms from confiscated cloth. So far the influence of this group has not extended beyond the hsien boundaries. Although not unduly disturbed, Chan sha wat h i h ~r Aggqrove~dFo , 1 49 The China Weekly R. d i?ew, r Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 CHRISTIAN MISSIONS IN CHINA A Chinese Christian THE foreign missions in China are facing a situation today which they have never faced before. China has been going through a re- volution ever since 1911, but we are witnessing' a stage of that revolu- tion now which is unprecedented in scope and intensity in the whole history of social change in China. My feeling is that while the Chris- tian missions were able to make a valuable contribution in China in the past and could truly be regarded as pioneers, prophets, fanatics and martyrs, they have become confused at the present time and have not only lost their grip on things but are also uncertain of the direction in which they should be going. In the past decades the missions came.. to China as a leaven in, and a crusade against, the then existing order of society. They were fruitful not only in the introduction of new thoughts, new institutions and new ways of life, but also in the de- molishing of outmoded customs, practices and ideologies. The Chris- tian churches, schools and hospitals were effective tools in the achieving of these aims. A Chinese who be- came a Christian in those days was a hero because in many ways he dis- carded the things that were behind and placed himself in a conspicuous position which was open to ridicule and persecution. The missionary, too, was a prophet because he was able to tell the Chinese what was wrong with their past and to point to them the way of the future. To put the matter in a nutshell, China was then a very backward country and the Christian missions from the "civilized" west brought with them a superior culture which the Chin- sse people needed even if many of them rebelled against it for a time because of social inertia. THE author of this article, who for ob ?ious reasons prefers to rema n anonymous at the present ii ne, is a res- ponsible Chime. ! Christian known personalit to the edi- tors. For sorr,e ti me he has felt that the Christ; n movement in China, partic:rdarly the part played by the fo eign mission- aries, was at t ariance with fundamental Chri tiara concepts, and was out c f step with events in modern China. After considerable ?rffor? , he was per- suaded to write rut his views for publication in the Review. The whole quit tior of the future place of the Christian movement in 1- nina is, we feel, of great inr,ortance. We have, therefore, invited both Chinese and forf ign Christian leaders to preset!, their views and will also welcome expres- sions of opinion from readers. -Editor. realistic and practit at just because it is in accord with the interests of the masses of people who are suffer- ing from the old reime. If this is not a fact, then the growth of Com- munism in China, is;hick is captur- ing not only the to ling masses but also the intellectus i class, simply cannot be explainer.,. Communism is steadily gaining- t;:r ound in China and the likelihood i it will play a dominant, if not sic, role in the politics of China in the future. existing order whole- heartedly, and yet they would be reluctant to give it up in favor of something which they believe to be contrary to Chis- tian principles. Why is it that the Christian missions and the Christian move- ment in China as a whole are op- posed to the present development in China? It is because they are too much one with the existing order. Both capitalism and protestantism grew out of a revolt against the feudalistic society with which the Catholic Church was more or less identified at that time. Both stood for individualism and laissez faire which constituted the core of liber- alism in the modern age. Individ- ualism has its values; in many ways it contributed to the develop- ment of the human personality. But in other ways individualism. has been the cause of many of the ills of our present social order. It elevates human personality by one hand and immediately destroys it by the other. It permits freedom of action for the individual and yet it brings social chaos to a world which is no longer divided by geographical distance. It has. been the _ cause of an economy of plenty, of emancipation from the world of nature, but at the same time it has brought about social inequality, class conflict and inter- national antagonism. Toward Collectivism The present revolution which is now going on in China and other parts of the world is a revolution which is trying to put collectivism lism and a i th l e f indi idu n e p ac o v a Negative.ttTtude planned economy in the place of What has all this development to social anarchism. There are people do with Christian nussions in China? who want to hold fa-,,t to the liber- Perhaps it is not ur fair to say that alism for which our present in- the Christian missiors as a whole do dividualistic order stands; they do New Situation not understand the present trend of not realize that the progressive dis- events and cannot e it in the his- integration of the present order will The situation today is entirely torical perspective. They are, there- make this impossible. There are different. China is still a semi- fore, taking a neorce or less negative others who think that the present feudalistic country--and semi-colo- attitude to it. But ?,ven if they had individualistic order should be chang- nial as well, many would say. But understood the pre; -rat development, ed, but that it should and could be China's revolution is heading not they would not ha a taken a =dif.- gradually 'and peacefully evolved toward the patteril of the west but ferent attitude; sim dy because this into _ a collectivistic order which will toward one of her own creation development is so ' ont nary to the preserve the best elements in the which is designed to meet her outlook and assunr rtions to which liberalism of the present society. But peculiar needs. This is not of organized Christiani y has been ac- the possibility of this has not been China's owrr ehoice; it is forced on customed. Thie re gative attitude demonstrated by any group of nations her by her own travail and the expresses itself ii, many different in the modern world. But there- is an- general world situation since the end ways. In the first place Christian other disturbing factor. The present of the last war. In the first place, missions' have ma ;.rifled and exag- revolution is not taking place in a the pattern of the west-capitalism gerated the shortcorr ings of the Com- vacuum; it has to be carried out in -is on the decline, although it still munist movement in China. They a social setting which is preserved possesses great potential strength in have pointed their tinge,r at the al- by force, implicit and explicit, and its present monopolistic stage. The leged violence and atrocities of the by an inertia which favors the main- era of capitalism is coming to an Communists, especially those con- tenance of the status quo. Although end and it is impossible for a semi- nected with Christi ins, and regard this revolution will not mean the feudalistic country to. develop itself themselves as srrf erers for the uprooting of everything in the pre- fully into such a social order even Christian cause. T-i y do not realize sent social order, because it will if it wants to. In the second place, the fact that the Communists are preserve much of its useful and the existence of communism in working for a new social order and wholesome 'groundwork, it would China has ' pointed a way to the that e' 1 ire ssar.1 ,conflict am rat nev rth e s, to the de- Chinese_ people - ei/Qd FaraRele3se ivrb t : Cr Rl~it3'i tQQ415RO ~ 0016 (~ went dominant many people think-which is more people may not wan, to support the class and that will mean a certain amount of struggle in which violence and bloodshed will necessarily be in- volved. The dilemma which we are facing today is this: The present social order simply cannot be maintained, even if we want it to be. A radical change is bound to come and it will mean more or less negation of thy: present individualism and liberalism -until the new collectivistic order is fully established. The change is forced on us and we have to pay the price for it. If we are not happy with the way in which others are attempting to bring about the change, it is up to us not only to devise better methods but also to demon- strate that these methods will work. But this, it seems, we are unable to do, We are facing a dilemma be- cause we are in the situation of a person who is sick but refuses to recognize his sickness., and is trying his utmost to avoid the inconveni- ence, pain, and cost of having to consult a doctor. Unfortunate Incidents What is the situation in which the missionaries in China find themselves today? The Communists are steadily gaining ground; in due time, they may be able to bring the whole country under their control. In the so-called liberated areas the Chris- tians, particularly the Catholics, seem to be experiencing a good deal of difficulty. Perhaps a good many of the reports about Communist at- rocities and excesses are exaggerated or distorted. Yet it is beyond doubt that a good many of .them are true. There are various explanations for these occurrences, and we may take them for what they are worth. In the first, place, in a period of turmoil created by the civil war un- fortunate incidents would take place in spite of the bee intentions. This would especially le true when the fighting force:; ar , newly recruited and lack discipline. In the second place, the Communists are carrying out a series of very drastic land re- forms in the libe ated areas which would naturally come into conflict with people who are big land owners or rich farmers of have in one way or another oppre; sed the common people. Christians who suffer in this way suffer not as Christians but as civilians who come under the opera- tion of the new 1 +gislation. In the third place, a large percentage of our missionaries are American citizens and many of our churches get their suppor{ from American sources. The unf )rtunate fact is that the Commu:ds.ts regard the United States .e. an even more dangerous enemy than the present Kuomintang regini ~ in China. They often connect the missionaries and the Christian chuff ches with Amer- ican imperiali,;m. Whether or not the missionaries ?r the Christians are actually engt ged in activities which the Commun sts consider to be subversive, they as under suspicion. Broader I" rspective If these explan itions have some degree of truth i m them, then the whole situation tikes on quite a different color. It would seem then that the responsildity for the un- fortunate incidents, lies just as much with the missionar +.s and the Chris- tians as with the 7ommunists. Our failure to deal - rith the burning issues in the prese,it social situation has brought about communism, and our hostile attitu to towards. and the ci nscious or uncon- scious ties which ve have with the existing order in., ke the situation worse. uuwnuninnuuu~uuuu~nnnut;uuuuuuuwwuainmuunmuwnuunm1un;uunum;4ntucr mm 111111111111111111111111111 p-, Approved For Release 2006/04/21 : CIA-RDP83-0044A~PW(1y7e4ew, April 2, 1949 at any angle. No matter how the minute-hand is shifted, you will soon find it perfectly adjusted. China Clock respects no position: it will work &, Watch The failure on the part of the missionaries and the Christians to look at the whole matter from this broader perspective has caused them to take a negative attitude toward the present development. Instead of thinking in constructive terms as to how they can contribute to the build- ing of a new order and how they can lessen the evils which would in- evitably accompany this period of change, they are thinking in terms of evacuation and withdrawal. Some even talk in terms of the "new cat- acombs" they may have to go into. All this is most unfortunate, con- sidering the revolutionary and pro- phetic nature of the original Chis- tian gospel. Whither Christian missions in China? It seems no one has even attempted to answer the question. In fact we cannot answer it until we are conscious of our involvement in the status quo which necessitates radical change. But if we are con- scious of it, then we shall see com- munism not as a menace to the things we hold dear, but as a chall- enge to the task which we should have taken up but have failed to. We may then see the vision of a new world of possibilities, in which we shall be able not only to do our part in building a new world but may also be able to convert many who now seem to oppose us in the Chris- tian way of life. The fact that we do not see this vision is due to our obsession against communism and the Soviet Union. We have grown up with the present social order and have found ourselves comfortable in it even though it is full of contradic- tions. But the time may come when the march of events may open our eyes to the true situation and then, in repentance, we may be. able to see wherein we have gone astray. Whither Missions? Whither Christian missions in China? ,It will be difficult for missionaries to answer this question for themselves. It will he difficult for Chinese Christians to answer it, because ideologically they are so much at one with the missionaries. The sad thing in our era is the fact that the United States as the richest and most powerful country in the world .is trying to impose its social pattern on peoples and nations which are struggling fbr a new social order. Instead of allowing these peoples and nations to find their own way in the light of the situation they are in, the United States seems to be dictating to them, in fact if not in words, the way which they should go. This attitude of the United States is facing obstacles in many parts. of the world and it is now meeting with the most per- sistent opposition in China. Will the missionary movement in China be able to rise above this situation and to proclaim the prophetic word or will it seek the easy way and identify itself with the forces of re- action? The answer to this question . Work. Ltd ~niumuumuuuuuunuu~unun~mum~wum~mum~wunuu~unnuuinunnnuuwuuuunnuua ^nmm~iuu~uuwunnup~ China during the next decades. BANDITRY IN ItWANGTUNG 11su Chien Approved For Release 2006/04/21 CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 2, 1949 (WANGTUNG province is experi- once vice comman(i, r-in-chief of the encing even more Unrest under land forces; Uene,al Lo Cho-ying, its new governor, General Hsueh ex-governor of E wairgtung; and Yueh, than during the regime of General Huang Tao, an army com- T. V. Soong. This is not because mander, have b~?en -aided and strip- General Hsueh, a famous commander ped of munition:, an i other property. in the anti-Japanese .war, is any It is worthy of note that, while less able than T. V. $opng. The problems are just too big, 3or any regions used to attar over hilly administrator who is powerless to cently ently have and a been re:not. n es , they. re- administrator nts unicat points the underlying causes of the close to have com people's discontent, impo~?tan~ communication linos. Scores of hr ?hway bridges in Hence the steady increase of various hsien have been demolished, banditry and Communist activities thus blocking motoi traffic and im- throughout the province. Even the peding the movemer t of KMT garri- central area, which has the most son troops. Lofo r Mountain in densely populated and richest hsien , eastern Kwangtune has been occup- once by Chen's mutineers, under constant threat and a strong garri- son force has to be. maintained. Early in March, several thousand troops from Red-dominated Hainan Island crossed over to Suwen on the Luichow peninsula and were report- ed marching toward Suichi and Lin kiang to join forces with their col- leagues there. One story reports that when this juncture is effected, the Reds in southern Kwangtung plan to contact Communists in the West River areas and make a drive on the vital central area of the pro- vince. -Taishan, Sinhui, Kaiping, etc., has ied and develop:'d ;r to a strong base West River Area not been able to escape such activi- from which the Cc imunists will be The growth of Communists in the ties. To cite a few ipstanges: in a favorable posi ion to strike at West River area likewise is a source Peisha, a town in Taishan, was nearby cities. of alarm to the provincial authori- looted by a gang of more than 200 Informants state hat the Reds in ties. Since the uprising, toward the men armed with machine guns and this region have i .sued a kind of end of last year, of a militia unit other firearms. A taxicab on the "People's Notes" in denominations of led by a Chin chief of Tucherig, a Kongmoon-Sinhui highway was held from one to 50 dollars for circula- town on the West River, numbers up by four armed robbers who tion in areas they ?.ont.rol. Late in of peasants who are fed up with made away with several bags of February, the erhange rate was Government misrule have been join- GY notes worth around 12,000 Hong- said to be GY30 to one of these ing the Communists. It is estimated kong dollars. At more than one t place river boats plying between notes. Large e ansactions were that Red forces in the last two g said to be conductee chiefly in silver months have broken into upwards of Changsha and Kongmoon have been and retail trade in the People's 70 Government granaries and distri- fired upon by bandits on the river Notes. buted the foodstuffs to the poor banks. peasalrtti. During the early part of In fact, waterway communications Southern K, .vangtung March, strong Red 'units attempted are a favorite target. At numerous to capture the hsien city of Loting, spots along the river between Wu- Similar developm nts are taking and it was not until heavy reinforce- chow and Canton, river bandits im- dace in southern iZ ,vangtung. Three ments arrived that the KMT troops pose a toll upon each passing vessel. or four month: a.i~ ) a whole regi- were able to force them to retreat. This ham ers the free flow of oods went of the provincial Peace Pre- p g servation Corps k0 by Commander Despite their relative inexperience, and causes commodity rises to in- Chen I-lin rose up . nd joined forces Red forces in the central area have crease even further. Firewood, for with the Comrrun i, ts. Since this displayed as much audacity in which Canton and its outlying re- revolt, the Comm-+inis's have been breaking into Government granaries gions look chiefly to Iwangsi, is an noticeably more act we, using Suichi and disarming local militia as their example. The heavy tolls exacted and Lienchiang as bases of operation, more veteran comrades in other by bandits Tor allowing this corn- This has put the p,,) is of Kwangehow- areas. While in the not so distant modity to pass through have boosted an, which already is been attacked past their raids were confined to its price considerably. small r towns, they .Mnow apparently consider themselves- st'rong enough East River Area 'TITO DISCOVEE.S AMERICA' to attack larger places. Two months Waterway communication in east- ago the so-called `tSinkui-Kaoming- ern Kwangtung is even more pre- Hokshan People's Liberation Army" carious. From Waichow all the way raided the hsien seat of Kaoming, up to Laolung scores of toll ? collect- burned down the hsien government ing stations have been established building, broke into the granary and along the river and ships who re- captured a quantity of arms. Re- fuse to pay cannot pass safely. Re- cently this 'same force, numbering cently a strong military convoy had Il / some 600 men, made a night raid to be sent to escort hundreds of on the city of Kaiping and was re- vessels down the river. pulsed only after some three hour: In the East River area, where the l of fighting. Following this, a group famous Communist East, River cf of armed Reds suddenly appeared the rural districts of a~number of 11 ?Tfit town in Kaiping hsien, and posted hsien, 'among them Haifeng, Lufen'g, "`L l l ~I up slogans, distributed handbills and Sinfeng' Lung,men Wuhwa, Tsichin, talked to shopkeepers about the Communist policy of helping the Tapir and Meihsien, have fallen into the hands of the Reds. Gov- people. These visitors made short ernment officials And it extremely work of their propaganda mission risky to stir out of the hsien cities, and made good their escape. All and when it is necessary for them these activities have given the local co uo ,5?U Lrley Very VwLCll UIM*Ulsc -- - "a.'. themselves. ove nment laws and `' Cl ; _ Although the authorities make a decrees have no effect in areas 10 great issue of "Communist bandit or 20 1i beyond the hsien cities. The atrocities," the people are coming to C~4-RDP83-00415E 0 40~@609Ox very least, the homes of K1VIT ge Ali ctfk Release 2006 /04//21 ~ d among them Genera an an--cieh, ~z i etc.. Trieste e s are vastly different from or- OF dinary 'bandits. Incidents like the following have made a great im- presssion. Last summer the Reds conducted a night raid on Dan Shui How in Kaiping hsien. They kept their hands off the inhabitants' property, however, although they were in a position to do as much looting as they wanted, since the gar4ison troops in the suburbs had been sur- rounded. In a hsiang in Kaiping, a band of armed Reds shot several bandits who, in the name of the "People's Liberation Army," had plundered a passing bus. They re- quested the local inhabitants to re- port the execution to the hsiang chief. Awaiting Communists The sentiment of the people, in fact, is more and more on the side of the Reds. One old man of well over 60, a hsien councillor of Kai- ping, openly told his friends that he was awaiting the arrival of the Communists, saying, "Since the Communists have been in the North for so long, why don'.t they come down to the South sooner?" This is the boldest remark about communism that I have heard made publicly. It is to be understood that the old man is a local luminary who has been in public service for scores of years. Hence he is in no fear of being red- baited merely for having made an "undesirable" remark. Company North America Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 2, 1949 1'.7:Iii Q~J COPYRIGHT 1933 BY INS. CO. OF NORTH AMERICA Insurance FIRE' - MARINE MOTOR CAR Combined Assets US$297,672,939.59 113 Kiukiang Rd., Tel. 12867 = Approved For Rel r: iii,1111111111111111111111111111111111111 11 1111111111111111111111111111. The Week's Business 'r HE Shanghai market ruled firm expenses for April should be some- during the past seven days where around GY10,000,000,000. or under review. 13 ,cause of the large GY15,000,000,000. sums paid out b:, the Central Bank Under this situation, it is hardly of China for C :'ereiment and mili- possible for the Government to arrest tary use, as well as large sums re- price increases by the sale of gold as mitted here from outports, the the Central Bank of China is continu- money, market axas easy and as a ing to. do in the newly reopened result people rue led to buy financial Shanghai Gold Exchange. The daily articles and commodities, receipt in Gold Yuan notes front the That inflation is getting worse sale of gold by the Central Bank is and worse ever. day can be seen estimated to be GY5,000,003,000 or from the fact tha, the printing press (TY6,000,000,000. For some days, finds it impossil.l:l to keep up with however, it is only GY1,000,000,000 the increasing demand for cash or GY2,000,000,000, and on many notes. During 1n past three weeks, days the Central Bank has refused there has. been a severe shortage of to sell gold. With the Central cash notes in tie local market and Bank's outpayments for political and premiums of as ugh as 20 percent military expenses increasing daily, are being paid fee cash. - it is difficult to see how the present A number of factors, in addition policy of gold selling can recall suffi- to the printing pess bottleneck, are dent Gold Yuan notes to check the responsible for this situation. Among increase of prices. the important` on is are: Another byproduct of this un- 1) Large s;ums of cash notes are checked inflation is the serious crisis reported to have )een distributed or faced by local factories. Only paper are being reservv='d for distribution mills engaged in the manufacturing of to Government a flees by the Cen- banknote paper can make good money tral Bank of China and,, as a result, and keep busy. In the leading Tien no cash notes ar-. available for dis- Chang Paper Mill, all machines will tribution to the commercial bank's suspend operations by the end of and business fine:;. March, except the one used for the 2) For the p,u;t month, the Cen- manufacturing of banknote paper. In tral Bank of China has refused to general, it is reported that for the issue notes of de'iomina.tions bigger manufacturing of one ream of news- than GY500 ar GY1,000 on the print, the local mills lose a sum reasoning that the issuance of big equivalent to two reams of news- denomination notes would stimulate print. This is due both to the high the markets and cause a general cost of production and the low rise in quotations. The authorities market price. Paper mills must buy apparently do net understand that highly priced foreign exchange the necessity of issuing big de- clearance certificates, in order to im- nomination notes is a result rather port pulp and other materials, thus than a cause of ;:iflation. boosting costs, while because of the 3) The buyil.: and selling of general weak conditions in the coin- silver dollar coins by large numbers modity market in face of the con- of people on the =treets is reported centration of Communist troops on to have kept l:r_ ge sums of Gold the northern bank of the Yangtze Yuan notes froii circulation else- River, market prices are poor. where. The situation ri is deteriorated to such an extent; tha!; the Central Bank has found it ae:cessary to issue Banker's Checks in denominations of , GY5;000; Cl 10,000; iGY50,,000; and GY100,000 or circulation in place of cash npt-> If this practice is continued and i:` there is no limit on the issuance ci' these checks, it is generally feared that commodity prices will ine.reae' very fast, since it is far cheaper to issue Banker's Checks than cash notes. According to thl: ' Financial Daily, which is reported 'o have some con- nections with Dr. ;?. Y. Liu, Governor of the Central Bunk and concurrent- ly Minister of Fir ante, the Govern- ment paid out G t40,000,000,000 as political and military expenses dur- ing the month of 'i'ebruary. During the first 19 days cif March, as much as GY159,400,000,G00 was paid for political and mili:,jry expenses, and the estimate for the ,entire month of March is over G7d100,000,000,000, or Conditions in other factories are reported also to be very dull. Be- tween 70 and 75 percent of the underwear manufacturers in Shang- hai have suspended operations. Many of the leading knitting mills in Shanghai are working only seven hours a day. The dyeing and weav- ing mills have had their working capacity cut down by 50 to 60 per- cent and the textile mills have been incurring losses regularly because of high production costs. The woolen textile industry has only one month's supply of raw materials,; and the marketing of woolen yarn is almost nil. The following table gives , the quotations on March 23 and 30: Mar. 23 Mar. 30 GY GY Gold .......... 554,000 800,000 US Dollar 12,450 16,000 Clearance Certificate, 10,900 16,000 Silver Dollar .... - 7,900 12,000 20's Yarn ....... 1,880,000 2,930,000 Rice .. ........ ' 60,000 89,000 2ft6gb4/24e:= CAA- P8i i OSb0?M6007-4 7.28 9.75 if ?g se 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Week+Rg t Afro NEWS OF THE WEEK. Peace Talks Commence In Peiping; Communists Shift To City Policy PEACE negotiations between the Government and the Chinese Communists are expected to begin in Peiping on April 1. The Govern-, ment's peace delegation,. is headed by General Chang Chih-chung, the other members being Shao Li-tze, Huang Shao-hsiung, Chang Shih- chao, and Li Cheng. The Com- munists are represented by Chou En- lai, Lin Piao, Yeh Chien-ying, Lin Pei-chi and Li Wei-han. The Gov- ernment has accepted Communist leader Mao Tze-tung's eight terms made public on January 14 as the basis for discussion. According to the Chinese-owned China Daily Tribune, the maximum concessions the Government is ex- pected to make on these eight points are as follows: 1) In the matter of the punish- ment of war criminals, the Govern- ment will request the Communists not to adopt an attitude of "retalia- tion", but will agree to the complete withdrawal from politics of such leaders as wore ardent advocates of the civil war. 2) With reference to the abro- gation of the Constitution' agree- ment will be given to the convoca- tion of a new National Assembly truly representative of the people in the country for a referendum. 3) The question of the abolition of the legal status of the present Government is considered of no consequence in view of the expect- ed formation of a coalition Gov- ernment if the peace talks succeed. 4) The reorganization of the Army should be carried out on the principle of the nationalization of the armed forces. 5) As to the confiscation of bureaucratic capital, the Government will agree to its requisitioning on a fair basis. 6) The enforcement of land re- form is also the policy of the Gov- ernment. 7) The abolition of "traitorous" treaties can be effected after care- ful study of existing agreements. 8) Complete agreement is ex- pressed with the convocation of a new Political Consultative Confer- ence for the establishment of a coalition government. be the first demur d of the Nation- alists on the grounds that continua- tion of fighting is not conducive to peace negotiations. Well-informed sources predict that the question of reo, gailization of the armies is the crux of the peace issue, and it is gererally feared that the peace talks n,ny breakdown on this point. Before the departure of the Gov- ernment's peace delegation, a series of important confc rences were held by responsible generals of the Minis- try of National Defense to discuss the reorganization +f armies. Acting President Li Tsung-jen, Premier Ho Ying-chin and all members of the peace delegation also were present at these conferences, Results of these talks were guarded as top secrets, but it is understood that, after much ,..deliberation, the Government adopted certain formula wl ich would "pos- sess the dual foatui,~ of being accept- able to the Commi nists and at the same time be capal le of maintaining the entity of the ationalist Army which Generalissineo Chiang Kai- shek laid down as c tie of his require- ments for a peace settlement." Peace-A Question Mark PUBLIC reaction ?:o the opening of peace talks ha.: been a mixture of hope and appreii: nsion. A United Press story dated March 27 from. Nanking makes in'resting reading. It reads in part r:s follows: "The question on most I ps was: Can it be possible? To most cautious ob- servers peace proslects are a ques- tion mark at b be restored with Government help if necessary; pro- duction power L. to be increased, production costs lowered, and pro- duction increased both quantitatively and qualitatively. "The develu?pmc-irt of industrial undertakings is to be accompanied by higher profits and higher wages so that general income levels may be raised. Re-pr..'ductior- processes are to be promos'd with the build- ing of organic sty: ictures for the ac- cumulation of industrial capital. At the same time, le >or efficiency is to be improved and the living conditions of workers improved through the application of the' principle of 'bene- fiting both labor and capital.' The supply of mai eria' resources from rural areas for cities, and the supply of finished produc,s for rural areas from cities are bo;h to be increased, and the economic tics between the two regions are tc be strengthened. "The basic ehjective, therefore, consists in the promotion of indus- trial undertakings and improving conditions of workers." Contrary to pr+ railing fear about Communist hostility toward capital- ists, the Chinese Zeds, the magazine discloses, are enli iting the coopera- tion of private capital in their efforts to restore and expand industrial pro- duction. "After VJ Day, ' the article says, "the liberated areais were expanded to include m:.uiy middle-sized and small cities and towns, some towns and cities 'of' larger size, conditions in the liberated areas be- came an important field of activity. "It was then felt that in order to develop various light and heavy, in- dustries on a larger scale, the co- operation of the capitalists in the liberated areas was necessary. Ex- perience gained also indicated the pgacticability of encouraging private industrial undertakings. Many en- terprises formerly operated by the state in the Shansi-Chahar-Hopei Border Area, for instance, have either been turned over to private ownership or else have encouragt_ed private investments. The same policy is put into practice in other liberated areas. "Such a tendency, it will be seen, serves to promote the development of industrial capitalism. This en- couragement of private industrial capital must, however, be distin- guished from the oppression of na- tional industrial capital which is practised by the feudalistic, coxn- pradore, and bureaucratic capitalists of Nationalist. China." In order to step up production, the Communists are reported by the magazine to have improved labor- management relations and technique. The article notes : "One of the first problems receiv- ing attention from the authori- ties is the improvement of organiza- tion and management as well as the improvement of production. techni- ques. With reference to the latter, in addition to improving existing technical methods, special attention is given to the introduction of new and more effective production me- thods. "The acquisition of adequate sup- plies of raw materials to insure con- tinuous production, the best use of production, tools, and economy in the consumption of raw materials are other factors taken into serious con- sideration in efforts to increase pro- ductive power." In conclusion, the magazine de- clares that the industrial policy of the Chinese Communists so far has been fairly successful, saying: "The majority of coal mines have been restored and most are operating on a normal basis. Other mining enterprises, including gold, mica and iron have also been re-opened in the various districts. Most power sta- tions and other utility services have been restored. "Many enterprises formerly oc- cupied by the enemy or forced to suspend operations have been res- tored to their rightful owners when the democratic government estab- lished its authority. Mention may be made of the Tai Chang Flour Mill at Kan Tan; the Tsi Foong Flour Mill at Tsining; the Chang Yu Bre- wery at Chefoo; and the Sui Feng Flour Mill at Chefoo. All these plants were restored to their orig?- honestly done their best for their districts. In these places, there was inal owners, and loans were issued American friendsApproved For Release c 0610 1nL G1AQlDf S3 O415RO0300O0t60007 4in the resumption "Take just one instance, in trial activity; her?iuunMimuneurnmuMUUUUeueu?~ieuuuunieutuuinuueuenniuuuuiuniuuuiuiuimuieununweunMiMauuuuuutnnuur= Bad Discipline To The Editor: The discipline of the soldiers here is getting worse by the day. General Li M.o-an, the commanding officer of the 17th Pacification bureau, has admitted that he cannot control them. The fol- lowing are some of the incidents that have occurred: The soldiers trees within a have 10-1i radius in the area SANE BY SPEEDY CLIPPER CARGO New Low Rates to U.S.A. on TO 100 Ibs, or more PORTLAND-SEATTLE-- ------- __ RATE PER LB. CHICAGO. y _-_-----_ $7.88 --------------------------------2.00 DETROIT ----------------------------------- ------------2.01 CLEVELAND -------------------------------------- PITTSBURGH----------------------------- 2.03 NEW YORK------------ - 2. ---------------------------.2.05 5 Special rate on NEEDLEWORK* - --# 1.42 *ASK ABOUT 0 ,-HER SPECIAL COMMODITY RATES ? CLIPPER CARGO covers your shipment to anywhere in the U. ~.-on one- Air Waybill. Cuts paper work ... eliminates separate insurance documents. Let us show you how t:) reduce shipping weights and packing costs, too. Then are many more advantages in using the world's nL ,st experienced airline. Get the facts from your Clipper Cargo Agent or ... (enl. Agts., CNAC-Cathay Hotel .ihanghai ? Phones 15757, 19229 AftIff 11AMlCflT ff/0 A `LQ fllllff/ flYS , J~ ?+T exsea~el'C Clipper, Trade Mark, Pan American Airways, Inc Electric Wiring & Waxing FESED Approved For Release 2006/04/21 : CIA-RDP83-004151,90n000,OOk4y-Review, April 9, 1949 5111111111IIIIIIIIIIII1111II11111111111111111111111111111111111IIIIIIIII111111111111111111I11111111111111111111 II 111111111111111111111111111111111111`11111111111 Ilk where they are stationed. Since most 3 people depend on the trees for firewood, you can imagine what a hardship this Shanghai's American Da.ily--- = has caused. Y The company often stations a sentry on the main road to search the people = passing by, and if they possess anything more than "just a ne` spa er77 valuable such as a gold ring, watch or fountain pen, he "takes it over." Now During these trying post-war days, the Shanghai no one dares go along the road after dark. T Evening Post and Mercury has slipped into a peculiarly Recently two soldiers were sent to intimate place in the minds and hearts of rc aders. Per- investigate a certain case in the village - of Yang-ma Chia not far from the hsien haps that is because it tries in every way to )e as human city. Since they have no right to er,- most = gage in such activities, the people made as your best friend. Read it for true straight news , of it printed at least 15 hours ahead of other Shanghai = them go away. The following day eight armed men led by the company com- papers; for outspoken views; for bright touch-,s and enter- = mander came to the village, seized 30 tainment features which will take your m. nd off your innocent people and took them away to the Itsiang chief office, where they are = troubles. For the times, subscription rates are low: being held until the families ransom them for 50 silver dollars. The hsien REVISED councillor went to try to mediate the T MONTHLY SUBSCRIPTION RATES disappearance of held the rt two sowo sable `for the = ldiers (which = Effective March 16, 1949 is not true) and that they must give = at least 30 rifles as reparation for the (Subject To Increase) loss. The councillor already had offered the soldiers 300 piculs of rice. The = matter is still not settled. Local home delivery GY30,000 In the western part of Hunan, the Pick up your own paper .. .. .. .. 27 000 soldiers also have lost all discipline and have taken food, oil and even mattresses China Outports (Ordinary mail) _ 31,000 = from the people without payment. , . KII 1111111111111111111 I IIIII III 111/11/1 111 flu 111111111111111111 I I IIIII1111111111111111111111111111111111111111111111111111 11111111111111 [111111111 111111; Lihsien, Hunan March 15, 1949 Farmers' Army To The Editor: I am a medical college student with little money,' and had been studying at Hsiang Ya' Medical College in South China. When I recently contracted a ]Illl1II1111I11111111111111111111111111111111!111111111! 11111111!111111 I!111111!11111111!11!1111!11! 11111111111117 unlldrl[1111111111!111111111111111111111111111111!1111111111! II 11111 III 1111111111111111111111111111111111111111111111111111111 II1l1111r. 11C_ ?r% 19 Chung Cheng Road Shanghai (1E) THE CHASE BANK Affiliated With THE CHASE NATIONAL BANK OF THE CITY OF NEW YORK Shanghl ii Ofce: 99 Nanking Road (0) Telephone 11440 Bra=nches: HONGKONG 4 D TIENTSIN 4 b PARIS (Based on various districts) Single Copy . .. The Shanghai Evening Post & Mercury ~I 1111111ll111l111111111111111111111111s11111 IIIIIIIIIIIIIIIIIIIIIIIIII [III I11111111ll l I l 1 I 1 1111'.1 1 ll 111 11 II 1 1 1 1 1 1 1 1 II 111111111II I1111111I I111111111II IIIII Approved For Release Approved For Release 2006/04/21 CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 9, 1949 disease, I had to leave college and come to Nan Yao, one of the five big moun- stains in China, for. cure. Now ,I want to give you the following information about Hunan, and hope you Kill send me a free copy of your Review, as I no longer see it at the library. In the history of China, Hunan people have always been the pioneers of every revolution for the benefit of all China. They are considered ultra-modern and cosmopolitan. Since the present civil war has spread so extensively, prices have sky-rocketed and taxes have grown increasingly heavy. Now, to ward against a famine in the spring, more than 2,000 farmers have organized themselves into an "Army of the People" to fight against conscription and taxation of foodstuffs. First' they fought at Yitngling, and later at the three cities of Mu-young, Luki, and Sinki. A weapons factory was raided and 8,000 rifles taken at Sinki. They have now become so strong that the two regiments of Nationalist troops are no match for them. The Kuomin- tang should realize now the Bandit Sup- pression Campaign is of no use. Y. C. CHENG. Nanyao, Hunan March 12, 1949 American Aid To The Editor: The present attempt is inspired by a reading of C.Y.W. Meng's article, "A Chinese View of American Aid," in the March 19, 1949, issue of the China Weekly Review. The writer in China enjoys the distinction of being` at one and the same time a citizen of this country and of the United States. He has -no political axe to grind.... From the time of his adolescence he has devoted himself to efforts to helping China become a free, independent, pro- sperous and progressive country ...... If China can attain this end by any aid from America, he wants to see America give this aid unstintedly to the greatest possible extent. Mr. Meng seems to think that American aid should cease because, presumably, American aid is producing. the opposite effect ...... I must be suffering from what Mr. Meng called "Uncle Sam's mental bank- ruptcy," because I cannot make sense out of his M When he states that esent American aid prolongs "our civil war" and inter- feres with a "peaceful movement for political and social change in China," I can't understand it. I don't understand how a civil war, in which unnumbered thousands of combatants and non- combatants are killed and maimed, can be called a "peaceful movement:' Being "mentally bankrupt," I cannot understand how American aid, which is designed to lessen human suffering in China and to promote economic and educational growth within the country, can be interpreted into meaning that y'1111lt11111t11111111t111 III11111151111511111it11 I I111111111111111111111i'~ SUN Y A 0 Cantonese Restaurant such aid has the erect of operating against "political f ?eedoin, economic equality and social security for all peoples." ..Now, it ha:, appeared to me that the American aid to China heretofore given was and i;; gig en to a dynamic consciousness of "a changing China, a progressive China, and a new China"-- the very kind of China that America and all men of goc.t will wish to see China become.... Mr. Meng will place me under a debt of gratitude to him if he will be so kind as to show me how American aid prevents, or tends to impede, efforts to nuke China change and become new and -i,rogressive. He hits the point, lowever, when he says that America a ms to counteract Communism. What's wrong with that? The American nation was founded on the principles that all men are created equal, that they are endowed with cer- tain inalienable rights, and that among these are the rights t, life, liberty and the pursuit of happiness: Does Com- munism stand for then principles? Look at Soviet Russia today, Ii; is the classic example of what Conv,iunism is.... Dods it stand for "political freedom, economic equality and social security for all peoples?" Why, then, do its people try so hard to escape from this political heaven-even at the r sk of their lives? . But the conten ;ion seems to be that China today is ",uled by a group of "extreme rightists," "reactionary ruling classes," and "corrupt regimes." Unfortunately, this s all too true. That's why China ha been brought to her present sorry pas My question to Mr Meng is this: What choice have the Chinese people? Ir. there any other choice than that of acr epting Communist dictatorship, or doing everything possible, with whatever outside help is available, to reform a Government presently domin- ated by "extreme rightists" and "re- actionary ruling classes?" .Does Mr. Mang wish to imply that the Communist regime that now threatens the whole of China is not Com- munist in the sense that we understand the Moscow model--that, In fact, it is a regime truly devoted Lo "political free- dom, economic equality, and social security. for all peoples?" If it `is, I want to know it quickly, b-cause 'I've been opposing that regime.... and if the pre-' sent overlords of Peiping are for these, I'm with them. Mr. Meng can prove this promptly, and remove all my doubts. All he has to do is to go up to Peiping, and induce The China Weekly Review to do the same. If he and The China Weekly Review can go up there and lambast the Communist regime for its wrongs (as I suppose there are some), as'both have so success- fully been pasting the Kuomintang Gov- ernment for its sins (of which there are undoubtedly many)-with impunity-he .can persuade me to believe that we are watching a "civil war" that is only a "peaceful movement for political and social change." And I'll write home to my folks and tell them to pester the life out of our. Congressmen and Senators until they stop aid to China. E. K. MOY. Canton March 27, 1949 (We think reader Moy, a war-time general in the Nationalist Army, and a great and good .friend of General Chen- vault, does have a political are to grind. If not, we hope" he will wait with us to observe at first hand the good or bad points of the Communists, who seem to be well on the way to winning the Civil War whether or not there is Amer- ican aid---Editor.) - IIII Ill 1111111 IIUlItl111 lluuun111iuIIu IIIII1111111111111111111111111'. cmyS 133 Nanking Road Shanghai = Branch 11-8 Rue Montauban i1till1111111111111111111uli111t11111t1It11111111t11\IIIIIl11111111111t11111T The "555" clock respects no position: it will work at any angle. No matter how the minute-hand is shifted, you will soon find it perfectly adjusted. ply ivanxing tcoaa China Clock & Watch Works, Ltd. Tel.: 90080 1 F. del 1~1 ~ C k KUF% ftkO03000 bbff ~NE 70350 -,1111111111111111111111111,111111111111,1111TIMII RfIx1Tf1R111F$I rl l~ IZI ITIIfRI 1 1 11 II 111111111111: L.I111111.111111.111111111111111111111111111111111111 ill 111111I1111111111t11111111111111t 1111111111, 111t11111111t111111111 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April, 9, 1949 Feudal Justice To The Editor: It was gratifying to read your edi- torial "Feudal Justice" in the March 26 issue of the Review. You expressed what many people want to but dare not say. For other measures of General Tang En-po, I should like to add the following which he effected in Honan: In order to eliminate armed resistance, he dis- banded the Honan Militia by either assas- sinating their leaders (for example, Pi Jing Fang) or driving them to the front as cannon fodder. He also used farm- ers' wheat fields as drilling grounds and farmers were killed by shrapnel when his army practiced shooting. The chapter "Honan Famine" in Annalee Jacoby's and Theodore White's book "Thunder Out of China" carries. more details on General Tang En-po's activities. Shanghai March 27, 1949 Disparities To The Editor: Because of the wide disparity between the rich and the poor, it is hard for the former to understand how hard things are for the latter. A French writer speaks of a duchess who once visited a convent too poor to have a fire to warm the building. of living by reducing taxes and exempt- ing them from extra taxes. On return- ing to Peiping., she was asked how thet free tax was to be decided, and she replied, "Oh, wait! Peace has. come back to the world and people are going to enjoy themselves very well." Such mistakes come from ignorance and the wide difference of the standard of living between the poor and the rich. SHERWOOD .LIAO. Changsha, Hunan March 20, 1949 Good Faith To The Editor: Because the civil war keeps inter- rupting communications, it takes at least 16 days for the Review to get here through the mails. I keep thinking that if there were no war I should be able to get your magazine more easily. Everything here keeps getting worse and worse because of the political and economic situation. The only way the present crisis can be relieved is through peace. I would advise the Government to use good faith with the Communist Party, and as a college student I say loudly to the Government, "Quickly, give us peace." WOO MING-FU. Kweiyang, Kweichow March 17, 1949 0TECTION SOUND PRJ him, 11 A= FEDERAL TNC., U.S.A. TEL.: 11144 1W U11 V11" N , Companie.; Represented HANOVER FIRE INSURANCE COMPANY . . . . . New York, N. Y. FIREMEN'S INSURANCE COMPANY . . . . . . . . . Newark, N. J. NATIONAL UNION FIRE INSURANCE COMPANY. . . Pittsburgh, Pa. NEW HAMPSHIRE FIRE INSURANCE COMPANY. Manchester, N. H. SECURITY INSURANCE CO. OF NEW HAVEN . . New Haven, Conn. `r. COMMERCIAL CASUALTY INSURANCE COMPANY . . Newark, N. J. Shivering with cold, the duchess felt great sympathy for the nuns at the con- vent, and ordered firewood to be sent to them. After warming herself at the fire in her home, she gradually began to for- get the misery at he convent. When the servant inquired how much firewood she wished to have sent, she said, "Oh, never mind, it is going to be warmer soon." And a similar instance in China is mentioned. During the Boxer Revolt the Empress Dowager es?!aped to Sian, where ,,.ce was directly acquainted with the hardships of the people. She was great- ly moved by their poor circumstances and promised to improve their standard A K ti. 33e tiiz ORIENT SHANGHAI WATERPi1OOFIN6 FABRICS CO. The China Weekly- R roveddpFor9R194e~ase 2006/04/21 : CIA-RDP83-00415R003000060007-4 THE CHINA WEEKLY A Weekly Newspaper Established in 1917 The editorial pages present each week the opinions of the editor. The other pages of The China Weekly Re- view are written by the other members of the staff and the contributing editors who report and interpret the news irrespective of the views expressed in the editorials. Abundance For All H ENRY WALLACE, former US vice-presi- dent and recent unsuccessful candidate for the presidency, has suggested that the United States and Soviet Russia cooperate in making-China a testing ground for a program of "abundance for all peoples." Mr. Wallace then went on to say that neither communism nor capitalism can solve the problem of want until "both, by agreement, get rid of the spirit of intolerance". We can imagine the reaction of many people to Mr. Wallace's proposal, which was made to a meeting of the Cultural and Scientific Conference for World Peace in New Yotk. The Conference, even before it began meeting, wasp labeled by the American State Department as a vehicle for the spread of communist propaganda. With such a prejudiced approach by an important American governmental organization, it is likely that the suggestions made by Wallace and others will be labeled in many quarters as red propaganda, impractical, foolish, etc. Many of Wallace's earlier proposals have met similar receptions. For example, we remember when, as Secretary of Commerce in the last Roosevelt administra- tion, Wallace said that the American postwar economy could be so geared as to provide 60,000,000 jobs. Newspaper editorialists, column- ist,, and various public figures hooted in derision, claiming that this was another example of "Henry's dreaming." Since the end of the war, American employment figures have frequently been well above the 60,000,000 mark. Despite the allegations of those who claim that there. are so many people in the world today that they cannot .be fed adequately, we think that Wallace's idea of Russo-American cooperation. in China to attempt to provide a program of "abundance" for all the Chinese people is no more of a "dream" or "vision" than his earlier idea that the American economy could provide jobs for 60,000,000 workers. ' The end of the Civil War in this country should contribute greatly to China's ability to feed and clothe herself. In years past, the country's annual food deficit was not so,great in normal seasons. The cessation of fighting, which ing. It should also be remembered that this would mean the end of huge non-productive fabulous sum represents money which the govern- Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 armies and a chance for the farmers once again to tend their fields in peace, should provide a tremendous boost to the local economy. Added to this a program of foreign help, which would provide capital and improved techniques, and China should soon be on the, road to self- sufficiency. Even if she cannot economically raise sufficient food, other industries working for the export trade can be developed so that she will acquire sufficient foreign exchange to buy her additional food requirements from surplus areas abroad. We grant that the population pressure in this country constitutes a major problem which will have to be met in the very near future, especially if any improvement in living con- ditions for the masses results in population in- creases of such rapidity as to "eat up" the.sur- plus. However, there is a good chance, we be- lieve, that modern production techniques may enable the nation to keep ahead of population growth for some time. Daily headlines in the local press would indicate that. A report from Manila recently described an experiment With enriched rice which may provide the answer to beri-beri, an lindiginous disease in Asia's rice eating countries. The added nourishment pro- vided by enriched rice might also go a long way toward eliminating the many other diet deficiency diseases and ailments commonly found in China. In the US, where mechanization is almost taken for granted, new innovations in agriculture are being tried out each year. Cotton growing, which is a big industry in China, too, is being mechanized rapidly in the US with machines now available for most of the work. While progress is slow and the trial and error process is still going on, a recent press dispatch from Washing- ton reported that "mechanization of the cotton crop has now been accomplished experimentally at every stage from the seed-bed to the market." Think of the labor such a development would free for industry in China! The world, especially the United States, now has for the first time in the history of mankind sufficient tools to manufacture from nature enough materials to feed, clothe, and house all people. It is no longer necessary for a large section- perhaps even a majority-of the world's popula- tion to live on a subsistence level. Proof of this can be obtained from a glance at the official ex= penditure figures for the last war. Enough money, representing actual industrial and agricul- tural production, was spent by the powers for military means to have raised the standard of living of the respective countries immeasurably. According to the "World Almanac," the total amount spent by the six principal belliger- ents (not including China for which no estimates were available) was US$1,116,991,463,084. Added to this was an estimate of US$'230,900,000,000 representing property damage. US$1,347,891,- 463,084 would, for example, easily _ provide adequate housing and clothing for every man, woman, and child in China.. The possibilities of what could be done with such a sum are stagger- Approved For Release 2006/04/21 : CIA-RDP83-0041 g0R000R0 077view, April 9, 1949 ments of the principal powers were able to extract from the people over and above their, daily re- quirements. In the case, of the United States, the people supplied the surplus wealth without much, if any pain, while in other countries, such as Germany, Italy and Japan, it was obtained as a result of great privation. In any event, the mere fact that the countries of the world could afford to spend such a stagger- ing sum and to. suspend or curtail normal pro- ductive activities for up to six years proves con- clusively that mankind now is, able to produce yearly a considerable surplus of materials above the basic rpinimum requirements. The fact that such "surplus" wealth is not used for the benefit of mankind in relieving want and in improving the machinery of production reflects upon the intelligence of the governments of the world. The United States is today spending pro- digious sums on self defense, unsound foreign relief programs, and military aid schemes for other countries under the provisions of treaties such as the North Atlantic Pact. This money would easily abolish poverty and want in the United States if spent properly. What's more - as the war years proved-the natural wealth and highly-developed productive machine of the United States would. enable it alone to contribute greatly toward eliminating want in the rest of world. The factors hampering Russo-American co- operation on a plan to provide an abundance for the many people suffering from want are largely political, and these political reasons in, turn stem largely from the narrow selfish interests of certain partisans who actually do not care about the welfare of the masses. This is indeed a sad commentary upon our time. Another Student Tragedy A T LEAST one student has died as a result of injuries received during a fight in Nanking when a group of soldiers attacked a student parade. It is disheartening to see students in Nationalist China once again becoming the victims of violence, especially during a time when the Nationalist Government has in .a&,tuality sued for peace. If nothing else, it makes one wonder about the sincerity of the rulers who day in and day out for the past few months have been pub- licly stressing their desire for peace. While only the naive would believe that the Nanking regime would have become so desirous of peace if it still had its armies intact, its eco- nomy on a sound footing, and its people under firm control, one may even become suspicious of the Government's intentions if it allows students to be beaten and killed for expressing a desire for peace. Since the Government has in fact already dispatched a mission to 'Peiping to dis- cuss peace terms with the Communists, why should the same Government frown upon student demonstrations or parades favoring an end to hostilities ? The Nanking municipal authorities, presum- ably controlled by acting-President Li Tsung-jen, reasonable view of the situation than elsewhere. In Nanking, it is reported, the authorities have decreed the death penalty for any soldier caught attacking students. Meanwhile, in Shanghai the authorities continue to view the students as Communist agents and to warn them against any demonstrations or parades. About the only conclusion one can draw is that the Kuomintang authorities, who are talk- ing peace with one hand and beating students with the other, either are hypocrites or are ac- tually so stupid that they cannot see the ridi- culous contradictions with which they are sur- rounding themselves. Irresponsible Behavior A S the tempo of the "cold war" between the United States and Russia mounts,, each nation appears more and more to be carrying a chip on its shoulder. If this tendency continues, there is virtually no chance of averting war. Living in this atmosphere, we perhaps become accustomed to new "outrages," new political and economic maneuvers, threats, reactions, etc.,' but the fact remains that relations have been strained to a dangerous degree, despite the oft heard re- mark that since no one really wants war, there will be no war. ' It appears to us that there is an excellent chance of war, although almost everyone realizes full well what a new war would cost in,'terms of human suffering and material destruction. There comes a point when one more insult, one more threat, one more little incident sets in motion a train of events which quickly culminate in war. This has been the history of the beginnings of many previous conflicts. World War I, it will be recalled, began from one small incident which, unfortunately, occurred at a time, when relations were strained. If our memory of history books serves us right, the . German Kaiser, although long following a certain path toward war, was most reluctant to take the final step when Aus- trian Emperor Franz Joseph called upon him to honor Germany's treaty obligations. In fact, the Kaiser. is supposed to have made a last minute attempt to persuade the Emperor of Austria from carrying out his plans for hostilities. World War II began with somewhat more deliberate calculation upon the part of the Ger- mans, although there is some reason to believe 'that Hitler, having managed to run through a good part of Europe without provoking Britain and France, perhaps thought he could get away with another conquest without war. In the case of Japan's attack upon the United States, which was perhaps one of the greatest open acts of violence in modern times, the situation was somewhat different. How- ever, with the benefit of hindsight, it is possible. now to go through the back files of newspapers covering periods when war has started and to see that a conflict was obviously in the offing, no matter how much of a surprise it may have seemed at the time. We think that if an ob- it must be admitted, have finally taken a more server not conditioned to r headlines in his Approved For Release 2006/04/21 : CIA-RDPt3-00415R00300006oooi' 4 The China Weekly C !e , 9?,R@ ase 2006/04/21 : CIA-RDP83-00415R003000060007-4 daily paper, were to pick up, say, a file of any metropolitan American newspaper for the past three years and skim through it, he would come to the conclusion that step by step the world was preparing for a new war and that if, upon turning to tomorrow's paper, he saw that war had broken out, he would not be particularly surprised. If war comes tomorrow it will not be be- cause Russia or America actually wanted to begin a conflict that would be sure to cost far more than either could gain. It would be be- cause both nations, behaving at times in the most childish manner, have insulted each other so extensively, laid down so many ultimatums and in general progressed so far toward an open rupture that they had reached a state where neither behaved ` entirely rationally. It has 'long been our opinion that if the Americans and Russians were able to see themselves in the same light as they view each other, the perspectives of both might' be improved. We were appalled recently by a United Press story from Washington which read in part: "It was revealed today that the Budget Bureau- was considering a Defense Department recommen- dation for expansion of an Air Force fleet of B-36 `inter-continental' super-bombers. The proposal was based in part on conclusions 'from recent tests, all conducted under combat . con- ditions, that the mammoth aircraft is virtually immune from interception and has a range to attack ~any Russian target from North, American bases .... Military planners have marked off some 70 strategic targets in Russia as possible objectives in the event of war." This story has passed with little if any com- ment in the American press, although there was some criticism by a few members of Congress. However, their objection to it was not what one might expect. Rather, they censured the Defense Department because the publication of the news "jeopardized" national security in that it gave away a military secret ! It seems almost unbelievable that such a statement could be made by a responsible Amer- ican Government agency and -perfectly fantastic that the only criticism of it from the people's elected representatives was that a military secret had been let out of the bag. Just suppose, for instance, that the setting had been Russia instead of America.` Suppose that in presenting its military budget to the Soviet Government, the Russian Airforce had said it needed money for a very special plane, one that could bomb any part of the United States and that, in fact, the Russian Army had already marked out 70 cities such as New York, Chicago, St. Louis, etc. for bombing in event of war. The American Con- gress and press would be howling to high heavens and demanding that the State Department dis- patch a stern note to Moscow ordering a satisfactory explanation forthwith. How dif- ferent it would be if it were the other guy ! Likewise, how would the Russians react if it had been British. sentries in Austria who kkno kk Approved For Release 200b/(4/21 down two Russian soldiers for stepping across an imaginary line on a sidewalk in Vienna and then kicked them into insensibility? Moscow would this minute be denouncing it as another calculated plot by the imperialists to disturb the peace of the world. The extent to which we have progressed can easily be seen by the almost daily blasts of viturperation hurled at one an- other by the information media of the East and West. Moscow denounces the "imperialist aggressors" for questioning "democratic" Russia's peaceful aims. The most insulting statements are made about the United States, and at the same time hurt and alarm are expressed over the "unjustified" criticism by America of. Russia. Exactly the reverse takes place almost every morning in the United States. A war between the. East and the West is as unnecessary today as it ever was. There are few basic differences that could not be solved by men of common sense and good will sitting around a conference . table. However, from present, in- dication's, it doesn't appear that such a solution will be found. Each accuses. the other of bad faith, while proclaiming his own spotless in- nocence. Each proclaims that if he backs down now, or even expresses a desire to negotiate, the other will interpret it as a sign of weakness and attempt to take advantage of it. With such unreasonable attitudes prevailing and with each side arming as fast as it can, the future looks very gloomy. People's Rights Protected G ENERAL HO YING-CHIN, China's new pre- mier, has issued instructions to the Shanghai Police Bureau ordering that henceforth illegal arrests shall be prohibited and that the "people's freedom" shall be protected. The order, it is reported, has been received by the local author- ities . and Police Commissioner Mao Sen has cir- culated it to all police departments with the notation that they are to abide by it. General Ho, it is said, emphasized protection 3f the physical freedom of the people and pointed nut that arrests should only be made by the judicial and police authorities in accordance with the legal procedure as provided in Article 8 of the Chinese Constitution. He is reported to have leplored the fact that the constitutional pro- vision was not strictly adhered to by various )rganizations during the period of mobilization end that illegal arrests were reported. In order :-o respect the constitution and to render protec- ion to the 'people, no repetition of the-past un- lesirable practices will be tolerated, General Ho cdmonished. This is indeed welcome news. Perhaps the : nost significant part of the whole order is that ,.t instructs the authorities to govern their ar ions by the provisions of the constitution. Th-r -s one of the few public acknowledgements by a s)rominent official in recent months that the xovernme}n~t is } bound by the constitution. In C~I7k-RDP&-bb4'1 &k6d6 O tinned since Approved For Release 2006/04/21 : CIA-RDP83-0041 Q 0Qf 97R4ew, April 9, 1949 it was adopted with great fanfare some two years ago. The last time it figured in the news was when some local victims last fall had the courage to complain about their treatment at the hands' of the authorities, whom, they said, were not abiding by the constitution. The reply, as we recall, was that it was nonsense to talk about the constitution at such a critical period in the bandit suppression campaign because it had long since been superceded by the provisions of the national emergency. It was implied that those who persisted in harping upon the constitution's provisions for personal freedom might be suspect- ed as Communist agents trying to disturb the public's mind. Now, however, all seems changed. The second most important Nationalist official has issued a stern warning to local officials telling them that they must carry out their duties in accordance with the provisions of the constitu- tion. This is a great step forward and it is to be hoped that General Ho will now turn his at- tention to some of the other provisions of the constitution. For instance, the constitution guarantees freedom of the press. However, according to a story in the Shanghai Evening -Post of March 24, the unbelievable total of 185 magazines have been banned by the Nanking-Shanghai-Hangchow Garrison Headquarters and the Bureau of Social Affairs. Under General Ho's plan to return to constitutional government, it would follow that such restrictions upon the press would have to be lifted. It is to be hoped that the new pre- mier-will shortly issue further instructions to the officials concerned. During Sun Fo's tenure of office the com- plaint was frequently made that military and other local officials refused to carry out the orders of the Nanking Government whenever such orders conflicted with the views of the authorities concerned. Now, with one of China's best known generals holding the premiership, local officialdom should be more amenable to in- structions from above, especially since General Ho has at one time or another been the superior officer of most of the generals still holding com- mands in Kuomintang China. No longer, pre- sumably, can local potentates escape orders from above by stating that they do not conform with the Government's policy of seeking peace through strength or other excuses such as the people in Nanking cannot appreciate the problems of the local commanders. Premier Ho is a military man with a long record as number- two Kuomin- tang general, ranking just behind the General- issimo. In fact the Communist radio has had a lot to say about General Ho, having at various times referred to him as a bandit, a criminal and as a prime instigator of the anti-Communist Civil War. It seems clear now that General Ho is the boss. Whatever happens from now on is his 'responsibility. He has seen fit to order Kuo- mintang officialdom to- observe the constitution insofar as the people's physical freedom is con- cerned. Let us hope that he pursues this policy a bit further. Approved For Release 2006/04/21 25 Years Ago in The China Weekly Review April 5, 1934 Chamber Of Commerce Report In presenting the annual Report, the Chairman said in part: "...... During January of this year, the various news- papers in China published a letter written by Secretary of State Hughes to Mr. George Lockwood, Secretary of the Republican National Committee, which shows that the Ad- ministration at Washington is aware of the seriousness of the Chinese situation...... Secretary Hughes' letter in part reads as follows: " `The difficulty of the situation in the Far :East, as you will perceive, lies in the weakness of the Chinese Government. We have done what we could to strengthen it and to give it the opportunity for development, but that development must of necessity take place within. It is not possible for the powers to create a government for China or to substitute with any hope of success a government through their own agencies. The utmost which they may hope to do is to bring the Chinese authorities to a realization of their responsibilities and give such assistance (even though it should be against the will of certain elements in Chinese politics which hope to profit by a continuance of disorder and., corruption) as will tend to stabilize the finances and the transportation ser- vices of the Chinese government and thereby bring about con- ditions of order and security which may offer a less difficult set of conditions in which the Chinese people may develop an effective administration of their own."" Southern Taxes Further tax assessments are being made on the Can- tonese people by the military authorities and as a result the Canton silk dealers are considering suspending business as a protest against a surtax of 50 percent on stable and 20 percent on transit likins for raw silk, The silk men are now paying eight different taxes or contributions before they finally land their goods on the market. These include export duty, Kwangchow Prefecture likins, transit likins, stable likins, and four others collected for local charity or protec- tive service. 10 Years Ago In The China Weekly Review April 8, 1939 Wang Ching-wei's Intrigues Fresh intrigues of the most sinister character designed to bring about the -collapse of China's resistance to force her to capitulate to Japan are unfolding themselves in the latest activities of Wang Ching-wei, who appears now to be giving himself up entirely to the Japanese in order to wreak ven- geance upon the Chungking authorities. In addition to his latest lengthy outburst which was evidently inspired by the assassination of his henchman, Tseng Chung-min, Wang is said to be working intimately with the Japanese to hasten the downfall of the National Government. An understanding is reported to have been reached between Wang and the Japanese Premier Baron Hiranuma, whereby Japan had furnished Wang with the sum of $4,000,000 to finance his intrigues. Flood Plus War With the public eye focused on the Sino-Japanese hostili- ties and the terrible destruction of human life in Japan's aerial bombing campaign, little attention has been given to the fact that a natural calamity in the shape of the rampaging, un- controlled Yellow River, aided in its depradations by conditions of war, is destroying the homes and livelihood of numberless people in the Hwai River valley region of Anhwei province, and has already created real conditions of famine. CIA-RDP83-00415R003000060007-4 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly eview, April 9, 1949 WILL CHINA BECOME A RUSSIAN SATELLITE? Edgar snow COMMUNIST victory in China has raised some of the most per- plexing questions since the Marshall Plan. and the Truman doctrine be- came the foundations of our post- war foreign policy. The questions themselves are not entirely new. As matters of speculation they have engaged the interest of men in our foreign service for years, as well as that of other observers who foresaw current developments. But the re- volutionary change of power has now transformed mere possibilities of the past into these living enigmas of the present: Will a communist-led government inevitably mean that China must fall under the absolute domination of the Kremlin? Will Moscow plant "spe- cialists" in the Chinese police force, the army, the party Politburo, the state apparatus, to constitute a government above government, as in Eastern Europe? Will China fall. into the orbit of Soviet economic planning, with powers held by Rus- sian commissars to operate mines and industries . to meet Russia's strategic demands? Will the Krem- lin be able to dictate internal policy to Chinese communists, as well as control China's vote in the United Nations? Unique History For some parts of the world the mere asking of such questions might be synonymous with answering them in the affirmative. But experts share many doubts in the case of China. 'Among them there is wide- spread recognition that the de- velopment of communist power in China has established a unique his- tory, with special variations in the past foreshadowing deviations in the future. I myself have for years taken some part in written and oral dis- cussions revolving around all the points examined in this article. In some quarters I have.been derided as the creator of "the exceptionalist theory" for China. It has never been my contention that the Chinese communists are "not real Marxists." But internal evidence did convince me that they will not give "absolute obedience" to the Kremlin-the basic test of anyone accepted as satisfac- tory by Moscow. After a dozen years of firsthand study of China I concluded that Soviet Russia would not hold effective domination over the extremely nation-conscious Chinese communists. Some officers in our Foreign Ser- vice took a similar view. Because. of that, the State Department was less worried about communists in China than in other , places. That was one reason why Mr. Truman officially encouraged the formation of a constitutional Chinese gov- ernment representing communists as well as nationalists. Our ex- perts realized that the communists Edgar Snow's book "Red Star Over Chin ," published in 1937, has earned for him the reputation in the United States as being one of the Americans best informed on the Chinese Com,n.unists. Sev- eral weeks ago, in the Feb- ruary 5 issue, th ~ Review re- printed an article by Mr. Snow entitled "Will Tito's Heretics .Halt Russia?" n which he wrote that dev dopments in Yugoslavia may give a "per- spective on event2 now tran- spiring in China.' Mr. Snow's views on this subject aroused some controversy, expressed both in letters and in an arti- cle published in a subsequent issue of the Re,iiew entitled, "Yugoslavia, China, and Snow." In the accompanying article, reprinted from he April 9 issue of the Sate .day Evening Post, Mr. Snow expands his thesis that a Communist China can remain incependent of Russia. Publica.ion of, this article does not rican that the Review subscribes to Mr. Snow's views in 1 heir entirety. However, he has raised many interesting questi ,ns and pre- ,,ents a very persuasive case. Comments from readers will, of course, be welcomed.- Editor. the alternative would be civil war in which the old re=gime would be smashed entirely, and during which the communists would be forced to draw closer to Russia. The attempt at a , ompromise solu- tion failed, and milii ary events have now borne out the lai;ter forebodings. Yet there are powerful people in Congress, and around it, who still argue that salvation in Asia lies in heavier and more di.-ect intervention against the Chine.;e communists, rather than an acknowledgment of failure in that policy. The Adminis- tration is now inclined to absorb the lessons of event., in China, and. to adopt a wait-and-see attitude. But interventionist; insist that, normal or friendly relations with Chinese communists ire just as im- possible as with the Russians. It is necessary to fight them by all, means available, short of scar. They con- tend that it is. inconsistent to spend millions opposing; guerrillas in tiny Greece, while retreat ng before com- munists in China, which holds nearly a quarter of manki id. And. they see no difference ',etween Greek Reds, dependent on invasion bases in Bulgaria and Albania, and a self- sufficient Chinese Rrd Army with formidable internal reserves at its command. The Chinese party -say interven- tionists who fear ttalin will boss China-is an orthodox party thor- Moscow unilaterally dissolved it. It has supported the Cominform's re- solutions. The party has even up- held-though belatedly and some- what "lukewarmly," our official polit- ical observers have noted-Moscow's denunciation of Tito, whom Chinese communists admired in the past. Like the Russians, too, Chinese, communists believe in the "historical necessity" to liquidate capitalism. They intend to help install universal socialism and-ultimately-commun,-4 ism. At present they are not en- forcing communist or even socialist measures. But they have made it clear that they will, as soon as pos- sible, establish state ownership over all the principal means of Chinese production, and collectivize the land. The Chinese Reds have frankly proclaimed themselves loyal allies of the Soviet Union. Although the Kremlin furnished very little ma- terial help to justfy such claims, it did give important political or moral support. Chinese Reds also sympathized openly with Rus- sian aims to eliminate the in- fluence of American power in Asia. It is flue that the United States furnished Chiang Kai-shek the prin- cipal military and economic support for his campaigns against the com- munists. But even if we had re- mained neutral, interventionists say, it would have influenced communist policies and attitudes very little. Communists would still have de- manded withdrawal of our armed forces and cancellation of the com- mercial treaty which gave the 'Unit- ed States prior claims on China's strategic raw materials. Interventionists Logic All that-which is more or less true-offers little hope for any re- turn to the "good old (lays" in China. The interventionists also think that such facts are enough to condemn the communists as enemies of the Chinese people, enemies of China's freedom. They argue that a aov- ernment led by such a party inevitably means a nation ruled in the interests of Russia, hostile to the United States and committed to eventual war against us. Therefore, we should promptly extend the anti- Cominform front to South China and to the European colonies in South- eastern Asia. We should arm all those who would fight the commun- ists,'"wherever they lift their heads." But does adherence to an ideology or a body of dogma by a ruling polit- ical party alone determine the rela- tions of a nation, with its neighbors? Is the party ideology of the moment of greater permanent importance than the nation's whole past and the legacy of the past living in its people? Or greater than its vital economic requirements and exchanges with the rest of the world? Interventionist. logic answers in the affirmative. It professes to believe that ideology has d such a setup. Butt 6rOVed i~h or Release" Wb4l1l : d' '-' ~' 83t'd0415 N' M0 W07-4`c' willing, or- 128 Approved For Release 2006/04/21 : CIA-RDP83-0041, hR0f300tf 62py0 e4icw, April 9, 1949 thodox and loyal "slaves". of the quired immense experienge .arid.'self- China it is.,-.possible for two,distinct Kremlin=as Ambassador Wellington eonfjdepc Poca:i-s o# vi1 ; war phases. of history-"new capitalismh?' Koo has called his countrymen. have trained great numbers of corn- and "new democracy"-to coexist in To be objective, however, it must potent military and political leaders. an extended transition. While they be admitted that such assumptions China now has the laigest Commun- aim, eventually, to have complete are simply not yet susceptible of ist Party outside Russia-more than socialism-and, beyond that, com- proof. Neither Doctor Koo nor 3,000,000 members -and more than munism-the Chinese say that they Chiang Kai-shek has been able to 2,000,000 troops lacked by millions expect various forms of private demonstrate how successfully the of armed peasants. It is one thing capitalism to coexist with state cap- Kremlin even now dictates Chinese for Russian generals to push around italism for many years. Reassur- communist internal policy. Our own military or politi,+,1 bosses in the ances of a comparable nature were military intelligence indicates that small occupied stales of Europe. It made and quickly were superseded the Chinese Reds have won their is quite another p??oblem to manage in Eastern Europe, of course; one battles without any military direc- a giant the size ui China, run by a does not forget that the same thing tives from the Russians, and in- disciplined party in control of a could happen in China. But in the deed without any direct military great army-which knows it could present primitive realities of China's help. And in estimating the future, make a good defense of its independ- non-industrialized economy an at- it is necessary carefully to consider ence against any foreign power, tempted rapid leap into socialism certain factors which may entirely Sixth, Mao Tse- tung's personality would appear to be excluded by exclude a Sino-Russian relationship is reflected in the internal structure practical political considerations. of slave and master in favor of a of a party that is - whatever one may Underestimated By Moscow relationship between peers. think of its methcds or what it up- First, There are reasons to believe that consider some geopolitical holds ideologically- -deeply Chinese. in Kremlin leaders long believed that facts of fundamental significance. composition. It is loubtful if 10 per- the historical backwardness of China China is in. immense country-almost cent of the members of the central as large as the United States, and committee are S wiet-educated. In presented insuperable obstacles to an with two times Soviet Russia's po- the rank and file not one in 10,000 early communist triumph. It is pulation. It is rich in human and has been to Rus:;ia. They have doubtful that they ever took the communists' chances very serious- natural resources, with an ancient learned their Mar cism largely from cha 1927 debacle. One civilization that has survived 3000 the history of the Chinese party, the ly striking after tillu illustration of the So- years of catastrophes to keep its Chinese revolution, the text-books and attitude occurred during the e basic values, intact. China is the doctrines worked out in the writ- viet Incident, in ur ed Chiang country among all the colonies ings of Mao T'se-Ming and other na- Sian "detained" hirn K; and semicolonies in which commun- tive leaders. Virt:sally all the vet- shek ian aHsueh-liang, who wished by to halt Chanh th- ists have won power. From their erans who form the . hard core of civil war against ish secret allies, beginnings, China's Marxist leaders this party, men now in their fifties have, in theory, been international- and sixties, are p ?oducts of more the communists. Moscow vilified ists. In practice, they have been than twenty year.; of common his- Chang brigand Hsueh-andJiang as a prepared pro-Japan- nationalists de- dence continuing an indepen- tory made in China., They could not ese the Chinese repared to dence movement. now be seriously .livided by outside bnounce andits also, unless they worked for Second, China is the first major critics. power, outside Russia, to fall into Asiatic %iarxism the prompt, safe release of the Gen- Asiatic Again, throughout the the e hands of it avowed in Marxists. contrast with Very Seventh, the Chinese communists Sino-Japanese war the Kremlin re- important: Europe, a markedly ,lower were, until the Belgrade schism, the garded Chiang Kai-shek as the only Eastern of living than the U.S.S.R. only non-Russian ,arty which dared man capable of "`unifying China"- standard a ,whole. openly proclaim :.hat it had made as Stalin told Harry Hopkins. And vital new contributions to the theory Russia furnished weapons and tran- Fought Alone and revolutionary practice of Marx- sport exclusively to Chiang's army Third, the Chinese Red Army-or ism. "Mao Tse-tung has created a -even long after the equipment was People's Liberation Army, as it now Chinese or Asiatic form of Marxism," employed to attack and blockade the calls itself-fought its major battles one of the Politburo members at Chinese Reds. for survival long before the recent Yenan told an American correspan- Probably the sudden collapse of war, and without any Soviet aid. dent. _ "His grew: accomplishment Chiang Kai-shek's forces last year Excepting Yugoslavia, China has the has been to change Marxism from surprised Moscow no less than west- only communists who actually came its European to is Asiatic form. ern capitals. Certainly the Sino- to power without direct political or He is the first who succeeded in do- Soviet Treaty of 1945, concluded military dependence upon Russian ing so." A clang;'-rops thought, of between Chiang's regime and the arms. a variety unlikely to please the Kremlin, had clearly demonstrated Fourth, the Chinese party alone Kremlin. The soeaker was Liu the latter's skepticism concerning in the world today is led by a com- . Hsiao-ch'i, No. 2 ; heoretician in the the postwar future of the Celesti- munist who has never been to Rus- party, and the 1\;nerican correspon- al Marxists. That treaty completely sia. He is the only communist dent was Anna Louise Strong, who aal a Yenan at Soviet completely chieftain ever expelled from a party was later arrester( in Moscow as a deprived at the very moment when -not once, but several times-who "spy" and expelled. Before that, remained in power despite a Comin- Miss Strong's book had been pub- the former had obviously intended tern order for his removal. Mao lished in Eastern Europe, with the to intensify ? an open struggle for Tse-tung and Chu Teh-now com- foregoing and similar statements power. mander in chief of the Chinese com: deleted from the :ext. We have heard much, recently, munist forces-adopted an indepen- In fact Mao T --tung and his fol- about how Roosevelt sold Chiang dent line in 1927-28, launched their lowers were the first to prove that Kai-shek down the river when he own agrarian program and set up communist-led re??olutions in semi- agreed to give Stalin what he want- the Red Army, and first soviet, colonial countries can conquer pow- ed in Manchuria. People overlook without party directives. Mao is er by combining tre role of national the fact that at that same time the only communist leader-Tito ex- liberation with a:rtifeudal social-re- Stalin cut adrift the Chinese com- cepted-who has ;publicly criticized form- movements. In a setting quite munists. Once German defeat be- Moscow's agents. Fifteen years ago unforeseen by the Kremlin hierarchy - came manifest, it had been the night- Mao Tse-tung led in the arrest and they proved that sach revolutions can mare of Chiang Kai-shek that the removal from power of the last succeed without depending upon ur- Russians would attack Japan, with- Comintern . "specialist" sent to as- ban proletarian i?lsurdections, with- out any understanding with him. He sume active direction of the Chinese out help from Russia or the world feared that they would then prompt- Politburo. He was returned to Rus- proletariat, and oa the basis of the ly install the Chinese communists in Sia and-to the best of my know- organized pea:;antsy as a main force. power, in the wake of their own ad- ledge-has never had a successor. Today these communists observe a vance in Manchuria. The Kremlin Fifth, as a result of long isolation somewhat unortho?lox program based chose, instead, to :sign a treaty of and independent development, the upon Mao Tse-twig's original thesis alliance with Chiang, which promised Chinese CommutAppRmiad For Releas*E2O86/04t24 -GlaoR[ 18 415R01036dOb6l1k ff1%exclusively, and to Approved. For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China, Weekly'Heyiew, April 9, 049 recognize his . authority, and his alone,-in? a Manchuria where. neither he: nor the- United 'States. then had .any forcer:. I- was in , Moscow when that treaty was concluded. It was considered good diplomacy by both Chinese nationalists and American official observers. It was believed that . the treaty had definitely dis- posed of the Chinese Reds, "once and for all." There is, in fact, no evidence to indicate that the Kremlin thought otherwise or was interested in more than Russian nationalist aims in Manchuria. It offered no other ad- vance interpretation to Chinese com- munist headquarters, then still at Yenan, where the treaty came as a complete surprise. Communist The Money God -Shun Pao walled cities depend:,d upon it for survival. They all saw golden op- portunities slipping way as Chiang Expectations Kai-shek rapidly replaced the Japan Yenan's political line had clearly reflected quite other expectations. .Several days after the treaty was signed but before it was published -Japan had already surrendered- the Chinese communists issued a proclamation to their forces which -demanded: (1) immediate seizure of Nanking, and establishment of a "people's government" there; and (2) seizure of the cities of North China and Manchuria, and disarm- ing of Kuomintang troops in re- pudiation of the Generalissimo's au- thority. Yenan heaped scorn upon Chiang Kai-shek as a "fascist," a "traitor," and an enemy of the peo- ple no better than Japan's puppets at Nanking. This, about the man with whom Moscow had just concluded a treaty recognizing Chiang as China's supreme commander and Russia's loyal anti-fascist ally! It was nearly a week after V-J Day before the treaty was made public. It placed the Chinese com- munists under even heavier pres- sure than Marshal Tito had resisted when, not long before, Moscow had demanded that he accept Mikhailo- vitch as a valid "nationalist" leader of Yugoslavia. Finally convinced that the text was authentic, the Yenanites realized that both Stalin and the United States were com- mitted to support the Kuomintang regime. 'T'hey had no alternative but to compromise, in the first round of the postwar struggle. Within a month Mao Tse-tung was in Chungking, negotiating-at the instigation of American Am- bassador Patrick Hurley - with Chiang Kai-shek. Meanwhile, the American Air Force flew Chiang's troops into the key cities of the north to take over from the defeated Japanese. In accordance with the treaty, our Air Force and our Navy also ferried thousands of Kuomintang troops into Manchuria, The Soviet Rus- sian command gradually handed over the principal cities and rail- ways to Chinese nationalists-not to the communists. But the Chinese Reds were already too formidable a power to be liquidated by any mere scrap. of paper signed in Moscow. Over 1,- 000.000 members had a vested in- nese and the Russian;. So they, too, began a rush. for Manchuria, on foot. While the Generalissimo took over the railways end cities, the communists sent in some of their best troops and cadres to infiltrate the towns and villa;es, reinforcing local guerrillas. All this competition went on in the field, From the Yellow River to Manchuria, while at Nan- king both sides negotiated questions of constitutional government and military ;reorganization, with. Glens ,eral Marshall acting as mediator. Gave LittlAe Help From the best information I could get, when I was in Korea in 1946, the Russians had given little help to the Chinese Ro(:s. The ' latter were rather inclined to look upon their "loyal allies" as an obstacle, in fact. The Russians did nothing to halt their rural activities, when partisans had a ch.ince to disarm hinterland Japanese garrisons, or secure caches of awns. But they enforced the treaty in the cities. where they turned over power to Kuomintang author ties. Russian policy played no decisive role in the ultimate defeat of (,hiang's armies in Manchuria and it had no influence on the fate of the Kuomintang south of the Great Wall. As a result, theref )re, of the com- munists' sovereign victory in China, there now exists in East Asia a. new set of circumstances with significant implications both iieide and beyond the Marxist world. Moscow must deal with. a major, fo-eign power run by communists pos +essing all the: means of maintaining real equality and independence. This beconnes important when it is realized that potential sources of rriction between Soviet and Chine: e ' nationalisms already exist in Manchuria, Mon- golia and Chinese Turkestan, where Russian attrition ha: been going on for generations. The question is: Will the legacy of ast differences, and their influence of the psychology of the two regimes which now face each other along any thousands of miles of frontier, be overcome by their adherence to a common ideo- logy? Complete control of Manchuria, especially, seems i:idispensable to state. Despite lts 40,000,000 popula- tion, Manchuria. i5, still the" greatest area left open,for settlement by im- migration from densely crowded re- gions. It -contains more than 80 per cent of all China's iron deposits, 37 per cent of her forest lands, a large part of her coal, and great water-power resources. Before the war it held about 40 per cent of China's railway mileage, 70 per cent of her total smelting and mining enterprises, and over half the textile industry. It accounted for 40 per cent of China's entire export trade. Under Japan, Manchuria's industrial facilities and communications great- ly expanded. Certain temptations are inherent in Russia's special position in Manchuria, cbup?ed with -the au- thority of the Kremlin hierarchy in the world communist organization. By the Treaty of 1.945, Russia be- came half owner of the trans-Man- churian railway system, which has its terminus at Dairen. Russia also acquired equal ownership and man- agement rights in valuable auxiliary mines, industries, hotels and other enterprises. Moscow obtained joint control of the naval and air base at Port Arthur, the right to move troops in thz railway zone, co-ad- ministrative authority in the city of Dairen, and duty-free trans-shipment rights. At last there is in Manchuria a government which would appear to fit Moscow's description of "friend- ly." Indeed it is pledged, by past vows made before Chinese com- munists came to power, loyally to obey Kremlin-that its, Comintern- directives. And yet-they are still Chinese there. They can no more wish to see Manchuria or any part of China absorbed, annexed, bossed or pushed around by Russia than the Russians would like to see Siberia annexed,-as an "autonomous state," by China. Head-on Collision If Russia were now to seek to deprive the Peiping government of control over the economic, political and military life of Manchuria or to detach it from China after the pattern of Outer Mongolian "inde- pendence," there would be a head- on collision of nationalisms within the communist-run world. Chinese communists could no more survive the loss of Manchuria to Russia than the latter could permit the annexation of the Ukraine by com- munist Poland or its absorption into a Polish-German communist federa- tion. What meager reports one gets about current Soviet-Chinese rela- tions in Manchuria indicate that old suspicions persist, abetted by the Chinese basic dislike of Russia's colonial position there. And , the Chinese still resent Soviet looting of Manchurian machinery stocks, arsenal equipment, and so on, esti- mated by the Pauley commission to be worth $850,000;000. China-trained Reds have also been somewhat disillusioned by their en- counters with Soviet bureaucrats in terest in the party. Nearly 1,000,- any regime seeking the planned de- , Manchuria. Among themselves the 000 troops which sip J F & ele` 0G6/04/ lli?uCW .RDI eO0415M1 O0G060O?$t4 practiced an Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 9, 1949 almost ascetic equality in living con- ditions, sharing everything alike be- tween officers and men. They were rudely shocked to discover the wide differences in food, clothing, quart- ers, pay and privileges between various grades of Russian soldiers and civilians. There have also been incidents of arrogance and cone descension. A more serious source of friction is likely to develop out of the prac- tice of importing Russian-trained, Russian-speaking Chinese to take over responsible authority in the Soviet-Chinese joint enterprises and in zones of co-occupation. An out- standing- case of the kind was the return of Li Li-san, who was brought to Harbin, and is now a figure of power, owing to his close connection with the Russian secret police. As former head of the Chinese Communist Party, Li Li-san bitterly fought Mao Tse-tung and had him expelled from the Politburo. Mao won out in the field, where he organized the Chinese Red Army, and Li Li-sari fled to Moscow fifteen years ago. For a time Li had Corn- intern support, but Mao's success with the peasant movement earned reluctant sanction for his "line." Now, in returning Li Li-san to Har- bin in 1945, the Russians reopened an old chapter of rivalry. On his own, Li could no longer seriously challenge Mao's internal prestige and popularity. But some Chinese communists think that his restoration to regional power was symptomatic of a Kremlin policy aimed eventually to establish an au- tonomous Manchurian party dominat- ed by Chinese loyal to Moscow rather than the Chinese Politburo. Although Mao Tse-tung issued a belated welcome to Li Li-san, he must have resented this development much as Tito resented. the MVD specialists sent in by Russia to "supervise" in Yugoslavia. But 1945 was no time .to rebuke Moscow. Until' China was firmly unified under communist power there would be no open schism between the Russian and Chinese parties. New Federation And today? Much depends upon how far .the Russians push for the separation of Manchuria from China. Far from accepting the role of satel- lites, either for Manchuria or China as a whole, the Chinese communists look upon their country as the poten- tial focus of a new federation of Eastern socialist states, which can exist independently, on a plane of complete equality with the U.S.S.R. While the Kremlin cannot be much happier over such a prospect than it was about Tito's Balkan federation scheme, it would be highly illusory to imagine that the Russains will promptly repeat, in China, the mis- takes which lost them effective con- trol of Yugoslavia. They will pro- ceed with extreme caution, hopefully waiting for the Americans to make success could be improvised. able, rather than abide by ideological democracy that h have grown grown with fled or greatly complicated by Ame- rican policy. ? Sc long as it is true that the United States is the main support of the old regime in China, and of any of all anti-communist parties, groups, politicians or war lords prepared to continue what is now clearly a Inst war, Americans will easily hold their present posi- tion as Foreign Enemy No. 1. But it is reasonable to suppose that by 1951 the communists will have shat- t,--red all opposing military power in the country, and America will have accepted tha inevitable. What then ? The new Peiping communist re- gime has been etablished by a re- volution which satisfied some urgent needs. of the ieasantrv-combined with the eiiergg,' aroused by anti- foreign slogans of a nationalist movement. It can succeed and endure only by c)ntinuing that same pattern---by redsrming the most im- portant promise:; of internal progress, popular reform arid true national in- dependence. It cannot succeed by betraying those promises. It would be destroyed if it surrendered the interests of the Chinese people to Russian demands which might make of China a coil nial ;instrument or base for aggress ve war against the United States. Ambitious Program The new gov: snment's program envisages rapid ,ndustrialization, ex- panded public wo-ks and communica- tions of all kinds, greatly increased and modernized agricultural output, enlarged facilitie for mass educa- tion and public-hoalth work, and the training of thousands of new techni- cians capable of directing an econo- my co-ordinated by state planning. Yet it starts off with a nation that is bankrupt--it: cities ruined, its railways wvech(d, its machinery antiquated or useless, its river and canal systems broken down, its peo- ple hungry, wr ary and ragged, eager to work bit lacking the tools and other means. Chinese com- munists are not so stupid as to think, once they 'begin to carry the full responsibility of national power, that they can solve all those internal problems and sie iultaneously 'launch a war, or help lussia to launch a war, against the United States. All Chinese a- e deeply conscious of the desperate need for an extend- ed period of pence. Mao Tse-tung knows that his ambitious state pro- gram will require capital and credits on a huge scald, heavy industrial machinery and ools of all kinds, and hence a large volume of foreign imports. He and other communists realize that Russia cannot satisfy demands for capital goods even in Eastern Europe and Siberia. Still less can Russia right now become the industrial arsenal of a new China. If the noN- regime is to make a speedier Success of modernizing China than its predecessors, it will credit arrangements. America is un- likely to recognize the new regime until it has unified control over all China. Even after that, relations may be distant and cool compared to the past. But the roots of anti Americanism are not deep in China. They will diminish in proportion as the need of American help becomes more urgent. No Menace To US China as it stands presents no war menace to the United States in the visible future. General MacArthur was quite right when he said recent- ly that Chinese Red successes did not endanger our security. As a market, China need not he missed in the American economy; the balance of our trade there has been heavily unfavorable for many years. This is an excellent time for Uncle Sam to leave the initiative in our future relations entirely up to the Chinese, and give them plenty of time, years if necessary, to realize the main fact. That is, that Sino-American trade is at least as important to China as it is to the U.S.A. I have suggested that there are serious contraditions between the na- tional aspirations of the Chinese communists and Russian nationalist expansion under the guise of "inter- nationalism." But such differences are a very minor matter compared to the "contradictions" between the "national aspirations of the . Chinese communists" and the aims of con- tinued American intervention against them! If the purpose of American policy is to strengthen China's inde- pendence from Russia, then it is not likely to be achieved by forcing the communists-who already rule about half the population-to resign them- selves to the terms of Russian al- liance, in self-defense. If it were demonstrated, however, that the United States does not intend to hold onto any part of China, nor to try to impose its will there in al- liance with anti-communists of all varieties, the factors I have discuss- ed would then come into operation in establishing the character of Sino-Russian communist relations. In any event, in the long run the Chinese Communist Party probably cannot and will not subordinate the national interests of Cliina to the interests of the Kremlin.. If our policy is washed clean of interven- tionism, history may evolve along lines for which all the necessary preconditions now exist. China will become the first communist-run major power- independent of Mos- cow's dictation. And that in itself would project entirely new perspec- tives within the socialist camp as well as elsewhere. Peiping might eventually become a kind of Asiatic Moscow, an Eastern Rome preaching Asiatic Marxism out of Moscow's control. As such, it would come to constitute the sym- bol of the overthrow of the Euro- pean colonial system in Asia, as China now represents a long-range preferences. China will need at private-property rights in the problem of "management" for the least the .businesslike understanding ownership of this means of produc- Kremlin, which poleas261~&ifs/2~nc1C1S4AbFt810ff$5ROY000f60~1?7er hand, it might The China Weekly Lase 2006/04/21 : CIA-RDP83-00415R003000060007-4 131 also set up a frontier against the expansion of communism as an ex- tension of Russian nationalism in the East-a barrier as effective as that now erected at Belgrade in the West. It is just possible that an inde- pendent China under communist leadership, at the center of a new system of independent Asiatic states, might eventually prove to be a prin- cipal factor in the stabilization of world peace. Given the opportunity to develop its own resources in arm's-length co-operation with other nations, such a new Asia might form a bloc of powers important enough to maintain a stable balance between the Russian and American spheres of influence. People accustomed to thinking in terms of ideological absolutes may find it hard to understand how "com- munism" can be contained by com- munism or how it could be checked by anything but its exact opposite, which they tend to see as "capita- lism." But there are many shades and variations in meaning and growth in words of that type, and there will he more. Dialectically, it is likely that the threat of Russian world dictatorship will be checked by rival developments of communist power as well as by social democracy and modified capitalism. New Polarizations. History shows us that aggressive universal faiths and organizations have been halted beford they con- quered the world-or burned it up- by internal rivalries or disintegra- tion more often than by attacks from without. Until a few months ago, many people considered it an im- mutable law that communist states everywhere, at all times, would al- ways submit unconditionally to Kremlin dictation. But even people who do not understand anything else about the Yugoslavia schism realize that something new has been added to the word "communism"-because the above statement is obviously un- true. Now at least it must be amend- ed to read: "Every communist state. at all times, will submit un- conditionally to the Kremlin-unless it has an army and a police force loyal to its own national leaders first, and to the Russian national leaders second." Anyone may speculate about what comes next in China, but no one can now predict all the results of the new polarizations of power in Asia. There are grave risks involv- ed in a policy of nonintervention in the internal affairs of China and other Asian states. There are per- haps even greater risks entailed by unqualified support of the status quo. For even the most myopic ob- server must realize that a now era of nationalism-independence com- bined with various forms of social revolution-is now a reality for most Asiatic nations. Events in China are merely the most dramatic cur- rent expression of an upheaval that is shaking nations from Korea to Arabia. And Japan. had the right phrase for it, even if history took a different road to achieve it. It They are fed by the Indonesians in spite of reprisals by the Dutch on any village found giving assistance to the Republicans. According to eyewitness accounts Republican activities in Middle and East Java are increasing. Systema- tic night attacks have destroyed rail bridges, railway stations and high- way stations and highway bridges. Road blocks are common. The use of land mines is increasing. One, or two important towns were so isolat- ed they had to be. supplied from the air. The Republicans 'boast that no Dutch have set foot in Atjeh, . in Northeastern Sumatra, since the end of the Second World War. The Republic periodically an- nounces the recapture of towns and even the reoccupation of certain parts of Jogjakarta, their former capital. The resistance is costly to the Dutch. The total is estimated at $300,000,000. Indonesians are con- vinced Economic Cooperation Ad- ministration money has been used to finance this military venture. They argue that only withdrawal of ECA assistance will have any positive effect on the Dutch policy. There is a common 'saying here : "Hit them in the guilder-that is where it will hurt most." r p1~ h~11N i4YN6 N/~,~ ?IEuC~E! is the era of "ASiaAfpp 0 -tWOW i i "ReIeasep 086t/~4 1a: CIA-RDP83 004 5ROd300006006'T 4uth --and of government of, by and for Asiatics. It is not my funct on here to pre- dict whether this era will be for better or for worse, for all concern- ed. It is not in ny province to pass any moral juegmonts oii the events themselves. What is im- portant for everybony, however, is to recognize the changes visibly made by history working before out eyes. Especially the basic change, Java Today,: which is that the entire colonial sys- tem is close to an end. Any policy which denies that or aggressively attempts to revive im- perialism-under whatever name- can only prolong the struggle of Asia for equality and independence, at further frightful waste of human effort. But it is much too late. to restore any empires in this part of the world. Too late for Russia as well as for any other power. Resembles Police State-, --Frances M. Earle (The following account of conditions in Indonesia, written by Dr. Frances M. Earle, associate y,rofessor of geography at the University' of Washington, is reprinted from THE SEATTLE TIMES.. ~, Dr. Earle has been in Southeast Asp on research work for c year, the past nine months in Java. She was in Jogjakarta, the Republican capital, when it was bombed and captured by the Dutch on December i9-Editor.)AVA today resemi les a police state. In the larger cities, including Ba- tavia, there are civil police, military police, general police, special police, Indonesian police, lCurasian police, and Dutch police-pius the Army, the Navy and the M.trine Corps. The police and the military can and da regulate alrn rst everything- except traffic. Jeeps, trucks and weapons-carriers are familiar. They are all of United States manufacture. So are most of the military planes. So are many of the uniforms, procured from surplus stocks in th South Pacific. Boyish-looking Dutch marines wear canvas shoulder bag marked: "U.S. Navy Gas Mask." Dutch troops in Indonesia in Dec- ember, 1948, were er timated at 130,- 000 to 140,000. At least one shipload of troops from Hol,and has landed since then and another is reported en route. In the interior, Republican forces are operating. They are not as well clothed as the Dutch, or as well- armed. But early statements by the Dutch command .th tt the Republic would be crushed it the first three days of operation were gradually modified to six weep s, then to three months. The official Dutch sent is that nothing but sporadic guer- rilla attacks are being made. Pri- vately, the Dutch t a 1 k hopefully about pouring ad- di 'onal'trloops+ into Java to end Re- publican resistance by July. , Republican troops have in- filtrated or return- ed to the pockets they forz!Igerly oc- cupied in Western Java. There are 40,000 to 45,400 132 Approved For Release 2006/04/21 : CIA-RDP83-00415,A02PPe&Uview, April 9, 1949 Educational Changes In Peiping Yu Wah Peiping (by Mail). THE liberation of Peiping came sooner than was expected and education was caught unprepared. Moreover, education constituted. a different problem from the political takeover, and the Communists felt it should be dealt with slowly. The frequently in the last two months to discuss what can be done to gear the university system to the New Demo- cracy. However, all feel that the changes must be so basic that it will take time to effect them. Further- more, although in such fields as science, engineering agriculture and medicine students have been trained along western lines and the labora- tories and textbooks have been im- ported from the United States and the United Kingdom, there is such need for trained personnel that the status quo must be maintained until a smooth changeover can be effected. Likewise, the law schools have been left alone because there is nothing to replace them at the moment. In the arts college, however, some minor changes have been made. Com- munist literature has been introduc- ed into the freshman Chinese classes, and in freshmen English the old textbooks have been discarded and English-language material on Russia substituted wherever possible. Some students even requested exemption from freshman English. A special examination was given at Tsinghua University in March which released a small percentage of students from the course, but the majority will con- tinue the study of English. Since the Government has not de- manded any immediate reforms in the curricula other than the elimina- tion of reactionary material, the faculty members favor postponing any action until the end of the second semester in June. university system, imported as it was from the West, could not be transformed overnight into one in keeping with the New Democracy. The Communists have laid dowry the general line for educational re- form but its technical details are to be worked out later by the educators The author of this article is not known. pr?5sonally to the edi- tors other than the fact that he is connected with Tsinghua University in "eiping. His re- port, therefore, is not offered as a definitive account of Com- munist views en university edu- cation, but rather as an infor- mative description of 'the changes which , have already been made or are being con- templated--Editor, under government supervision. The University, for example, has gone guiding principle is this: Education down 50 percent. under the New Democracy must Another ttrge:, of criticism is transform China from an agricul- theology, the teaching of which has turally backward into a modern in- been prohibited. This ban has af- dustrialized country. Naturally, fected the Chine:.e Catholic Univer- science, engineering, agriculture and sity and YenchingP University.' Pri- medicine are given first priority. vate individuals, however, are to be Science And Agriculture allowed religious freedom until such The type of pure science which time, the Communists envisage, as science returned students introduced the advances to a stage where of natrre can be brought h to this country in the last 50 years uforces control. under n is condemned today for its isolation Marxism and Leninism, which from applied science. The concensus could only be '-smuggled" to the now is that the study of pure science students under tie Nationalist rule, should be incorporated with that of now are being given widespread at- applied science and scientific colleges tention. The two subjects are being and factories should be interrelated, taught at Tsinglnra, Peita and Yen-, so that science and engineering stu- ching, although n.r credits are given, dents may go into the factories for and in three new Communist univer- practical experience while factory sities which have been established in personnel may attend college for in- Peiping. These universities, the struction or exchange of views on People's Revolutt.n University, the various technical problems. Both North China Mil tary and Political government and educational circles - University (of which Peiping's favor the setting up of separate in- mayor, General Yeh Chien-ying, is stitutions outside the universities to chancellor) and th No th Chi , e r na train technicians,- the number of University, have a combined atten- It has been suggested by educa- which must be greatly increased to dance of 20,000 ,,tudents, and offer tional circles, notably at Yenching fit in with government plans to four to six-month;' courses in Marx- University where US Ambassador J. boost production. No action, how- ism, Leninism an' the ideology and Leighton Stuart used to be president, ever, is expected to be taken before strategy of Mao 'tze-tung. that faculty members take over the the new academic year begins in Another 20,000 students from the administration of the universities in September. Peiping-Tientsin area are being re- order to release a number of office The same ideas. have been ex- cruited for the Civilian Service Corps workers for more productive work. pressed with regard to agricultural for the area soft h of the Yangtze While this suggestion has not been education. Agricultural colleges, it river. Members of this corps, after acted upon, office employees and is felt, should focus their attention a. brief indoctrina:.ion in Communist laborers at Tsinghua University have on how to. improve the economic life ideology, will foiiiw the Liberation already begun to engage in produc- of the peasantry through such means Armies for the taking over of Na- tive activities. The arable land at as increasing their productivity and tionalist political, economic, cultural the University has been distributed improving upon existing farm tools and educational institutions and among them for the spring crop and and fertilizers. The 'peasants, it is state-owned railways and mines the yield will go to the tillers. The hoped, will be encouraged to regard south of the Yangtze River. indication is that faculty members agricultural institutions as an imme- The education and economics de- and their dependents and students diate aid to them and not something partments of the universities have will follow suit. The present pay remote and of no concern. come in for only minor criticism. scale for educational workers is not Law departments have been the These subjects ara> regarded as in- large enough to support a family and subject of severe criticism which dispensable tools :'or the promotion dependents, therefore, will have to describes them as a "manifestation of the people's w:'Ifare if the bour- 'engage in some kind of productive of Nationalist oppression over the geois standpoint is replaced by that work. Students are still receiving people." The government has not of the proletariat. Bookkeeping and their government subsidies on a tem- indicated definitely that they should accounting, for example, can be as porary basis, but eventually they, be closed down, but has declared useful to the New Democracy 'as to too, will have to revert to part time that the curriculum is "reactionary" any regime. productive labor. and students so trained will find Shortly after I'eiping'je liberation The government took over the themselves "unfit" for the new dem- the students in Tsinghua and other financial responsibility for Tsinghua ocratic state. While no action has universities began clamoring for re- University on January 1. The been taken by either the government forms in both the curricula and the salary of educational workers was or school authorities, class attendance university administration. Students virtually unchanged and is calculated at the law department at Tsinghua and faculty meml;crs alike have met in terms of so many catties of millet. Approved For Release 2006/04/21 : ClA-RDP83-00415ROO30000600074 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly' Review, April 9, 1949 Wages are paid both in cash and in kind. Basic pay is calculated ac- cording to two sets of formula, one for pay under 300 CNC and the other for pay above 300 CNC. Briefly, it works out as follows: If a worker's basic pay is 160 CNC, he receives nearly 600 catties of millet, 90 of which he receives in kind. If his basic pay is 400 CNC, he receives nearly 800 catties, 90 of which is paid in kind. An unskilled laborer at the. university receives 150 catties and a skilled laborer 300 catties. The price of millet was quoted at eight Jen Min Piao a catty in January and 11 Jen Min Piao in February. Up to March 17, when the government opened remittances and trade with the Nationalist areas, the conversion rate between the Jen Min Piao and the Gold Yuan was one to 10. (The blackmarket exchange rate between the US dollar and the Jen Min Piao is one to 600.) Administrative Changes Several changes have been made in university administration. For- merly, only professors and persons on the highest levels of administra- tion attended faculty meetings.. Now they are open to persons of lower rank as well. All decisions must be discussed and approved by the par- ties concerned before they go into effect. While under this system the president of the university may ap- pear to be only a nominal head, the feeling is that he should execute the decisions, not make them. The practicability of this has been illus- trated by the fact that Peita, Tsing- hua and Yenching universities have been virtually without a president since the liberation of Peiping and this has not interfered with their normal functions. Another notable change is that school finances, which formerly were a closed-door business, have now been exposed to public scrutiny. Also, the posts of dean of discipline have been abolished. Next in importance to educational reform is the task of setting up a research institute to make a thorough study of Peiping's population problem. The city has an estimated 1,300,000 non-productive consumers out of a population of 2,500,000. The pro- blem is how to encourage these con- sumers to migrate to productive areas and reduce the city's popula- tion to around 1,000,000. Results of the research institute's study and whatever recommendations it may make should,play an important part in the government's production in- crease program. The government is also employing scholars to translate books on law and government ad- ministration patterned after the USSR and the Eastern European countries. These reforms, and whatever others may be made here during the- next few months, it must be emphasized, are not final, and will not be until the entire educational system of the country can be unifi- d e The Week's Business DESPITE the issu ,.nce of big deno- mination notes of GY5,000 and GY10,000, the shortage of cash notes in the Shanghai market continued and more bank orders had to be used, many of which wt re found to be counterfeit. Prices in general continued to rise and the peak was reached on Mon- day (April 4) when gold was quoted at GY1,250,00b per ounce and green- backs at GY28,000. The price of rice reached GY160.000 per picuL This bullish trend was checked in the afternoon when the Central Bank of China dumped ?,0,000 ounces of gold in the ' market at GY1,250,000 per ounce and it w as reported that over GY70,000,000,0tr0 was recalled by the Bank durin';, the . day. A tight money situation was created and the interest rate went as high as GY300 per mule per day by evening. Many banks found it impossible to balance their accounts in the Shanghai Clearance House and sold gold bars to the Central Bank late at night at prices as low as GY900,000 per ounce. It was estimated that as much as 10,000 ounces of gold was sold during the night to the Central Bank, which made a profit of i;Y3,500,000,000. In this connectic n, it worthy of note that the Central Bank has brought large quantities of gold from South China in rtcent weeks and more is expected o arrive in the near future. Furthermore, gold is -being purchased iy the Central Bank in America ai the official price of GY35 per ounce. All these con- signments of gold are expected to be dumped in the local market to recall Gold Yuan notes. In his report to the Legislative Yuan, Dr. S. Y. Liu, Minister of Finance and Governor of the Central Bank, declared th:ai. China now has gold, silver, foreign. exchange and commodities valued at US$200,000,- 000. These assets, he said, will be dumped on the na rket and should last at least for one year. Accord- ing to Dr. Liu, C iina's total note issue at the end of March was only GY200,000,000,000. At the exchange rate then the Government could have redeemed .all the (old Yuan notes with US$10,000,000. Dr. Liu revealed further that three-fourths of the National Budget is being used for military purposes and that the Government will be able to meet its obligations by the sale of US$15,000.{100 worth of as- sets every month. The monthly bud- get for the entire Government is 120,000,000 silver collars, of which 90,000,000 silver dollars is alloted to the National Defense Ministry for military expenditur ~.s. ' ' Approved For Relea In addition to gold dumping, which constituted the most important de- velopment during the past week, an- other note worthy step was the deci- sion of commercial banks not to cash checks until after they have gone through the Shanghai Clearance House. This means a 24-hour time lag after a check is deposited, and brought local markets to a. standstill on Tuesday and Wednesday. This decision on the part of the banks was reached because of the increase in the number of dishonor- ed checks during the past months due to the practice of businessmen issuing checks without depositing the neces- sary amounts first. The banks had found it necessary to advance the money and often when it was learned late at night that the dishonored checks amounted to hundreds of millions of dollars, they were forced to sell gold at cheap rates to the Central Bank. The decision was adopted, there- fore, as a measure of protection for banks. New regulations issued by the Finance Control Bureau to stop the banks from the reckless issue of bank orders also checked the smooth flow of credits and, as a result, busi- picul, dropped to GY150,000 per picul ness and the markets were quiet. However, prices increased as soon as money became easy. By the evening of April 6, gold. was quoted at as high as GY150,000 per ounce while greenbacks were GY32,000. The price of rice, which increased to the new record of GY200,000 per picul, dropped to GY150,000 per picul .on the same day when more arrivals reached town. Although statistics are not yet available, well-informed business cir- cles state that many firms have clos- ed down and many others have gone into bankruptcy. The Central Bank's policy of selling gold at high rates and buying it from the public at extremely low rates when money turns tight has been the subject of strong criticism by the local press during the past few days.. It is felt that the Central Bank should assist businessmen rather than compete against them. The following list gives the quota- tions of some of the .leading commo- dities on March 30 and April 6: Mar. 30 Apr. 6 GY GY Gold 800,000 1,340,000 US Dollar 16,000 29,500 . Clearance Certificate 16,000 Silver Dollar 12,000 20's Yarn 2,930,000 Rice 89,000 Wing On Textile 9.75 26,000 27,500 5,000,000 168,000 24.50 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 9, 1949 NEWS OF THE WEEK Delegates Open Peace Talks; Nanking Students, Army Clash THE Government's six-man peace delegation headed by General Chang Chih-chung arrived in Peiping by air on April 1 to start negotiat- ing peace with the Chinese Com- munists. Details of the delegation's reports to Nanking were kept strictly secret and most of the papers. were resorting to speculation on the na- ture of the current talks. The Kuomintang's official organ, the Central Daily News, published in Nanking, disclosed that the delega- tion opened negotiations in Peiping with proposals of an immediate cease-fire and convocation of a multi- party political consultative confer- ence. It was even claimed by sources close to acting President Li Tsung- jen that the Communists had agreed in principle to issue a cease-fire order shortly. But competent observers believe the matter is not that simple. It is understood that the Nation- alist peace delegation spent the first few days in an informal exchange of views with individual members of the Communist peace delegation in order to "cultivate friendship" and create a more favorable atmosphere for formal talks. One Chinese paper said General Chang Chih-churip, em- phasized the Government's sincere desire for peace in the interests of world peace at an informal meeting with the Communist delegation. He was further reported to have said that mutual recognition and not mutual antagonism was required be- tween the two parties. He urged mutual consultations, not arbitrary decision; mutual concessions, not des- potism. According to the same paper, General Chou En-lai, head of the Communist delegation, said in reply: "It is only a dream of fools to think that a third world war will break out." Those "fond of war," General Chou was reported to have declared, wish to take the opportunity of talking peace to delay the attacks of the Communist People's Liberation Army so that they can rearm for a counterattack. He further de- manded that Communist Leader Mao Tze-tung's eight terms be carried out and that the Kuomintang de- monstrate its sincerity by actions and facts, not mere words. The mood of pessimism is very strong in well-informed circles in Nanking regarding the prospects for peace. In the words of an out- spoken and sharp-tongued observer, "Maybe it was only a coincidence that the long-awaited peace confer- ence between the Kuomintang and the Chinese Communists should have started on April Fools' Day. It will be the Chinese people who are most likely to get fo.yled." * Nanking In,-ident SEVERAL hou.-s after the Govern- ment's pease delegation left Nanking for Peiping, there occurred in the capital r, highly regrettable incident, involving students and army officers. As a r^sult, a student was killed and more than one hundred others badly injured. There' were different. ver sioi s of the incident. But some facts were beyond dispute. It was understocd that several thou- sand students of the various colleges and universitie: in Nanking staged a demonstration and went to peti- tion acting Pre ident Li Tsung-jen about improving the livelihood of the students as l releasing students who were rounded up last year. The students reasoned ,that since acting Presidens Li had already ordered the release of all political prisoners there was no reason what- soever why th:, arrested students should still be detained. Besides, the recent skyrocketing of commodity prices- has mad. life very difficult for the students According to Reuter, the demon- strating students shouted such slogans as '94 ore American Aid Would Kill Our People." They carried posters saying: "We Oppose False Peace. ])own with Bureau- cratic Capitali;i s! Liquidate their Pr9perties! W:~ Oppose Conscription and Taxation in Kind." False Peace The .4ssocAat, d Press reported that the demonstrating students dis-, tributed leaflets which said among other things: "Now we are hearing of the departur= of the Government's peace delegation. This is' only a gesture to fool 'rhe people since the Government hac, lost the war and all its troops.... We know this peace f,esture is false because the Govern,, ment continues large-scale conscrip- tion of troops, requisitioning of food, and because the Government is con- tinuing its prep,,rations for war and strengthening the Yangtze River de- fense." The official vex sion, as made public by the Government, described the incident as a `clash" between in- activated Nationalist army officers and the demonstrating students who were charged with having aroused the of the officers with their "pry,-Communist propa- ganda." But tho official store, failed to explain wh r more than 100 students were . injured in this "fracas." The students told a different story. They charged that the whole incident was a well-planned job. They were beaten up with wooden clubs by more than 1,000 inactivated- army officers now under the care of the Ministry of National Defense. It was further charged that a large group of students was stoned and clubbed in front of the gates of the Presidential Office. The heavy casualties among the students indicates that the whole matter was something bigger than an "accidental" soldier - student fracas. Reports on the number of students injured also were conflicting. The spokesman for the Nanking gar- rison headquarters said only 60 students were injured. The Ministry of Education, in conjunction with the presidents of the various universities and colleges in the capital, conducted a thorough check and announced that 110 students were injured, one of whom died afterwards. The casualty list made public by .the students counted one killed, 70-odd badly in- jured, 200-odd slightly injured and 30 missing. Violent Reaction The Nanking "incident" caused a big stir throughout the country. The violent 'reaction on the part of the Chinese Communists, as evidenced by the sharp attacks voiced by the Pei- ping Red radio station; added significance to the trouble. The Government authorities were doing their best to hush up the matter. A special curfew has been enforced in Hankow, Foochow and elsewhere to ban student demonstrations. In Shanghai, precautionary measures were taken to forestall similar student trouble. The local Chinese and foreign press was called upon 'by the Government authorities to help enlighten the students "not to be utilized by some subversive trouble-makers." Fang Chili, director of the Shanghai Kuomintang Head- quarters, deplored the Nanking in- cident and requested the local press to wield its editorial power to prevent a similar tragedy in Shang- hai. In order to prevent further trouble, the Government has ordered the removal of the inactivated army officers from the city to the suburbs. But Tenter reported. April 4 from Nanking: "Last week's skirmishes between demonstrating university students and veteran Kuomintang' officers and N.C.Os back from the front threatened to flare up again today when officers picketed the Dramatic Art School and threatened to shoot any student venturing out- side...." Approved For Release 2006/04/21 : CIA-RDP83--00415R003000060007-4 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 9, 1949 Psychological Warfare AT the same time when peace negotiations between the Kuo- mintang and the Communists form- ally started in Peiping, there ivas a significant exchange of massages be- tween General Fu Tso-yi, former Nationalist commander-in-chief for North China and Communist leader Mao Tze-tung'. General Fu, in a circular message to Chairman Mao Tze-tung, all democratic parties, people's organizations and patriotic elements inside the Kuomintang, pointed out that Peiping was saved from destruction by a peace settle- ment and expressed the hope that all Kuomintang military and govern- ment personnel with patriotic senti- ments would courageously admit their mistakes and work for peace, on Peiping's pattern. Fu also pled- ged y.:,, support to the Communists. Mao Tze-tung in his reph' wel- comed Fu's willingness to stand on the side of the people and told the civil servants in Nationalist China that they would also be welcome whoever they might be, provided they distinguished right from wrong. Mao's statement is viewed as a severe psychological blow to the Nationalists. Reuter commented: "Qualified neutral observers here today told Reuter that the Chinese Communists dealt the Kuomintang Government what was probably the most serious psychological blow so far when their chairman, Mr. Mao Tse-tung, last night told Nationalist officials that `they will be welcome to work by us. no matter who they are.' "Mr. Mao's broadcast statement may set at rest lurking' fears in the minds of many Kuomintang minor officials about what may happen to them if the Communists took- over all China, these observers said. "The statement might also im- measurably increase the popular lethargy among the masses in Na- tionalist China towards further re- sistance to the Communists, and heighten the prospects of further `piecemeal peace' on the Peiping pattern unless it is quickly and effectively countered by the Ho Ying- chin Government, they said. "The statement has virtually cut off any further retreat of the Na- tionalist Government from the peace conference table at Peiping if the Communist terms prove too severe, these observers thought." MacArthur Plan T HERE. has been march agitation in recent weeks in the United. States for extending more aid to Nationalist China in its desperate fight against Communism. Harold F. Stassen proposed a MacArthur Plan for Asia patterned after the Marshall Plan for Europe. He elaborated on the subject: "We must conclude we are foolhardy to con- tribute by our action or by our withdrawal of aid, to the Com- States. Before the signature, the Soviet Government had protested to the Atlantic countries against the project, which it charged was ag- gr'essive and aimed at Soviet Russia. It further charged that the pact violated the United Nations charter and the Potsdam and Yalta Agree- ments and contradicted both the Arlg'lo-Russian and Franco-Russian non-aggression treaties. President Harry S. Truman signi- ficantly emphasized that the in- fluence of the pact "will be felt not only in the area it specifically covers but throughout the world." He also hailed the pact as a "shield against aggression." But Senator RoLert A. Taft thought otherwise. He said the pact might increase chances of an- other world war and' called on the Senate and public for a "complete discussion" on its issues. Taft, powerful chairman of the Senate Republican Policy Committee, expressed grave fears about the consequences of the pact in an address prepared for broadcast. He said despite provisions reserving to Con- gress the right to declare war the pact in fact would bind the United States morally to go to war if any member- nation in Europe is attack- ed either by Russia or some other power. "I am inclined to believe, there- fore, that if we adopt the treaty we should do so with the frank ad- mission that we are committing onr- selves to go to war if Russia attacks one of the Western European na- tions," he said. While he did not consider this as "conclusive argument" against the treaty, Taft said he was fearful that its terms might "make us a policeman for all Western Europe" even if Russia became peaceful in the meantime. His most serious con- cern, however, was that pact nations "may give the Russians the im- pression, at least justified by them- selves, that they are ringing them around with armies for the purpose of undertaking aggressive action when the time comes. "They may feel that, if war is to come, they had better undertake it before these armaments are built up. Under such circumstances, the pact, instead of being a deterrent to war, might become an incitement to war and make it more probable instead of less." Reaction in this country .to the Atlantic Pact is varied. Acting Foreign Affairs Minister of the Na- tionalist Government George Yeh told the Chinese press that the pact would probably avert a third world war. A joint statement issued by leaders of the Chinese Communist party and various democratic parties and groupings condemned the At- lantic Pact as endangering the peace and security of mankind and. aiming at provoking a new aggressive world war. It promised that the Chinese people would fight shoulder to shoulder with Soviet Russia if the Atlantic Pact signatories. should dare assist by materials a l by counsel, in maintaining the it depa'id.enee of Canton and of the our southern provinces of Kwangt ing, ICwan gsi, Fukien and Hunan, and o? Taiwan and Hongkong." But Americans who are watching the China situation ci the spot feel that Stassen did not know what. he was talking about. I i this connec- tion, an AP story ma es interesting reading: "Americans in China read the debates of Congress which center on stopping Communism and wonder anew how Uncle Sam can stop Com- munism in this huge; crowded land without getting caugh in a flock of collateral problems t iat would re- quire billions and rn ght not even then be solved. "Most of them feel that Commun- ism, like every other revolutionary movement in China's history, was brought about by into ?nal conditions which the west always oversimplifies. They feel that until hose conditions are rectified, China is doomed to turmoil and to one revolutionary movement after anoth!r. "The renewed sug;-;?estions from Washington that the Red tide be halted by more Amer can money to the Nationalists so ends to the average American it, China like a suggestion that old mistakes be re- peated. "It also brings up the problem- who will the money go to? Chiang Kai-shek and the disp rsed remnant of his Kuomintang P-t vernment and the scattered indifferent ragtag' mil- lion or so discouraged men' en that re- main of his arrniec ' Or to Li Tsung-jen and his new regime which has its eye on one ot0j:ect and one only--some sort of place with the Reds? - "The suggested lilr,cArthur Plan has the American in Jhina scratch- ing his head even harrier. Does that mean a few hundred thousand Amer- ican troops to run the show and interfere directly in China's war-or does it mean another Stilwell affair with the new `MacArthur' subjected to the same obstructi ins and pres- sure frustrations wii -ch seem in- herent in China tower 1 any foreign leader who has a lot of money to spend? "Is Uncle Sam going to take on a job like that on the o ie ,hand while cutting 'back his own military ex- penditures elsewhere? And if Uncle Sam decides to underwrite the Na- tionalists with a MaeA rthur plan, is he also going to -shove' in additional millions to solve the land problem, to feed the people wi ale more war devastates more land,. to stop infla- tion which incubates urban misery and sows new seeds of Communism every clay?" Peace Or War THE much-debated -atlantic Pact 4 il 4 A '1 ll f pr on y sjgne orma was in Washington by 12 nations includ- ing Belgium, Canada, Denmark, France, Iceland, Italy, Luxembourg, bolster the e... southern ern p> dV6u F 9r Re ag@i2O0/04 2 :'C1A 4 8t3a0041'S4 6O3b6byj6 P-4 bols Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 9,'194.9 Chinese Magazine Roundup New Hope BEGINNING from its March 21 issue, the New Hope Weekly has printed a series of in- teresting and informa- tive articles about the factional strife within tical Science Cr rup, and the Re- formationists (tli, followers of Wang Ching-wei after the Nanking and Wu-han open rif', ). "In its struggle against the Com- munists, the CC is waging an ideo- logical war a:nsi. the common enemy o'f , all K;'i TT cliques, but in its struggle with fellow KMT mem- bers, the matter boils down to be that of a struggv:v for power, or to be exact, for pr vate interests." The CC clique managed to control the Government through the machinery of the party but the mass recruiting of C overnment officials into the party h is made the KMT become a loose organization, the magazine disclose. ";Under the principle that the party is all powerful, it' has always been the goal c f the CC to put everything under the control of the. party," the artic e explains. "Ac- cordingly, the rune was formulated that all public f inctionaries of the National Govern vent must become members of the ]-MT. Also, it was stipulated that all officers of the armed forces have to be party members. A system of the s(s-called `special re- gistration of pvrty members' was then set up to 'acilitate the entry of elite meniher. of society into the KMT. This me ssure, however, by opening the dou) to numerous op- portunistic warlords, bureaucrats and politicians who thus flocked into the KMT, had th. effect of seriously undermining th strength of the party and of gr,.dually bringing it to its present pli rht. Later on, the Central Training Corps was estab- lished as a mean ; of inducting peo- ple into the KM' I'. Those who are given one month of training are supposed to beco7:re `marginal' mem- bers, while those -.vho go through six months of training in the `senior training class' ar- absorbed into the nucleus of the party. But all in all, this practice has done, more harm to the KMT th,;n good, since the greater part of !he people inducted into the party ar opportunists who are only interes ed' in their own political advancen.ent, while a large number of men cf real talent become alienated from thr party." The phenomeu--1 success of the CC clique has be 'n due to the fact that it has the llessing and strong backing of Gen,rralissimo Chiang Kai-shek, the at',gaznie points out, saying: "That the CC has always been able to.have the upper hand in this political struggh is entirely due to the unshakable ronfidencc of the `Supreme. Leader' in the loyalty of their clique, and is not due to any xtraordinary skin or forsight as isplayed by its; members It is Chen brothers and though he, too, enjoyed the confidence of the Supreme Leader." Masses Weekly IN Shih-fu makes a detailed study in Masses Weeklji of February 3, of the lessons of Chinese revolu- tions and comes to the conclusion that the present revolutionary move- ment in China is quite different from the revolutions of 1911 and 1926-27 in Chinese history. "First," he says, "the historical characteristics of the present revolu- tion are vastly different from, the revolutions of the past. The Chi- nese revolution has developed to a point at which the relative strength of the revolution and counter-re- volution has undergone a funda- mental change. Today, the people's strength of the Chinese revolution, which is based on the ;proletariat and the peasantry in cooperation with the petty bourgeoisie and na- the Kuomintang. Several paragraphs dealing with the CC clique are given below. With regard to the origin of the CC clique, the magazine has this to say: The CC clique began its life as an anti-Communist organiza- tion, in the form of a so-called AB (Anti-Bolshevik) group organized by KMT members in-1927. Later .on, as the KMT organization became bigger and the control of the party became more centralized, the leading elements of the AB group were absorbed into the Organization Do- partment of the KMT. Finally, the AB group was completely dissolved and its membership came under the control of the Chen brothers who were then in charge of the organiza- tion work of the KMT. In this sense, CC really meant `Centralized Control' instead of the Chen broth- ers as is generally explained. According to the magazine, the activities of the CC clique spread from party affairs to the political field. "In the beginning," it writes, "the clique was only absorbed in party affairs and cultural activities. In was only after 1930, after the defeat of Generals Feng Yu-hsiang and Yen Hsi-shan, that the CC clique extended their influence over poli- tical affairs. So far as numerical strength is concerned, the CC clique probably heads the list of the various factions inside the KMT. But its leadership is too poor, and talented people preferred to stay away because they did not like being bossed around. Chang Li-sheng, top-level leader of the CC clique, once significantly remarked that, when he was the Director of Organization of the KMT, ' he did not even have the authority to ap- point or dismiss any of his low subordinates. The well-known Chow Fu-hai and Ting Mo-tsun, both of them high KMT officials who de- fected to the Japanese to become officials in the puppet Nanking re- gime, were all active members of the CC before they decided to de- sert. Others, like Huang Yu-jen who are now known for their.scath- ing attacks against the CIC in the Legislative Yuan, were also formerly followers of the Chen brothers and had been sent abroad by them. for advanced training. Still others, like Chu Chia-hwa and Chang Li-sheng, though fostered within the folds of the' CC, have now cut themselves loose and are wont to oppose the CC in all sorts of manners. , g political enemies come the Com- though he was in all respects much the helm. This is another guaran- munists, to be f 2iWpe6 dtPblPFkieleasWc2fl06l04/ 1 t'ICIIA DPO3n00415ROO80O00$OO?%-4'ictory." solely on this to count that Yang Yung-.tai, the la!- all powerful chief of the Political :'eience Group, was tional bourgeoisie, has far exceeded the strength of the counter-revolu- tionary landlords, bureaucrats and big bourgeoisie who are supported by American imperialists. The coun- ter-revolution is well on the high road to- destruction, while the re- volution is marching forward by leaps and. bounds.... "Second, the prevailing inter- national situation is also different from what it was in 1911 and 1927. After the Second World War, the whole world split into two hostile political camps as the result of the attempts made by American im- perialism to dominate the whole world and invade the countries in both Europe and Asia. The line-up is quite clear. One side is headed by the United States, comprising the British,. French and other im- perialists. The other is led by So- viet Russia, comprising the new de- mocracies in Eastern Europe and the revolutionary movements in the colonial and semi-colonial countries in the Orient. The former is an anti-democratic imperialistic united front; the latter, an anti-imperialis- tic democratic united front. Be- cause of the post-war political and economic trouble in Britain and France and the United States, it is impossible for the imperialists to act in concert against the Chinese revolution. The rapid growth of re- construction in Soviet Russia and other Eastern European countries has added to the strength of the world revolution, which is also superior to the global counter-re- volution. This is favorable to the Chinese revolution. "Third, the Chinese Communists who are leading the Chinese revolu- tion are no longer inexperienced and incompetent. On-the contrary, the Chinese Commnunt~ts have become hard-boiled, -well-tried and thorough- ly efficient with Mao Tze-tun at The China Weekly- Ipi roveAd Fps F g14gase 2006/04/21 : CIA-RDP83-00415R003000060007-4 US Magazine Roundup Foreign Policy Report SIGNIFICANT analysis of the North Atlantic Defense Pact is carried in the February 15 issue of Foreign Policy Reports published by the Foreign Policy Association. The study contains pertinent facts re- garding the background of the pact, written by Blair Bolles, and a dis- cussion of the pros and cons, con- tributed by Vera Micheles Dean. In outlining the background of the pact, Mr. Bolles recalls that the idea of a military alliance between the United States and Great Britain was first suggested by Winston Churchill in his Fulton, Missouri, speech on March 6, 1.946 and received a cold reception at that time. With British Foreign Secretary Bevin's proposal in January, 1948, for the formation of a Western Union consisting, of France, England and the Benelux countries, however, and the develop- ments in Czechoslovakia. - that Feb- ruary, the traditional American antipathy toward military alliances began to dissolve, he points out. The ice was broken for official American action on an Atlantic Pact with the passage by the Senate on June 11, 1948, of the Vandenberg Resolution proposing that the United States pursue international peace and security by the "progressive development of regional and other collective arrangements for in- dividual and collective self-defense" "Encouraged by the resolution," Mr. Bolles writes,-"the State Depart- ment in July initiated conversations with the Brussels powers and Canada" and on December 10 started negotiations on the Atlantic treaty. From here on Mrs. Than +~tres assumptions of the countries benefit- ing by the Marshall plan. Others. believe that it will ;)rove impossible to restore the sens,c of security.... until Russian troops....are with- drawn from Germany and Austria, and therefore urge, nstcad, negotia- tions with the USSR for a general or at least partial settlement on the continent." The State Depart.rient, Mrs. Dean says, answers the ti ?st of these ar- guments by giving *s onomic recovery priority over rearmament. How- ever, she points out, opponents of the pact contend tha:_ "the very pro- cess of rearmameen1 will - generate fears which still further rearmament will be needed to allay, creating a mounting spiral of expenditures in which military estimates will prevail over considerations +jf economic and social recovery." No direct answer, she says, to the second argument-- he need for a general settlement with the USSR- has been given by tie State Depart- ment, "whose basic premise is that the activities of the Soviet Govern- ment since the war save endangered peace and prevented recovery." The factor that it counted on to provide American pr'blic support for the pact, Mrs. Dear writes, is that it safeguards the American "con- stitutional process" }'y heaving in the hands of Congress the power to de- clare war. "This ve?y feature, how- ever," she notes, "arouses the most serious objections i-n the part of the nations of Western Europe" who realize they are tai? ing the risk of antagonizing Russia and want to be sure of automatic IIS action in re- turn. partment, she writes, "the core of the case for the pact" is that "if world recovery is to progress.... `the sense of security must be re- stored.' " Therefore, "the North Atlantic defense pact, backed by in- tegration of the armed forces of Western European nations furnished with American armaments either as outright gift or on terms of lend- lease, is a necessary corollary of the European Recovery Program." Those who question this thesis, she continues, "raise two principal argu- ments. Some contend that the mili- tary program envisaged under the North Atlantic defense pact would have an effect exactly contrary to that desired by Washington, since the necessity of diverting ;existing economic resources to armaments Would delay, and perhaps actually jeopardize fulfillment of the Euro- pean Recovery Program, both by reducing the amount of American and Western European manpower and materials available for peace- time production, and by making it politically difficult to achieve the revival of East-West trade on the continent which was one of the basic For Or Against UN? NEXT comes the question of the United Nation:. The State Department, Mr:s. i):ean says, main- tains that the pact is in harmony with the UN by virtue of Articles 51 and 52 in the harter. Article 51` provides that "Nothing.... shall impair the inherent right of indivi- dual or collective ca lf-defense if an armed attack occurs against a Mem- ber of the United Nations, until the Security Council 'mas taken the measures necessary to maintain in- ternational peace and security." Article 52 says that "Nothing. , . . precludes the Exists nee of regional arrangements or agencies for dealing with such matters relating to the maintenance of int. rnational peace and security as are appropriate for regional action... consistent with the Purposes and 1'rinciples of the United Nations." 'n this connt,,: -- tion, Mrs. Dean :recalls that the subject of re?'ioiFi arrangements came up at both the. Du'-bartort Oaks and San Fran-isco conferences with regard to regional. agreements already in existence in the Western Hemisphere and the "problems that might arise if the former enemy states should resort to aggression during the transitional period before peace treaties had been concluded and responsibility for keeping the peace had been transferred to the United Nations Organization." Chap- ter VIII of the Charter was drafted with these problems in mind, she says, and contains article 52. Mrs. Dean quotes "a distinguished international ' law expert, Hans Kel'sen," as saying that Article 51 was intended to be "a provisional and temporary measure" to be used "until" the Security Council took appropriate action and "not as a substitute for it." Therefore, she says, it has been argued that any pact such as the Atlantic one should be "firmly and unmistakably 'sub- ordinated to the authority of the Security Council." Otherwise, the veto power possessed by the US, Britain and France might conceivably be used "to prevent direct action by the Security Council." "A second major objection to the North Atlantic pact," Mrs. Dean writes, "is raised by those who wonder how such a pact would affect the position of the colony - owning nations of Western Europe in their relations to the dependent peoples of Asia. Would the United States, it is asked, in underwritir' - the security and economic recovery of Western Europe, be expected also to underwrite the status quo in Indo- nesia, Indo-China, Malaya, and other colonial areas, whose present condi- tion of unrest has a direct impact on the security and on the eco- nomies of Britain, France and the Netherlands? Will the nations of Western Europe be free to use the arms they max receive from the United States --- subdue native up- risings?" Closely related to this, she says, "is -the question whether the security of nations can be defended solely by military means against external threats or external aggression, or whether the main problem some na- tions face is the possibility of in- ternal upheavals .... There is danger . that the fear of instability and disorder understandably generated in the United States by the desire to see the ERP succeed within the time limit of four years set for it may cause some Americans to favor the maintenance of existing regimes and economic and social conditions, and to consider any attempt to alter the existing state of affairs as defiance of ERP. The intimate linking of ERP with rearmament might then conceivably induce the United States to permit the countrie benefiting by American aid to use their armaments for the suppression of internal dis- orders." Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Approved For Release 2006/04/21 : CIA-RDP83-0041,909APPgPPgRPTZ4iew, April 9, 1949 What Chinese Papers Say T HE Army attack on students in Nanking. and the formal opening of peace talks in Pei- ping were main for their freedom and. to fight for peace, they must be determined to proceed thoroughly and completely with the task of wiping out this group of war criminals. The Nan- king tragedy noIces it clear that the eight conditions for the realiza- tion of real p.--,ac(!., as brought up by Chairman Mao Tse-tung of the Central Committe< of the Commu- nist Party, and primarily the 'first condition for the 'unishment of war criminals, cannot permit of any re- vision.. . . . "The occurrence of the Nanking tragedy at such a time and at such a locality as it did cannot but lead us to question tie Nanking Peace Delegation: Where is the 'peace' advocated by v?~ur Government? The fact is that the Nanking re- actionary and traitorous govern- ment from which the Delegation comes has seriously violated the basic conditions of the peace negotia- State. The people throughout the country unanimously demand that the peace talks must be successful and that failure cannot be rormiteed. Violent propaganda outbursts will only obstruct sake thinking and clear understanding, and lead to un- favorable reactions from the people." The Shun Pao agreed: "If the, peace talks are to succeed, mime- diate suspension of all military orerations should be the first pre- requisite." But on the other hand the same papers asked the Government to strengthen its war preparations south of the Yangtze. The Chung Yang Jih Pao emphasized the im- portance of the defense of Yangtze, while the Ho Ping Jih. Pa?o, general- ly regarded as mouthpiece of the Nationalist army, explained that making war preparations do not run counter to talking peace. "To be prepared for war and to attend actively to the defense of the Yangtze really do not conflict with the peace efforts," the paper said. "Instead, such measures will be helpful to the peace cause. It is obvious that once our defense of the Yangtze is successfully taken care of, the peace terms, of the Commu- nists will not be so harsh, and hopes for peace will grow. Moreover, if the Communists - cannot cross the Yangtze, they cannot fight even 'if they want to, and they will have to cease hostilities even if they do not want to. As long, as the Commu- nists are prevented from crossing the Yangtze, the Government may continue to be on the defensive and not cross the river for a counter- offensive. In such a case, the war wi)W." automatically cease to exist, and peace will follow." topics of editorial comment in the Chinese press. The signing of the Atlantic Pact in Washington 4also drew some comment. Nanking Tragedy . IN commenting on the Nanking Incident, the Chung Ylang Jih Pao, official organ of the Kuomin- tang, advised the students to take into consideration the extreme grav- ity of the current situation and re- frain from "making trouble." "It is incumbent on the young students themselves to treasure the great sympathy which the public exhibits for them, and therefore to be constantly awake to the need of reviewing their own actions," the paper said. "Today the. situation is too critical. On the one hand, the peace talks are being begun, but on the other hand, the Communist Army north of the Yangtze is steadily pointing its gun toward the south and advancing by degrees. . "Every one who looks forward to the realization of peace must, therefore, value the present pre- carious moment, and seek to promote real peace with a cool head, by differentiating right from wrong, and investigating carefully the vari- ous issues involved in the peace movement. Violent propaganda efforts which are only partial to the interests of one party and blind rabble-rousing can only confuse is- sues and mess up the main prob- lems. Unnecessary demonstrations can only give rise to unfavorable reaction from the people and do the cause of peace more harm than good. Young people are emotional and easily excited. Since the stu- dent movement of the past two or three? years has produced unfavor- able impressions and repercussions, the students should do some hard thinking and should increase their sense of self-awakening." The Nanking incident drew a sharply-worded editorial from the Communist New China News Agency. A summary of the editorial, as printed in several papers in. Shang- hai, is given below: "The Nanking Student Tragedy of April 1 once more shows to the Chinese people that impossible to expect the Kuomintang war criminals to' repent and lay down their arms. The Nanking tragedy tells the Chinese. people once more that any attitude of leniency and protection in dealing with this group of war criminals will only mean that peace iii, China will not be realized. The Nanking tragedy further tells the Chinese people once tions. . . "Since Chaiirmar Mao Tse-tung, of the Central Comas ittee of the Com- munist Party on January 14 brought up the eight conditions for the realization of real and perman- ent peace, the Chinese People's Liberation Army .as been patiently waiting for two aid a half months. But the facts hav, now ?shown that this attitude' of p. etient waiting . has not changed in thf least the attitude of the reactionary and traitorous Nanking Governn ent. It has not made it lay dov n its weapoli of slaughter. The group of assassins in Nanking have row used the Nan- king tragedy as challenge to the people of China and the People's Liberation Army. Yes, the Libera- tion Army will 1-berate the whole of China. The i., beration Army is now preparing to cross the Yang- tze, to mop up ,.I assassins of the a people. The time is not distant when the patriots who have been sacri- ON the occasion of the signing of ficed in the Nanking and other the Atlantic Pact, the Ta Kung tragedies will to revenged. The [ho called upon all peace-loving time is not distans when the Kiang'- people to strengthen their fight for nan areas and th whole of Chipa safeguarding world peace. will be liberated." "Basically, the Atlantic Pact dis- k cards the machines-- of the United Nations and openly adopts a policy Peace Talks of military expansion," the paper IN discussing the peace negotiations said. "It must also be noticed that in Peiping, all Kuomintang- the ;bareign ministers of West controlled papers joined in demand- Europe, during their present visit to ing that the Con munists order an the 1J nited States to sign the Pact, immediate cease-f!re and suspend are also taking the opportunity to their war prepara ions, discuss the measures for the foster- The Chung Yanta Jih Pao wrote: ing of Germany, the suspension of ". To promote peace it is the dismantling of the war industry necessary that a lac ace(ul atmosphere plaits in Germany, and the removal be cultivated. if iI e Communists are of restrictions over Franco's Spain. really sincere in ;eeking peace to- At the same time, the United States day, they should immediately suspend is discussing measures for military military operation, halt their pro- aid to Europe. All these develop- paganda offensive, and cease all ments show that the threat of a new underground acii-'ities. The pre- war is growingly imminent. All the sent peace talks affect the fate of people throughout the world who are the nation and ,he lives, of the opposed to war must awaken to the Atlantic P ct Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly RPe ovRd1 Fq6- ease 2006/04/21 : CIA-RDP83-00415R003000060007-4 What THE current peace talk and the future of Christianity under Chinese communism was discussed in the US press. Other comment dealt with the recent cultural and scien- tific conference on world peace held in New York. a w * Christianity In China ~'HE Christian Science Monitor, in an editorial entitled "Christian- ity and Communism in Asia," said: "Since common ownership of pro- perty in the early Christian. com- munity broke down through the weight of human greed, Christians have recognized in. varying degrees that their `kingdom' was not of this world. It could be brought into human affairs only through indivi- dual regeneration and gradual social improvements following from more Christian lives. "But social improvements have often been slow in, coming. In Asia, for instance, the effects of Western exploitation have sometimes been more evident than the effects of Western Christianity. Even Chris- tians of the East are asking whether a new social system may not be necessary." The Monitor then referred to a letter written by T. C. Chao, dean of the School of Religion at Yenching University and one of the six presidents of the World Council of Churches, which was published recently in the Christian Century. The Monitor says the let- ter "speaks of the rejoicing of Chin- ese Christian at being 'liberated'. by the Communists from the Kuomin- tang regime" and quotes it as say- ing: "An unexpected thing has been the speed with which the Communists win and Kuomintang forces fall to pieces. No thoughtful Christian in China can regard this unexpected speed., without a deep sense of gratitude to God. Collapse of the Kuomintang armies means cessation of war, which is very much desired by all, while it causes Communists to recon- sider their policies and to become moderate . "Religion will- be indeed hated and despised, but also tolerated; and religion will be in need of a sort of reaceful persecution to emerge from cultus to reality . To my mind, we Christians in China are facing a most -creative, period of witness- bearing. One ;s thrilled at the dan- gers {and -opportunities confronting. Christianity in.mingled proportions." The Monitor comments: "Chris- tians in the West may not take so ebullient a view. The Chris- tianity which hopes to cooperate with dogmatic Communism may be in for sad disillusionment. But there is a tremendous challenge to Western Christians in . this new develop- ment. U'S Papers Say witness-bearing.' ('1 ristianity has spiritual substance- s Communism has only delusive shadow-of the justice, the security freedom of spirit for which the world's millions long. Let Christians increasingly translate into social action the. love they are taught for tl e poor and dis- possessed of.the earth aid they will increasingly win the ,e millions to their side. "Asia is a g,re:ct laboratory today. Western Christendom can hold out to it a real and practical hope for more abundant life. lerc is the best answer to the, Communist challenge and Christian confu~i in there." Peace Talks W THE New York Ti nes took a pes- sitnisti view of the cucren, peace talks in Puipiw,, voicing the opinict that, since no chance to come o ,it on top, they should be called "capitulation" con- ferences. The paper said: "There is little it i.son to be op- timistic about the `peace' conference that opened in China April 1. If Nanking's delegates wake an honest effort to reach a ger-rine compromise of differences they wiii fail. And the alternative is outriga.; surrender. In- deed, the prelinl:inari.!s that led to the choice of the clanking delega, tion, coupled with the daily insistence of the Coniniurtist; North China radio that the only basis for discussion was the eight-polo . program of Mao Tze-tung, invite the suggestion that `peace' conference is a mis- nomer. `Capitulati,:n' conference would be more accur-rte. "The Nanking deli gates were ap- parently under few 'llusions. They described themselves as at the edge of a bottomless abye;. Even more pessimistic was t'aeir assertion that no insui mou itable difficul- ties need be faced, if there were `mutual confidence, ?nutuar under- standing and mutual concessions.' Those delegates arc all old enough and worldly wise enough to know that to. speak of in ituality in con- fidence, understandin_ and conces- sions in respect to a conference with the Chinese, or any other, Commun- ists, ., is to employ a contradiction in terms. "Repeatedly,, the Communist radio has insisted that it hts no confidence in Nanking, nothing but, contempt., rather than understa cding, for Nan- king's leaders, and no disposition have clamped down the `bamboo curtain' of secrecy. It is a mistake to talk about `censorship' in Com- munist China. There isn't a censor- ship, because there is nothing to Cen- sor. The press and the public will not be represented at any stage or in any degree in the negotiations. What the world finally learns about what happened will presumably be what the Chinese Communists think it ought to learn. . "These have been sorry days for the ` Republic of China. And few have been. sorrier than that on which these Nanking delegates `go before their conquerors and their judges to discuss the terms- of their sentence." Cultural Conference THE Philadelphia Inquirer sup- ported the State Department's assertion that the cultural and scien- tific conference for world peace held recently in New York was a "sound- ing board for Communist propa- ganda." The paper declared: "Our thoughts-our efforts-are directed toward peace. But we have learned, and we must . not forget, that while Russia's spokesmen shout about peace, they are putting bale- ful pressure on Iran, looming threat- eningly over Finland and spying upon every free country on the globe. Americans should keep their minds free of needless fears about all this, preserve . their strength and their will to, defend themselves and make Russia's acts, not words, the only basis of judgment about what the Soviet Union really stands for. The Christian Science Monitor ex- pressed belief ,that the meeting only caused "confusion;," The paper said : "Perhaps only political innocents could have, expected this sort of thing to promote peace. Americans can, by frank questioning of national policies, help to shape them toward peace. But similar criticisms from men who strain at gnats of Demo- cratic failings but swallow camels of totalitarian oppression are little likely to foster either reform, or good will. ... . "This meeting sought to promote the kind of `peace' desired by those who say: `We must cooperate. It is just a matter of good will and tolerance.' But on that kind of peace we should have liked to hear from those who have been liquidated in countries taken over by Commun- ists when America was 'cooperat- ing.' , . . to make concessions, mutual or other- "This kind of performance makers wise. Even after tie standard dis- for confusion. Where there is so lit- count, for propaganc-t_ is made, there tle room for real dissent and where is no reason to be hopeful even non Communists are so concern- that any `mutuality' will be seen, ed about Democracy~s faults, some except in the strictly Communist may be led to believe that America version. And that r ersion has been is preparing to attack Russia, But deed call for 'a creative period of gury in the fact that Com;mttnifts Politburo are so efpgged or ia1i ." Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060001-4 Approved For Release 2006/04/21 : CIA-RDP83-004190(?Q00~60g07-4 e ma eek y Review, April 9, 1949- The Review's English Lesson MR. Al. L. Chen suggested that we discuss a Time Magazine story, from the March 7 issue, concerning President Truman, titled r'Auother Think Coming." Unfortunately, there is not enough space to reprint the whole story, so we shall try to explain some of the expressions used, as usuaI:. Another think coming: A slangy phrase used to describe someone who has guessed wrong, who anticipates something which will not happen ; it is usually contemptuous. "If he thinks I'nf going to wait all day, he's got another think coming." Off-the-cuff : Extempore, as a speech. Nostalgic : Homesick. Smart-aleck: Smug, self-satisfied with own cleverness; smarty. Move on: This phrase can be used in two ways : the first, in its literal sense, to gb on, for- ward, ahead; the second, to describe committee action or decision. It is not clear from the context as given ("And when it is time for them (members of my staff) to be moved on,, I do the moving....") whether the meaning is to decide which persons are wanted on the staff, or to decide which are to be discharged (i.e., moved on some- where else). Blair House: A house near the White House, which is used to. receive distinguished visitors ; sometimes referred to as the "Little White House." Ineffectual gesture: A move or action that has no result; also, empty gesture. Sweeping the sea, or commanding the tides to stand still, are ineffectual gestures. Cracking: (Also crackling), as used in "cracking over the telegraph wires," is an onoma- topoetic word, describing the sound Qf the electric sparks. Contrite: Showing sorrow or regret for having committed a fault : repentant. Tentative: Of the natures of an experiment; something offered provisionally. The Word That Came td Dinner: This is a paraphrase of the title of a comedy that had a long and successful run in the United States. It describes the sufferings caused an innocent family by an irascible celebrity, who came to their home for dinner, slipped and injured himself and was forced to remain in the household until well enough to move. Thus, as used here, it indicates that the unpleasant phrase made such a stir that it could not be quietly forgotten. Sedate: Quiet, calm, serene, serious, staid. Gamy: Highly-flavored; gamy language in- cludes highly. colored expressions which often. are not admitted in so-called polite society. Also, "racy." . Clucked: Literally, made noises like'a hen. Since the sounds sometimes' made by a person in reprimanding a younger one, for example, are similar, anyone who "clucks" admonishes or LXXVII their editorial pages," the image is of a flock of fussy old hens, being most upset at some action or statement, and reproving its author. Cautious: To give cautious approval is to approve so carefully, with so many "ifs, ands and buts", that its force is weakened. In some- what similar fashion, the phrase "damn with faint praise" means to approve so cautiously, and with so many reservations, that the effect is one of disapproval. Showman: A producer of plays, operas, etc. As used in the story, the meaning is extended to refer to a columnist, considered by the writer to be interested only in attracting publicity. Hardy: Bold, brave, resolute, confident, strong, firm, long-enduring. The "hardy expert, on the burning word" referred to, H. L. Mencken, has long been one of the most outspoken journal- ists in America. Burning word: Here used to refer to profane expressions, insults, gamy language. Complained, complains: In referring to a statement made in a book, either the present or the past tense would seem correct, depending upon whether the writer refers to. the moment when the author set his words down (past tense), or the moment when the reader sees the same words (present tense). Fudge: Nonsense, piffle, when used as an interjection; usually cited in derision, as being sissified. Sis-boom-ah: A college football cheer in the US; hence, anything with sis-boom-ah has spirit, verve, enthusiasm, drive. * THE following sentence, with which Mr. Mencken is quoted as continuing, his remarks upon the phrase that caused the uproar, we quote in full: "Put the second person pro- noun and the adjective old in front of it and scarcely enough bounce is left in it to shake up an archdeacon." The phrase then becomes, "You old son of ' a bitch." Bounce: Bouyancy, verve, drive, energy. Shake up an archdeacon: Amaze or unsettle a church official who is next in rank. below a bishop. In other words, Mr. Mencken says that the phrase, as amended, has little in it to amaze or shock, probably because it is often used jocularly. Opprobrious: Attaching disgrace; as, an op= probrious 'epithet. * * * ~1 WE are asked to recommend some of the best magazines devoted to English Language and literature published in the US. This is a difficult question to answer, since there are scholarly periodicals which deal with fine points of.grani- mar and philology, there are good journals for a more general interest, written well,, and there are journals, such as Time Magazine or the New Yorker which have developed a style of 'their own. Of the more general type, Harpers and the Atlantic Monthly are among the best as far as the quality of the language is concerned. The Saturday Review of Literature. erha s the best sin is l f i h k p p g e source or anyone w eep. s ing to chides. Thus in "the For a easer e ease d 6~l ik i Approve : CIA bf-dbW ob1n 8'60007-4 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 Thy China Weekly Review, April 9, 1949 :ntwnnuunnunuuuunainunuununtlunnuununtnninwnnuunnimnnpnwnnnuunnuw nnm~nuunltnunnuunnitutnnmmunngnnnntuuuuumunnuuuunuiuunuuu~u~~uu~iur~ IT'S TRANSPORTATION IS THE HEART OF TRADE. AND THE HEART OF MODERN TRANSPORT- ATIONS PETROLEUM. 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(CHINA) LT Wheelock Building, Shanghai Mel. 12444 Approved For Release 2006/04/21 : CIA-RDP83-00415R003006 to6( -4"E MERCURY PRESS Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 THE CHINA WEEKLY A Weekly Newspaper Established In 1917 April 16, 1949 BACKWARD AREAS AN EDITORIAL A West China Notebook Lynn Chase and ?Amos Landman Dead End In Asia Andrew ;loth Siam: Cockpit Of Interests H. C. K. Woddis RED PRODUCTION DRIVE AN EDITO.3IAL VOLUME 113 ~rI Approved For Release 2006l Diz'1?:0d1A-RDP83-00415R003000060007-Z NUMBER 7 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 16, 1949 Sole Distributors: PT THE CHINA MERCANTILE CO. LTD. Approved For Release 2006/04/ 71 YON-F 3MY9041$9 b3000060007-4 Tel. 13312 Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 16, 1949 LETTERS From The People Comments from readers on current topics are cordially invited: their opinions, how- ever, do not necessarily represent the views of The China Weekly Review. American Aid To The Editor: I have read the article "A Chinese View of American Aid" in the March 19 issue of the Review and strongly sup- port the stand taken by Mr. C. Y. W Meng. I should say it represents the views of millions of our people. The US is failing in its policy to- ward China, and we oppose any military aid program "to prolong our civil war." As Mr. Meng pointed out, there are very few expressions of gratitude from the eaters of ECA rice, and Mr. La.pham's proposal for new aid to the "Nationalists" was unanimously opposed by professors, peace-sponsors and even some legislators. During the past ten years China has been a semi-feudal country, As vivid as, any picture is its personal regime, corrupt dictatorship and the. misery of its people. We Chinese would only wel- come American aid that would really help to bring about democracy, freedom] equality and a new China. Y. C. CHEN. Taiwei, Taiwan April 4, 1949 Christian Writes To The Editor: I am a Christian living in Wusih. I am also a Review reader. The article, "Christian Missions in China" in the April 2 Review helped me understand many things which have been puzzling me for a long time. But I wonder about the point that preachers are too much in favor of maintaining the status quo and individualism, for in China today, in many small towns, the churches are not prosperous. In my mind the whole problem of the relation between the churches and the revolution is full of contradictions and it is difficult to obtain a balanced view. I wonder if you could ask the author of this article to write something more on the problem, for I am certain that there are many Christians like my- self who need help on how -to be a Christian in. the future. ANDREW YUE Wusih April 4, 19,49' Supports Premier Ho To The Editor:. I was very interested in reading your introduction to our new premier, Ho Ying-chin, in the March 26 issue of the Review. It was reported that General He, when the Young Marshal Chang Hsueh-liang kidnapped Chiang Kai-shek in 1936, wanted to bomb Sian where the Gen- eralissimo was being held, but that he was dissuaded from doing so. I per- sonally think He was blameless as far as this incident was concerned. General Ho, it will be remembered, has always been against the Communists uuuwtunuuswnuiuunri:.,u^niuunwIuiuuiuuunuu1uuuu1uuwienuwim1111iiuuuwuuutnoiunwInnunnnnInNnIIIt ' TB.E CHINA WEEKLY REVIEW J. B. Powell (Editor & Publisher, 1918-1947) Assistant Editors Mary Barrett Yang Chen-fang Rose Yardumian Julian Schu'n I.n Joan Faulk ne? John W. Powell, Editor & Publisher Fang Fu-an, Financial Editor Sam J. Wilde, Advertising Manager Correspondents Contributing Editors Lin Wo-chianl?, Charles J. Ca:ining C. Y. W. Me-+g Edward Rol.rhough Ben Y. Lee Frank L. Tsac:? Tseng Yu-hao Shen Chien-tu -James L. Step ,art F. K. Chao, B.tsiftess Manager Jefferson Cath Van Shih-ching Tong Chun-cho Chen Fu-sheng Mark M. Lu Galahad Wood Joseph I. C. Luan Lauw Thian-hok Harin Shah C. Y. Hsieh Joseph P. Lyford Jacques Decaux S. E. Shifrin Ngiam Tong Fatt Hugh Deane - Canton - Chengehow - Chengtu - Foochow - Nanking - Kunming - Shantung - Batavia - Bombay - London - New York - Paris - Seattle - Singapore - Tokyo Chen Pang-cheng, Circulation Manager Index for April 16, 1949 Editorial i'aragraphs Backward .. ................................... ........ 147 Reds Drive For Production ......................................... 149 An UNRRA Ixhost ................................................. 149 Special Articles Dead End In Asia For The West .................... An(frew- Roth 151 A, West Chin r Notebook ...........Lynn Chase and Amos Landman 152 China's Suici,tal Factors At Work ..................A Midnight Cry 15t The Stage Is Their School ............................F'red Rein 154 Siam:. Cockpit Of Anglo-American. Interests ........H,, C. K..Woddis 155 Economic Section The Week's Business .................... .......... ........ 156 DepartmeNNts Letters Frott The People ................. ...... .;......... 141 25 Years A; o .... .. ....... ........ ..... . . 150 The Review's! English Uesson LXXVIII ............................ 15'7 News Of The Week ....... ..i.. 158 Chinese Mag Lzinc Roundup ...................................... 160 US Magazinr Roundup ....................... . ..... 161 What Chinese Papers Say ........................................ 162 What US Papers Say ...................................... 163 New Books If interest ............................................ 164 Subscription Rates t months Shanghai and China Outports ................. GY 120,000 China Outports (Air Mail) ................... GY 140,000 Hongk,.ng and Macao ......................... GY 155,000 and Macao (Air Mail) ............. GY 175,000 6 months 1 year U.S.A. and other Foreign Countries .... US$5.00 US$9.00 Price per copy: GY 10,000 3 months Shanghai and China Outports ................. GY 96,000 China Outports (Air Mail) .................... GY 116,000 (All subscriptions must be authenticated by the individual stu- dent's school and must be sent directly to the offices of the China Weekly Review.) All main rates are subject to change in accordance with postal changes. Cable Addr.ass: "Reviewing" Shanghai Telephone: 14772 PUBLISHED AT 160 CHUNG CHENG ROAD (EASTERN), SHANG- HAI (0), CFINA, BY MILLARD PUBLISHING COMPANY? INCORPORAT- ED UNDER THE LAWS OF THE STATE OF DELAWARE, U.S.A. RE- GISTERED T THE CHINESE POST OFFICE AS A NEWSPAPER FOR TRANSMIS; TON WITH SPECIAL MARKS PRIVILEGES IN CHINA. Content, of previous issues of The China Weekly Review may be found in the "late -national Index of Periodicals," copies of which are on file in most standa ?d libraries. All editc rials, text and other material in the weekly issues of the China Weekly Review are copyrighted under certificate of registration No. 9953 issued by tha Ministry of Interior. Registered with Ministry of Interior of Military Atta in ltau. 'rue ramous assault on the CCs } pi'OPVe6fia lRa asft'i~~~~/ { i~nin ld#?R,G ih,3nL1048C Q413Q4a4f04107++ttnwluiulauniuuuuninliuw>u Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review,. April 16, 1949 'IIIIIIIIIIIIIIIIIIIIltIl111tI111111i111111tI1111111111111111111t IIIIIIIIIIIIIIIIIIIII IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIG 711111111111111111111111111111t11111a Shanghai's American WHY- more than "just a newspaper" . During these trying post-war days, the Shanghai Evening Post and Mercury has slipped into a peculiarly intimate place in the minds and hearts of :readers. Per- haps that is because it tries in every way to be as human as your best friend. Read it for true straight news, most of it printed at least 15 hours ahead of other Shanghai papers; for outspoken views; for bright touches and enter- tainment features which will take your mina off your troubles. For the times, subscription rates arc low: REVISED MONTHLY SUBSCRIPTION RATES Effective March 16, 1949 (Subject To Increase) Local home delivery GY30,000 Pick up your own paper .. .. .. .. .. 27,000 China Outports (Ordinary mail) .. .. .. 31,000 China Outports (Airmail) .. .. GY50,000 to GY70,000 Single Copy (Based on vari )us districts) GY1,500 The Shanghai Evening Post & Mercury 19 Chung Cheng Road, Shanghai (13). was ordered by him. Ile was later sent abroad when General George C. Marshall was attempting to mediate between the Nationalists and the Communists, for there was a feeling that Ho was block- ing efforts to negotiate a peaceful settle- ment. However, many people are con- vinced that General Ho underwent a change of heart while he was .abroad. His speeches abroad were tinged with a slightly leftist coloring. After his return to China, General Ho remained inactive for a period until the time came when he was asked by Acting President Li Tsung-jen to become pre- mier. Immediately after General Ho's appointment, there was much talk about injecting new blood into the Nationalist Government. Although there has been much speculation as to whether or not he could successfully open peace talks with the Communists, I still trust and support him fully and believe that under his guidance the peace-loving cabinet will negotiate a conclusion to the Civil War. WONG SZE-LIANG Shanghai April 2, 1949 No More Surrenders To The Editor: We remember that after our victory over Japan, General Ho Ying-Chin was sent to represent China at the surrender for which he received considerable pres- tige from the people and received at- tention from the world. Now when cries of "Prepare for war if you want peace" are bandied about, Qeneral Ho has formed a new cabinet. It is hard to tell what General Ho will do but it does not seem likely that he will be receiving any more surrenders. BUTCHER CHIA Shouyung, Hunan March 27, 1949 `.uunlummtmnuwull1111u11uutluutluulntutw IIII IH mtumIIIIIIllI 111111111 IIIIluutlllutu llnulr~ nuul lltutlmuutluntllllut- ?urnuwunuwulunuuuuutluuuunuun iinun u 11111111111111111111111111111111111111111 Fill IIIIIIIII fill IF CONNELL BROS. CO., LTD. - Established 1898 Importers & Exporters 149 Szechuen Road, Shanghai (0) Tels. 16833-2-1 Head Office: San Francisco Branches: New York Bombay Tientsin Affiliated Companies: CONNELL BROS. CO. (HONGKONG) LTD. Hongkong and Saigon CONNELL BROS. CO. (MALAYA) LTD. Singapore and Penang CONNELL BROS. CO. (PHILIPPINES) Manila, Cebu and Iloilo ' Foreign Postage To The Editor: With reference to the letter from Mr. Loo Shih-cheng published in the March 26 issue of your esteemed Review under the caption "Foreign Postage," I have to inform you that the tariff of Interna- tional Postage is based upon the rates stipulated in the Universal Postal Con- vention, and the foreign airmail postage is fixed according to the transit charges paid to the Aviation companies by the Post Office. As both are calculated on a foreign currency basis, the postage rates on foreign, mail are collected in Gold Yuan converted according to the rates of the Foreign Exchange Clearance Certificates, published in the daily news- papers. Owing to the frequent fluctua- tions of such rates, the Post Office is compelled to adjust its tariff of Inter- national postage in order to avoid undue losses sustained by it. I shall appreciate it if you will kind- ly publish this letter in your esteemed journal for the information of Mr. Loo Shih-cheng as well as the public in general. Shanghai WANG YU-KUANG Director of Posts Students Sympathize To The Editor: It was a sad surprise to read about the incident involving the injured students in Nanking. According to the Ta Kung Pao, the fight started when the demonstrating students staged the famous "Yangko" dance in the streets, e 11 infuriating idle Nationalist soldiers with :~IIeItIItIItIItIItIItIl111tlltl~ll~l/y~ypra~l,s~Il~iiOPI~~I~~??Il~oo~ro r~nlnl~;GY~I + (f415RV0801N0@ OO1g4ed. Although no, The China We p 16p4,Fq eJgpM92006/04/21 : CIA-RDP83-00415R003000060007-4 casualties were reported among the sol- diers, a number of students were in- jured, and at least one killed. What kind of democracy is this that the Government talks about? By what law was the demonstration for- bidden? Yes, the martial law signed by the Government does not permit demon- strations, but is this law right? In- cidents like the above have the sympathy of the entire student body of China. K. K. C. Soochow April 5, 1949 Words And Deeds To The Editor: The Nanking student incident shows that realization of the word democracy is very different from just saying it. On the surface, acting President Li Tsung-jen makes efforts to stop the Civil War, but the Government. is still killing peace loving students with its secret fifth column. It is high time that the Government revealed that it is using the peace talks as a mask unless it accepts Mao Tze-tung's eight terms. Y. Y. T. Chinkiang, Kiangsu April 4, 1949 Anti-Christianism To The Editor: Following the Nanking student inci- dent, there has been a. sharp conflict between the Christian and non-Christian students at National Central University. IIIIIIIIIII11!IIIIIIIJIJIII:i1C III1111f1111111I111111111 1111/11/1 U 111` r. T EAT AT crran2y s 133 Nanking Road T Branch 11-3 '-,,Iue Montauban 11111111111I11111111111111111111I1'I I I I I III I I I111111111I I I I I I I I I I I II II 1115' 33nit n ORIENT SHANGHAI WATERPROOFING FABRICS CO. 40 NANKING ROAD (W) TEL 96999 X111111!11111111111111111111111111!I' III 1111111111111111111111111111111111111111111111!111111111111111111111111 IIIIIIIIIIIII111! 111111111111111111111111111111111"'~ GALSUCA COUGH SYRUP GENEI'AL ACTION:-It is good for diseases of respiratory organs, and acts to loosen the sputum & facilitate expectoration. COMPOSITIONS: It is an aromatic syrup containing 6% of = = Calcium Cat sol Sulphonate, and is pleasant to take without irritating the stomach. INDICATIONS:-Catarrhal, Bronchitis, Cough in Consumption, = Difficulty in Expectoration, Influenza, Chronic Bronchitis, Pneumonia, Whooping Cough, etc. DIREC'IONS:-4-8 c c (1-2 teaspoonful) three or four times daily; for c'tild 2-4 c c (1/a-1 teaspoonful) with water. After symp- toms have subsided it should be continued for a few days as it is = both curati e and prophylactic. PACKING:-120 gms in bottle. The latter accuse the former of taking THE STRAND CHEMICAL WORKS a cold attitude toward the incident. As a result, the "Democracy Wall" at = SHANGHAI, CHINA. the university is covered with a number = t lbtainable at all Dispensaries & Pharmacies. am not a--Christian, should like to re- 11I11111111111111111111111111111!Ii11111111111111II1111111111I1111111ILIII11111111IIIIIII1111111111III111111111111111111111111111111I 1111111p II111111111l lIII1 port some of them to your Christian , sIuulnunl1111uunIn111111711111e111111I11111111111111111111I1~11111111111p111111111111111111111111111111111111111111111111111111111111 1111111111111111 readers. Here are a few: - God is the other name of backward- ness. Could your God give us bread. and peace? What nonsense-God created man! It is man who created God. We do not want God. We 'want science and democracy. You Christians believe in the existence of God, but we don't. How can you be called men, since you lack a sense of justice and sympathetic hearts, living on others' blood and sweat, fooling the oppressed masses with poisonous doc- trines, asking favors of the ruling masters and helping the reactionary Government to suppress the revolution of the people? The religious period is- gone, This is the time of the people! ?- Y, C. LI. Nanking April 9, 1949 Peace Talks To The Editor: In connection with the peace talks I would like to make the following pro- posal to the Government and the Com- munists PR.E~iD~l~l'i LINER While war can break out at any time when two contesting parties or one agree = to wage war, peace 4s different. The differences between men and nations will always remain. As a matter of fact, within reasonable, limits, such disagree- Vessels Berth Downtown Shanghai All Expre;+s Freight and Passenger Service to San Francisco Shsnghai Via Japan and Honolulu *PRESIDENT PIERCE .. .. .. Calls Los Angeles Apr. 29 PRESIDENT WILSON Apr. 27 GENERAL GORDON via Hongkong, Manila, Yokohama May 4 *PRESIDENT TAFT .. .. .. Calls Los Angeles May 23 *Omits Honolulu Cargo accepted at thru rates to various Central and South American destinations. Special Tanks for Bulk Vegetable Oil Available R,+und the World Freight and Passenger Service to New York and Boston' PRESIDENT VAN BUREN .. Apr. 27 May 11 Via 'Tongkong, Manila, Singapore, Port Swettenham, Pcnimg, Colombo, Cochin, Karachi,. Suez, Alexandria, Marseille, Genoa, Leghorn, Naples. rents are actually wholesome. All pro- = APRESIDENT LINES gress begins with differences of opinion AMERICAN ? and moves forward as the -differences = 1 - What is the Holy Spirit? It is the are adjusted through reason and mutua IN understanding. Peace is, therefore a r 51 Kwang Tung (Canton) Road Telephone 15309 mutual agreement Somme ?aa ~leass112iQQ~{~~/~e~uti/ 'i+ rr t~Dl~l$1$10411~1~6idQQ3Q000GQQQ7 nnuu1n1u1u1uunuunuunwr Approved For Release 2006/04/21 : CIA-RDP83-0044h5,,R&Q 0%q Qy0R7vijw, April 16, 1949 fully and sincerely adhered to by the two parties concerned. Such agreement must depend upon the mutual efforts directed by the parties towards the con- clusion of a peaceful arrangement for that purpose. Many years of war have drained the life of the nation. We want the KMT and the CP to negotiate and explore all means to bring peace to China. The great task of keeping the country in a state of peace and order and leading the country towards modernization is on the shoulders of both parties. Both the Government and the Com- munists should remember the Chinese sayings: "The people are the foundation of the country" and "Those who obey the opinions of the people will succeed and those who do not, will fail." JAMES CHIA Soochow April 2, 1949 Chen Yi Detention other questions put t~ him, Chiang Kai- shek, to test hi$1loyal'.y, asked him what he thought of the 1 +gislators' demand. Chen Yi answered, 't, statesman's merit or demerit will be judged by future his- torians. It is better or him to be frank and straight in all Vs dealings.' "This caused Chia. ig Kai-shek much displeasure. "When the Comnn,nists issued their first list of war crin finals, Chen, reply- ing to newsmen of l WWingchow who asked. his opinion, said: ..what do you think should come fir ;t in our considera- tions, the lives and property of the 43 war criminals, or the welfare of the 470,000,000 lao pai h.:ing.?' "Again, when asked if the capital of Chekiang would be r,ioved, he countered with, 'Why move it'? Where are we go- ing to move it?' "When Chiang ho:-rd -hese two con- versations, he was out raged. At the time Central Bank in Hangchow and concur- when peace was, bci.,g sought through rently Chairman of the Board of Direc- making preparations for war, Chiang tors of the Hangchow Chamber of -Com- thought, it was impossible that Chen, one merce. The. story is this: Some of the of the big shots in the Government, should merchants of Hangchow, in order to evade have been so stupui as not to know taxes, had often made false reports of what effect his ahead remarks' would their capital. When Jon Hsien-chun be- create.' Probably he had some ends of came the mayor of that city, he was his own; he was no longer reliable. greatly dissatisfied with this condition. "Not long after, when Chiang had He sent his men frequently to make in- stepped down 'and Is Tsung-jen had be- vestigations of the various shops. King come the acting pres dent, the latter is- wanted to 'protect' his fellow businessmen, To The Editor: The following is my translation of an article carried in the Hunan Daily News of March 17th, entitled, "Why Chen Yi was Detained": "Though the reasons for Chen Yi's being dismissed from his post as Gov- ernor of Chekiang Province are many, the main one is that he has, lost the confidence of President Chiang Kai-shek. Ever since last winter when Tsinan fell into the hands of the Communists and an investigation was made as to why it fell, Chen has been in Chiang's bad graces. After General Wang Yao-wu was taken prisoner, some of the legisla- - tors in Nanking.... went so far as to demand that President Chiang step down, as the fault was his. Chefs Yi was call- ed to Nanking and questioned, and among sued an order to rele tse all political pri_ -soners, with a view to showing his sin- cerity toward peace, Again Chen Yi took the order, serioi:sly, and bailed' out five arrested student., of Chekiang Uni- versity. When Chen Yi went to Chikow to see President Ch ang, Chiang asked, 'Do you know someth ng of the arrogance of the Che Ta boy:. ' ' and Chen replied, 'Yes, I know of it.' Why didn't you do something about it, hen?' Chiang ques- tioned. 'The more you meddle in their affairs, I am afraid, the more they will become troublesome,' Chen said. 'If you don't meddle, do you think they will cease to make trouble?' asked Chiang. 'At least, I have succeeded in avoiding serious troubles during my tenure of office so far,' Chen Yi replied, "As the conversation went on, Pres- ident Chiang's temper grew shorter, until at last he could no longer control himself. Ile struck his hand on the table, roaring, `Obey me, and you shall keep your post; or else, pack up and get away with you.' "When Chen Yi told his friends of this unhappy scene afterwards, he was all grumbles. 'It is better for me to get away now,' he said. 'If I try to hang on any longer, maybe there will be no chance in the future for me to get away at all.' "Another thing worth mentioning here is the disagreement between Chen Yi and therefore came into direct conflict with Mayor Jen. When -Chen heard of this, he called King to him, scolded him severely, and deprived him of - the title of Chairman of the Board of Directors of the Hangchow Chamber of Commerce. Having been insulted thus, King went; to his boss, a certain big shot, to com- plain. The big shot, greatly offended with Chen for having ill-treated his henchman, went immediately to see President Chiang. By speaking evil of Chen in every way he could, he succeed- JV. a THE CHASE BANK AiliateEl With THE CHASE NATIONAL, BANK OF THE QT"Y OF' NEW YORK Shanghai Of ce: .99 Nanking Road (0) Telephone 11440 Brandies: - HONGKONG - 4 D TIEN' ['SIN ' 4 D PARIS lease Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 16, 1949 ed in rousing Chiang's rage to such an extent that the president decided to dis- miss Chen Yi at once, without even bothering to consult with his most trust- ed subordinates. So Chen was unaware of his having been dismissed until Chow Yen's appointment as the new governors. of Chekiang was made public. "After Chen had been dismissed, Pres- ident Chiang still felt uneasy. His suspicion pained him so much that at last he ordered Chen Yi to be detained. According to some Shanghai papers, Chen Yi was sent to Chuchow, his place of detainment, by a certain general. He. is now leading a secluded life there." P. T. JEN' Hengshan, Hunan March 19, 1949 Will Share Review To The Editor: Ever since the unfreezing of the August 19 price levels, commodity prices have been soaring day by day so furious- ly that they are beyond our reach and the result is that the living standard of the common people has descended to a record low. Both school-teachers and students, with their salaries and sub- sidies lagging far behind, are unable to find a way to keep body and soul to- gether, let alone subscribe to magazines and newspapers. In, spite of being a subscriber to your magazine for only three months, I find in your readers' columns many requests for free ?ubscriptions. , These seem to be usually either from underpaid school- teachers or poverty-stricken students for whom these days even textbooks are luxuries. However, these people are fond of the straight views published in your magazine, and their ardent desire for the truth prompts their appeals for your help. I am extremely sympathetic with these people and with a view to helping them to some extent, I have decided to share my Review. Would you, dear editor, in- troduce me to one of these friends? If possible, I will send him my copy every week as soon as I have finished it and he may return it to one after' he has read it. K. C. LIANG I-chun, Kiangsi March 27, 1949 (Reader Liang will, be put in touch with one of the persons on our waiting list for free copies-Editor.) , Canton Strike To The Editor: One hundred seventy-six professors at National Sun Yat-sen University went on strike on March 25 to demand an improvement in their living conditions. This is the first time that any professors in Canton have struck singe VJ Day. In this respect, I believe Canton's professors have been more patient than those in Peiping and Shanghai, who have more than once. used the strike weapon to pro- test against irregularities. But things have reached such a pass that even the Canton professors could endure their suf- ferings no longer. In an open letter to the public, these professors disclosed that they had re- peatedly appealed to the various authori- ties concerned. Under present infla- tionary conditions, their monthly salary, the equivalent of HK$30, is hardly suf- ficient to support one person, let alone an entire family. 2,000 cattics of ri?e to be contributed to the professors, and they have been gathering firewood, carrying water and doing other odd jogs to help the teach- ers.. Such acts o' genuine sympathy present a sharp coltrast to the Govern- ment's apathy. Hoiping, Kwangtung March 31, 1949 Why No Reporters? To The Editor: According to the newspapers, the Com- munists have refused to let either Chi- nese or foreign reporters be present at the peace talks in Peiping. My opinion is that the main reason for this must be that the Communists don't want to have the conditions in Peiping made knot.,n to persons on the outside. In that else, I can't but doubt the administration, of the so-called liberated areas. t Peiping is as good as the Communist, say, why don't they welcome reporters there? First Army, Sian April 2, 1949- News From Peiping To The Editor: Recently, my sister, who is in Peiping, wrote me saying, "Peiping has fallen into the hands of the Communists. ' Many beautiful buildings,_ are empty. The former officials of Peiping have made their way to Hongkong and Canton, a few even going as far as America. The people left in Peiping, except for a few, are as poor as church mice. Of course, there is;no need for them to escape and most of them have shown no sign that they have any intention of leaving Pei- ping :, My sister reported further that prices are no longer skyrocketing, and, indeed, that prices have been forced down on various commodities by the Communists. All youth of school age are able to re- ceive a free education and daily neces- sities are provided for them. Such news surprises me very much. I have never heard of such a thing in China since I was born. I would rather study in Pei- ping than in Szechuen, where we have to pay thbusands of'GY to stay in school. Y. D. C. Tzeliutsing, Szechuen March 31, 1949 111111111111111 It 111111ail 11111111191111111 I lllill 1111 I I III II Ill 111121111111111W 111111111111111111111111111111111 if 111II 11i 111 III Irl I I I III I11 I 11111111111111 gill v_2 CHOCOLATE EASTER EGGS HOT +- BUNS Confectionery ? Restaurant 1199 Narking Road (W) Telephone 35171 inn11111111uiuunull111111/I'111111111111111111111111II11111111111111111111111111i111111111UI111111111I11111111111110111111(1111 1 0 111 nn11111111111111111- 111111111111111111III I111II11^ nI-111111111111111111111111111111111111111111111111111111111111111I111111111 II11111111111111^111111111111111111[loll fill 11111Blip The "555" clock respects no position: it will work at any angle. No matter how the minute-hand is shifted, you will -oon find it perfectly adjusted. China Clock & their sympathy f/pq~~r'y,,~~their rp'rgofNE~FGO~1r~s7. Th 980dZIK~ ZIKAWEI R,~(l[)y~p+~D_iS clxJ ~ry'~,T~}(y]K{~ 3000060 ~y/7+_'..HONE 70350 fasted for a whU1~+P PEIRKN ~aFCAl ~aS~" 9QggVQI1749 11n~1!1T11i1Rn11117TIrIli R17UN., 1rt11111 1T1IfIffllT,fl,ITlfi i1I11111111u11nlluulluuuululluululul Watch Works Ltd. Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 16, 1949 'I I III11 III 111111111111111111111111111111111111 III 11111111111111 IIIIIIIIII I III 11111111 III I IIIII111111IIIIIIIIIIIIIIIII111111IlIIIIIl IIII1111111111111t11111!1III11111111IIIIIIIIIIIIIIIIIII IIIIIIIIIII111111111t111It1111 ~1111111111t!I1I IIIIII1111111111I ON w. SUPER SERVICE STATION CALTEX 1?' See ALL STAR SERVICING * MARFAK Lubrication Service * Oil Change To Summer Grade * Oil Filter Service * Raditar Flushing * Repack Wheel Bearings * Battery Service Tire Inspection Wheelock Building, Shanghai Teel. 12444 11111111I11lIIIIII11111I11Approved 1 For Release l2006/04/21 : 111IN IIIIII-RDIIIII831-004151R003000060007ll111I11111nIlIIIII111I11lIIIIIIIIIIIfti The China Wee-l~r~ved FoArpRel&006/04/21 : CIA-RDP83-00415R003000060007-4 147 THE CHINA WEEKLY A Weekly Newspaper Established in 1917 ' The editorial pages present each week the opinions of the editor. The other pages of The China Weekly Re- view are written by the other members of the staff and the contributing editors who report and interpret the news irrespective of the views expressed in the editorials. . Backward Areas AS we have mentioned in these columns before, the problem of the "backward areas" has been coming up for more attention recently in Western capitals. In Paris, for example, sudden concern is felt for the pitiable economic state of Indo- China and other French colonial possessions. London, likewise, is worried about the lack of development in the African territories controlled by Great Britain. All of this concern would be more touching were it not for the fact that it is such a, recent development. In days past, when all one had to worry about were the recurring economic depres- sions and occasional wars between the various colonial powers, little attention was paid to development of "backward" areas. Such regions were usually prevented from attaining any worth while degree of industrial or other economic development so that they would fit easily into the old pattern of colonial exploitation for the benefit of the home economy. One does not have to be a devotee of Marxism to understand the role the subject colonies played in the development of trade and industry among the leading capitalist countries of Europe. Capital- ism, as we know it today, got its beginnings in the industrial revolution. After industrialization had reached a certain degree, the factory owners of Europe found that they must develop markets abroad in which they could sell finished products if they wanted their business to expand and prosper. In brief, they-came up against the pro- blem of an oversupply for the home market be- cause of the low purchasing power of the people. Unless new markets abroad were found, a depres- sion at home resulted. Realization of this simple economic fact led to the great rush for colonies. After all available areas had been grabbed by the competing powers, it was inevitable that they would fight among themselves in an effort to secure some of the other nations' colonial holdings. These were the rea- sons behind the scramble for colonies, not, as was Since colonies were to serve the function of export market for finished products and source of supply for industrial raw materials or food, it was obvious that the Western' powers were not interested in developing these backward areas. The American Revolution started largely because the colonialists knew full well that they were getting a raw deal from their masters in Eng- land. It was common practice for colonial pow- ers to pass laws forbidding the erection of factories in colonies. Actually, the ruling na- tions were not only unconcerned about the lack of development in colonial areas, but did every- thing within their power to prevent any such development. When the limits of the market had been reached in colonial areas, the old problem of over- supply again became apparent and depressions continued. In recent years, a new development in the relationship between colonies and the ruling powers took place. Many European businessmen found that if they moved part of their industrial establishment to a colonial area, they could earn a profit even during depression years because of the small operation costs. In. this way,. China, a semi-colonial country, became the field for con- siderable foreign investment. Thus Shanghai, which lacks many of the requirements for a large textile industry, became a major textile center anyway. If English mills, especially during de- pression years when the market experienced a great shrinkage, could not sell their products in India or China because the materials cost too much, it still was possible for mills owned by Englishmen-but established in Shanghai where labor was practically free-to operate at a profit. Thus many English mill owners found them- selves on the horns of a dilemma. They wanted the manufacturing process conducted in England so that the latter country could reap the reward for the labor, but at the same time they found that frequently they could do better financially if they established their mills in the backward areas. The immediate result of the establishment of foreign-owned factories in backward areas was to open the eyes of the wealthy natives who de- sired to follow the lead of the westerners. In China, there developed a small industrial class of Chinese who opened factories to compete with English, American, German, and Japanese out- fits. The foreign powers attempted to throttle this competition by placing obstacles in the way of the native industrialists. This was accom- plished largely via the unequal treaties which exempted foreign business in China from Chin- ese control. Chinese industrialists, meanwhile, always at the mercy of local gangsterism and passing warlords, found it extremely difficult to compete. In the colonies, the foreign powers usually nipped native competition in the bud by simply forbidding the establishment of extensive industrial works by natives. so often proclaimed, a high-minded desire to However, once again a new development has bring Christianity or public health to unenlight- brisen P8e0to upset the boal~dk balance. Revolution has ened natives Approved For Release 2006/04/21 : CIA- Ro0u11 00?00006~6aieas of Asia. All Approved For Release 2006/04/21 : CIA-RDP83-00415 R e, ina 0 $00Qp60100 -4iew,, April 16, 1949 such movements have a strong nationalistic flavor, but some are also developing along class lines. In semi-colonial, semi-feudalistic China a Com- munist rebellion has succeeded to the extent of forcing a corruption-ridden and wholly inefficient nationalist regime to sue for peace. In Indo- China a revolutionary coalition front composed of nationalists and communists has about kicked the French overlords out of the country. In Indonesia, a pure nationalist movement-having split with and suppressed its communist sup- porters-is carrying on the struggle. In Malaya, a Communist-flavored revolt is in full swing, while in Burma, which, like China, might be called semi-colonial, the nationalists and com- munists, plus an autonomous-minded minority group, are engaged in a three ring _ circus. Perhaps this new development is more easily understood in China. Here, the native group which originally opposed the foreign powers who sold manufactured goods and bought raw mate- rials is now attempting to enlist the support of these very same foreigners in the internal class struggle. So long as the Chinese Communists were a force scarcely to be reckoned with, the native nationalists ?ought the foreign imperi- alists. Attacks upon the .,unequal treaties were constant. However, now that the Communists have succeeded in rallying the oppressed peas- antry and are on the point of driving out the nationalists or-at least getting them under con- trol, the latter are turning to their old enemies and requesting support. As things have turned out, it is not the principal colonial powers whose aid is being sought, but that of the United States. This is merely because the leading colonial powers, Britain, France, and Germany, have fought among themselves so extensively that they are no longer in a position to give aid. The United States, although not a colonial power in the strict sense of the word, does operate pretty much upon the same economic principles as the European colonial powers and therefore reacts similarly when it sees a market in process of being eliminated or controlled by its own in- habitants to such an extent that "free" or privileged trade is no longer possible. WITH this background on relations between the "'developed" and "undeveloped" coun- tries -of the world, it is particularly interesting to read the press agency stories from London, Paris, Washington, and other capitals of the "developed" world telling of the great concern that is felt for the inhabitants of the backward areas. Aside from a plaintive wail or two from Paris where the ruling group would like to have Indo-China considered a backward area in need of development, providing, of course, that the money comes from America or some place other than France, the concensus seems to be that Africa is the main undeveloped area in need of economic aid. Perhaps the reason is that the "dark" contineptpp is co ider dl the 21~~ t~0 1 rove or a ease vanced politically and therefore may be exploit- able for a while longer than other colonial areas where the natives, although living in undevelop- ed physical surroundings, have become entirely too well developed politically. All this talk of development, it seems, stems from the late President Roosevelt who had an ambitious and praiseworthy scheme for im- proving the economic status of. all backward areas and for moving populations around so as to relieve pressure on some areas and provide sufficient manpower for development of sparsely populated areas. However, it now seems that Roosevelt's plan is to be dusted off so that it can complement the Truman Doctine, the Mar- shall Plan, and the Atlantic Pact. The present idea is to use American money, materials, and know-how in an effort to expedite the exploita- tion of Africa in the interests of the European colonial powers with whom the US wishes to align herself for the next war. If left to her own devices, the. US might rush in without due consideration and upset the apple cart. A, least that seems to be the opinion in London. The British, who are no- body's fools, have learned a lesson in Asia where a rich empire is slowly slipping out of their grasp. While they want Africa developed so that a substitute source of revenue may be secured, they do not wish to do anything which might cause the Africans to begin thinking along the. same lines as their Asiatic counter- parts. A recent Associated Press dispatch from London sheds interesting light on this point: "A political planner in the colonial office believes Britain probably will have to let go its East African colonies within 25 or 30 years, even in the best circumstances. The same thing, he believes, will happen even sooner on the West African Gold Coast, where political riots have already taken place. This same attitude is re- flected in the colonial section of Britain's new four-year plan' for recovery submitted to the organization for European economic cooperation. "If investment is `pushed too far or too fast,' the plan statement said, `it would give rise to conditions that have the gravest consequences to social welfare and stability.' In short, there are agitators who could profit from inciting Africans with talk of `exploitation by capitalist imperialists.' If development schemes are car- ried out in a way to make this seem partly logical to the workmen, riots and rebellion are likely to. wreck the best laid plans." There it is in a nutshell. Faced with the combined threat of a loss of revenue from straight exploitation of Asiatic colonies and the closure, of normal markets by an embittered native po- pulace, the European powers, whose whole way of life at home is built upon the colonial system, are both anxious and scared to develop new markets in Africa. With the lesson learned in Asia behind them they are conscious that eco- nomic development inevitably leads to loss of CIR- vis-16 gF O b( 6UU7 t ie natives, and poyed For, 2elease 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Wee 1 'Review, Apri 16, 1949 thus are fearful lest such development result in an early loss of these last colonies in Africa. The colonial powers, refusing to see the handwriting upon the wall 'which tells them in unmistakable terms that the days of colonialism are over, are rapidly becoming enmeshed in more and more economic contradictions. Weakened by wars among themselves and loss of revenue from. Asiatic colonies, they are too poor to undertake development of the world's last available colonial region over which they exercise physical control. They have -turned to America for aid, offering to split the profits if Uncle Sam will supply the necessary tools for exploitation. It will be inter- esting to see if the United States is really foolish enough to finance this last hopeless adventure of governments whose thinking has not changed for the past two centuries. The Democratic Life Seventy-year-old Yang Ju Sam, first Korean Methodist bishop, was arrested last night by a special police force for allegedly collaborating with the Japanese ........ Arrest of Yang (a YMCA director in Seoul) was interpreted here as indication of a behind the scenes political tug-of-war being waged between President Rhee and a group of national assembly delegates who are in control of a special police force.... The special police force, informed observers here believe, is a political tool to throttle opposition .......... - United Press dispatch from Seoul, Korea, on March 29. Yang can at least take comfort in the fact that he is living in Southern Korea, a democracy endorsed by the United States, and not in Northern Korea, a Moscow-dominated con- centration camp where the people's freedoms are ruthlessly suppressed. Reds Drive For Production T HE Chinese Communists, according to their radio broadcasts, : are currently engaged in an all-out drive to increase production in all lines. A propaganda campaigns designed to impress upon individual workers and peasants the great need for more materials has been launched. It is ex- plained that the country needs'more food, more consumer goods, more- capital products and that these things can be secured only through increased effort. Every opportunity is used to impress upon the individuals that since they are now working for themselves, they should work harder. Aside from appeal's to patriotism, many con- crete measures designed to increase production have been adopted. A! labor emulation campaign has been inaugurated. Workers"are told of the fine work done in such and such a factory or rural district and asked to enter into competition in an effort to set a new production mark. Con- tests between individual workers in the same or- ganization are mapped out, with prizes for the winners. In addition to these devices, a very,basic inducement has been offered-higher pay. Work- ers are told that their income will go up cor.?-. 1 1 d h tools. Numerous new farm and factory imple- ments, it is said, have already been developed. It, is, of course, far too early to be able to judge the success of this program or even to make an estimate of how much production can be increased or what such an increase would mean to the national economy. However, it is possible to see the basic common sense behind the whole campaign. China is a very poor and undeveloped country and if she is to make any great steps toward increasing her wealth and thereby raising the overall standard of living, it must come from the hard work of the Chinese people. It is true that the mere ending of the Civil War will result in vast improvement. The de- mobilization of soldiers and their return to pro- ductive work, the elimination of the "exploiter class," especially from rural areas, inauguration of efficient and honest government, development of a sound system of taxation, and so on will result in a vast improvement: How - great these advances will be it is difficult to tell with any exactitude, but it is possible to get an estimate of the extent to which China's economy has slipped in recent years. According to Dr. On Pao-sail, of the Academia Sinica, China's national income has been falling year by year since 1936. His estimate puts China's national income in 1946 at 25 percent below the 1936 figure. This is a sizeable drop, especially when one considers that the national' income was rising steadily in the years immediately preceding the outbreak of the Sino-Japanese War. Presumably, China has not only sustained an actual 25 percent drop in income (luring the decade 1936-46, but has lost even more if one were to presume that during this period income might have been increasing yearly had it not been for the war with Japan and the Civil War which followed. Once the return to "normalcy" takes place following - the end of fighting, the percentage-wise increase of national income will' be a slow affair considering that China must start very nearly from scratch. However, if the Communists are able to keep up the spirit of the people, through measures such as those men- tioned in the foregoing, there is no reason why the country cannot develop an ever-expanding in- come which, barring future setbacks such as wars or other national calamities, can theoreti- cally reach a stage where everyone's legitimate wants and needs can be met. If the Communists are able to carry out such a program, they will have succeeded in doing something which no other Chinese government has been able to accomplish, or, for that matter, even to contemplate. An UNRRA Ghost respon ing y wit an production they achieve -~rHE Board of Trustees for Rehabilitation above a certain norm. T Affairs (BOTRA), a post-UNRRA organiza- Encouragement is given to those who think tion set up to supervise the liquidation of certain of methods to improve techniques which result unused supplies which UNRRA willed to China in increased production or in labor saving. In before its demise, has lodged a protest with the some areas workshops or laboratories have been Executive Yuan over the requisitioning of these set up for the FF%&r&PWefl aJ s 04'f2'1 : CIAi 3 044#i*0 i 'A6n0d7-4 Approved For Release 2006/04/21 : CIA-RDP83-0044R5Mh030QR0~PORT~1w, April 16, 1949 Such arbitrary action,. BOTRA pointed out, is in direct contravention of the agreement sign- ed between the Chinese Government and the. United Nations which specified that no relief and rehabilitation supplies granted China, by UNRRA were to be used for military purposes. According to the BOTRA protest, Nationalist troops in re- cent weeks have been helping themselves to the organization's stockpiles. Some one and a half million board feet of lumber have been confiscated. An additional 450,000 cubic feet of sand and 797,300 cubic feet of stone have been carted off by local troops. Besides constituting a violation of the Chinese Government's treaty obligations, the less is, BOTRA alleges, crippling; some of its programs. The lumber, for example, had already been allotted to the Fisheries Rehabilitation Ad- ministration for junk building. It is, of course, always discouraging to see materials designed for productive purposes swal- lowed and digested-apparently without any ob- servable benefits whatsoever--by the Govern- ment's roving hordes of soldiery. However, in this specific case there is a certain ironical touch. For three years the Chinese people have been waiting for BOTRA to start disgorging some materials. Now, it seems, these materials are fii ally being put to some use, even though it may be non-productive. Perhaps we are being a little unfair to BOTRA since its dismal record has been in part the result of circumstances be- yond its control. The whole Fisheries Rehabilita- tion Administration fiasco, we understand, is almost entirely attributable to the selfish inter- ests of the local fish market and fish guild, which have a powerful local protector whose authority apparently cannot be successfully challenged. Shanghailanders have been forced to go without fish or buy them at outrageous prices because the market and guild prefer to operate in an economy of scarcity. A combination of factors consisting of op- position from various vested interest groups, such as the fish guild in Shanghai, corrupt rural magistrates who demanded their "squeeze" from rural improvement programs, landlords who re- sented any imported ideas or materials which might tend to upset the. old feudal relationship between master and servant, and an astounding inability to function efficiently as an organization have made BOTRA much more of a failure than P. success. Now that it is reported that Chinese troops are appropriating materials, many of which have lain in the weather for the past three years be- cause of BOTRA's inability to put them to use, the final curtain may be rung down on BOTRA, as it was on UNRRA, which, wound up its affairs and ceased existence just recently in New York. In any event, it is hardly likely that the Communists or the new coalition regime will be willing to support any of the bureaucratic left- overs, although it is likely that going concerns such as the National Agricultural Engineering 25 Years Ago in The China Weekly Review Any Hope For Szechuen? There is at least one measure of comfort for us as we look out upon the unfolding of -the perennial flower of hope. There has been so little to justify hope, and the flower has been so often rudely blighted, that even if we are doomed again to disappointment, no one will lose very much sleep as a result of the nerve strain we have endured during the past five years with the anxiety we felt during the Great Revolution, at which time there was no fighting compared with what we now expect. We cannot but smile at the philosophic manner in which we now hear of "wars and rumors of war." So we may as well play at the game of hope instead of indulging in an evening's "pleasure" over majongg which pastime might meet with the wrath of the Chief of Police who still needs funds. Whenever we order a consignment of goods from Shanghai, or even Chungking, it is as good as a game of chance, for the exhilaration in watching the slow progress of the native junks as they crawl slowly by the "perils" by water--perils by robbers--perils by the countrymen cannot be beaten by a good horse race. Everyone plays. it. Some put all their stake on the black. The Gloomy Dean has nothing on them. If a soldier walks across the street in broad daylight there is going to be a bombardment of the city within an hour! If the news papers mention that one of the "enemy" is making overtures of peace it only means that the said "enemy" is about to attack, Chungking has been taken away from Liu Tsen Hou at least three times since the tide there turned in favor of the North., But still he seems to remain there. No one blames them-the outlook for so many years has been so gloomy that their glasses are all smoked. Actresses Organize The actresses in Canton have organizer) a union. Among their proposed activities will be the Issuance of a weekly paper to promote their interests. 10 Years Ago In The China Weekly Review April 15, 1939. Japan's Anti-British Campaign Showing the widespread and organized character of the agitation ggainst Britain and British interests in China which the Japanese have lately been conducting in this country through the medium of their puppet governments and local administrations, posters of an anti-British nature were dis- covered last week posted on walls in the western part of the Shanghai International Settlement, which- is adjacent to the territory administered by the Japanese-controlled City Govern- ment of Greater Shanghai....... * China-World Power Evans Fordyce Carlson, writing on "The Unorthodox War Continues," said in part: "When and if Japan commences the withdrawal of her troops toward the seacoast, as the result of the realization of these objectives by the Chinese, the latter will initiate the final or Chinese counter-offensive phase. China's main striking force has never been destroyed and stands ready to execute the final coup de main when the time is ripe. "A nation can never be conquered so long as the people possess the will to resist. China 'still has that will. Both leaders and followers now have everything to gain and nothing to lose by continuing to resist. Moreover, this conflict has Corporation will continue and possibly will forced on China a social revolution which is progressive with receive even more encouragement than in the an effectiveness which, under normal conditions, could not have been attained within another century...... The Giant stirs, past. Approved For Release 2006/04/21 : CIA-R?P183aft4iN:zou3ubObimOb7r~4` great world power." Approved For Release 2006/04/21 : CIA-RDP83-00415ROO3000060007-4 The China Weekly Review, April 16, 1949 Dead. End. In Aia For The West And ew Roth THE Western Powers are like a group of "Dead End Kids" in Asia. Their policies have brought them to a dead end. They' scarcely seem to realize the impasse exists, much less know any exit therefrom. The West knows it has suffered serious defeats. Recent Communist victories have so tipped the balance in Asia that they may well be among the leading reasons for the recent Soviet peace offensive. The Com- munist military and political victories in China make it virtually certain that all 450,000,000 Chinese will be under a Communist-led Government before the end of this year. In the elections in American-run Japan the Communists have boosted the num- ber of their seats in Parliament from four to 36. The American-supported South Korean and Philippine gov- ernments are uneasy as sporadic Communist uprisings break out in various areas. In Viet Nam a Com- munist-led nationalist . coalition harasses the few beachheads still re- tained by the French. In Burma and Malaya the governments find it dif- ficult to extirpate insurgent Com- munist bands which began their up- risings last spring. In Indonesia the Dutch attack has precipitated a guerilla movement which seems like- ly to come increasingly under Com- munist influence. All of these Com- munist movements, of course, have taken considerable encouragement from developments in China. While the Western powers are conscious of their setbacks, there does not seem to be any general realization that they are, to a very considerable degree, in a blind alley. Thus, many American military and political strategists feel that" they can make up for American setbacks in China by allowing the conserva- tive business elements in Japan to achieve enough of a comeback to make Japan an effective ally against the Communist-dominated mainland. By leaning toward the Japanese businessmen, however, the American authorities have helped push Japan- ese labor toward the Communists. In addition this policy has aroused the active fears of those countries formerly under the Japanese heel. In China, for example, reports of America's rebuilding Japan have been one of the most compelling fac- tors pushing the intellectuals 'and even some industrialists-both of them strongly anti-Japanese-into the arms of the Communists. Britain in Malaya 'is also threshing' around in a dead end. Although up- wards of 40,000 police and troops are harassing less than 5,000 pre- dominantly-Chinese Communist in- surgents, the rate at which the Com- munists are being rooted out is very low. In order to cut down the amount of support these guerillas are porting some of them. This arouses the antagonism of much of the Chinese commur=ty which comprises over two-fifths o-' Malay's population. Furthermore, sirce virtually only the Malays volunteer in any numbers for the police and ;nilitary forces sup- pressing the the ?at to Britain's posi- tion, the British government is hard put to resist lemands by Malay leaders for spe vial privileges for -them. These p ivileges are certain to be resented b ; the Chinese. Bri- tain feels comps fled to act energeti- cally in Malaya because its exports of rubber and tin produce over one quarter of Britain's dollar credits. But in fighting 0 preserve this "dol- lar arsenal", i npoverished Britain has been compelled to make sapping police and military expenditures. By its Decer..iber attack on the Indonesian Republic, Holland plunged headlong along ?- route in which com- plete victory seems barred by the wall of Indonesian resentment and resistance and tie only alternative now is complete withdrawal. Until December there always existed the possibility of settlement which would enable Holland to retain its privileged econoi-iie position for prob- ably at least a generation. Holland is a trading na ion which has kept its comparativel, high living stand- ards by serving as an entrepot for Germany and by exporting Indonesian products to the United States and using the proceeds to finance its own imports as well as goods for sale to Indonesia. Although the Indonesians were not willing ?:o permit Holland to retain its prewa? monopoly position, they were willing to allow it a pri- vileged position in exchange for political independence which they reckoned as more important. Many Indonesian nationalists have feared that complete economic independence would put Indonesia under the econo- mic control of it ~ Chinese minority. ALTHOUGH tie Dutch have cap- tured a considerable portion of the leading town: in the area formerly under the Indonesian Republic since they launched thAr current offensive, they have met with more sabotage and guerilla resistance than they anti- cipated. Further more, the unprovok- ed Dutch attack ias strengthened na- tionalist feeling, already very strong among the youta and the educated. To one who has spent any time in Indonesia nothin; has been more un- realistic than th ' professed Dutch elation when it was clear that three Indonesian prir?ces, Rajah Anak Agung, Tengu vlansur and Sultan Abdul Hamid II would go along with the Dutch, desp'Le the attack. The latter two are aristocrats who have always been in t:re Dutch pocket be- cause they feel their only hope of the Indonesian nationalist hares as well as the Dutch imperialist hounds but who, in the last analysis, has decided that as a Rajah his privileges are threatened by a republican re- gime which proved to be strongly anti-feudal in his native Bali. But such allies. can do little if any good; there are comparatively few aristo- crats and many nationalists in Indo- nesia. Dutch military expenditures last year amounted to US$500,000,- 000-almost twice what Holland re- ceived in ECA aid. This year they seem likely to be higher without sue= cessfuIly "pacifying" Indonesia, a necessary prerequisite to its success- ful exploitation. The Dutch have succeeded not only in antagonizing Indonesia nationalists and in aligning other Asian nation- alists against them, but also in com- plicating the already difficult pro- blems of other Western nations. The Indonesian Republican government depended on the US to protect them against the Dutch, and one of the reasons the Sukarno-Hatta govern- ment suppressed its own insurgent Communist opposition so enthusiasti- cally last September was to prove to the Americans that they were sincerely anti-Cqmmunist. When the Dutch attacked and the Americans limited themselves to denouncing the Dutch and stopping ECA aid to Dutch-held Indonesia but not to Holland, many fence-sitting Indo- nesian and other Asian nationalists came to the conclusion that the US. is more interested in anti-Communist imperialists than in anti-Communist nationalists. Britain has been similarly em- barrassed by the Dutch attack. Al- though the British had previously shifted from a fairly neutral position to one leaning toward its Western Union colleague, the Dutch attack complicated British relations with India and other former British pos- sessions. The British, for example, had been working hard to cement re- lations with India, in the hope of keeping it within the Common- wealth. But India has taken the lead in aid for Indonesia, while Britain has discreetly supported the Dutch. In short, the Dutch attack in Indonesia has almost done as much to weaken Western influence in South Asia as the Communist vic- tories in China have accomplished in East Asia. In the meantime, the French have been rattling around in their own narrow cul-de-sac in Viet Nam. Despite an army of over 120,000 men and an annual expenditure of", about US$400,000,000, they are too weak militarily to defeat the Viet- namese and politically they are too colonial-minded to give workable terms even to their favored puppet, receiving, the British feel them- being obedient emi-puppets. Anak In short, the West has come to a selves compelled to root out large Ap un, r br t,_ ,y g ,p n - ~c~ }~ s .and South Asia and numbers of ChApigro edtfea R&ease>. 41 u4i :t i tFit4>i i~3t4d h5FZ0 bNV ~lr?~b* to extricate itcPff Approved For Release 2006/04/21 : CIA-RDP83-00415ROO3000060007-4 The China Weekly Review, April 16, 1949 A West China' Notebook Lynn Chase and Amos Landman BEYOND the coastal belt of China lies a vast country-gaunt, tree- less mountains in Kansu, camel caravans in Chinghai, terraced rice paddies , in Szechuen, primitive tribesmen in Yunnan. West China, including the Central Asian province of Sinkiang, is popu- lated by nearly 100,000,000 Chinese, Moslems, Tibetans, Mongols, Tartars, and others. It is a varied hinter- land lying between Tibet, Soviet Siberia, Red China, Nationalist China, Indo-China, and Burma. Technically, this tremendous tract is under the hegemony of Nanking. But as a practical matter, much of it is autonomous or semi-autonomous. Thus, a big slice of China will not be immediately affected by the Com- munist-Nationalist peace negotiations now proceeding in Peiping, whatever their result. Northwest Metropolis The metropolis of Northwest China is a beige-colored city, Lanchow, in Kansu province. Its buildings are made of the baked earth on which the city stands, and are covered with a layer of dust of this same earth. The city's sidewalks, like those of many Chinese cities, are a hub of commerce. Peddlers clutter them with dried raisins and apricots, garish Sinkiang rugs, Turkestan caps, cotton piece-goods from Shang- hai, and scores of other wares. Mule-drawh droshkies and work- carts-some equipped with pneumatic tires which are scarcer than gold in this area-raise clouds of dust no matter how slowly they move. Just outside the city along the Yellow River, giant wooden water wheels stand motionless, waiting for the spring rise which will start them turning and irrigating, the fields. And in villages along the Yellow River are children so poor that they are naked from the waist down, despite the paralyzing cold. Not far away, in East Kansu and Shensi, are the battle lines of the Communists and Nationalists. If the Reds win, then what? Wu Hua-fu, Kansu Highway Com- missioner, and Gustav Soderbom, a Swedish businessman who has spent most of his life in China, are con- vinced that the Communists can never take and hold the Northwest. The Chinese, they say, are individual- ists and will never submit to the Communist organization of society. Then you talk to Catholic and Protestant missionaries, to -a Turki rug merchant and an American busi- nessman, to the Chinese themselves. They ask that their names be with- held,'then they speak frankly: The Chinese are fed up with war; they go to incredible lengths to The soldiers havr little artillery. avoid conscription; even the most Their small arms inc of half a dozen en mse s not unsophisticated look upon the Central varieties, creating ; supply problem. there is that he is in his 70's, and Government as the cause o hi They v o r e eacher of many taxes, corruptionl4 OV ~ elea(~ A41511 (~P q, ,~ This is China, Many peasants would actually wel- come the Reds, the, businessmen and missionaries agrer. Only the Moslems, whose anti- Communism has a religious basis, will fight. They a minority, but they hold direct :ailitary control of Chinghai and Ninghsia provinces, and indirect control of much of Kansu. The Moslem H ho dominates the Northwest is Gei eral Ma Pu-fang of Chinghai. We pent a day jounc- ing over rutted rotds to call on him in his exotic ca dtal, Sining, 150 miles west of Lar dhow. The moment yoi cross into Ching- hai, an arid, mou, tain-studded tract bigger than Texas you see evidence of impressive pub is works. Every- where young trees have been plant- ed-60,000,000 in tie last five years, we learned later. Roads have been improved, irrigati;.n projects built, wool-processing plt.nts set up, and clinics opened. El, en free schools have been establi:hed-a rarity in China today. By discreet iu uiry, the other side of the coin s revealed. Ma Pu-fang is the al,; elute ruler of the province. He hold, a monopoly in most important en; rprises, including the wool indu:;try, we were told by merchants and others. Taxes are said to be exorbitant. One source reports that Ma drafted - without pay-some 40,0D0 peasant men and women to repair anme bridges which were washed out b"7 a flood. Interview With Ma Thin-whiskered, imposing Ma Pu- fang, whose bearin:?, is such that he gives the impressio i of being four or five inches taller than he actually is, found time for an nterview one 7:00 a.m. So great is his hatred of the Com- munists, he said, that he will fight to the last man. But he also despises the Central Govern meat. He attack- ed Generalissimo Gliang Kai-shek for sending him only y, trickle of arms and ammunition. If acting-Pres- ident Li Tsung-jen makes peace with the Communists, : e continued, he will ignore the pea 'e. He called for American aid. The concensus is chat Ma Pu-fang's Moslem troops wil' fight. and fight well. Those we saw drilling in Si- ring were easily th..+ sharpest-looking soldiers we have s''en in China. But Ma's 100,000 troops are spread thin on a line from -Tihwa, nearly 1.000 miles west c>f Sining, to the Shensi front, about 400 miles east. Following a recen? conference in Lanchow of the governors of the Northwest provinces, Ma drafted enough men for ;mother division. This does not chenge the picture Air Transport, just flew them 50 tons of American aid program muni- tions, but the arms stock remains low. Northwest China, far away on the Central Asian highland, appears beyond the reach of effective Amer- ican help, assuming such help is tendered. Chinghai's hope seems to be that the Reds will not now expend the men to storm the Sining River valley, the main entrance to the province. It is a narrow defile which a small force could hold for a time. Similarly situated as to arms is Ninghsia province, whose governor is another Moslem warlord, Ma Hung-kwei. Ma Hung-kwei, how- ever, is closer to Red territory, has a smaller percentage' of warlike Moslems in his army, and does not enjoy the same natural defenses. as Chinghai. Both Mas represent a Moslem minority ruling a non-Moslem majority. According to reliable, neutral sources, the latter has little or no desire to fight. Chungking And Chengtu Five hundred miles south, in the heart of Szechuen province, are Chungking, China's' wartime capital, and Chengtu, provincial capital. Mayor Yang Shen of Chungking, a former warlord, tells you the peo- ple fear the Communists, but that if, acting-President Li Tsung-jen makes peace, Szechuen will accept it. There is, however, one' proviso: should Chiang Kai-shek reject a peace consummated by Li Tsung-jen, Yang believes that China's rich pro- vinces, including Szechuen, would support the Generalissimo. - Two others, General Hsu Sze- ping, Secretary-General of the Chungking Pacification Headquarters, a military, area embracing four huge provinces, and a high official of the provincial government in Chengtu, both acknowledge that the peasants are fed up with war. The Chengtu Garrison Commander and chief of the secret police, Lieutenant-General Yen Hsiao-fu, denounces the Communists, but say, he is willing to string along with the Central Government in its peace- making efforts. The position of the officials falls into -perspective as you talk to others. General Hsien Teh-sen, an official of the outlawed Democratic League, and a wealthy- landlord living in a hilltop mansion 1,000 feet above the Chialing River, in Chungking, declares, "the people urgently need and want peace." Despite the government's order that political prisoners be freed as evidence to the Communists of good faith in peace negotiations, the staff of two Democratic League papers remain in jai], Hsien maintained. The reason Hsi hi lf i Approved For Release 2006/04/21 : CIA-RDP83-00415R003000060007-4 The China Weekly Review, April 16, 1949 age and scholarship are venerated even among political enemies. Missionaries and foreign consular officers confirm his statement that the people want an end to fighting. You are told of abuses by the government. . The peasant spends two or three days bringing his rice to tax collection offices, for taxes are paid in kind. Eating along the way is expensive for him. But sometimes when he turns in his rice he is told that the grain is inferior, and that he cannot be given full credit for it. He has, no recourse. Then the tax rice is often sold to speculators-sor_retimes government, officials-who dump it on the market at harvest time, depressing the price the peasant' receives for his grain. A few months later, when the peasant has to buy rice for food, the price will have soared. A Chinese recites a jingle com- monly used to describe the public attitude toward government of- ficials : "Meet and not discuss; Discuss and not decide; Decide and not act; Act and not show strength" Men In Uniform Despite the talk about peace, sol- diers are omnipresent. At first, be- cause they are so unmilitary-looking, one does not take much note of them. But then you become aware that wherever you go, however you travel, there are always men in uniform. In Lanchow, there are no customs officials, so soldiers inspect your luggage. On the Chinghai-Kansu border, it is they who check travel- lers (asking us for calling cards rather than passports). In Chung- king, Chinese Air Force planes were flying passengers about the country -for pay. In Chengtu, there were no coolies to load a commercial plane, so soldiers were ordered to do the job. Hanchung, a walled city in South Shensi, is jammed with troops who have been evacuated from Sian, where the war is going badly for the Nationalists. Military traffic on the highway from Szechuen to Han- chung, Sian, and Lanchow is report- ed heavy. Soldiers ride truck con- voys around Kunming to protect them from bandits. Seven new divisions are being con- scripted in Chungking, five in Yunnan, in addition to the one in Chinghai. Officials declare the new units are to be used only if peace negotiations fail. But the men appear dispirited and lackadaisical.. A former colonel in the Chinese army who has. travel- led all over West China says that neither rookies nor veterans have the slightest desire to fight. He adds that even high officers cannot support their families on their pay. With few arms and a populace which may become ugly if an at- tempt is made to force it to carry on the war, West China can only await the inevitable. tion to Article 17t of the Constitu- (1FR f 4 ) by, as Mencius says, When the Communists get ready tion, which declares that "Any law . "collecting for them (the people) to move, the rugged terrain will be which comes into conflict with the what they like, and not to lay on the most important and, some say, Constitution shall be null and void." them what the dislike" ( 47464M the only factor t,@,PpmFao Releaspw2fl~Qgf/d /2vtiteUA D6i.$ 0445RQAf 8 600ii *& t-tt ). Plebian eights: China", ,, Suicidal Factors At Work _A MIDNIGHT CRY ('} P ) OF all the suicid: l factors at work in this pseudo-4 emocracy of ours, the trampling of p dple's rights has been the greatest. The Government has muzzled free ,peech and press, imposed heavy tr xes, monopolized commercial enterpi ses and indulged in the wanton issue of banknotes. In so doing, it has a;! ~nated itself from the people, without whose support no government can lom.g survive. Professors Wen -to and Li Kung- po were assassinated in Kunming because of their outspoken attacks on the corruption c' the bureaucrats. Gestapo and secret service men have been so omnipreser t in cities in the interior that the o vners of teashops and restaurants, jr order to prevent any untoward inc i. cents, had notices posted on their walls reading: "Re- frain from talking politics. By order -of the Gendarme orps." Even in Shanghai men and women have been secretly whisked v vay by the Ges- tapo on the ptetc t that they were either communists or anti-Kuomin- tang and hav; been heard of no more. As ate as last May, disappearances ur.c Hr the guise of suppressing comm anism were fre- quent in Shanghai, but in reality the victims' only crime if it could be called a crime, wan to oppose official - corruption. These activities silenced public opinion, and innocent people, once they were kidnaped by the secret agents, had little .recourse. Many a respectable family was terrorized and its only alternative was to take flight to Hongkong. The activities of the myriad illega and semi-legal organizations drov,> hundreds of in- nocent citizens to Foreign asylums. The Bill of Righ s remained a dead letter in spite of the promulgation of the Constitutiot, on December 25, 1947. There w.: s, for example, the Peking student tragedy, in which 14 students died under rifle and machine gun fire :.nd more than 100 were wounded. No more did the Constitution safe- guard the right to freedom of the press. On July 8. 1948, the Hsin Min Pao, an independ it Nanking news- paper with a 20 y'?ar history and the largest circulation in the city, was permanently suppressed on charges of violating Article 21 of. the Publi- cation Law by "risseminating pro- paganda and atteiapting to discredit the National Government." This Law reads: "No publication may print anything which seeks to overthrow the Kuomintang ire is in contradic- tion to the Thre